A simple financial checkup for a small business owner

1. What came in, and what is still owed?

Compare sales or revenue with the cash actually collected. A strong month on the income statement can still create pressure when customer payments arrive later than payroll, rent, debt, or tax obligations.

2. What must leave the bank next?

• Payroll and related obligations
• Vendor bills and recurring operating costs
• Debt payments and committed purchases
• Sales, payroll, and income tax amounts being held or estimated
• Owner draws, distributions, or reimbursements

3. Which number changed enough to explain?

Compare the current month with a useful reference such as the prior month, the same month last year, or a current forecast. The purpose is not to explain every line. It is to identify the few changes that affect cash, capacity, or an upcoming decision.

4. What decision is approaching?

Name the next decision. It may be hiring, purchasing equipment, increasing owner pay, changing pricing, paying down debt, or preparing for a seasonal slowdown. Then decide which information and time horizon are needed before acting.

5. Who owns the next step?

End the review with a short list of open items, one owner for each item, and a due date. A dependable monthly rhythm should reduce unresolved questions rather than carry them into the next close.