You started your own Consulting Forestry business because you love the woods, and not having a boss, and not because you love the business side.
Business financials are key to keep your Forestry Firm healthy, so you can know your profitability and overall financial position in the business.
There are key Financial Reports to help you keep a pulse on your firm's financial health.
General Ledger Report
What it is: The complete record of every transaction in your business, organized by account (Cash, Revenue (Income), Expenses, etc.)
How to read it: Shows every debit and credit entry with dates, descriptions, and running balances. Think of it as your financial transaction history organized by category.
What to look for:
Verify transactions posted to the right accounts
Spot duplicate or unusual entries
Trace specific transactions when something looks off
Most business owners rarely look at this unless troubleshooting
Trial Balance Report
What it is: A snapshot of all account balances at a specific date, verifying debits = credits
How to read it: Two columns (Debits and Credits) listing each account and its balance. The totals at the bottom must match.
What to look for:
Mainly used to verify your books are mathematically balanced
Scan for accounts with unexpected balances (negative cash, credit revenue when it should be debit)
Most useful for accountants/bookkeepers checking data integrity before creating financial statements
Income Statement (P&L)
What it is: Shows your profitability over a period (month, quarter, year)
How to read it:
Revenue at top
Minus Cost of Goods Sold = Gross Profit
Minus Operating Expenses = Operating Income
Plus/minus Other Income/Expenses = Net Income
What to look for:
Are you profitable? Bottom line shows net income/loss
Revenue trends: Growing or declining?
Expense control: Which categories are eating into profits?
Gross margin: Is your pricing sustainable after direct costs?
Compare periods: Month-to-month or year-over-year changes
Note: GAAP formatted means it follows standard accounting rules (accrual basis, proper categorization)
Balance Sheet
What it is: Your financial position at a specific point in time - what you own, owe, and your equity
How to read it:
Assets (what you own): Cash, receivables, equipment
Liabilities (what you owe): Payables, loans, credit cards
Equity (net worth): Assets - Liabilities = Equity
What to look for:
Cash position: Do you have enough to operate?
Accounts receivable: How much are customers owing you?
Debt levels: Are liabilities manageable relative to assets?
Working capital: Current Assets minus Current Liabilities - can you pay short-term obligations?
Equity growth: Is your net worth increasing over time?
How They Work Together
Balance Sheet = financial position at a moment in time
Income Statement = financial performance over a period
Net income from your Income Statement flows into Equity on your Balance Sheet
Trial Balance and General Ledger are the underlying data that feed both
ForestTrack offers straight-forward accounting and these proper financial reports so you can stop guessing and start knowing your forestry profitability
