4 Essential QuickBooks Reports to Boost Your Business Efficiency

Efficiency is very important in today's fast-paced work world. It's important to have a clear picture of your financial health whether you run a small business or a bigger one. This is where QuickBooks come in handy. As one of the most popular accounting programs, QuickBooks gives you useful information through reports that can help you run your business more efficiently, keep track of your money, and make smart choices.  In this blog, we’ll find out four QuickBooks reports that every business owner should know to improve their efficiency.

Why are Reports in QuickBooks Important ? 

Reports in QuickBooks are more than just a way to keep track of your income and expenses. They are also very useful for making decisions, making predictions, and knowing how your business is doing. You don't have to be an expert in accounting to get useful information from your financial reports if you use the right reports.

But why are these studies so important for the growth of your business?

• Automated reports save you time, ensuring you're not manually sifting through financial data.

• QuickBooks helps prevent human error by automatically updating your financial records.

• Reports give you a better idea of how your business is doing financially and help you figure out what needs to be fixed.

• With comprehensive financial data, you can make better decisions that positively impact your business.

Now, let's dive into the four essential QuickBooks reports that will help take your business efficiency to the next level.

1. Profit and Loss Report (P&L)

The Profit and Loss Report, often called the income statement, is one of the most important bookkeeping reports in QuickBooks for business. This report shows how much money your business has earned and spent during a specific period, typically monthly, quarterly, or yearly. 

What does it show?

• Income: Your total revenue from sales and other sources.

• Expenses: The total of your business expenses, such as rent, utilities, and salaries.

• Net Profit: The difference between your income and expenses.

If your business wants to grow, knowing the profit and loss report can help you figure out how profitable you are. Are your costs too high? Are your sales going as planned? You can find the answers to these questions in the P&L report and change your plan to fit.

Read more: (Download CFMA Template) The Income Statement: Measuring Profit & Loss in Construction

Example:

Imagine you’re reviewing your monthly P&L and notice a sharp increase in operating expenses. This insight will prompt you to review your spending and identify potential areas for cost-cutting. Without this report, you might miss out on recognizing inefficiencies that could be draining your resources.

2. Balance Sheet

A balance sheet offers a snapshot of your business’s financial position at a specific point in time. It balances your assets, liabilities, and equity, showing you exactly what you owe and own.

What does it show?

• Assets: What your business owns (e.g., cash, property, inventory).

• Liabilities: What your business owes (e.g., loans, bills, accounts payable).

• Equity: The residual value after liabilities are subtracted from assets, representing the owner's stake in the business.

The balance sheet is an important tool for keeping an eye on the success of a business because it shows you how solvent the business is. A strong balance sheet means your business is on stable financial footing, while a weak balance sheet could indicate potential liquidity issues.

Example:

By regularly reviewing the balance sheet, you may notice a high debt-to-equity ratio, indicating that your business is over-leveraged. This information can guide you in making decisions about restructuring debt or raising more equity.

Read more: Construction Balance Sheet: A How-to Guide for Owners (CFMA template)

3. Accounts Receivable Aging Report

The accounts receivable aging report is essential for tracking overdue invoices and monitoring how long customers have taken to pay you. This report categorizes receivables by how long they’ve been outstanding—typically in 30-day, 60-day, 90-day, and 120-day intervals.

What does it show?

• Outstanding invoices: All unpaid bills, grouped by the time since they were issued.

• Overdue accounts: Clearly indicates which invoices are overdue and need attention.

Efficient bookkeeping requires that businesses actively manage cash flow. If too many customers are slow to pay, it can disrupt your financial forecasting and affect your ability to pay your own bills. Using this report, you can spot trends and take action, like following up with late-paying clients or adjusting your payment terms.

Read more: Accounts Receivable (AR) Aging Report: Definition, Calculation, and Benefits

4. Cash Flow Report

Cash flow is the lifeblood of any business. The cash flow report shows you how much money comes into and goes out of your business over a certain time period.

What does it show?

• Operating activities: Cash generated or used by day-to-day operations.

• Investing activities: Cash flows from buying or selling assets.

• Financing activities: Cash flows from borrowing or repaying loans.

The cash flow report helps you ensure your business has enough liquidity to meet its obligations. A positive cash flow means you can invest in growth, pay employees, and avoid financial trouble. A negative cash flow could indicate operational inefficiencies or declining sales.

3 More Essential QuickBooks Desktop Reports

If you’re a contractor using QuickBooks Desktop, there are even more powerful reports to explore. These reports give you more information about your projects' finances than the basic ones. Here are three more reports that you need to have in order to make your building accounting even easier.

1. Job Estimate vs. Actuals Detail Report

This report compares your estimated job costs with actual expenses incurred during a project. It’s a vital tool for identifying discrepancies between the budget and actual spending, allowing you to make adjustments early on to avoid cost overruns.

View Sample Report here: Job Estimate vs. Actuals Detail Report

2. Job Profitability Detail Report

The Job Profitability Detail Report Gives you a detailed look at how much money each job made and how much it cost, so you can see the success of each project. You can use this report to find out where your profits are coming from and where you might be losing money.

View Sample Report here: Job Profitability Detail Report

3. Job Progress Invoices vs. Estimates Report

This report tracks how much of your original project estimate has been invoiced, helping you monitor the progress of each job. It ensures that you’re billing clients appropriately and on schedule, reducing the risk of delayed payments and cash flow issues.

View Sample Report here: Job Progress Invoices vs. Estimates Report

4 Steps to Create Your Own Management Report in QB

Creating a customized management report in QuickBooks is a great way to present financial insights in a way that makes sense for your business. Whether you’re looking to track performance, assess profitability, or review your financial standing, QuickBooks offers tools to help you generate the perfect report. Let’s walk through the steps to create your own management report that will help you make informed decisions and manage your business finances more efficiently.

Step 1: Select "Reports"

First, log in to your QuickBooks account. From the main dashboard, navigate to the Reports section, which is typically found on the left-hand side menu. This will open up the full list of reports available to you in QuickBooks.

Step 2: Select "Management Reports"

Once you’re in the Reports section, choose Management Reports. All of the important reports that show how your business is doing are in this group. It is the best place to start for people who want to make professional summaries of how a business works.

Step 3: Choose Your Report Period

Now, select the time period for your report. You can choose from pre-set periods like monthly, quarterly, or annually, or you can create a custom date range depending on your needs. You need to make sure you pick the right time frame to get the best info for your analysis.

Step 4: Preview the Chosen Template

QuickBooks offers several customizable templates for different types of management reports. Once you’ve chosen a template, you can preview it to ensure that it aligns with the information you need. You can also tweak the layout and design, as QuickBooks allows some flexibility in report formatting.

Created Your Completely Report

After previewing and finalizing your selection, you can generate and export the report to a PDF, Excel, or even email it to stakeholders or clients directly. The report will show the financial data for the period you selected, presented in a clear and professional format.

Bonus Tip:

To further personalize the report, you can add your company logo or modify colors to match your brand, making the report not just insightful, but also visually appealing.

Creating your own management report is straightforward with QuickBooks. These reports can provide a comprehensive view of your business’s financial performance, giving you the insights needed to make data-driven decisions and improve business efficiency.

Read more: What Can Be Your Mistakes When Using QuickBooks?

Conclusion: Make QuickBooks Work for You

By learning how to use these four important QuickBooks reports, you can make your business much more efficient, keep your cash flow in check, and make smart choices that help your business grow.

Our services at Construction Cost Accounting can help you if you have too many bookkeeping chores to do. Our team of experts knows how to use QuickBooks and other financial tools to help you keep track of your money and get useful information. Let us help you streamline your accounting processes so you can focus on what really matters—growing your business.