Use this Checklist to Maximize Your Small Business Success
One of the biggest obstacles small business owners face is managing their finances effectively. It doesn’t have to be complicated or take a lot of time. There are many simple things you can do to increase your success with minimal or no added time. One of the key ways to increase your financial success is to create a schedule for financial reviews that help you identify areas where you can increase revenue, cut costs, and drive growth.
Below I’ve provided you a checklist of what to review weekly, monthly, quarterly, and annually along with the question to ask at each interval. Whether you're a new entrepreneur or have been running your business for years, this guide can help you streamline your financial management and drive your business to greater success.
Weekly
Accounts Payable (payments you owe to vendors)
Accounts Receivable (payments owed to you)
Cash in the bank
Sometimes you may need to review daily depending what is happening in your business
Monthly
Prior month performance:
Did you meet your goals?
If you’re not setting goals, you need to >> check out my annual planning guide
If yes, write down 3 things that pushed you to reach your goals.
If no, how much were you off by? and do you know why you didn’t meet your goals?
Are there areas you overspent?
If yes, by how much, and what are the reasons?
Where are you spending the most money? Sales, Marketing, Utilities, etc..
Are there areas you underspent that require additional investment?
How much money did you make (total revenue or totals sales)?
How much did you spend (total expenses)?
Plan for the next 90 days:
What do you expect sales to be?
What expenses do you need to plan for?
Make adjustments based on the information you have now
Quarterly
Review prior quarter performance
How does this compare to the same quarter in the previous year?
Example- what does Q2 of 2022 look like compared to Q2 of 2021?
Did you meet or exceed your revenue goals?
If yes, what caused you to reach your goals?
If no, by how much were you off? List out 2-3 reasons you didn't meat your goals
Did you spend what you expected to?
If not, list a few reasons for those unexpected expenses and update your new plan to include the extra
Plan for the next 6-12 months
What do you expect sales to be?
Are there additional expenses you need to plan for?
Example - increased costs not in your original budget
Are there any investments you need to make in the business?
Do you need new equipment, technology, sales terminals, signage that you weren't expecting at the beginning of the year?
Do you now have excess cash allowing you to spend more money?
Annually
Prior year performance
If you did a forecast, review what you forecasted vs. what actually happened
What was your gross margin by product and total gross margin?
What went well?
What didn’t go well?
What caused you to grow? Or what kept you from growing?
Plan for the next year
What’s your revenue target?
What are you going to keep for next year?
What will you cut?
Do you need to raise prices?
Do you need to bring in more customers?
How can you invest leftover net income into next year’s plan to grow the business?
Do you need to hire?
Running a successful business requires discipline, patience, and regular financial analysis. Keep in mind, financial management is not a one-time event but an ongoing process. By reviewing your financials regularly, setting goals, and asking the right questions, you can make informed decisions and stay ahead of the competition. Simple and recurring beats complex and fancy every time.
