Ipswich Town have announced a loss of £7.2m for the year to June 2014, a fall of £2.6m on the previous 12 months.
Town will avoid any Financial Fair Play sanctions, after all the Championship clubs agreed to new financial rules akin to those imposed by the Premier League in November.
The loss is £800,000 below the £8m limit that clubs are allowed to lose over a season, which they would have the previous season, where their losses were nearing £10m.
Despite the overall reduction in the club's losses, their debt rose by £3.6m to £86m, which is almost entirely owed to owner Marcus Evans.
The businessman, who bought a majority shareholding in the Portman Road club in 2007, provided an extra £3.8m of loans for ongoing funding and player investment, but the club received almost £200,000 in payments from convertible loan notes.
Gate receipts have also gone down from last season from £5.08m to £4.98m, but with the side currently defying pre season expectations by occupying 2nd in the league, the club are expecting a rise in attendance if their promotion push continues.
The club also sold Aaron Creswell in the summer for a reported £2m, but that is not included in the report, whilst the club has not spent anything on transfer fees since the end of 2012 in an attempt to reduce the club's overall outlay.