Analysis of Financial Statements

At the end of each month, you can have your computer print out a balance sheet and an income statement. Monthly information is not worth its cost unless you use it so you should adopt a discipline of reviewing the performance of the business at the end of each month and use the financial reports to identify problems and opportunities. This allows you to take action to correct any problems and take advantage of any opportunities you identify as you progress through the accounting year, rather than "crying over spilt milk" at the end of the year.

For corporation tax purposes, for official financial statements, and for most other reports, you only need annual statements, but you may need to do VAT/Sales Tax returns monthly, bi-monthly, or quarterly..