Management account reports include your income statement, cash flow analysis, accounts receivable, accounts payable, overhead costs, sales forecasts, value of inventory on hand and analysis of key indicators and historical and budgeted information. This reporting allows management to make educated decisions based on the needs of the business. Let’s discuss how each of these reports can help you make smarter decisions for your company.

Profit and loss reports are a key part of your business analysis process. A profit and loss report displays the net income of your company over the previous month or reporting period. This includes all wine and beverage sales, as well as any returns on your investments.

That net income is then contrasted with a summary of your business expenses. This comparison is used by accountants to determine your business’s profit. Doing so results in a clear snapshot of the health of your company, which can be referenced with ease for future financial decisions.

A cash flow analysis allows you to keep track of the money flowing in and out of your business over a select period of time. An accountant compiles all income and expenditures for the week, month, or quarter. Operating costs, income history, investment history, and financing activities are included.

A cash flow report makes it simple for wineries and beverage companies to determine where their business makes money and how where it is utilizing it. If there are any issues keeping the books balanced, analyzing your cash flow will help identify those issues early.

An accounts payable report is a measurement of your company’s outstanding operating debt. These are short-term debts that you owe to either suppliers or creditors. This report allows you to keep track of where you need to direct funds first and plan your future payments.

You can also use an accounts payable report to analyze your budget. An accountant can break costs down by department, allowing you to locate your greatest expenditures. You can then reference this information if you seek to lower the cost of doing business.

Wineries and businesses in the beverage industry enjoy working with repeat clients, some of whom hold large accounts. Accounts receivable reports are crucial to keeping track of all money owed by your customers.

Each customer will have an individual accounts receivable report. This displays all unpaid invoice balances. It allows you to keep better track of your projected income for each month. You can also use it to determine how long the balance has been outstanding and whether you need to get in touch with a late-paying client.

Balance sheets are necessary for managing your business accounts. This is an end-of-period report that tabulates your company’s assets, liabilities, and stockholder equity. At its essence, it provides a snapshot of the information collected in all the report types discussed above.

A balance sheet is your best tool to understand the financial health of your business. You can easily compare what you owe and what you own. From there, you’ll be able to make financially savvy decisions to guide the company toward future success.