Using Xero / MYOB Reports & Keeping Track of Important Numbers

With good reporting, your business can run smoothly, follow the rules, and reach its goals. This week, let's look at how to use Xero and MYOB reports effectively and why tracking key numbers is important for your business.

Using Xero / MYOB Reports

It's important to know which reports to use and how to understand them to keep track of how your business is doing:

Pick the Right Reports

Bookkeeping software like Xero and MYOB offers different reports to help you see how your business is doing. Here are a few key reports:

• Profit and Loss Statement: Shows your revenue, costs, and profit over a specific period.
• Balance Sheet: Provides a snapshot of your business’s assets, liabilities, and equity at a given point in time.
• Cash Flow Statement: Tracks the flow of cash in and out of your business, helping you understand how much cash you have.

Choose the reports that give you the most useful information for your business. Each report provides different insights, so picking the right ones is important for making good decisions.

Make Reports on Time

Make sure your reports are done and reviewed regularly. Timely reports let you see how your business is performing at any moment, helping you make quick and smart decisions. Regular reporting can identify trends, spot issues early, and help you stay on track to meet your goals.

Keep Track of Important Numbers

Watching the right numbers can really help your business do well:

• Figure Out Key Numbers: Identify the most important numbers for your business. These could include how much it costs to get a new customer, how much money a customer brings in over time, or how quickly you sell your stock.
• Know Your Numbers: Regularly monitor these key numbers. This helps you set realistic goals and track your progress.
• Watch Your Break-Even Point: Frequently check when your business's income equals its expenses to ensure you're covering costs and moving toward profit.

Keep a close eye on your KPIs. Regularly reviewing these important numbers helps you set realistic goals and measure your progress.

Regularly check your break-even point—the point at which your total revenues equal your total expenses. Knowing your break-even point ensures you're covering your costs and moving toward making a profit. It’s a crucial metric for assessing the financial health of your business.

How Can You Use This for Your Business?

Jodi Porteous, our chief educator, helps business owners like you implement these strategies based on your business’s needs. Join our Elevation Training with Jodi Porteous to learn more about reporting and how to help your business succeed.

At Northwest Accountancy, we're committed to helping you build a strong financial foundation for your business. Contact us today to learn how we can support your journey to success.