What should a monthly sales report for a small business include?

A monthly sales report should show total sales, order numbers, average order value, costs and profit, each compared with last month and the same month last year. Add a few simple breakdowns, a trend chart and a note on unpaid invoices, and keep it to one page.

What are the core numbers every monthly sales report should show?

Start with a small block of headline figures at the top of the page. The owner should grasp the month in under thirty seconds.

Include these:

Total sales for the month, noting whether VAT is included.
Number of orders or invoices, to show volume as well as value.
Average order value: total sales divided by number of orders.
Total costs, grouped into a few sensible categories.
Gross profit: sales minus the direct cost of what you sold.
Net result: what remains after overheads.

Put each figure beside a comparison. The most useful are last month and the same month last year. A number alone tells you little; beside a comparison it tells you whether to worry.

Show changes as a figure and a percentage, for example “up £840, or 7%”.

Be consistent about definitions. If you count a sale on the invoice date one month and the payment date the next, your trends will mislead you. Pick one rule and note it in a footnote.

If space is tight, keep total sales, gross profit and total costs. Add the rest once those are reliable.

Which breakdowns turn a list of sales into something useful?

Totals say how you did; breakdowns say why. Choose two or three cuts of the data that match how you actually run the business, rather than every cut available.

Common choices:

By product or service: which items bring in the most revenue, and which sell often but earn little.
By customer: your top five customers and what share of sales they represent. If one customer is a large share, that is a risk worth knowing.
By channel: shop, website, marketplace, phone or trade orders.
By week: a month can hide a strong first half and a weak second half.
By location or salesperson, if relevant.

Keep each breakdown to a short table of five to ten rows. Group the remainder under “Other” so the table stays readable.

Show each row's share as a percentage too; it reveals a shifting mix even when total sales look steady.

Check that names in your log are spelt consistently before you start. “Mug”, “Mugs” and “mug large” will otherwise appear as three separate products and distort the ranking.

How do you show trends and comparisons without overwhelming the reader?

A trend is simply the direction of travel. One month in isolation can be a fluke, so show at least six months, and twelve if you have them.

Three views cover most needs:

Month-by-month line: total sales over the last 12 months, which shows seasonality.
This year versus last year: two lines or paired bars for the same months.
Rolling three-month average: smooths out odd months and shows the underlying direction.

Charts help if they are simple. Use a line chart for change over time and a bar chart for comparing categories. Avoid pie charts with more than four slices, and start bar chart axes at zero so small differences do not look dramatic.

Label each chart with a plain sentence saying what it shows, such as “Sales have risen for three months running, led by online orders.” Do not make the reader work out the point.

Flag one-offs. A large single order, a batch of refunds or a seasonal promotion can move the figures, and a short note beside the chart saves confusion later.

What should you say about costs, cash and unpaid invoices?

Sales are only part of the picture. A month with record sales can still leave you short of cash if customers pay late or costs jump.

Add a short section covering:

Expenses by category: stock, wages, rent, marketing, software, travel and so on. Show last month beside this month.
Unpaid invoices: the total owed to you, and how much is overdue by 30 days or more.
Biggest changes: the two or three cost lines that moved most, with a one-line reason if you know it.
Margin: gross profit as a percentage of sales, tracked month to month.

Margin deserves attention. If sales rise but margin falls, you may be discounting too heavily or absorbing supplier price rises.

List overdue customers by name and amount, oldest first, so the report doubles as a chasing list.

Say clearly whether totals are net or gross of VAT, and never mix the two in one table.

This is a management summary, not your accounts. For tax or statutory purposes, rely on your proper bookkeeping or your accountant.

How long should the report be, and what should you do with it?

Aim for one page, or two at most. If it takes more than five minutes to read, it will not be read.

A simple layout works well:

Headline figures and comparisons at the top.
A short summary of three or four sentences in plain English.
One or two charts showing the trend.
Breakdown tables by product, customer or channel.
Costs and unpaid invoices.
Next steps, with two or three actions.

The written summary matters more than most people expect. Say what happened, why you think it happened, and what you will do about it. For example: “Sales were 7% up on last month, driven by trade orders. Margin fell because of higher supplier costs.”

Produce the report on the same day each month, such as the fifth working day, so it becomes a habit.

Finally, act on it. Choose one or two actions per month, write down who owns them, and check them in next month's report.

Frequently asked questions

How long should a monthly sales report be?

One page suits most small businesses, and two is the most you should need. If it takes over five minutes to read, trim it.

Should the figures include VAT?

Use figures net of VAT for judging performance, and state which basis you have used. Never mix net and gross in the same table.

When should I produce the report?

Do it in the first week after month end, on the same working day each month, once your sales log is complete.

Related on B.A.I.S.

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