Give Your Business an Early Fall Check-up

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Oct 01, 2021

By Robin Jackson Miller, EA Partner at Terry Lockridge & Dunn

As fall begins, your business’s financial statements may be due for a quick check-up. Here are several review suggestions to help determine the health of your business prior to year-end.

  • Robin Jackson Miller.jpgBalance sheet reconciliations. Reconcile each asset and liability account every quarter. A well-supported balance sheet can guide decisions about cash reserves, debt financing, inventory management, receivables, payables, and property. Regular monitoring can highlight vulnerabilities, providing time for corrective action.
  • Debt service coverage. Do you have enough cash to adequately handle principal and interest payments? Calculate your cash flow to ensure you can handle both current and future monthly loan payments.
  • Projected revenue. Look at your income statements and see how your revenue has performed so far this year versus what you thought your revenue was going to be. If revenue varies from what you expect, get with your sales and marketing team to pinpoint what has gone better, or worse, than expected.
  • Projected expenses. Put a stop to disappearing cash by conducting a variance analysis of your expenses. What did you expect to spend so far in 2021 on salaries and wages compared to what you actually paid your employees? What about other big expenses like rent or insurance? Take the amount of money spent so far in 2021 in each of your major expense accounts and compare it to your spending forecast. Then create an updated forecast for the balance of the year.

A review of your financial statements now will help you be prepared if you need to navigate an obstacle or capitalize on potential opportunities to expand your business.

If you are having trouble keeping your financial records current, consider having Terry Lockridge & Dunn do your bookkeeping on a quarterly or monthly basis. We also provide customized QuickBooks consulting services to assist you or your bookkeeper with tips and tricks to use the software more efficiently.

Feel free to reach out to Robin at to discuss your financial statements or request a quote for bookkeeping services or customized QuickBooks consulting.