bookkeeping, Strategy

How many times per year do I need to look at my financial reports for my business?

Posted on by Sarah Taylor

Financial reports are an important part of understanding where your business is now and planning for where you want it to be in the future.  

But exactly how often do you need to be reviewing these reports? Advice you find on the internet varies drastically, from some suggesting a simple annual review to others insisting you schedule time in once a week to look everything over. 

The truth is, there’s no one size fits all answer to this question. How often you need to review your reports depends on what stage your business is in. Here are our recommendations for how often you should be looking over your business reports, and why it matters: 

Even businesses just starting out need at least a biannual review

Even if you’re on day one of your eCommerce business with a total of two sales, we don’t recommend reviewing your reports any less than twice a year. The purpose of accounting is to help you make better business decisions, but you can’t make those decisions if you’re not reviewing your data. 

For example, what do your profit and loss statements look like? Are you in a position to hire more team members or invest in new assets, or is it best to hold on to the cash you have for daily operations?  Reviewing your reports helps you make these decisions with confidence and objective data backing you up. 

At least a biannual review will also help you prepare for paying your taxes. No one likes a surprise tax bill, and it can be crippling to a small business to owe an unexpectedly large sum to HMRC. With at least a biannual review, you can start setting aside cash based on your current tax estimates, though we recommend reviewing far more often than this to most business owners. 

Quarterly reviews are best for small businesses

At Tailored, we do at least quarterly reports for all our clients. This is because in the business world, and especially in the t.v industry and e-commerce, things can change very quickly. You’ve probably already experienced peaks and valleys in the volume of your transactions, your expenses and your gross profit, and all of this will affect your ultimate tax liability. 

With quarterly reviews, you can be better prepared for tax season and not worry about overspending and feeling cash-starved when HMRC comes knocking. Plus, this can also be a good check-in to make sure you’re not getting behind on your bookkeeping if you’re doing it yourself. Having to catch up on three months of data is a lot less hard than catching up on six months! 

Increase to monthly reviews if you have a turnover of more than £250,000 or you have a fast growing business with changes ahead.

Months come and go very quickly. That’s why we only recommend monthly reports AND reviews if your business is growing incredibly quickly. Your circumstances will be changing rapidly if your turnover is over £250,000 and profit margins may be tight in a growth stage, so it’s important you stay on top of all those changes so you can keep building on your success. 

However often you’re reviewing them, your financial reports are only as good as the data behind them. We specialise  in setting up financial systems that run efficiently and accurately without your oversight, so you can spend more time doing what you love. Take control over how fast you grow, how much you work and where you take your business. Book a call with us today.

Katie

Senior Accountant

My favourite part of what I do is seeing our clients grow and enjoy their success. From helping clients with tax returns to undertaking monthly and quarterly reviews, I relish the variety of tasks and great people I get to work with in my day-to-day. Having gone back to college in my 40s to gain my accountancy qualifications, I now love working in an approachable, helpful team…and I pride myself on making a top-notch cuppa for my colleagues in the office!

Outside of work, I enjoy spending time with the people who make me happy. You’ll find me going for walks with my family, friends and adorable labradoodle. My motto? Work hard, play hard!

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Sarah

Director

I founded Tailored after spending many years in the corporate world craving a work-life balance. Wanting to spend more time with my young children without sacrificing my career, my aim was to help small business owners achieve that same balance. I’d always loved numbers and how they can tell a story, explain the past and help predict the future, so I wanted to use that power to support entrepreneurs. 

It’s been an incredible journey growing my business while also seeing our clients also grow theirs. I’m now surrounded by a wonderful team, united in our values of family and learning. We’re a people-oriented firm that loves face-to-face client meetings over a hot cuppa, and we always prioritise the work/life balance Tailored was built on.

Outside of work, I’m a huge advocate for increasing support in schools for children with autism and ADHD. I love staying active, enjoying a stroll in the woods or going to the gym, and one of my proudest achievements is completing the “Couch to 5k” challenge!

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Tula

Office Manager

I’m all about building strong client relationships, and due to the nature of my role I’m lucky enough to work with almost all of our wonderful clients. I make sure they’re onboarded properly and have a friendly point of contact for any admin queries, as well as liaising with them to complete confirmation statements, payroll and bookkeeping.

My role also means I get to arrange events and office celebrations for our fantastic team. Outside of work, you’ll find me spending time with family and friends, drinking copious amounts of coffee or dancing the night away at a concert!

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Hayley

Senior Accountant

Before our firm merged with Tailored in 2022, I was the owner of Martin & Co Accountants for 13 years. I love working with and helping our clients of all sizes, from small sole traders to multi-million-pound companies. I’m FCCA qualified and my role means I deal with all aspects of accounting, from bookkeeping to management accounts and tax returns.

Many moons ago I used to play ice hockey as a goalie, and while I’m no longer on the ice, you might well find me in the snow! I love to travel, whether it’s soaking up the sun on a beach, skiing down a snow-topped mountain or scuba-diving among schools of colourful fish!

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Kerri

Trainee Accountant

I’m currently doing my accounting degree, which means I get to apply everything I learn in my university course to my role at Tailored. It’s a fantastic way to get hands-on experience with lovely clients and a collaborative team, and my next step will be working towards an ACCA qualification.

I mainly work with sole traders and limited companies, assisting with their bookkeeping to organise their transactions. When I’m not at work, I enjoy doing watersports and love spending time with animals, whether it’s walking my dog or horseriding.

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Julie

Semi-Senior Accountant

As the go-to person for all things related to management accounts, I work with clients of all sizes. I’m a fully qualified chartered management accountant. From one-man bands up to large limited companies, I love the variety of businesses I interact with every day.

In the office, you’ll find me organising clients’ transactions and payrolls fuelled by a hefty cup of my favourite coffee and a sweet treat. Outside of work, I’m somewhat of an adrenaline seeker; I once abseiled down Table Mountain in South Africa!

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Ruth

Assistant Accountant

For me, it’s all about the end result. I get great satisfaction from compiling data to produce accounts, and it’s made even better by the approachable and friendly clients I work with. My favourite part of what I do is putting together management and year-end accounts, and I love the fact we get to help local businesses.

I have a penchant for organisation, even running the admin for my son’s football team! It’s something we’re all involved in as a family, with my husband also helping out with coaching. When I’m not cheering on my boys’ football team, you’ll find me flexing my creative muscles. I love art and design and enjoy getting involved in anything crafty.

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Sarah R.

Senior Accountant

I like to take a people-first approach in all of my work. From cutting out the financial jargon to using clear communication to help clients develop their business, I always aim to connect to the human. I trained in industry alongside Sarah Taylor and I’m also a fully qualified chartered management accountant.

I’m the office go-to person for property and e-commerce accounting, and take pride in providing accountancy services and tax expertise to small businesses in a timely manner. The outdoors is my happy place, and I love going for walks with my family and breathing in the fresh air. A few years ago I climbed the Three Peaks; Ben Nevis, Snowdon and Scaffel Pike…but not at the same time!

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Will

Bookkeeper

Supporting local and family businesses is something that’s close to my heart, as Tailored’s founder Sarah is my sister! I look after the bookkeeping and VAT returns for a variety of clients, including those in the film and TV industry.

My day-to-day involves getting hands-on with Xero and QuickBooks and helping business owners make sense of their finances. When I’m not helping clients harness the power of their numbers, I love spending time with my young son or enjoying a classic episode of Only Fools and Horses. Of course, all with a good brew in hand.

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