
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.