"How's business going?"
When someone asks you this, do you answer with a feeling or with facts? Most business owners I meet go with their gut.
But here's the thing: your gut feeling isn't always right, and it definitely won't help you make smart decisions about your future.
Why This Matters to You
If you're like most business owners I work with, you look at your numbers once a year with your accountant, usually months after your year-end. By then, it's too late to fix any problems or grab missed opportunities.
But what if one simple monthly habit could transform how you run your business? I'm talking about turning boring management accounts reviews into powerful strategy sessions that drive real growth.
Why Most People Struggle With This
The main reason business owners avoid monthly financial reviews is simple: numbers can feel overwhelming. When you're faced with pages of figures and charts, it's tempting to just check the bank balance and move on.
Another common excuse?
"I'm too busy running the business to look at reports." But here's the truth: running your business without reviewing your numbers is like driving with your eyes closed. You might be heading straight for a cliff and not even know it.
Making Numbers Meaningful
Think of your monthly management accounts like your business's health check. Just as your doctor checks vital signs like heart rate and blood pressure, your management accounts show your business's vital signs - cash flow, profit margins, and sales trends.
But it's not just about looking at numbers. It's about asking the right questions:
These monthly checks help you spot problems while they're still small enough to fix easily.
Turning Reports into Action
The magic happens when you stop treating these reviews as just another admin task. Instead, make them a strategic planning session.
Here's how:
First, schedule it early in the month - ideally within the first week. That keeps the previous month's activities fresh in your mind and gives you time to adjust your plans.
Second, come prepared. Have your key numbers ready, but also bring notes about what happened last month - both wins and challenges. This context helps explain what the numbers are telling you.
Finally, focus on decisions and actions. Every review should end with clear tasks that will move your business forward.
The Power of Regular Reviews
When you check your numbers monthly instead of yearly, amazing things start to happen:
I saw this work wonders in my own business.
Regular reviews helped us spot a pricing issue that was eating into profits. By catching it early, we made small adjustments that added up to significant gains over the year.
Making It Work for You
Start simple.
Focus on a few key numbers that really matter for your business:
Don't get bogged down in every detail. Look for patterns and changes that need attention. The goal is to understand enough to make better decisions, not to become an accountant.
Turning Insights into Growth
The real value comes from what you do with these insights. Use your monthly reviews to:
Remember, this isn't about crunching numbers - it's about making smarter decisions for your business's future.
Takeaways for Better Business Decisions
Before your next monthly review:
Most importantly, remember that monthly reviews aren't about looking backward - they're about making better decisions for your future.
Ready to transform your monthly reviews?
Start by scheduling next month's session now.
What's one key metric you'll focus on first?