Most owners think they’ll “look at the numbers later,” but later usually means when something goes wrong. A client delay, a CRA notice, or a cash shortfall suddenly makes the books a priority.
By then, it’s already reactive.

A monthly financial review shifts that — it’s short, structured, and calm. It helps you catch issues while they’re small and gives you a clear sense of direction before decisions pile up.
Here’s what that review should include.

1. Reconcile All Accounts

Start with the basics: make sure your bank, credit card, and payment processors (like Stripe or PayPal) all reconcile to the statements.
This confirms that the data you’re looking at is real. Without reconciliation, every report is built on guesses — and no insight is reliable.

2. Review Income by Source

Look at where your revenue actually came from. Separate recurring income, project-based work, and one-time sales.
Patterns often hide here — such as a drop in one service line masked by an increase in another.
Revenue source tracking also helps identify which clients or products are truly carrying your profitability.

3. Track Monthly Operating Expenses

Rather than scanning through hundreds of transactions, group your spending into key categories:

• Marketing
• Payroll / Subcontractors
• Software / Systems
• Vehicles / Operations
  Compare each to the previous month. Don’t obsess over small fluctuations — you’re looking for direction, not perfection.

4. Verify GST/HST Balances

This is the most common area for bookkeeping drift.
Your GST/HST payable balance should always make sense in relation to your sales volume and expense claims.
A quick check each month prevents year-end reconciliation headaches — and protects you from accidentally over- or under-remitting.

5. Check Accounts Receivable and Payable

Cash flow isn’t just about income — it’s about timing.
Review unpaid invoices and bills. Ask: what’s overdue, what’s upcoming, and what can be followed up?
A simple habit of weekly or monthly follow-ups often eliminates the “cash crunch” that most owners blame on sales.

6. Pull a Simple Profit and Loss

Don’t get lost in spreadsheets.
A basic P&L (income statement) tells the story: are you earning enough to justify the effort, and are margins trending the right way?
Even if you don’t analyze deeply, just reading it monthly builds familiarity — which means you’ll notice when something looks off.

The Point Isn’t Accounting — It’s Awareness

This process doesn’t need to be long or technical. The goal is to make the books part of the rhythm of running the business, not an afterthought.
Once you build that rhythm, the stress fades — because nothing sneaks up on you anymore.

Financial control doesn’t come from more spreadsheets; it comes from looking sooner and acting smaller.

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