Using Your Financial Reports to Make Better Business Decisions This Year
Sarah Stein
▶ Helping Time-Poor Australian Business Owners Streamline Finances, Optimise Cash Flow, and Reduce Stress with Tailored Bookkeeping Solutions.
Do you ever look at your financial reports and think, “Cool, but what does it actually mean?”
You’re not alone!
Many business owners receive a bunch of financial reports from their bookkeeper or accountant – Profit & Loss, Balance Sheet, Cash Flow – and file them away without a second glance. But when you understand how to read the story behind those numbers, you unlock powerful insight to grow, pivot, and lead with confidence.
At Blackwood Bookkeeping Solutions, we believe your financials should tell a clear and useful story – not just tick compliance boxes.
Just like macarons, your reports may seem simple on the outside – but they’re packed with flavours, textures, and clues about what’s happening inside your business.
Let’s explore how to turn those complicated (and let’s be honest – boring!) financial reports into a story about your business, and use them as a practical decision-making tool for the year ahead.
The Financial Reports That Matter (and Why)
Here are the three key reports you should be reviewing regularly – and how they help you make smarter business decisions:
Profit & Loss (P&L) Statement
A snapshot of your financial performance, also known as your income statement. This shows your revenue, expenses, and net profit over a specific period.
Use it to:
Assess business performance month-on-month or year-on-year
Identify high or low-performing products or services
Spot expense trends that may need to be addressed
Calculate gross profit margins for pricing strategy
Cash Flow Statement
Profit and cash are not the same. This report shows how money is moving in and out of your business – helping you avoid nasty surprises.
Use it to:
Ensure you can cover wages, rent, and upcoming BAS obligations
Understand the timing of income vs. expenses
Plan for growth or investment with confidence
Balance Sheet
A snapshot of your financial position at a point in time – listing your assets, liabilities, and equity.
Use it to:
Monitor debt levels and repayments
Track how much you’re owed (Accounts Receivable) and what you owe (Accounts Payable)
Assess the overall health of your business over time
What the Numbers Are Really Telling You
Your financial reports aren’t just static documents – they’re telling the story of your business. They can reveal:
Cash flow warning signs before they become urgent
Seasonal patterns to inform rostering, marketing, or pricing
Leaky expenses that have crept up over time
Opportunities to reinvest when profits increase
Understanding these trends allows you to lead proactively – not reactively.
Don’t Just Receive Reports – Review Them
A big part of our role at Blackwood Bookkeeping Solutions is helping clients interpret and apply their reports.
We don’t just send your numbers and walk away – we try to show you what they mean in plain English and connect the dots to what’s happening in your business.
That might look like:
Walking you through your monthly reports on a video call
Setting up custom reports and dashboards
Highlighting anomalies and areas for deeper analysis
Helping you link financial performance to team, systems, or service issues
Take the First Step Toward Financial Clarity
If you’re not sure where your business stands, start with our Small Business Financial Health Check. It takes just a few minutes and will help identify whether your reports are serving you – or just sitting in the background.
Ready to Read the Financial Story of Your Business?
If you’re ready to stop guessing and start leading your business with insight, we’re here to help you turn those reports into real-time decisions.
Book a discovery call with Sarah and let’s build a financial story that supports your vision for the year ahead.
Book a discovery call with Sarah
Take the First Step Towards Financial Clarity and Confidence
We’re here to help you streamline your financial operations and eradicate financial stress in two simple ways:
Stay Updated and Inspired Join our LinkedIn newsletter, Eradicating Financial Stress, for regular insights, tips, and updates to keep your business thriving. Subscribe here.
Get Personalised Support Book a private session with Sarah for a deep dive into your Xero file. Together, we’ll uncover opportunities to optimise your cash flow, boost efficiency, and fuel your business growth. Book a session here.
Let’s work together to simplify your finances and elevate your business!
Helping AU digital marketing businesses thrive | CPA | Xero Advisor
3wSo true, Sarah! Financial reports aren’t just for the ATO, they’re storybooks for smart decision-making. When clients finally see what their numbers are telling them, it’s like unlocking a superpower. Helping small businesses read and act on these “macarons” is one of the best parts of being a bookkeeper. Thanks for championing financial clarity!