Running a business without reviewing your finances monthly is like driving with your eyes closed. A consistent monthly financial review gives you the visibility to make informed decisions, catch issues early, and stay financially healthy.
Here’s what should be on your checklist each month:
✅ 1. Profit & Loss Statement (P&L)
Review revenue, cost of goods sold, and net profit. Are you hitting your sales goals? Are expenses creeping up? Look for trends and opportunities to trim costs or improve margins.
✅ 2. Cash Flow Statement
Profit isn’t the same as cash. This report shows how money moves in and out of your business, helping you anticipate shortfalls and plan ahead for big expenses.
✅ 3. Accounts Receivable & Payable
See who owes you money — and who you need to pay. Delays in collections or missed vendor payments can hurt your cash flow and credit.
✅ 4. Budget vs. Actual
Compare what you planned to spend and earn with what actually happened. It’s the best way to stay on track and adjust course quickly.
✅ 5. Key Metrics
Monitor vital numbers like gross margin, net income, average client value, and expenses as a percentage of revenue. Your business is more than just the bottom line — track what drives it.
Final Thought
A monthly review doesn’t take long, but it saves you from financial blind spots. It’s the difference between reacting to problems and planning for success.
Want Help Setting Up a Smart Monthly Review Process?
At Castle Rock Tax Solutions, we help business owners like you track the numbers that matter — monthly, clearly, and pain-free.
📅 Book your free Monthly Financial Review setup call today
👉 https://calendly.com/castlerocktax/30min
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