If you use Xero software for your bookkeeping, then you’re off to a good start.
But once you’ve got everything entered and up to date, don’t forget to regularly check the key reports that Xero can give you. That way, you can:
- Assess past performance
- Highlight any problems (a gut feeling that something doesn’t look right is something that should be taken notice of – tell your accountant!)
- Plan for the future
So, once you’re up to date, here are five key reports that can make a big difference for your business:
- Profit and Loss Report (Income Statement)
This report gives you a clear view of your income, expenses, and overall profit for any time period. It helps you see how well your business is performing and where you might need to cut back or invest more.
You can alter the report to show you monthly, quarterly, or yearly results, and compare to past periods.
- Balance Sheet Report
Think of this as a snapshot of what your business owns (assets) and owes (liabilities) at a point in time. It’s perfect for understanding your business’s financial health and making smarter decisions about growth.
- VAT Report
If you deal with VAT, this report is essential. It shows how much VAT you’ve collected from sales and paid on purchases, making it easier to prepare your VAT returns and stay compliant with tax rules.
You don’t have to wait until the end of the quarter – you can check this weekly or monthly to ensure you’ve got enough put away to pay the bill when the time comes round.
- Aged Receivables Summary
This one tracks who still owes you money and how overdue their payments are. It’s a lifesaver for keeping your cash flow healthy and staying on top of unpaid invoices.
- Aged Payables Summary
On the flip side, this report helps you keep track of what you owe your suppliers. It ensures you’re managing payments on time to avoid late fees and maintain good relationships.
These reports give you the insights you need to stay on top of your finances and make informed decisions—without drowning in numbers. With Xero, it’s all about working smarter, not harder!
And if you need any help, get in touch. You can call us on 01634 540040, or email: andy@aktax.co.uk