You might think that you are doing everything right when it comes to your small business' accounting needs, but you just might be missing a thing or two. There are a couple of reports that you should definitely pay attention to make your small business improve and expand, which is what we are going to talk about below. There are a couple of oil and gas revenue accounting basics that you might already be doing, but try adding these things and see your business prosper even more.
The Balance Sheet
The balance sheet is one of the most important on this list, as it gives you a peek of what yous business has and owes at the moment. This might include assets such as bank accounts, an investment account, and accounts receivable. Additionally, this can also include computers, property, equipment, and other physical and intangible properties. On the other hand, liabilities include business loans, credit cards, and basically anything that your small business currently owes.
Profit and Loss Statement
The profit and loss statement or income statement is the most important report for any type of business, whether it's a small or big one. This will allow you to see how much money your business makes, which is crucial for you to be able to gauge what you want to do next. This report should also show you where the money is coming in from specifically, so you'd know which products or services you'd need to focus on. It is important to take a look at this report at least once a month so you have a good idea on the trends and your business' status.
The Accounts Receivable Aging
This report will help you get those invoices paid and collected. You definitely want to make sure that everything will get paid, as of course, this is how your business makes money. This will also help you see which customers usually pay on time and which ones are always late when it comes to payments.
Make sure to create a list of your good and late payers and make it a point to contact them and ask them if there is anything you can assist them with to help payments make easier for them.
The Accounts Payable Aging
Like with your individual customers, you definitely want to keep track of the companies that you usually work with. You would want to know if they pay their dues on time and if they are good payers or are usually late when it comes to payments. This report will also tell you which companies owe you and how much money they need to pay you. Ask your accountant to always keep your books updated so you can easily take a look and see which ones you'd need to reach out to ASAP.
You definitely want your small business to become bigger over time, and one way to achieve this is by properly tracking your accounting details. If you need professional help, then do not hesitate to hire a third-party accounting company to keep everything tracked for your convenience.