1. Why Monthly Reviews Matter
For many founders, finance reviews happen only when there is a problem — cash stress, missed payments, or tax surprises. A monthly finance review prevents firefighting by helping founders stay ahead of issues with minimal time investment.
Even without a finance team, a 60–90 minute monthly review can improve cash visibility, reveal cost leaks early, support better pricing and hiring decisions, and build financial confidence over time. Consistency matters more than complexity.
2. Cash Review Checklist
Cash should always be reviewed first. Everything else depends on it.
Bank Position & Runway
•Check the closing bank balance and how it compares to last month — is there enough to cover the next 2–3 months of expenses?
•Based on current cash, know how many months the business can operate, and whether runway increased or decreased since last month.
Cash Inflows & Outflows
•Track how much cash actually came in (not invoiced, but received), which customers paid late, and whether collections are improving or worsening.
•Review the biggest expenses this month, flag any unplanned payments, and confirm upcoming payments are already accounted for.
Founder Question:
"If revenue dropped by 20% next month, would we be okay?"
3. Revenue & Cost Review
This review focuses on whether the business is making money in a healthy way.
•Check total revenue vs. last month, and whether a few customers are contributing most of it.
•Review total expenses, which costs increased, and whether any tools or subscriptions can be reduced.
•Confirm whether the business is profitable this month, whether any loss is planned or accidental, and whether margins are stable, improving, or declining.
Founder Question:
"Are we growing profitably — or just staying busy?"
4. Decisions to Make Every Month
A monthly review should always end with clear decisions, not just observations.
•Operational: should any expenses be paused, reduced, or renegotiated? Are payment terms sustainable?
•Growth: can the business afford new hires or marketing spend? Should focus shift to higher-margin customers?
•Risk: is the cash reserve sufficient for taxes and compliance? Are there financial risks needing immediate attention?
•Action items: list 3 concrete financial actions for next month, assign responsibility, and set a review date.
5. Warning Signs Founders Should Not Ignore
If any of these repeatedly appear, deeper attention is required: cash balance declining every month, no clear view of upcoming payments, revenue growing but cash shrinking, frequent surprise expenses, or avoiding financial reports due to confusion. Ignoring these signs often turns small issues into major problems.
6. How to Build the Habit
Block the same time every month on your calendar, use this checklist consistently, keep notes from each review, and focus on trends, not perfection. A simple monthly finance review gives founders control, clarity, and confidence — without needing a full finance team.
Images to add: 2 supporting images (from monthly-finance-review-checklist source doc), including the closing graphic with contact details