You might usually think of consistent financial reporting as something tied to core reports—like your Profit and Loss statement and Balance Sheet—that are essential for understanding your company’s overall financial position. But don’t overlook operational reports, which dig into the specifics of what’s happening on the ground.
These reports focus on the finer details—like which products or services are driving your revenue, whether your projects are actually profitable, and how well you’re managing inventory.
In this article, we’ll dive into the five must-have QuickBooks operational reports that will provide a laser focus on your everyday activities, ensuring that your decisions are backed by the finer details of your business operations.
1. QuickBooks Sales by Customer Summary
The Sales by Customer Summary report in QuickBooks gives a detailed breakdown of revenue generated by each customer over a specific period. This report is essential for understanding your top customers and how much revenue they contribute.
For example, imagine you run a software business and discover that 30% of your revenue comes from just two clients. This insight allows you to focus on retention strategies for those high-value customers and potentially create opportunities to upsell new services or products. You can also use it to identify customers whose business has slowed down, providing an opportunity to re-engage them with targeted promotions or follow-up conversations.
Key Insights:
- Total sales by customer, showing you who your most valuable clients are.
- Revenue trends that highlight loyal customers or accounts that might need re-engagement.
- Opportunities for upselling or offering tailored discounts to increase customer loyalty and spending.
Frequency:
We recommend running the Sales by Customer Summary report monthly to monitor customer behavior and identify shifts in buying patterns. During peak sales seasons, running it weekly can help you spot trends quickly and respond with timely offers or promotions.
MISSION Accounting’s Tip:
Look beyond just the top spenders—identify customers who have potential for growth but aren’t yet generating large revenue. Use this report to create personalized outreach strategies that could turn mid-tier clients into top-tier ones with the right incentives or services.
2. QuickBooks Inventory Valuation Summary
Think of the Inventory Valuation Summary as your behind-the-scenes look at the lifeblood of any product-based business: your stock. This report doesn’t just tell you how much inventory you have—it tells you its value and how efficiently it’s moving.
For example, if you own a retail store, you don’t want to be caught with too much-unsold inventory tying up cash, or worse, running out of your best-selling items when demand is high. This report helps you balance those extremes, keeping your inventory levels just right, so you reduce waste and never miss a sale.
Key Insights:
- The total value of your inventory is broken down by each item.
- How quickly your stock is turning over, helping you spot items that are flying off the shelves—or gathering dust.
- Early warnings on overstocked or understocked items, so you can adjust purchasing decisions or run timely promotions.
Frequency:
Run this report monthly to keep a clear view of your stock levels, but during busy seasons like the holidays or big sales events, checking it weekly ensures you’re always ready to meet demand without overloading on slow-moving products.
MISSION Accounting’s Tip:
Don’t just wait for your stock to run out—use the reorder point feature in QuickBooks. By setting automatic alerts, you’ll know exactly when it’s time to restock your most popular items, keeping your shelves stocked and your customers happy, while avoiding the dreaded out-of-stock sign!
Related Reading: How To Use QuickBooks Inventory Tracking
3. Budget vs. Actuals Report
The Budget vs. Actuals Report is your financial reality check. It compares what you planned to spend with what you actually spent, giving you a clear picture of how well you’re sticking to your budget.
Imagine setting aside $10,000 for marketing, only to find that you’ve already blown through $8,000 halfway through the quarter. This report helps you catch overspending before it spirals out of control and ensures your spending aligns with your financial goal
The Budget vs. Actuals Report helps you identify areas where costs are creeping up or where you’re staying under budget. This allows you to adjust spending as needed and keep your financial strategy on track.
Frequency:
Run this report monthly to stay proactive about managing your finances and catching budget variances early. During periods of heavy spending, such as new product launches or expansions, consider reviewing it bi-weekly to ensure you’re staying on track.
MISSION Accounting’s Tip:
Don’t just look at where you’re overspending—pay attention to areas where you’re under budget, too. These might be missed opportunities to invest more in marketing, product development, or customer acquisition. Use the report as a tool to not only rein in costs but also to strategically allocate extra resources where they can generate more growth!
Related Reading: How to Create and Use Budgets in QuickBooks
4. QuickBooks Sales by Product/Service Summary
The Sales by Product/Service Summary is like having a spotlight on what’s making you money. This report breaks down your revenue by each product or service, giving you a clear view of what’s driving sales and what’s lagging behind.
Imagine discovering that one of your newer products is outperforming everything else, or worse, realizing that a once-popular service is barely generating revenue. With this report, you can make informed decisions about where to double down, where to offer promotions, and where to consider cutting your losses.
Key Insights:
- Detailed breakdown of sales performance by individual product or service.
- Identification of top-performing items that may benefit from further investment or promotion.
- Early warning signs on underperforming products or services, giving you the opportunity to tweak your marketing strategy or pricing.
Frequency:
We recommend running this report monthly to monitor product performance closely. During key sales periods or new product launches, consider reviewing it weekly to quickly identify trends and adjust your strategy accordingly.
MISSION Accounting’s Tip:
Use this report alongside your Inventory Valuation Summary to spot items with strong sales but low stock levels. By aligning these insights, you can ensure your top sellers are always well-stocked and avoid missing out on potential revenue. Conversely, use this data to identify slow-moving products for clearance sales or bundling opportunities to drive demand.
Related Reading: How to Forecast Revenue Using QuickBooks
5. Profitability by Project Report
The Profitability by Project Report essentially lets you know that your hard work is paying off! It tracks revenue, costs, and overall profit margins to give a clear view of each project’s profitability.
If you’re in a service-based business—whether it’s construction, consulting, or creative services—tracking the profitability of individual projects is key to long-term success. This report breaks down exactly how much money each project brings in versus how much it costs, helping you see which jobs are fueling your bottom line and which might be draining your resources.
Picture this: you’re knee-deep in a complex client project, but halfway through, you realize the costs are creeping up and cutting into your profits. With this report, you can catch that early and make the necessary adjustments—whether that’s reallocating resources, revising the timeline, or renegotiating terms. It gives you the power to know not just how hard you’re working, but how smart.
Key Insights:
- A breakdown of revenue and costs for each project, showing what’s making or losing money.
- Profit margins that reveal whether projects are hitting your financial targets.
- Insights into which types of projects deliver the most value, helping you focus on what’s truly profitable.
Frequency:
Don’t wait until a project wraps to see if it’s making money—use this report throughout the project. Regular checks allow you to spot potential profit drainers early, like unexpected costs or resource inefficiencies. Plus, by having clear profit data in hand, you can confidently negotiate better rates with clients for future work, backed by numbers that show the true value you deliver.
MISSION Accounting’s Tip:
To get the most out of this report, analyze it alongside your time-tracking data. This way, you’ll know if labor costs are eating into your profits, allowing you to manage resources more efficiently.
Customizing Operational Reports for Your Unique Business Needs
QuickBooks operational reports are powerful tools, but not every business is the same—and that means your reports shouldn’t be either. Customizing these reports to reflect your unique business model is crucial for turning raw data into actionable insights.
A Sales by Customer Summary report might give you an overview of your best clients, but without customization, it may not account for seasonal trends, regional differences, or customer segments that are crucial to your business. This could lead you to misallocate resources or miss out on key sales opportunities during peak times.
Similarly, a Budget vs. Actuals Report might not track the specific categories you need, such as detailed marketing costs or individual project expenses, leaving you with a misleading picture of how your money is being spent.
Without this granularity, you might assume certain departments are under budget when, in reality, key costs are being lumped into broader categories. This masks overspending and prevents you from making the necessary adjustments to stay on track.
Is Your QuickBooks Data Telling the Full Story? Here’s How Experts Can Help
Consistent financial reporting is essential, but QuickBooks operational reports are only as powerful as the insights you can draw from them. It’s easy to get lost in the data or overlook key details that could be holding your business back.
At MISSION Accounting, we ensure that your reports aren’t just accurate but also actionable—tailored to your industry, your strategy, and your goals. From fine-tuning operations to making informed decisions, we help you leverage every report to its fullest, so you can build a more efficient and profitable business.
Contact MISSION Accounting for a free consultation, and let us show you how to leverage your QuickBooks data to optimize operations and increase profits.
