20 Lessons from 20 Years

20 years

Twenty years ago, I started Verbeck Associates with a simple goal: to help business owners better understand their numbers and build stronger companies.

Since then, I have worked alongside owners and leadership teams through growth, turnarounds, cash shortages, acquisitions, reporting challenges, operational changes, and more than a few unexpected surprises.

What I have learned is that the numbers are only part of the story.

Behind every financial statement is a business owner making difficult decisions, a leadership team solving problems, and a group of people trying to build something that will last.

The industries have been different. The companies have been different. The circumstances have been different.
But the lessons have been remarkably consistent.

Here are 20 of the most important lessons I have learned over the past 20 years.

Cash

1. Cash is a system, not just a number.
Cash flow is the result of your billing, collections, inventory, purchasing, payables, spending, and forecasting processes. When cash is tight, the bank balance is usually only the symptom.

2. Profit is not cash.
A profitable company can still run out of money. Growth, inventory, receivables, debt payments, and capital spending can absorb cash faster than profits create it.
Never confuse the two.

3. Forecast cash weekly.
Monthly financial reports tell you what happened. A weekly cash forecast helps you decide what to do next.
The earlier you see a cash problem, the more options you have.

4. Every dollar needs a job.
Payroll. Inventory. Debt reduction. Equipment. Taxes. Growth.
Cash without a purpose has a way of disappearing.

5. Small cash leaks become large problems.
Late invoices, slow collections, unnecessary subscriptions, excess inventory, and careless spending may not hurt immediately, but they compound.

Growth
6. Growth exposes weak systems.
The informal processes that work at $1 million in revenue often begin to break at $5 million.

Growth does not hide weaknesses. It magnifies them.

7. Revenue does not fix everything.
Additional sales cannot overcome poor margins, weak collections, uncontrolled expenses, or bad financial discipline.

Sometimes more revenue simply creates a larger problem.

8. Margins deserve as much attention as revenue.
Revenue is exciting. Margin is what keeps the business healthy.

Not every customer, service, product, or project contributes equally to the bottom line.

9. Processes matter more than heroics.
Companies do not scale because a few people work extraordinary hours.

They scale through repeatable systems, clear responsibilities, good training, and consistent execution.

10. Complexity is expensive.
Every unnecessary product, report, approval, system, exception, and manual workaround creates cost.

Simpler businesses are usually easier to manage, easier to scale, and more profitable.

Leadership

11. Business owners must know their numbers.
You do not need to become an accountant. But you do need to understand the financial and operational drivers of your business: revenue, margin, labor, cash, working capital, and profitability.

12. Simplify financial reporting.
A one-page dashboard reviewed every week is more valuable than a 40-page report nobody reads.

The best reporting highlights what changed, why it changed, and what needs attention.

13. Better information leads to better decisions.
Financial reporting should create clarity, not confusion.

The purpose of the finance function is not simply to produce numbers. It is to help leadership make stronger decisions.

14. Discipline beats intensity.
Occasional bursts of effort rarely create lasting improvement.

Consistent weekly habits—reviewing cash, monitoring performance, following up on receivables, and holding people accountable—produce better results.

15. Accountability creates momentum.
When everyone understands the goals, the numbers, and their responsibilities, execution improves.

What gets reviewed gets attention. What gets assigned gets done.

Perspective
16. Build systems before you desperately need them.
Waiting until growth overwhelms your people and processes is expensive.

The best time to improve reporting, forecasting, controls, and accountability is before the business reaches a crisis.

17. Businesses rarely struggle because the owner stopped caring.
Most owners care deeply about their companies, employees, customers, and reputations.

The problem is usually not effort. It is that the organization has grown more complex than its systems can support.

18. Complexity quietly outpaces discipline.
Companies rarely lose control all at once.

Reporting gets a little later. Collections slow down. Inventory grows. Exceptions multiply. Responsibilities become unclear.

That is often where financial problems begin.

19. Good finance is not about spreadsheets.
Spreadsheets are tools.

Good finance gives leaders the visibility and confidence to make the next decision—whether that means hiring, investing, cutting costs, pursuing growth, or preserving cash.

20. Clarity compounds.
Clear numbers.
Clear priorities.
Clear responsibilities.
Clear accountability.

Over time, those small advantages compound into stronger teams, better decisions, and more valuable businesses.

The Fundamentals Still Matter
Technology has changed dramatically over the past 20 years.

Reporting tools are faster. Information is more accessible. Automation and artificial intelligence are changing how financial work gets done.

But the fundamentals have not changed.

Companies that understand their numbers, build sound systems, protect cash, and make disciplined decisions
consistently outperform companies that simply work harder.

I am grateful to every client, colleague, employee, advisor, and mentor who has been part of the Verbeck Associates journey.

Thank you for your trust, your partnership, and the opportunity to help build stronger businesses.

Twenty years is an important milestone.
But we are not finished.
Here’s to the next 20 years.

Better Decisions Start with a Better Close

A better close

Most business owners don’t have a “numbers problem.”

They have a timing problem. 

When your close takes 20–30 days, you are making February decisions based on January’s fog. When auditors show up, that fog turns into a fire drill. 

A strong close is not about prettier financials. It’s about control: faster decisions, fewer surprises, and less stress.

I’ll say it plainly: a monthly close should take 10 days or less. Big, complex organizations can do it. Small businesses can too, if the process is owned, sequenced, and enforced.

Let’s be real: in the SMB world, a 10-day close is a big lift for many teams — and plenty never truly “close” at all. Best-in-class today is 0–5 business days, where most of the work happens continuously throughout the month and month-end is mainly verification and storytelling. 

The close maturity model (how we get there)

Think of this as levels. The goal is progress, not perfection.

Level 1 — Stabilize (10-day close):
You get consistent, accurate financials on a predictable timeline.

Level 2 — Optimize (5-day close):
Reconciliations and routines are tight, roles are clear, and exceptions get handled fast. 

Level 3 — Systematize (0–5 day “continuous close”):
Much of the close is done all month long. Month-end becomes a short checkpoint, not an event. 

The real purpose of the close

A clean close does three jobs:

  1. Truth: your P&L and balance sheet actually reflect reality
  2. Speed: you get answers while the month still matters
  3. Audit readiness: you are not “preparing for the audit” every year — you are living audit-ready all year 

The 10-day close cadence (simple version)

Here is a practical cadence I use with clients: 

Days 1–3: Get the data in

  • All bills entered, payroll posted, bank/credit card feeds reconciled
  • Revenue cut-off reviewed (nothing heroic, just clean) 

Days 4–7: Reconcile the balance sheet
If you want one rule that improves everything: the balance sheet is the close.

  • Bank reconciliations
  • AR aging reviewed (credits, old items, misapplied cash)
  • AP aging reviewed (duplicate bills, stale items)
  • Inventory/WIP logic checked (if applicable)
  • Debt/loan balances tied (and interest booked). 

Days 8–10: Tell the story

  • Draft financial package
  • Variance notes: “what changed and why”
  • Owner/leadership review meeting.

This is how you shift from “accounting” to operating rhythm. 

“Auditors are starting soon.” Here’s how to get ahead in one week:

If your auditors are about to begin fieldwork, don’t try to do everything.

Win the first 20 percent that prevents 80 percent of the pain:

  • Lock the close calendar (owners + deadlines + one person accountable)
  • Confirm the reconciliations are complete (bank, credit cards, loans)
  • Build three rollforwards: fixed assets, debt, equity (simple schedules)
  • Clean AR and AP aging (old items have a way of becoming audit findings)
  • Review the trial balance for unnatural balances
  • Document the weird stuff (one-time items, legal settlements, insurance claims, unusual journal entries). 

That last one matters. Auditors don’t fear complexity. They fear surprises with no documentation.

The leadership shift

If you lead a business, here’s the mindset:

You don’t get a close.
You run a close.

And when you run it well, everything gets easier: cash clarity, forecasting, tax planning, lender conversations, valuation, and yes — audits.

Want my close checklist?

If you want the exact Month-End Closing Checklist I share with clients, it’s on my resources page here. Use it as-is or customize it to your business.

Contact me for more personal help!

Year-End Finish Line Finance: Close Strong and Hit January Running

Finish strong

As the year winds down, most owners fall into one of two camps.

Some coast. They assume December is already lost, push decisions to January, and hope momentum magically appears.

Others treat the final weeks as both a finish line and a starting line, cleaning up numbers, tightening cash, and entering January with clarity instead of chaos.

This post is for owners in that second group, or those ready to join them.

You do not need a retreat or a reinvention. You need a focused, practical year-end reset you can complete in a few hours. Here’s a streamlined Finish Line Finance playbook to help you close strong and step confidently into the new year.


1. Define what “finishing strong” means.

Before you touch a spreadsheet, decide what success looks like. That might be:

  • Hitting a target cash balance
  • Reducing AR aging to a defined threshold
  • Cleaning up reconciliations so there are no open questions
  • Setting a realistic Q1 revenue and margin target.

Pick two or three outcomes. These become your filter for every year-end decision.


2. Clean up the numbers.

You cannot make good decisions with messy data. Focus on three core areas:

  • Reconcile key accounts
    Ensure bank accounts, credit cards, and loans match actual statements.
  • Tighten AR and AP
    Act on receivables over 60 to 90 days. Sort vendors into must-pay, flexible, and non-essential groups so you regain control of cash instead of reacting to whoever shouts the loudest.
  • Eliminate mystery items
    Clear uncategorized expenses, odd balances, and confusing entries so you are not dragging problems into January.

3. Turn this year into insight.

Once the numbers are clean, shift from history to insight. Ask what the year is telling you.

  • Review trailing twelve months instead of just year-to-date snapshots.
  • Apply the 80/20 rule to see which customers and offerings truly drive profit.
  • Scan overhead for subscriptions, headcount, and creeping costs that could erode 2026 margins.

The goal is simple: know where your profit is coming from and where it is quietly leaking out.


4. Build your 13-week cash runway.

The 13-week cash model remains one of the most powerful tools in finance. Map cash in and cash out, week by week, including payroll, taxes, key vendors, debt service, and planned investments. 

This reveals:

  •  When cash may tighten
  •  Where to accelerate collections
  •  Which spending to delay or phase.

The goal is no surprises in Q1.


5. Choose three must-win moves for Q1.

Focus beats complexity. Select three specific, measurable actions for the first quarter. For example:

  • Cut AR over 60 days in half
  • Improve margins on top service lines
  • Shorten the month-end close from 20 days to 10.

Assign clear owners and deadlines. Put the first check-in dates on the calendar now.


6. Run a 90-minute finish line session.

Block 90 minutes to pull this together.

  • 30 minutes: Confirm reconciliations and list priority cleanup items
  • 30 minutes: Review trailing twelve months and extract key insights
  • 30 minutes: Finalize the 13-week cash model and Q1 Must-Win Moves.

Document the decisions and the next steps. This becomes your bridge into January.


7. Carry a CFO mindset into the new year.

The habits that help you finish strong are the same habits that reduce stress and boost profit all year long.

  • Clean, timely numbers
  • Weekly visibility into cash
  • A short list of focused execution priorities.

If you want help putting this system in place, download the tools on my Resources page or reach out for a working session here

Use December intentionally. You do not control the economy, but you do control how you finish the year and how prepared you are for the next one. Contact me for help!

Execution Over Excuses: The Real Reason Businesses Struggle

Execution

Lately, I’ve been thinking again about what really causes businesses to struggle—or worse, fail.

You’ll hear the usual list: cash flow issues, declining sales, or lack of capital. And while those are valid pain points—(hey, I talk about cash flow all the time and am a strong advocate of the 13-week cash flow tool)—these are often symptoms, not the disease.

At Verbeck Associates, we work with growing companies every day. And what we see again and again is that most business owners know what to do. They just don’t do it consistently, clearly, and with accountability.

Years ago, I read the book Execution by Larry Bossidy and Ram Charan—it’s one of those books that sticks with you. Larry Bossidy, the former CEO of Honeywell and a longtime executive at GE, understood what it took to make strategy a reality in a complex organization. Their premise was simple: “Execution is a discipline, and integral to strategy.” In other words, it’s not enough to have a plan. The real work is in driving that plan forward—week by week, person by person, number by number. That’s where most businesses fall short.

Execution Is the Missing Link

You can have the best strategy in the world. But without execution, it’s just a document on your shared drive.

Execution means:

  • Translating goals into actionable steps
  • Holding people accountable—not just assigning tasks
  • Reviewing progress regularly (weekly, not quarterly)
  • Creating a culture where results are expected and tracked.

In Execution, Bossidy talked about something we see all the time with our clients. Businesses fail not because the strategy is wrong, but because no one owns the follow-through.

What Gets Measured Gets Done

This is where accountability structures come in.  If you’re not tracking execution at the weekly level, you’re relying on luck and memory—two things that don’t scale.

At Verbeck Associates, we emphasize:

  • Weekly scorecards with clear metrics
  • Role-specific dashboards
  • Simple meeting cadences (financial and operational)
  • Forecasts that aren’t just financial—they’re operational, too.

The most successful companies don’t just set goals. They create visibility around who’s doing what, by when, and what “done” looks like.

Bottom Line

Strategy sets the direction. Execution delivers the result.

If your team isn’t hitting targets, the first question to ask isn’t “What’s wrong with the plan?” It’s “Where are we falling short in execution—and who’s accountable for that?”

October is the ideal time to thoroughly review your Q4 execution plan. If you’re not on pace to hit your year-end goals, don’t rewrite the strategy—tighten the execution.

Ask yourself:

  • What are the top targets by department over the next 90 days?
  • And more importantly, how are you tracking the tactics to get there each week?

If you need help establishing structure, setting scorecards, and implementing accountability around your goals, let’s talk.

Halftime 2025: Reset, Refocus, Reforecast

Refocus

We’ve hit the halfway mark of 2025. Before the second half sprints ahead, now’s your chance to pause the hustle, zoom out, and make sure you’re on the right track.

Summer is here with its slower pace, family getaways, and a well-deserved breather. But it’s also a golden opportunity to hit pause with purpose. Mid-year is the perfect moment to reset your business GPS and ensure you’re headed toward the finish line—not just coasting, but accelerating.

You don’t need a full-day offsite or a retreat center (though I’ve helped facilitate a few powerful ones with clients this year). A few laser-focused hours with the right numbers and the right mindset can create serious alignment and focus for Q3 and Q4.

Why Halftime Reviews Matter

Every year, I observe the same phenomenon: companies that pause mid-year to review, reforecast, and refocus always finish stronger. They don’t wait until December to figure out what went wrong. They course-correct now.

A strategic halftime review helps you:

  • Spot what’s working and what’s not before minor issues become big problems
  • Adjust your forecast based on reality
  • Re-align your team around fresh priorities and targets
  • Prepare for the unexpected curveballs
  • Finish the year with purpose and renewed energy

Halftime isn’t a break. It’s a power play.

5 Steps to Run a High-Impact Halftime Review

1. Zero in on the Right Numbers

Start with a clean, fast financial close—no guesswork, no fuzzy math. Then dig into the key metrics that tell the real story:

  • Sales by segment
  • Gross margin trends
  • Operating expenses vs. budget
  • Net income YTD
  • Cash and receivables position
  • Capital needs through year-end.

Don’t just glance. Analyze. Look at actual vs. budget vs. prior year—monthly, quarterly, and YTD snapshots. What trends are emerging? Where are you outperforming? Where are things slipping? This is where insights emerge—and strategic decisions take shape.

2. Re-forecast with Realistic Assumptions

If your original plan doesn’t reflect today’s reality, it’s time to let it go. Be honest with the data—and yourself. Update your sales and margin expectations, reset spending plans, and revise your cash forecast. Think forward: What do the next six months look like? Build your roadmap on facts, not wishful thinking.

3. Recommit to Laser-Focused Q3 Priorities

Don’t try to fix everything. Instead, identify 2–3 key priorities that will move the needle this quarter. Think:

  • A margin-improving initiative
  • A smarter pricing strategy
  • A key hire or team restructure
  • A tighter, more actionable reporting cadence.

Whatever you choose, make it count. Assign a clear owner. Define success.

Set timelines. Then focus relentlessly. In Q3, clarity beats complexity every time.

4. Evaluate Your Team and Execution

Halftime is the perfect time to take a hard look at your org chart and execution muscle. Ask yourself:

  • Do you have the right people in the right seats?
  • Is your sales and marketing effort performing or coasting?
  • Is finance or ops keeping pace with growth, or falling behind?
  • Are your teams exploring tools like AI to work smarter, not harder?

Have the tough conversations in Q3 so you’re not dealing with costly surprises in Q4.

5. Stop Doing What’s Not Working (The 80/20 Wake-Up Call)

Finishing strong isn’t about piling on more—it’s about cutting what’s holding you back. This is your cue to apply the 80/20 lens.

  • Which 20% of your customers or services drive the majority of your profit?
  • Which ones eat up your time, team, and energy—for little to no return? 

I find that many times, the top 20% of your customers drive 150% of your net income, while the bottom 80% drag it down. Let that sink in.

It’s Time to Make the Calls 

This is where good intentions turn into authentic leadership. Ask the tough questions:

  • What do we need to stop doing?
  • Which customers or offerings are hurting margin and focus?  
  • What’s the true profitability by customer?
  • What projects or meetings have outlived their usefulness? Or reporting, data collection, or general processes.  

Zoom out. Take a 10,000-foot look. Then apply a simple decision filter: Repair it. Refine it. Replace it. Or remove it. 

Sometimes the smartest move isn’t adding more—it’s clearing the clutter. Freeing up energy and resources can be more powerful than adding something new.

Your Second Half Checklist

I recommend gathering these essentials to power your halftime review:

  • YTD sales, margin, and net income vs. budget and prior year. Clean, accurate numbers only
  • Income statement & balance sheet by month (trailing 24 months)
  • Updated org chart
  • Sales by segment/customer type 
  • 2025 budget by month (vs. actuals to date)
  • Updated 13-week cash flow forecast
  • Capital needs through year-end
  • Your “Stop Doing” list powered by 80/20 insights.

Final Thought: Halftime Is a Leadership Moment

You don’t need to blow up your playbook. But you do need to pause, reflect, and lead intentionally.

A solid halftime review realigns your team, re-centers the focus, and reignites momentum. It gives you—and your people—confidence to finish 2025 strong.

Do the work. Build your second-half plan.
It might be the highest-impact move you make all year.

Contact me for guidance!

How to Run a Monthly Financial Review Without Putting People to Sleep

Monthly review

Let’s face it—most business owners and staff don’t look forward to monthly financial reviews. They either dread them, delay them, or delegate them. Why? Because too often, the meeting feels like a confusing spreadsheet parade or a guilt trip over missed targets.

But it shouldn’t be that way.

A monthly financial review is one of the most powerful tools you have. Done right, it gives you a clear snapshot of where your business stands, where it’s heading, and what adjustments you need to make. I’m a numbers guy and love numerical tables, but that’s very dependent on the audience of the meeting.  For most owners I deal with, it’s less about crunching numbers and more about telling the story behind those numbers.

Here’s how to run a financial review that’s efficient, insightful, and yes—worth staying awake for.


1. Focus on Trends, Not Just Numbers

Stop obsessing over a single month’s data. Business performance rarely moves in a straight line. Instead, zoom out and study patterns across time.

Ask:

  • Are sales steadily growing or losing momentum?
  • Are margins staying strong, or slowly slipping?
  • Is your cash flow behaving as you expected—or are there surprises?

Lay out the last 6–12 months side by side. This birds-eye view helps you catch subtle shifts before they become full-blown problems. It also enables you to recognize what’s working so you can do more of it.

Pro Tip: Color-code or graph key metrics to make trends jump off the page. Visuals beat walls of numbers every time.


2. Look at KPIs, Not Just Financial Statements

Your income statement and balance sheet tell you what happened. Your KPIs tell you why.

Choose 5–7 key performance indicators that reflect the true health of your business. These will vary depending on your industry, but may include:

  • Gross profit margin – Are you pricing your products or services effectively?
  • Accounts receivable days – How quickly are you collecting money?
  • Labor efficiency – Are you getting the correct output for your payroll investment?
  • Inventory turns – How fast is inventory moving? Are you overstocked or running lean?

Understand the impact of slight improvements.  For example, a 5-day improvement in DSO could mean a $65,000 increase in cash.

Track these KPIs consistently—monthly, quarterly, annually—and discuss them out loud. When you put numbers in context, they become tools for decision-making, not just reports.

Pro Tip: Assign ownership. Make someone responsible for each KPI, so there’s accountability and follow-through.


3. Ask Two Simple, Powerful Questions

Once you’ve reviewed the data, don’t stop there. The real value comes from discussion and decisions. Ask:

  • What’s working that we can double down on?
  • What’s not working that we need to fix—or what do we need to stop doing altogether?

These two questions force you out of passive observation and into active strategy. They help your team focus, prioritize, and align on what to do next.

Pro Tip: Write down the answers. Turn them into real action items and assign next steps with deadlines.


4. Keep It Short, Structured, and Actionable

If your financial review takes two hours, you’re doing it wrong. Aim for a meeting that’s:

  • 45 minutes max
  • Driven by a one-page summary or dashboard
  • Ending with 2–3 specific action items

The goal isn’t to analyze every penny—it’s to surface what matters and make clear decisions. I use our CFO report as the basis for the discussion.  A tight, focused structure keeps your team engaged and turns the review into a rhythm, not a chore.

Pro Tip: Stick to a consistent format and time each month. Make it a habit that your business can rely on.


Bottom Line: Use It to Lead, Not Just Look Back

Your monthly financial review shouldn’t feel like punishment. It’s your chance to lead your business on purpose, not just react to what’s already happened.

When you bring strategy, structure, and storytelling to the table, financial reviews become energizing. They spark new ideas, surface issues early, and give your team confidence in the direction you’re heading.

So no more dreading the numbers. Use them to drive clarity, alignment, and momentum.

Contact me for help in crafting a better approach to monthly financial reviews.