The 30-Minute Monthly Financial Review

🎯 Why It Matters

Running your business is demanding, and financial reports can sometimes feel like just another task. But setting aside 30 minutes each month to review your finances is one of the simplest, highest-value habits you can build. A quick review helps you:

• Spot unusual expenses before they get out of hand.
• Keep tabs on cash and upcoming obligations.
• Identify trends in revenue and costs.
• Make sure your books reflect reality—not surprises.

This doesn’t have to be overwhelming. In just half an hour, you can cover the essentials and walk away with a short list of action items to keep your business on track.

📈 Step 1: Profit & Loss (P&L) Summary

The P&L shows whether your business is making money. Each month:

• Compare this month to the prior month (and ideally, the same month last year).
• Look for large swings in revenue or expenses month over month—ask yourself if they make sense.
• Pay attention to net income: is it in line with your expectations?

👉 Tip: If something jumps out (e.g., a big increase in marketing spend), make a note to follow up.

🧾 Step 2: Balance Sheet

The balance sheet gives you a snapshot of what you own and what you owe. Review:

• Cash Balance: Do you have enough for near-term expenses?
• Receivables: Are customers paying on time?
• Payables: Are there bills that need attention?

👉 Tip: A healthy balance sheet tells you how strong your foundation really is.

🔎 Step 3: P&L Detail

Digging one level deeper into the P&L can reveal patterns you might otherwise miss:

• Review major expense categories like payroll, rent, marketing, or inventory.
• Review categories that are trending up over several months.
• Decide if those increases are planned (e.g., growth hires) or unexpected.

👉 Tip: Keeping an eye on details prevents small leaks from turning into large losses.

💧 Step 4: Cash Flow Forecast

Cash flow is often the difference between smooth sailing and unnecessary stress. A quick look at your forecast each month helps you:

• Anticipate upcoming expenses (payroll, taxes, vendor bills).
• Confirm expected inflows are on schedule.
• Avoid surprises by making small adjustments early.

👉 Tip: Even profitable businesses can struggle with cash—this step keeps you one step ahead.

📝 Step 5: Create an Action Item List

As you review, write down 2–3 things to follow up on. This list might include:

• Following up with a late-paying customer.
• Talking with a vendor about price changes.
• Checking why utilities spiked last month.

Over time, these monthly action lists become a record of how you’ve managed your business and stayed proactive.

❓ Questions? Ask Away.

Your financial review should be straightforward. But if you see something in your books that doesn’t make sense—or you’d just like clarification—reach out and ask. We’re always here to help you understand the numbers and happy to help answer questions about your reports and make sure the numbers make sense. Think of us as your bookkeeping partner—here to give you clear, reliable financials each month.