Why Rolling Business Reports Are Better than Monthly Reports

By Andy Mulholland

He has a background in leading a top real estate team for over a decade and an understanding of the critical role of clear financials, Andy, along with his wife Ellyn, a seasoned real estate CFO, co-founded Simple-Numbers.

Do you know what reports you should be looking at to truly understand your business? If you’re like many business owners, you might just be glancing at the monthly reports your bookkeeper or CPA sends you. But here’s the thing: monthly reports alone aren’t enough to make smart business decisions. Let me explain why and what you should focus on instead.

The Problem with Monthly Reports. Monthly reports are important—they show you how the business is doing this month. But here’s the catch: things can change quickly, especially in businesses like real estate. You might have a great month, or you might face unexpected costs. For example, a closing might get delayed, or you could pay an annual bill all at once. These things can cause major swings in your monthly numbers. Looking at just one month can make it hard to see the big picture.

The Solution: Rolling Reports. Now, the question is, “What should you do instead?” You need reports that give you a broader view of your business. That’s where rolling reports come in. Instead of just focusing on one month, you can look at averages over time. Let me break it down:

• Three-Month Rolling Report - This report averages the numbers over the last three months. It smooths out those big highs and lows that happen in any single month. By looking at this, you get a much clearer picture of what’s really happening in your business.
• 12-Month Rolling Report - This one takes it a step further. It averages the data over the last 12 months, so you can see a full year’s worth of trends. This report is especially useful because it helps you understand your margins and performance, removing the impact of one-off events or expenses. It gives you the true health of your business.

By looking at both the three-month and 12-month rolling reports, you’ll make better business decisions. These reports help you avoid reacting to the highs and lows of a single month. Instead, you’ll have a clearer understanding of your business’s performance over time. That means better planning, smarter choices, and fewer surprises.

If you’re not already using rolling reports, it’s time to start. Ask your bookkeeper or CPA for a three-month and 12-month rolling report. These reports will help you make better decisions and keep your business on track. If you need help understanding your numbers or creating these reports, I can help you ensure your numbers are tracked correctly so you can have better insights on your real estate business’s condition.