How to Do a Monthly Financial Review
Keeping up with your business finances can feel like a full-time job. But here’s the secret: if you spend just 30 minutes a month on a monthly financial review, you’ll save yourself hours of stress and avoid costly mistakes.
The key? Having a monthly financial review checklist that keeps you focused and on track.
In this post, we’ll break down exactly how to do a monthly financial review, step by step, so you can stay in control of your business, make smart decisions, and actually enjoy looking at your numbers.
📝 Why a Monthly Financial Review Matters
Skipping a monthly financial review is like driving without checking your fuel gauge. You might be fine…….until you’re not.
A monthly financial review checklist helps you:
✅ Spot cash flow issues before they become a problem
✅ Track progress toward your goals
✅ Stay tax-ready all year long
✅ Make better decisions with confidence
📊 Your Monthly Financial Review Checklist
Here’s a simple, no-fluff checklist you can use every month.
1️⃣ Review Your Income
Start by checking your revenue for the month:
Total income: How much did you bring in?
Compare to your goals: Are you on track, ahead, or behind?
Look for patterns: Which products or services are driving revenue?
2️⃣ Review Your Expenses
Next, review all your business expenses:
What did you spend money on?
Are there any unnecessary costs you can cut?
Are any expenses higher than expected?
Pro tip: Categorize your expenses (e.g., software, marketing, supplies) for easier analysis and tax prep later.
3️⃣ Check Your Cash Flow
Look at the big picture:
✅ Did more money come in than go out this month?
✅ If not, why? (Slow sales, big one-off expense, late invoices?)
✅ Do you have enough cash for the next 1–3 months?
Cash flow is king, so don’t skip this step!
4️⃣ Reconcile Your Accounts
Take a few minutes to reconcile your bank and credit card statements:
Match transactions to your records
Double-check for any errors or surprises
Ensure all invoices and bills are logged correctly
This step keeps your books clean and saves time at tax season.
5️⃣ Track Your Progress Toward Goals
Check in on your financial goals:
Are you hitting your revenue targets?
Have you met any savings goals (like an emergency fund or tax savings)?
Do you need to adjust your pricing, marketing, or spending to stay on track?
6️⃣ Plan for the Month Ahead
End your review by setting a simple financial plan for next month:
✅ Any big expenses coming up?
✅ Any slow months expected?
✅ Any marketing or sales strategies to implement?
This keeps you proactive instead of reactive.
🔄 How Long Should a Monthly Review Take?
Once you get the hang of it, your monthly financial review should only take 30–60 minutes.
It’s a small time investment that pays off with:
✅ Less stress
✅ Fewer surprises
✅ Smarter business decisions
Final Thoughts
Your monthly financial review checklist is your business’s secret weapon. It helps you stay organized, avoid cash flow problems, and make confident decisions - all in under an hour a month.
So block off a little time on your calendar, grab your checklist, and make it happen. Your future self (and your bank account) will thank you.
