We have a monthly financials review on the first Thursday of each month. As part of our rhythm, data, and priorities, using the terminology from Mastering the Rockefeller Habits, we try to have consistent, repeatable processes for everything we do. The monthly financials review involves talking through the following items:
- Balance sheet, cash flow statement, and income statement for the past month, quarter-to-date, and year-to-date
- Reviewing the trailing 12 months expenses vs revenues and looking for trends
- Looking at the cash flow forecast for the next 12 months
Financials, especially cash flow, are critical for entrepreneurs to monitor, and I recommend doing it on a regular basis.
