Balance Sheet 13 Rolling Month Variance Reporting compares a company’s balance sheet data over the past 13 months, identifying trends and fluctuations in assets, liabilities, and equity.
Primary Implication
Angry investors emerge when they don’t know if their investment in your business is earning them money or not. Changes in your Balance Sheet are how you know if your assets work harder than you do. If they do, you are likely earning returns for your investors.
Your 13 Rolling Month Balance Sheet variance report lets you quickly assure your investors. Use this tool to show how your business is doing across your top four P&L Statement items, core Balance Sheet, and select financial ratio results to communicate how well you have put their money to work.
Overview
Changes in your Balance Sheet are how the owners of a business know if their investment is earning them a return or not. While your investors like to know how much is being sold and what the Net Income on those sales is, what they want to know is whether their Return on Capital Invested is improving or not? This is particularly true if the fixed assets on your Balance Sheet were acquired with equity.
If the business is highly variable month-to-month, use the 13 Rolling Month Balance Sheet variance report to establish if investors are making money. This report is critical if you have used equity to acquire assets. Looking at both your P&L and Balance Sheet rolling monthly variance reports helps you identify what isn’t working before you find yourself with angry investors.