Business Owners’ Financial Reporting Checklist

As business owners, you are tasked with acquiring new customers, managing your team, and launching new products. Let’s face it. Most of us simply don’t have time to focus on our financial statements daily—or even weekly. However, businesses need an effective system for conducting operations, complying with tax laws and providing essential financial information—especially to lenders and outside investors.

Think of monitoring your financial statements like monitoring your vital signs. Understanding the health of your company with timely and accurate reporting is a key tool that allows you to measure how the business is performing in terms of cash flow, sales growth, profit margin changes, and expense management.

So what statements should you monitor? 
The Balance Sheet and Profit & Loss statements are obviously key to every business, but attention should also be paid to Accounts Receivable and Accounts Payable reports, and of course to your bank statement.

Steps to Ensure Your Financial Books Are in Order

Whether you’re a small business or a larger organization with 700 employees, this Financial Checklist can help you get into the discipline of monitoring the above statements to ensure consistent financial health—and even spotting warning signs before cash flow emergencies strike. Financial Records Checklist
Review balance of cash on hand and in the bank to ensure deposits and cash receipts have been posted accurately and in a timely manner.

Reconcile your bank accounts on a monthly basis.

Cross-check daily sales log and cash receipts.

Review accounts payable each week.

Monitor the status of accounts receivable weekly to check on past due invoices.

Inquire about unpaid invoices that are past due by 30 days or more and address the issue in a timely manner.

Review your payroll and administrative expenses weekly.

Monitor any taxes due, whether federal or state tax filings, to avoid late fines and penalties.

Monitor payments to vendors and software leases.

Keep track of the ratio between marketing and income generated by marketing.

Review all account balances to ensure that transactions are properly posted and adjusted as needed. At year end, prepare for 1099’s due in January. Begin to organize your W-9’s in December to avoid being rushed come January.

B2B CFO® is passionate about providing the tools and strategic financial leadership to help owners focus on building thriving and profitable businesses.  All business owners want more time to focus on the business and future goal-setting. Yet, too often business owners get stuck doing what we call “Minding” activities instead of “Finding” activities. “Finding” activities involve leading the business with the ideas, plans and culture to make it successful. “Minding” activities are necessary (accounting, cash management, financial statements, internal procedures and controls, etc.), but if too much time is spent on these by the business owner, the level of “Finding” activities suffer and business growth can stall.

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