Ever wished you had a simple way to check your business's financial health? While running a business feels like juggling countless tasks, understanding where you stand financially doesn't have to be complicated. Here's your straightforward guide to reviewing your business's financial health - no accounting degree required.

Why This Matters

• Know exactly where your business stands financially
• Spot potential issues before they become problems
• Make confident decisions about your business's future
• Prepare for conversations with lenders or investors
• Set realistic goals for the coming year

Your Essential Financial Health Checklist

Read More: Behind on Your Books? Your Catch-Up Guide to End the Year Strong

1. Review Your Revenue

✓ Calculate Monthly Average Revenue

• List revenue for each month
• Note seasonal patterns
• Compare to previous year
• Identify your best and worst months

✓ Analyze Revenue Sources

• List top revenue streams
• Calculate percentage from each source
• Note which services/clients bring most value
• Identify areas for potential growth

2. Understand Your Expenses

Read More: Smart Spending: Making Data Driven Purchase Decisions

✓ Fixed Costs Review

• List all monthly recurring expenses
• Identify annual subscriptions
• Note any upcoming price changes
• Flag areas for potential savings

✓ Variable Costs Analysis

• Track patterns in variable expenses
• Note unusual spikes
• Calculate average monthly spending
• Identify cost-saving opportunities

3. Check Your Cash Position

✓ Cash Flow Health

• Review current bank balances
• List upcoming major expenses
• Check payment timing patterns
• Note seasonal cash flow trends

✓ Accounts Status

• Review unpaid customer invoices
• Check upcoming bill payments
• Note payment terms effectiveness
• List any collection issues

Pro Tips for Your Review

💡 Keep It Simple: Focus on patterns and big picture items first

📊 Use Visual Aids: Simple charts can reveal trends you might miss in numbers

🔄 Regular Reviews: Monthly mini-reviews make annual reviews easier

⚖️ Compare Wisely: Look at trends over time rather than isolated numbers

Common Review Mistakes to Avoid

Mistake 1: Focusing Only on Revenue

Solution:

• Review profits, not just sales
• Consider cash flow timing
• Look at customer satisfaction
• Note referral patterns

Mistake 2: Ignoring Small Changes

Solution:

• Track minor expense increases
• Note small efficiency drops
• Watch gradual trend changes
• Document minor process issues

Mistake 3: Not Planning Next Steps

Solution:

• List action items during review
• Set specific follow-up dates
• Assign responsibility for changes
• Create monitoring system

Your Financial Health Indicators

Strong Signs

• Consistent cash flow
• Growing profit margins
• Reliable customer payments
• Manageable expenses

Warning Signs

• Frequent cash shortages
• Rising expense ratios
• Increasing payment delays
• Declining margins

Ready for a Professional Review?

Turn your financial review into actionable insights. We help small business owners understand their numbers and make confident decisions.

Get Started Today:

1. Initial Review: Let's look at your financial picture together
2. Expert Analysis: Get clear insights about your business health
3. Action Planning: Create a practical plan for improvement

📞 Call: (214) 306-7850
📧 Email: hello@mybizbookkeeper.com

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