Submitted by Jonathon Neil on Mon, 09/10/2012 - 12:00
Being a CPA, I may be a little partial towards the importance of financial reporting for all businesses, including small and medium sized firms. I feel monthly financial reporting, such as a P&L, balance sheet, or statement of cash flows, are important for business leaders to create to maintain control and proactive management. Many business leaders do have reports created, however, often these are snapshots that do not provide a lot of context. They may see profits are up or down over last month or last year, but it may not be easy to understand the drivers of these trends.