5 Must-Track Business Reports for Small Businesses in the US

 | Updated on: April 22, 2024

Every business owner must track their business performance regularly. Business performance is analysed using reports gathered on various metrics like sales, production levels, customer acquisition rates, etc. There are a few must-track business reports for small businesses that can help them to assess performance accurately. 

Do your numbers represent the true financial health of your business? How well does your business fare compared to its competitors? How do you track the progress of the different operations you run?

Business reports answer all these questions. Considering the importance of business reports, investing in efficient business management software like TallyPrime is wise. Depending on software for report creation and updating reduces manual invention, thus reducing the chances of manual errors. Besides, it enhances the accuracy of the reports.

Let us have a look at the 5 must-track business reports for small businesses in the US that can ensure the smooth and efficient running of the company.

1. Accounting reports

What is the status of your business’s cash inflow/outflow? Are there any outstanding accounts payables or receivables you need to track to get your finances in order? Can you estimate your cash flow for a future period?

Accounting reports help you find answers to these questions and track those finances which are essential to run your operations successfully. Tracking these at least twice a month is important, to stay updated on cash flow trends of your firm, which is one of the reasons why this is one of the must-track business reports for small businesses.

A few examples of accounting reports include ledger reports, cash/bank books reports, purchase/sales register reports, etc. 

2. Inventory reports

As a small business owner in the US, you may have to deal with different types of inventory at various locations. Hence, you must track your stock to ensure all customer orders are correctly fulfilled.

Has your inventory moved correctly from all your warehouses? Is the stock movement happening according to its ageing? Is there enough stock to meet the outstanding orders? Are all Stock-Keeping Units (SKUs) appropriately equipped? Inventory Reports can give you insights into these questions, helping you optimize inventory management efficiently and accurately.

Some examples of inventory reports include stock summary, stock ageing, location summary, movement analysis, and stock reorder reports.

3. Financial reports

Financial reports are the most important reports for any business. As a small business owner, you should track these reports regularly to understand the financial health of your business. These reports list a business’s net profit/loss, assets, shareholders’ equity, liabilities, and other vital information.

Investors, creditors, and other stakeholders look at financial reports to see whether a company is worth the investment. So, as a small business owner in the US, you should ensure that you run these reports regularly and track the numbers to know the financial status of your business.

Some of the important financial reports include the Trial Balance, Profit & Loss Statement (also known as Income Statement) and the Balance Sheet.

4. Management control reports

Another import must track report is the management control reports. These reports shed light on the cost categories, cash flow projection etc. What are the key factors that can impact your performance? Are your operations on track as per the estimates? Is your future cash flow projection healthy? Can it attract stakeholders? Management control reports like budget variance, cash flow projections, cost centre and cost category can provide meaningful answers to these questions. 

5. Market analysis reports

By tracking market analysis reports, small businesses can understand: the pulse of their target audiences, look for strategies to improve market penetration, know more about performing and non-performing markets, analyse customers’ purchase patterns and recent market trends and more.

Thanks to the numbers and data provided by these reports, businesses can make qualitative decisions about new product launches and scrapping off loss-making markets. Industry trends reports, user experience report, product market analysis report, etc., will help you monitor markets.  

Why should small businesses track their business reports?

One easy and effective way for small businesses to generate and track accurate business reports is by relying on software tools. Such tools help with:

• Better control over progress

You can improve your efficiency and growth only when you know where you stand in your industry. Small businesses should constantly track their progress to sustain their operations.

Business reports help them do this easily. By constantly keeping small businesses updated about their financials, these reports help business owners have better control over their progress and plan their operations better than before.

• Better financial and business planning

The numbers reflected in the business reports give you clear insights into cash flow projections and forecasts. Therefore, it allows you to move ahead and make better plans for your growth and expansions.

• Making appropriate decisions on time

Small businesses can use the business reports to make critical business decisions at the right time. Based on report insights, you can instantly decide about reordering inventory, profit/loss-making verticals, accounting, etc.

• Audit trails are the key

Keeping track of all business reports is a significant part of the audit trails of small businesses. Banks, financial institutions, creditors and other stakeholders use these records to assess the health and financial well-being of the company. These can help small and big businesses secure funding for future growth projects.

Bottom line

Running a small business can be challenging, especially in a competitive country like the US. However, with the right software like TallyPrime, your business can easily access critical business reports needed to run the operations successfully.

Knowing what reports to run and keeping track of them regularly may sound like a daunting task, but businesses can do this easily by using TallyPrime’s Go To features. It is a wise business decision to invest in a robust business management software and reap long-term benefits.