Checking Your Company’s Financial Health

Published 17 October, 2023

At MyCFO, we have developed a checklist with key indicators:

  • Cash Flow Assessment: Are you effectively managing your cash resources? Do you have enough liquidity to cover upcoming expenses and take advantage of growth opportunities?

  • Profitability Review: Examine your income statements to assess profitability. Are you making a profit, or are there areas where you can reduce expenses and increase margins?

  • Examine Expenses Thoroughly: Analyze your expenses thoroughly. Identify any unnecessary or inflated expenses that can be reduced. Every saved penny counts.

  • Analysis of Current Activities Against Budget: Review how current data compares to the budget and their deviations.

  • Update Your Budget: If you identify significant deviations that do not align with your current financial goals, update your budget according to your business strategy.

  • Evaluate Debt: If you have business loans or credit lines, assess the status of your debt. Is it manageable, or do you need to restructure or refinance?

  • Check Inventory Levels: For companies with physical products, check your inventory levels. Are you overstocked or missing key items?

  • Tax Planning: Start planning your taxes towards the end of the current year. Explore potential deductions and tax credits to minimize your tax obligations.

  • Set Clear Goals: Whether it’s increasing sales, improving profitability, or launching new initiatives, having specific financial and non-financial goals keeps your team focused.

  • Emergency Fund: Ensure that you have made efforts to mitigate risk and have a contingency fund in case of unexpected expenses or economic fluctuations.

  • Seek Professional Advice: At MyCFO, we can be your trusted business partner, providing real-time analyses to help you make informed decisions about managing your business.