Understanding Your Numbers: Key QuickBooks Reports Every Business Owner Should Use
In this episode of QuickBooks Mastery for Small Business Success, Erica Northrup and Lee Davis focus on one of the most powerful—but often underused—features in QuickBooks: financial reports.
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For many business owners, running reports can feel like a task reserved for accountants. But in reality, these reports are essential tools for understanding performance, making decisions, and closing out each month with confidence.
Why Reports Matter
Running reports isn’t just about reviewing numbers—it’s about gaining clarity.
In fact, Erica and Lee emphasize that running reports is a key part of closing out your month. Without them, it’s difficult to truly understand how your business is performing.
QuickBooks offers a wide range of built-in reports that require little to no customization. The key is simply knowing where to find them—and using them consistently.
The Core Reports Every Business Should Run
Here are the essential reports highlighted in this episode:
Profit & Loss Statement
This report shows how your business performed over a specific period.
- Found under Business Overview
- Run it monthly using your preferred date range
- Helps you evaluate revenue, expenses, and overall profitability
Balance Sheet
Think of this as a snapshot of your business at a single point in time.
- Found under Business Overview
- Shows what you own (assets) and owe (liabilities)
- Provides insight into the overall financial health of your business
Cash Flow Statement
Understanding profit is important—but understanding cash is critical.
- Found under “My Accountant”
- Tracks where your cash is coming from and where it’s going
- Helps you avoid cash shortages, even when profits look strong
Sales by Customer
This report gives visibility into your top clients.
- Found under sales and customers → sales by client summary
- Shows how much revenue each customer generates
- Can be sorted from highest to lowest
- Helps identify your most valuable relationships
Budget vs. Actual
This report compares your planned performance to reality.
- Found under the Gear Icon → Tools → Budgeting
- Helps you stay aligned with financial goals
- Highlights areas where you may need to adjust
Additional Reports to Consider
QuickBooks offers even more insights depending on your business structure:
- Profit & Loss by Class
Useful if you operate multiple divisions or businesses under one umbrella - Payroll Reports
Help track employee-related expenses and obligations
Many of these reports are readily available in the Business Overview section, making them easy to access and use.
Why These Reports Are Essential
Using these reports regularly helps you:
- Set realistic revenue goals
- Prepare for loan applications
- Determine when it’s time to hire
- Identify areas to reduce spending
In short, they turn your financial data into actionable insights.
Practical Tips for Staying Consistent
Like most financial habits, consistency is what makes the difference.
- Run your reports by the 10th of each month
- Set calendar reminders so it becomes routine
- Save customizations if you adjust filters or views
- And most importantly: just use them
You don’t need to overcomplicate the process. The reports are already built—you just need to access them and make them part of your workflow.
Final Thoughts
Managing your business finances effectively isn’t about perfection—it’s about consistency and clarity. The more you understand your numbers, the better equipped you are to make confident, strategic decisions.
As emphasized in this episode, the right systems—and the right support—can make all the difference in building a sustainable, successful business.
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