3 Financial Reports Every Leadership Team Needs
Let’s be real for a minute, financial reports are supposed to help you run your business better. But if you’ve ever stared at one and thought, “What am I even looking at?”, don’t worry, you’re not alone.
A lot of leadership teams feel stuck reacting to numbers after the fact, instead of using real-time insights to guide smarter decisions.
That’s not just frustrating, it’s risky.
Because when you're working off lagging data, you can miss warning signs, overlook opportunities, and waste a ton of time.
That’s why we’re big believers in data. But not just any data, we focus on the metrics that actually make your life easier.
At Basis 365 Accounting, we help growth-minded businesses set up the kind of reporting that give leaders better insights. Whether you're thinking about outsourced finance and accounting or just need better tools, these are the top three financial reports every leadership team should stay aware of.
1. Cash Flow Forecasting: Your Business's Lifeline
If revenue is the party, cash is the cleanup crew, quietly doing the work behind the scenes to keep things running. A business might be killing it in sales and still run into serious trouble if cash isn't flowing the right way.
A strong cash flow report should show:
What’s coming in and going out, right now
(How much runway you’ve got [LINK TO JUNE BLOG 1]) based on current spending
Timing for big payouts like rent, payroll, or vendor bills
Forecasts for the next 30, 60, or 90 days
Think of this like your business’s early warning system. If you're about to hit a cash crunch, this report lets you see it before your bank account starts sweating.
2. Revenue vs. Expense Trends: The Reality Check
Sales are up! Awesome. But are profits? That’s where this report earns its keep.
You need a clear way to compare how revenue and expenses are trending over time. Are you growing profitably, or just growing? The metrics here will tell you.
What it tracks:
Monthly and quarterly revenue trends
Operating expenses, fixed vs. variable
Margins by service or product line
Budget vs. actual performance
It’s easy to get distracted by top-line growth. But smart leaders want to know: Are we spending smarter as we scale? Are margins holding up? Where’s the waste hiding?
3. AR Aging Report: Find the Cash That’s Already Yours
Here’s the thing, just because you invoiced it, doesn’t mean you have it.
That’s why every leadership team needs a solid Accounts Receivable (AR) aging report. It breaks down who owes you money, how long they’ve owed it, and whether it’s time to pick up the phone.
Your AR aging report should include:
Total AR by age group (0–30, 31–60, 61–90, 90+ days)
Which clients are consistently late
How much cash is realistically collectible in the short term
Trends in average days to collect (also known as DSO)
We’ve seen companies lose sleep over cash flow when they actually had tens, or even hundreds, of thousands tied up in unpaid invoices. A report like this can help you prioritize follow-ups and keep your cash cycle healthy.
With a little help:
We’ve helped companies cut their average DSO in half just by adding transparency and putting simple collection processes in place. Outsourced finance and accounting teams like ours can automate a ton of this work for you, so nothing falls through the cracks.
Why QuickBooks Alone Won’t Cut It
Let’s be clear, QuickBooks is a solid platform. But QuickBooks reports weren’t designed for busy execs who need quick answers to big-picture questions. They’re more like reference sheets, not strategy tools.
The reports inside QuickBooks are static, clunky, and hard to customize. They don’t provide trends, forecasts, or real-time visibility, especially if your accounting data is messy or delayed.
Your Accounting Team’s Secret Superpower? Clean Data
You can’t build smart reporting on messy books. Full stop.
Your accounting team, or your outsourced finance and accounting provider, isn’t just there to reconcile accounts. They’re your data engine. When they process transactions consistently, categorize expenses properly, and close the books on time, they’re setting the stage for high-impact reports.
At Basis 365 Accounting, we handle daily transactions, reconciliations, and monthly reporting with a tech stack that’s built for automation and accuracy. That means you don’t just get reports, you get insights that matter.
How to Turn Reports into Smart Decisions
Okay, so you’ve got your reports. Now what?
Here’s how to get the most out of them:
Make them part of your leadership rhythm
Don’t let your reports sit idle. Use them in weekly check-ins or monthly exec meetings to spot issues early and prioritize action.
Tie them to KPIs you actually care about
Revenue is good. Profit is better. Cash is king. Tailor your reports to focus on what truly drives your business forward.
Automate what you can
Stop pulling reports manually. Set up integrations so your reports update automatically and stay current without effort.
Ask questions, not just for numbers
Don’t just stare at charts, ask why something is trending. Dig deeper. That’s where the gold is.
Don’t go it alone
If your reports feel overwhelming, bring in help. Our team helps prepare and interpret reports for companies every day. It's what we do best! So you can stay focused on what you do best.
Your Reports Should Work as Hard as You Do
If you want to grow your business with confidence, you need more than spreadsheets and good vibes. You need reports that give you a real-time read on where you stand, where you’re headed, and what to do next.
And you don’t have to build them all on your own. If outsourced finance and accounting services are on your radar, consider how much easier, and smarter, your decision-making can be with a team like Basis 365 Accounting in your corner.
We love helping businesses grow from “what’s happening?” to “we’ve got this.” If that sounds like a direction you’d like to move in, contact us today and let’s talk reports.
