How Often Should You Review Your Financials?

Most business owner review their financials twice a year: once when their accountant tells them to, and once when they apply for a loan. That's not enough, but you also don't need to stare at spreadsheets every day. Here's the right frequency for the right reports.

Weekly: Cash Balance

Once a week, check your actual bank balance. That's it. You're not doing a deep analysis; you're just making sure you know what's in the account and what's coming due.

Time Required: 5 minuetes

Ask yourself:

• Do I have enough to cover next week's bills?

• Are there any unexpected charges?

• Did any expected deposits not come through?

Monthly: P&L and Balance Sheet

Once a month, review your P&L and balance sheet together. This is your real financial checkup.

Time Required: 30 to 45 minutes

Look at:

• Revenue - Up or down from last month? From the same month last year?

• Expenses - Any category that jumped unexpectedly?

• Net profit - Is it positive? Is it trending in the right direction?

• Cash position - Do you have enough runway for 2 to 3 months of expenses?

• Accounts Receivable - Any invoices that are 60+ days old?

• Accounts Payable - Any bills that are overdue?

Quarterly: Deep Dive

Every quarter, do a deeper review. This is where you catch trends before they become problems.

Time Required: 1 to 2 Hours

Review:

• Quarterly P&L - Look at the whole quarter, not just the last month.

• Budget vs. Actual - Are you on track for the year? Where are you over or under?

• Tax Estimates - Are your quarterly payments on track based on actual profit?

• Contractor Payments - Running total for 1099 tracking.

• Major Expenses - Any big purchases planned for next quarter?

Annually: Full Review

Once a year, sit down for a comprehensive review. This is part financial checkup, part planning session.

Time Required: Half a Day (or less with a bookkeeper)

Do:

• Full-year P&L review by month and by category

• Balance Sheet review for accuracy

• Tax planning with your CPA

• Set next year's budget

• Review pricing - shoul you raise rates?

• Evaluate entity structure - should you elect S-Corp status?

The Most Important Rule

The reports don't matter if you don't look at them. The business owners who stuggle financially almost always have the same issue: they have books but they don't read them. The information is there, they just ignore it.

Set calendar reminders for each review and treat them like client meetings. Don't skip them.

The Bottom Line

Weekly cash check, monthly P&L review, quarterly deep dive, annual planning. That's the rhythm. It takes less time than you think, and it's the single highest ROI habit a business owner can build.

A. Bryson Bookkeeping provides monthly financial reports that actually make sense, so you can review your numbers in minutes, not hours. Book time with me if you're having a hard time understanding your reports!