The 5 Financial Reports You Need to Be Running


There are five financial reports that are vital to your clients. They contain the core financial information they need to make the most prudent financial decisions. Despite the many different industries, your clients may work in, their size difference, or their goals, all companies need the following financial reports. 

Each of these reports is crucial and is considered a core report for an important reason. Keep reading so we can chat about each one. 

The Big 5 of Financial Reports


The income statement also goes by the name Profit and Loss Report. This statement’s primary focus is on a company’s revenues and expenses during a specified period, such as monthly or quarterly. The income statement has four essential items it spotlights—revenue, expenses, gains, and losses. 

The income statement presents an invaluable snapshot of a company’s operations. It shows the efficiency or inefficiency of its management, underperforming areas, and compares its performance with industry competition. Because of the numbers this report highlights, you can understand why the accounting industry considers it extremely important to provide to your clients. 


This report is precisely what the name implies. In this report, you are comparing your projected budget to what actually occurred during a specified time. It pulls your clients’ spending and revenue income data from their income statement and visually displays the information side-by-side with your projected budget. 

Providing this report to your clients helps them to study their numbers. By seeing and understanding this data, your clients can assess their overall performance, forecast future income, and identify any company areas that perform better or worse than expected.


An AR report is a table that has categorized your accounts receivable based on how long an invoice has been outstanding. This report is a management tool used to accomplish two things. First, it shows how long customers are taking to pay. This kind of data is vitally important information during the collections process. Second, it gauges the financial health of a company’s customers. If a high percentage of customers are slow to pay, this is a red flag for possible investors and the company’s future health. 


The Balance Sheet is a financial report compiling a company’s total assets, liabilities, and shareholders’ equity all in one report. It is one of the Big three reports, along with income statements and cash flow statements used to evaluate a company.

By providing your clients with an actionable balance sheet, they will see trends and make decisions with all of the relevant data in front of them. When they ask you, their CFO, “What’s my bottom line?’ you can point to the bottom line of their balance sheet.


Cash flow is the money that is moving (or flowing) both in and out of a company.

The cash coming into a business is from customers or clients who are buying your products or services. Often customers don’t pay at the time of purchase; this means some of your cash flow comes from collections of accounts receivable. The cash headed out of the business is payments for expenses, for example, rent or a mortgage, in monthly loan payments, and in charges for taxes and other accounts payable.

When you show your clients their cashflow data, you provide them with a way to measure their company’s strength, long-term outlook, and profitability. 


After You Push the Send Button 

Of course, there are almost limitless reports to choose to send you clients along with these five. Which additional reports you choose to send is entirely up to you and your clients.  

Some of these reports you send monthly, others are on an annual basis, some are quarterly reports, and a few are even all options!

After you send off these reports and any others you feel necessary to your clients; there is another step. You cannot just push send and cross your fingers, say a little prayer, and hope they read and understand the data. As a CFO, part of your responsibility is to ensure your clients have the know-how to read them, understand them, and turn the data into decisions. You need to become their trusted advisor

If you feel as if your reports are being skimmed over by your clients and they are just not understanding the importance of the data, press the pause button, and take a step back. Remember, those you send your reports to are not accountants, that’s why they hired you! They most likely don’t want to admit they don’t understand some of the reports’ information. Letting them ask questions and breaking things down into laymen’s terms would be an excellent idea. Not only would it help your clients, teaching them would improve your client/CFO relationship.  

How to Make the Financial Reporting Magic Happen

Your first step to creating and sending these five crucial reports is to schedule a Reach Reporting demo. Not only do we make these five reports (along with many other financial reports) painless to create, we also make it easier for your clients to digest and turn into actionable data.

Reach has spent countless hours creating and designing financial reports and dashboards. And we want nothing more than to share them with you so that you can share them with your clients. Go ahead and schedule that demo; you will not regret it. 

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