Financial statements presenting the month’s operations and the year-to-date operations are fine. But sometimes you wonder how one month faired with others.
Do you notice trends?
Are expenses in line?
Is your gross profit declining?
Comparative income statements can provide you with a good working knowledge of your operations, because the report provides you with the analytical tools necessary to comprehend the month’s operations.
The results of your operations can also be compared to your budgets, and will provide you with the information necessary to reevaluate your goals, to make management decisions, or to see that you are progressing in your desired direction.