The 30-Minute Monthly Finance Review That Saves Thousands
A simple routine to stay on top of your business finances
Most business owners look at their finances when there's a problem. By then, it's often expensive to fix. A simple 30-minute monthly review can catch issues early and save you thousands. Here's exactly what to check and how to do it.
The 5 Numbers to Check Every Month
You don't need to analyze dozens of metrics. These five numbers give you 80% of the insight with 20% of the effort:
- Cash balance: Compare to last month - is it growing or shrinking?
- Revenue: Are you on track against your expectations?
- Gross margin: Are your product/service costs staying consistent?
- Total expenses: Any unexpected increases?
- Receivables aging: Is anyone paying slower than usual?
Red Flags to Watch For
When reviewing these numbers, certain patterns should trigger immediate attention:
- Cash declining for 2+ consecutive months
- Gross margin dropping without a known reason
- Any single expense up more than 20% vs. last month
- Receivables over 60 days old growing
- Revenue flat or declining while costs rise
Set Up Your Simple Dashboard
You don't need fancy software. A simple spreadsheet with these five metrics tracked monthly gives you everything you need. Add a column for notes to record explanations for any variances.
- One row per month, one column per metric
- Add a 'vs. last month' column showing % change
- Color code: green for good, red for concerning
- Keep a notes column for context
What to Do When You Spot a Problem
Finding an issue is just step one. Here's the action framework:
- Investigate: Why is this number off? Get the details
- Assess: Is this a one-time event or emerging trend?
- Act: If it's a trend, what's your corrective action?
- Track: Add it to next month's review to verify the fix worked
Make It a Habit
The review itself is simple. The hard part is doing it consistently. Here's how to make it stick:
- Block 30 minutes in your calendar for the same day each month
- Do it on the 5th-10th when previous month's data is complete
- Have your bookkeeper prepare the numbers in advance
- Keep the dashboard open on a browser tab as a reminder
Consistency Beats Complexity
A simple review done every month beats a complex analysis done occasionally. The goal isn't to become a financial expert - it's to catch problems early when they're still small and cheap to fix. Thirty minutes a month is a small investment for peace of mind and thousands in saved costs.
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