How to read your financial statements & Monthly management reports

Your monthly package may include:

• Profit & Loss Statement (Income Statement)
  Overview of revenue, expenses, and net income.

• Balance Sheet
  Snapshot of what your business owns (assets), owes (liabilities), and your retained earnings (equity).

• Cash Flow Statement (if applicable)
  Tracks actual cash movement in and out of your business.

• Accounts Receivable (AR) & Accounts Payable (AP) Summary
  Lists of who owes you money and who you owe.

• Monthly Notes or Summary from EO CPA
  Key highlights, questions, or reminders for the period.

✅ Profit & Loss Statement (P&L)

• Revenue – Are sales where you expect them to be?

• Expenses – Are there large or unexpected expenses?

• Net Income – Did the business generate a profit?

💡 Tip: Review trends over multiple months to identify patterns or changes.

✅ Balance Sheet

• Assets – Includes cash, accounts receivable, equipment, etc.

• Liabilities – Credit cards, loans, and accounts payable.

• Equity – The value of your business after debts.

💡 Tip: Check that bank balances match your bank statements.

✅ Cash Flow Statement

• Operating Activities – Day-to-day income and expenses.

• Investing & Financing Activities – Loans, equipment purchases, etc.

💡 Tip: Profit ≠ Cash. This report explains your actual cash position.

✅ AR/AP Summary

• AR (Accounts Receivable) – Clients who owe you money.

• AP (Accounts Payable) – Bills you owe to vendors.

💡 Tip: Collecting AR faster improves your cash flow.

Your monthly financial package will be emailed to you and is uploaded to your Monthly Management Folder #2 in Google Drive.

If you need help accessing it, feel free to reach out.

How EO CPA Supports You

Each month, we:

• Review your books for accuracy

• Flag unusual activity

• Provide notes or questions for clarification

Suggest action items when needed

 Have Questions?

We’re here to help!

 📧 Email: info@eocpa.ca
🌐 Website: www.eocpa.ca

 Helping Canadian service businesses grow with clarity and confidence.
Thank you for trusting us with your numbers!