3 Steps to a Quick & Effective Monthly Financial Review

As a small business owner with multiple locations, your time is precious. You’re juggling marketing, operations, and growth – all while keeping an eye on the bottom line. But how can you ensure your financial health without spending hours buried in spreadsheets? The answer lies in a streamlined, time-efficient monthly financial review.

This process doesn’t need to be daunting. By focusing on key areas, you can gain valuable insights in a fraction of the time. Here’s a 3-step approach designed for busy entrepreneurs like you:

1. Focus on Key Performance Indicators (KPIs):

Instead of diving into every detail of your small business bookkeeping, identify the 3-5 most critical KPIs for your business. For multi-location owners, these might include:

• Revenue per Location: Are all locations performing as expected? Identify any outliers.
• Gross Profit Margin: Are your margins consistent across locations? Investigate any fluctuations.
• Cash Flow: Are you generating enough cash to cover expenses and invest in growth?
• Operating Expenses: Are your expenses in line with your budget? Are there any unexpected increases?
• Customer Acquisition Cost (CAC) and Customer Lifetime Value (CLTV): Are your marketing efforts paying off?

By focusing on these key metrics, you can quickly identify areas that require attention. If you are struggling with cash flow, you may want to review our article on “Understanding Cash Flow vs. Profit: Key Differences for Business Owners.”

2. Schedule a Dedicated Review Time:

Consistency is key for effective small business bookkeeping. Block out a specific time each month for your financial review. This could be an hour or two, depending on the complexity of your business. Treat this appointment as non-negotiable. This pre-scheduled time allows you to mentally prepare, and to gather any information that your bookkeeper or internal team may need to provide.

3. Collaborate with Your Bookkeeping Partner:

Your bookkeeper is your financial ally. Leverage their expertise to gain deeper insights into your small business finances. Ask them to prepare a concise summary of your financial performance, highlighting any key trends or anomalies. Use this meeting to discuss any questions or concerns you may have. A good bookkeeping partner should provide clear, actionable advice.

By following these 3 steps, you can conduct a quick and effective monthly financial review, ensuring your multi-location small business stays on track. Remember, it’s not about spending hours analyzing every detail. It’s about focusing on the metrics that matter most and collaborating with your team to make informed decisions.

Want a deeper dive into your financial health?

If you’d like a more personalized review of your small business bookkeeping and financial strategy, schedule a consultation with our team. We can help you identify key areas for improvement and develop a plan to achieve your business goals.