At the end of each fiscal year, it’s important for small business owners to review the performance of their businesses. Year-end accounting reports offer useful metrics for evaluating performance and allow small business owners to identify what they’ve done right and what they need to improve.
The year-end profit and loss report summarizes the incomes and expenses of a business for the year. Small business owners can use this report to find out how profitable their business is and determine the cost of running their business. This report also allows business owners to forecast their sales and expenses for the next fiscal year.
The balance sheet report offers small business owners a financial snapshot of their businesses. They can clearly see how much they own and how much they owe.