We had a client discover during a routine quarterly review that one of his largest customers was slowly paying later and later. 30 days became 45. Then 60. Then 75.
He had not noticed because he was busy running his business. But the trend was clear in the data: this customer was heading toward a cash crisis. We helped him adjust his terms and diversify his revenue before it became his crisis too.
That conversation happened because he committed to a quarterly financial checkup. Two hours, four times a year. Eight hours annually that protect everything he has built.
The Framework We Use With Every Client
#
1. Cash Position Check
How much cash do you have today versus 90 days ago? Calculate your runway: current cash divided by monthly operating expenses. If you have less than two months of runway, that needs attention immediately.#
2. Revenue Trends
Plot your monthly revenue for the trailing 12 months. Is it growing, flat, or declining? Compare to the same quarter last year to remove seasonal noise. The trend matters more than any single month's number.#
3. Margin Analysis
Calculate your gross margin and net margin for the quarter. Compare to the same quarter last year and to your industry benchmarks. Revenue growing while margins shrink means you are getting busier but not more profitable. That is a trap.#
4. Receivables Review
How much do customers owe you, and for how long? Anything over 60 days needs a phone call this week. Anything over 90 days needs a plan. The older a receivable gets, the less likely you are to collect it.#
5. Payables Assessment
Are you paying vendors on time? Are there early payment discounts you are missing? Are any costs creeping up that should be renegotiated?#
6. Tax Projection
Based on year-to-date income, are your estimated tax payments on track? Underpayment penalties are completely avoidable with quarterly attention.#
7. Budget Comparison
How do actual results compare to plan? The goal is not perfection. It is understanding the variances and deciding which ones need action.#
8. Forward Look
What is coming next quarter? Large expenses? Seasonal shifts? New hires? Client changes? Update your forecast with this information while it is fresh.Making It Happen
Block two hours on your calendar for the first week of January, April, July, and October. Protect that time like you would a meeting with your biggest client.
If two hours alone with spreadsheets sounds painful, bring your accountant into the conversation. That is literally what we are here for. The businesses that review regularly outperform those that do not. Every time.