Financial Assessment For Your Business

Financial Assessment For Your Business

How knowledgeable are you about your financial situation?
Take our free 10-question assessment and find out how you compare to other small businesses!

1. When do you receive your monthly financial statements?

< 8 days after month end
< 15 days after month end
Sometime before next month
Sometime before next year
I don’t receive financial statements

2. How confident are you in the accuracy of your financial statements?

I’m confident my financial statements are accurate and up-to-date
I think my financial statements are mostly accurate
I’m not confident my financial statements are accurate
I know my financial statements are not accurate
I rely on my CPA to ensure my financials are accurate for my annual tax return

3. Are your financial statements prepared on the accrual basis?

Yes, I know and appreciate the accuracy of accrual accounting
Yes, I believe they are
I think so, It says so on my financials
No, we use cash-basis financials
What are accrual financials?

4. How consistent is your gross margin percentage on a monthly basis?

Very consistent
Somewhat consistent
It fluctuates
Not sure
I don’t receive this information – it’s not relevant for my business

5. Do you review your financial statements monthly with your advisor?

Yes, I review them in detail with my advisor and receive great insight
Yes, but my advisor speaks in accounting jargon that I have trouble understanding
Sometimes, but I don’t have confidence my advisor understands our business and industry
No, I review them by myself and go it alone
No, I don’t understand my financials and only look at the bottom line

6. Do you receive internal cash flow projections?

Yes, I receive accurate weekly cash projections for the next 90 days
Yes, but they’re often inaccurate – it’s difficult to estimate cash flow in our business
Sometimes, if I ask for them, but they’re not very helpful
No, I rely on my line of credit or keep a large cash reserve on hand for “the unexpected”
Projections?! I have to watch my cash balance every day and have little or no reserve!

7. Do you receive monthly reporting on what you will owe the IRS at the end of the year?

Yes, I receive monthly reporting that I share with my CPA for tax planning
No, I get this information in the last quarter of the year to share with my CPA
No, every year is a mad scramble to get this to my CPA by the end of the year
My CPA complains I get it to him late, but we’re too busy running our business
My CPA will figure this out and tell me how much I owe before the return is due

8. Do you have a weekly financial scorecard with your most important financial indicators?

Yes, and it is invaluable in helping me monitor and manage my business
I get some weekly information and monthly indicators that are helpful
I get a lot of reports and information, but, frankly, it’s a little overwhelming
No, but I know my business intuitively and how I’m doing
What is a scorecard and what would I track?

9. Do you have a strategic business plan that you prepare annually?

Yes, I have a business plan that we update on a monthly or quarterly basis
Yes, we have a business plan we update on an annual basis
Yes, we have a business plan, but it’s been over a year since being updated
Not really – we have one we prepared several years ago, but it’s out of date
No, we don’t have a business plan

10. Are you convinced you do not have any financial theft or fraud?

Yes, I have solid internal controls and people checking each other’s work
Mostly, we have controls and I would know quickly if someone were stealing
I think I would catch anything large – I’m on top of things and review our bank statements and disbursements
I’m good – my accountant has been with me for years and I trust them
I have no idea, but I hear a lot about this and it really worries me


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