Read the business through its accounts.

A profit-and-loss view summarises income and expenses for a period. A balance sheet groups assets, liabilities and capital at a point in time. They answer different questions, and both depend on complete entries and appropriate account classification.

Review the reporting period and company, inspect unusual totals and follow them into the supporting ledgers. Stock valuation, opening balances, expenses and adjustments can all affect the result. A report is most useful when its numbers can be explained by the underlying business records.