How do you view your company's financial health in QuickBooks?

Viewing your company's financial health in QuickBooks is effectively accomplished by reviewing financial reports such as the Balance Sheet and Profit and Loss statements. The Balance Sheet provides a snapshot of your company’s assets, liabilities, and equity at a specific point in time, showcasing its financial position. Meanwhile, the Profit and Loss (P&L) report details your revenues and expenses over a period, revealing your overall profitability and operational efficiency.

These reports are fundamental tools for assessing financial performance, making informed decisions, and strategizing for the future. They enable business owners and financial managers to analyze trends, identify areas for improvement, and ensure that the company remains on a sound financial footing.

While checking the Dashboard offers a visual overview of various metrics, it does not provide the comprehensive analysis that detailed financial reports offer. Entering expense data or analyzing customer transactions is part of the accounting process but does not provide a complete picture of financial health on its own. Therefore, using the Balance Sheet and Profit and Loss reports is essential for a thorough understanding of the company's financial status.