Rolling 13-Month Trends: Read Your Business at a Glance
One month of financial data tells you very little. A full year shows seasonality, but it hides what happened this month compared to last. A rolling 13-month report solves both problems. It displays an ongoing view of performance that updates every month, helping you spot growth patterns, slowdowns, and cash fluctuations in seconds. This article explains how to build and use a 13-month view for better bookkeeping and smarter management.
What Is a Rolling 13-Month Report?
A rolling 13-month report includes the past 12 closed months plus the current month in progress. Each new month replaces the oldest one, keeping the trend view continuous. It provides a real-time look at revenue, expenses, and profitability without waiting for year-end summaries.
Why 13 Months Instead of 12
A 12-month chart ends abruptly with the prior year. Adding the current month shows momentum. You can see how this month compares to last year’s same period and spot turning points earlier.
Key Metrics to Include
For clear, actionable insight, include:
- Total Revenue – tracks growth and demand trends
- Cost of Goods Sold (COGS) – monitors cost control
- Gross Margin – measures profitability consistency
- Operating Expenses – reveals spending discipline
- Net Income – shows bottom-line health
Optional metrics: AR days, AP days, and cash balance for working capital tracking.
How to Build It in Your Accounting System
Most accounting tools can generate this view through reports or dashboards.
- In QuickBooks: use “Profit and Loss by Month,” then export 13 months of data.
- In Xero: select “Performance by Month” and adjust the date range.
- Combine in a spreadsheet to plot revenue and expense trends visually.
How to Interpret the Trends
Look for patterns and outliers:
- Steady revenue increases show healthy growth.
- Spikes in COGS or expenses may indicate process inefficiencies.
- Declining margins suggest pricing or cost issues.
Use these insights to guide hiring, budgeting, and marketing decisions.
Benefits of Rolling Trend Analysis
- Immediate visibility into performance cycles
- Clearer forecasting accuracy
- Better budget planning and inventory control
- Easier lender and investor reporting
Seeing the big picture monthly helps you react quickly instead of waiting until year-end.
Learn more about our Monthly Bookkeeping Services.
Monthly Bookkeeping Checklist (Downloadable)
FAQs
What is the purpose of a rolling 13-month report?
To monitor ongoing trends in revenue and expenses without waiting for annual reports.
Why not just use quarterly reports?
Quarterly views miss short-term shifts that 13-month reports highlight.
How often should I update a rolling report?
Update it monthly, immediately after closing the books.
What is the best way to visualize trends?
Use simple line or bar charts comparing revenue, costs, and margin over time.
