Monthly financial report template for small business owners
One page. Cash, profit, where the profit went, six numbers to watch and three things to do. Free Excel download.
Profit
| Sep | Aug | Sep last year | |
|---|---|---|---|
| Revenue | 152,400 | 148,900 | 133,600 |
| Team cost | (78,200) | (76,700) | (69,800) |
| Contractors | (14,600) | (12,900) | (11,200) |
| Gross profit | 59,600 | 59,300 | 52,600 |
| Overhead | (47,300) | (46,800) | (43,100) |
| Net profit | 12,300 | 12,500 | 9,500 |
Where your cash went
| Net profit | 12,300 |
| Clients owe more than last month | (19,300) |
| Annual software and insurance paid up front | (6,500) |
| Owner pay | (9,000) |
| Loan principal paid | (2,100) |
| Other | 1,400 |
| Change in cash | (23,200) |
Six numbers to watch
Alerts sent this month
- Cash heads below your $120,000 safety level in December.
- Fernhill Brands is past 60 days. It owes $24,800 and the oldest invoice is 64 days old.
Two things to do
- Collect the $24,800 that Fernhill Brands owes you. The forecast has it paid in January. Paid in October, the December low point rises to $129,000, above your safety level.
- Set your owner pay at $6,000 this month. Last month it was $9,000.
Why one page
Most owners get a profit and loss from the bookkeeper each month. It shows whether the business made money. It does not show where the cash went, or whether payroll is safe in six weeks.
Owners read a one-page report. A full pack sits in the inbox. So this template puts the answers on one page and leaves the detail in the books.
What each section tells you
| Section | The question it answers | Where the numbers come from |
|---|---|---|
| Cash today and the lowest point | Can I make payroll for the next three months? | Bank balance and a 13-week cash forecast |
| Profit | Did we make money, and is it better or worse than last year? | Profit and loss |
| Where the profit went | We made a profit. Why is there less cash? | Balance sheet, this month against last month |
| Six numbers to watch | What is changing before it shows up in profit? | Profit and loss, balance sheet, list of what customers owe |
| Three things to do | What do I change this month? | Judgment, from the five sections above |
How to fill it in
- Ask your bookkeeper for three reports after they close the month. The profit and loss for this month, last month and the same month last year. The balance sheet for this month end and last month end. The list of what customers owe you, sorted by age.
- Enter the numbers on the Inputs tab. The Report tab fills itself in.
- Enter your cash forecast low point. If you do not have a forecast yet, use the cash calculator to set your safe line.
- Write three actions. Keep each one to a sentence.
The six numbers, in plain words
| Number | How to work it out | What it warns you about |
|---|---|---|
| Weeks of payroll in the bank | Cash ÷ your weekly payroll | How long you could pay staff if no customer paid you |
| Days to collect | What customers owe ÷ monthly revenue × 30 | Customers paying slower, which drains cash before profit drops |
| Owed over 60 days | From the aged list of what customers owe | Money that gets harder to collect every week |
| Top 5 customers' share of revenue | Their revenue ÷ total revenue | How much one lost customer would hurt |
| Gross margin | Gross profit ÷ revenue | Pricing or job costs slipping |
| Labor's share of revenue | Direct labor ÷ revenue | Overtime, idle hours or underpriced work |
Common questions
What should a small business monthly financial report include?
Cash today and the lowest point coming up, profit against last month and last year, where the profit went, a few numbers that warn you early, and what to do about them. If it does not fit on one page, the owner will not read it every month.
Who should fill this in?
Your bookkeeper, after they close the month. Every number comes from the profit and loss, the balance sheet and the list of what customers owe you.
Do I need accounting software?
No. Any bookkeeping system works. QuickBooks makes it fastest because the three reports you need are standard there.
How is this different from a profit and loss statement?
A profit and loss shows if you made money. It does not show where the money went or whether you can make payroll in six weeks. This page adds both.
By industry
Marketing agency · Web design agency · Consulting firm
Get this worked out on your own numbers
Kestrel CFO sends agency owners a written review and a 12-month forecast every month. No calls. $990 a month.