Business Reports Explained: Costs, Margins and Cash
Use these short explanations to read a report and ask better questions.
Business resources
Understand this report
Know what the numbers are telling you.
Profit and loss: Shows income and expenses for a period. Profit is not the same as cash collected.
Balance sheet: Shows assets, liabilities and equity at a date. Read receivables, stock and borrowings alongside the profit figure.
Cash-flow forecast: Sets out expected receipts and payments. Update it as collection dates and commitments change.
Stock statement: Helps explain inventory and receivables to the lender. Eligibility, margins and exclusions depend on the sanction terms.
Customer-ageing report: Groups outstanding invoices by days since invoice or days past due, using a stated basis and reporting date. Review disputes, unallocated receipts, credit notes and collection commitments alongside the ageing.