Your job is to make sure the financials reflect the real business. Every key driver — revenue, cost, overhead, cash — should be captured, reconciled, and telling the truth. The balance sheet is the most overlooked piece. If it's not reconciled monthly, you're flying blind. Work through each section. Your progress saves automatically.
Revenue — Does It Reflect the Real Business? Are we capturing everything we earned? 0/7 Is all revenue booked for work completed this month? Nothing sitting in a queue or stuck in billing? For project-based work: is % complete / WIP / milestone billing updated to reflect actual progress? Are change orders, add-ons, and scope changes reflected in the numbers — or just in someone's head? Revenue by division/product/service line — are the breakdowns accurate? Does the mix match reality? Any revenue pulled forward or pushed back? Cutoff should reflect when the work was done, not when it was invoiced. Compare to pipeline/backlog — does booked revenue make sense given what you know is in flight? Revenue vs. budget and vs. prior month — where did you beat, where did you miss, and do you know why?
Cost — Are We Capturing What It Costs to Deliver? Direct costs, COGS, labor, materials, subs 0/7 Are all direct costs (labor, materials, subs, equipment) posted to the right jobs/projects? Is payroll fully posted and allocated — every pay period in the month accounted for? Are subcontractor invoices booked? Anything received but not yet entered? Material costs — are purchase orders closed out? Any open POs for delivered goods? Gross margin by division/project — are you actually profitable where you think you are? Any cost overruns this month? What caused them — labor, materials, scope, or pricing? Are warranty costs, rework, or callbacks being tracked and booked — or are they hiding?
Overhead — Are We Running Lean or Leaking? SG&A, fixed costs, people costs, subscriptions 0/7 Total overhead vs. budget — any line item that grew without a clear reason? Headcount and salary costs vs. plan — are we staffed right for the current workload? Software, subscriptions, and recurring charges — anything we're paying for that we're not using? Insurance, rent, utilities — any renewals, rate changes, or surprises? Credit card and expense reports — all submitted, coded, and in the right categories? Any one-time expenses this month that won't repeat? Separate them so the trend is clear. Overhead as a % of revenue — is the ratio improving, flat, or getting worse?
Cash — Where Is It and Where Is It Going? The most important section. Cash is truth. 0/8 Total cash across all accounts — know the exact number. No rounding, no estimating. AR aging: who owes you money? Anything over 30 days? Over 60? Who do YOU need to call? AP aging: are we paying on terms — not early? Any disputes, holds, or missed payments? Working capital: AR + inventory - AP. Did it improve or deteriorate? This IS your cash engine. Deposits and retainage: money you're holding or money being held — where does it stand? Debt service: all loan payments made? Line of credit balance? Covenants in compliance? 13-week cash flow forecast: updated with this month's actuals. Not stale. Not optimistic. Real. Cash decision: invest, pay down debt, build reserves, or distribute? What's the best use right now?
Balance Sheet — This IS the Business Most overlooked by non-finance CEOs. Don't skip this. 0/11 Every balance sheet account should be reconciled monthly. Ask your finance team: are they? Which ones aren't? Bank accounts reconciled — no uncleared items older than 30 days. If there are, something is wrong. AR subledger ties to the balance sheet. If it doesn't, you don't know what you're actually owed. AP subledger ties to the balance sheet. If it doesn't, you don't know what you actually owe. Inventory / WIP: does the balance match reality? Anything stale, overvalued, or written off? Prepaids and deposits: are we carrying costs we've already consumed? These should amortize, not sit. Fixed assets and depreciation: any additions, disposals, or write-offs this month? Accrued liabilities: anything you owe that isn't recorded? Bonuses, commissions, taxes, insurance? Intercompany balances (if multiple entities): are they reconciled and settling? Don't let these drift. Equity: any owner draws, distributions, capital contributions, or retained earnings adjustments? Compare to prior month — anything that moved more than 10% needs an explanation. No exceptions.
Decide and Act Numbers without decisions are just reports. 0/8 What's the story this month? Write it in 3 sentences — not the numbers, the narrative. Top 3 variances vs. budget: what happened, why, and is it a trend or a one-time event? Collections: build a specific action list. Names, amounts, and who's calling this week. Pricing check: any jobs, products, or customers that are underwater? Adjust, renegotiate, or exit. Headcount: are you over or under for the current pipeline? Hire, hold, or reduce? Update the forecast for the rest of the quarter. Does the plan still hold? What changed? Communicate to your leadership team: what do they need to know and do differently? Pick ONE financial process to improve next month. Just one. Execute it fully.
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