- Receive monthly Profit and Loss and Balance Sheet reports, not quarterly, for timely financial review.
- Financial reports must be provided no later than the 10th of the following month to be useful for decision-making.
- Reports must be accurate; inaccurate data leads to poor financial decisions. Proper account setup and automation help ensure accuracy.
- Access to “real-time” financial information is optimal, allowing for more frequent and effective reviews throughout the month.
- If your accountant cannot provide timely, accurate reports, you must find a new provider for your business’s financial health.
Your Questions: What Financial Reports Should My Accountant Provide?
At a minimum, you should receive monthly (not quarterly) financial reports – Profit and Loss Statement and Balance Sheet. These reports should be timely – you should receive both reports no later than the 10th of the following month. Old financial statements – say several months old – are useless when providing data that you, as a business owner, can use to make sound financial decisions. You need to review recent financial information – last month’s numbers. It is even better if you have access to review “real-time” financial information. Our sister company, ChildCareOwner.com, provides our childcare business owner clients with 24/7 online access to all their accounting information. Having the ability to review your business’s financial information like this several times a month is optimal.
In addition to receiving financial reports in a timely manner – no later than the 10th of the following month – the financial information must be accurate. Inaccurate financial information often leads to inaccurate financial decisions. Accurate financial information requires your childcare accounting information to be set up correctly – correct charting of accounts, all bank accounts, credit/debit cards, and payroll correctly integrated with the accounting software. Automation lessens errors. Automation is essential in today’s digital financial transactions world.
If your current bookkeeper/accountant/CPA cannot provide timely and accurate financial information and reports, you must change to another professional accounting provider. I heard that groan – Yes, I know switching is not easy – but running a financially healthy childcare business requires timely, accurate financial information.
“The Financial Management of Your Child Care Business is Too Important to Not Have Timely, Accurate Financial Information to Review, Analyze, and Rely on for Decision Making.”
Donna S. Dailey
