As a custom homebuilder, you’re passionate about creating unique and stunning homes for your clients. However, it’s important to remember that running a successful business also requires careful attention to your financials. By regularly reviewing key financial reports, you can gain valuable insights into your business’s financial performance and make informed decisions about its future. Here are the top five financial reports that every custom homebuilder should be tracking:
1. Balance Sheet
This report provides a snapshot of your business’s financial position, including its assets, liabilities, and equity. By reviewing your balance sheet regularly, you can get a clear picture of your business’s overall financial health and identify areas where improvements can be made.
2. Income Statement
The income statement summarizes your business’s revenue and expenses over a specific period of time. This report can help you track your profitability and identify areas where you may be overspending or underspending.
3. Cash Flow Statement
The cash flow statement breaks down your business’s cash inflows and outflows into three categories: operating, financing, and investing activities. By reviewing this report, you can identify which areas of your business are generating and using the most cash, and make informed decisions about how to allocate your resources.
4. Accounts Receivable Aging Report
This report categorizes outstanding accounts receivable by the due date of the invoice. By reviewing this report regularly, you can identify any overdue payments and take steps to collect them, ensuring that your cash flow remains healthy.
5. Budget vs. Actual Report
This report compares your actual revenue and expenses to your budgeted amounts, helping you identify areas where you may be overspending or underspending. By reviewing this report regularly, you can make adjustments to your budget and improve your financial performance.
At Turquant Services, I am more than just your bookkeeper – I am your partner in success. I’ll work with you to analyze your financials, identify areas for improvement, and make informed decisions about the future of your business. Contact me today to schedule a consultation and learn more about how I can help you achieve your financial goals as a custom homebuilder.
