3 Financial Reports to Cut Costs
Each month, I run three financial reports to keep an eye on business costs and identify areas to reduce spending.
- Comparative income statement
- Monthly income statement
- General ledger detail
#1 Comparative income statement
This report shows the increases in costs from one period to the next.
For example, look at January 2024 compared to January 2023 and ask a few questions:
Where are costs increasing? Why is this happening? What can we do about it?
#2 Monthly income statement
This report shows cost trends by month. This can be a useful report to identify any one-time expenses, or unusual activity that is out of pattern.
#3 General ledger detail
Once you identify any large or unusual increases in spending, look up the details in the general ledger.
The general ledger tells you what costs were incurred, who it was paid to and when, and provides a description of the expense.
Do this next:
- Watch the short video below: How to run and use these reports.
- Learn more about the Beer Business Finance Association, a network of beer industry professionals.
