Completing a regular financial health check using this checklist will help small businesses maintain a strong and sustainable financial position. A financial professional can help you to review these items and make informed decisions for continued growth and success.

1. Review Financial Statements:

• Regularly review income statements, balance sheets, and cash flow statements.

• Ensure accuracy and consistency in financial reporting.

• Identify trends and fluctuations in revenue and expenses.

2. Assess Cash Flow:

• Evaluate cash flow to ensure the business has sufficient liquidity.

• Monitor the timing of receivables and payables.

• Identify any potential cash flow gaps and implement strategies to address them.

3. Budget Analysis:

• Compare actual financial performance against the budget.

• Adjust the budget as needed based on changing business circumstances.

• Analyze variances to understand the reasons for deviations from the budget.

4. Debt and Credit Review:

• Evaluate outstanding debts, including loans and credit lines.

• Assess the business's creditworthiness and credit utilization.

• Explore opportunities to renegotiate terms or refinance existing debts.

5. Expense Management:

• Conduct a thorough review of operating expenses.

• Identify areas where costs can be reduced without compromising quality.

• Negotiate with suppliers for better terms or discounts.

6. Tax Compliance:

• Ensure timely and accurate payment of all taxes.

• Stay updated on changes in tax laws and regulations.

• Leverage available tax credits and deductions to minimize liabilities.

7. Inventory Management:

• Monitor inventory turnover and avoid overstocking.

• Implement effective inventory control measures to prevent losses.

• Evaluate supplier relationships for cost efficiency.

8. Emergency Fund:

• Establish and maintain an emergency fund for unforeseen expenses.

• Reassess the adequacy of the emergency fund based on business growth and potential risks.

9. Employee Benefits and Payroll:

• Review employee benefits and payroll expenses.

• Ensure compliance with labor laws and regulations.

• Explore cost-effective ways to provide valuable employee benefits.

10. Financial Planning and Forecasting:

• Develop a financial forecast for the upcoming months or years.

• Consider different scenarios and conduct sensitivity analysis.

• Align financial planning with business goals and growth strategies.

11. Legal and Compliance Check:

• Confirm compliance with all legal and regulatory requirements.

• Regularly update contracts and agreements.

• Address any legal issues promptly to avoid potential financial repercussions.

12. Evaluate Profitability:

• Assess the overall profitability of the business.

• Analyze profit margins for individual products or services.

• Identify opportunities for increasing profitability through pricing strategies or cost optimization.

To get further advice and information on completing a health check for your small business, contact us today!