Advantages of monthly finanicial statements
I am trying to convince a client to move to monthly or quarterly financial statements vs. just annual tax returns. Any suggestions on the advantages of monthly financial statements?

I am trying to convince a client to move to monthly or quarterly financial statements vs. just annual tax returns. Any suggestions on the advantages of monthly financial statements?




They can see what they're making, or losing, on a regular basis, with real numbers and not just what they imagine it to be. Knowing how they're doing throughout the year will make tax time less painful. Also, all the data has to be compiled anyway, why not do it throughout the year so there'll be less to do at tax time? It's essential to planning for business growth and development.



It's even more important to run statements that will show the owner how well he or she is doing on a frequent basis during this difficult climate.
I would be looking at my numbers on an at least monthly basis to know how much is coming in versus expenses.
This is especially important for anyone who has or will have an investment in inventory and any fixed costs.
Even if they know they are making a profit, the only viable way to tell how much and to know where other investments should be made will be supported by the numbers.
QB can provide about anything needed so why would they not want them, surely it can not be that much cost to produce even with your fee.



You could point out this is important for tax planning. It's nice to know how much tax might be owed and/or saved, based on what you see at a point in time and strategies that could be applied to make the difference, before it's too late and the tax year is done.

Thank you all for the great feedback. I agree with your suggestions and will keep them in when during conversations with my clients and prospects.