Staying on top of your finances is imperative for the health and growth of your business. A monthly financial review can help you make informed decisions, anticipate future needs, and maintain financial stability. Here's a practical checklist to guide you through your monthly financial check-up.

9 Step Checklist for Monthly Financial Review

1. Analyze Revenue Trends
2. Review Expense Reports
3. Examine Cash Flow Statements
4. Check Accounts Receivable
5. Review Accounts Payable
6. Update Financial Projections
7. Compare Budget Versus Actuals
8. Assess Inventory Management
9. Prepare for Tax Compliance

Analyze Revenue Trends

Evaluate the income your business has generated during the month. Look for trends or changes and understand the reasons behind them to forecast future earnings better and plan strategically.

Review Expense Reports

Scrutinize your monthly expenses to identify cost-saving opportunities and unusual spending. Make sure every dollar spent aligns with your strategic objectives.

Examine Cash Flow Statements

Cash flow is the lifeblood of any business. Review cash inflows and outflows to ensure liquidity, and identify potential shortfalls before they become problems.

Check Accounts Receivable

Review outstanding invoices and customer payments. Follow up on late payments to maintain healthy cash flow and update aging reports.

Review Accounts Payable

Ensure that all bills are accounted for and paid on time to avoid late fees and maintain good relationships with vendors and suppliers.

Update Financial Projections

Based on current data, update your financial projections. Accurate forecasting helps in setting goals, making investments, and securing financing.

Compare Budget Versus Actuals

Compare your actual spending and revenue with what you had budgeted to see if you are on track or need to adjust your plans going forward.

Assess Inventory Management

If applicable, review inventory levels. Efficient inventory management can reduce costs and prevent revenue loss due to stock-outs or excess stock.

Prepare for Tax Compliance

Monthly reviews provide a good opportunity to set aside funds for taxes and ensure all necessary documentation for tax filings is in order.

Conclusion

A thorough monthly financial review is invaluable. It not only helps you keep a close eye on the business health but also assists in charting a course for future growth. Incorporating this checklist into a Bizway project can make managing the review process smooth and systematic. Bizway's AI Assistants can further support you in analyzing data and executing the necessary tasks. Take control of your business finances with Bizway today.