Financial reporting systems are any program or software that records, tracks and organizes official financial data into more digestible, and easy-to-understand reports.
Financial reporting systems can be stand-alone, or a function of financial and accounting software, like Sage Accounting. They can help to create intuitive and easy-to-read visualizations of your financial data so you have a holistic view of the financial health of your business.
Income statements show the net profit or loss of your business over a specified period. It's the sum of your sales, business expenses/operating costs, and non-operating costs.
Balance sheets offer an organized view of your business assets, liability, and equity if applicable.
Cash flow statements that organize and visualize where your business cash inflows come from, and where your cash outflows go to. This can help to give you a snapshot of the financial health of your business at any given time.
Equity statements track and report any changes in equity of the business between the owner(s) and any shareholders at any given time.
Yes, at the very least you should view your financial statements and reports monthly, if not more frequently.
In order to ensure you and your business are on the right track, it's highly recommended that you take stock in the financial health of your business; the best way to do that is by reviewing your financial reports by given time and/or project. This data will help give you an idea of what parts and times of the year your business is either making a profit or losing money. The trends you can find with this data will help you to make informed business decisions moving forward.