You’re busy running your business.
You need a quick review routine.
You need 60 minutes.
You need a monthly ritual.
Monthly financial review. 60-minute routine. Quick checkup. Your ritual.
This guide shows you how.
Review ritual. Routine process. Monthly checkup. Your health.
Read this. Set up routine. Review monthly.
Key Takeaways
- Set aside 60 minutes monthly—block time on your calendar for consistent financial review
- Calculate key metrics—use our calculators to quickly compute current ratio, working capital, debt-to-equity, and profit margin
- Compare to previous month—track trends to see if metrics are improving or declining
- Identify issues early—catch problems before they become crises
- Take quick actions—make small adjustments each month to maintain financial health
Table of Contents
Why Routine Matters
Routine prevents problems.
What happens without routine:
- Problems go unnoticed
- Trends are missed
- Crises develop
- Recovery becomes difficult
What happens with routine:
- Problems are caught early
- Trends are tracked
- Crises are prevented
- Recovery is easier
The reality: Routine enables health.
Preparation (5 Minutes)
Prepare for review:
Gather Financial Data
What data to gather:
- Latest balance sheet
- Latest income statement
- Previous month’s review notes
- Calculator tools ready
Why it matters: Preparation enables efficiency.
Set Up Workspace
What workspace to set:
- Quiet space
- Calculator access
- Note-taking tools
- Previous month’s data
Why it matters: Workspace enables focus.
Pro tip: Prepare quickly. Gather data, set up workspace. See our financial health checkup guide for data requirements.
Calculation (15 Minutes)
Calculate key metrics:
Current Ratio
Calculate it:
- Use our Current Ratio Calculator
- Enter current assets and liabilities
- Record result
Why it matters: Current ratio shows liquidity.
Working Capital
Calculate it:
- Use our Working Capital Calculator
- Enter current assets and liabilities
- Record result
Why it matters: Working capital shows cash position.
Debt-to-Equity Ratio
Calculate it:
- Use our Debt-to-Equity Ratio Calculator
- Enter total debt and equity
- Record result
Why it matters: Debt-to-equity shows leverage.
Profit Margin
Calculate it:
- Use our Profit Margin Calculator
- Enter revenue and expenses
- Record result
Why it matters: Profit margin shows profitability.
Pro tip: Calculate quickly. Use our calculators for fast, accurate calculations. See our financial snapshot guide for interpretation.
Analysis (20 Minutes)
Analyze results:
Compare to Previous Month
What to compare:
- Current ratio trends
- Working capital trends
- Debt-to-equity trends
- Profit margin trends
Why it matters: Trends reveal direction.
Identify Changes
What changes to identify:
- Improvements
- Declines
- Stability
- Volatility
Why it matters: Changes reveal status.
Assess Warning Signs
What warning signs to assess:
- Negative working capital
- Low current ratio
- High debt-to-equity
- Negative profit margin
- Declining trends
Why it matters: Warning signs enable action.
Pro tip: Analyze thoroughly. Compare trends, identify changes, assess warning signs. See our warning signs guide for red flags.
Action Planning (15 Minutes)
Plan actions:
Prioritize Issues
What issues to prioritize:
- Critical warnings first
- Declining trends second
- Weak areas third
- Maintenance items last
Why it matters: Prioritization focuses effort.
Create Action Items
What actions to create:
- Specific steps
- Clear deadlines
- Responsible parties
- Success metrics
Why it matters: Actions enable improvement.
Set Next Review
What to set:
- Next review date
- Preparation tasks
- Data gathering plan
- Follow-up items
Why it matters: Next review maintains routine.
Pro tip: Plan actions. Prioritize issues, create action items, set next review. See our financial health checkup guide for action planning.
Documentation (5 Minutes)
Document review:
Record Metrics
What to record:
- All calculated metrics
- Comparison to previous month
- Trends identified
- Warning signs found
Why it matters: Documentation enables tracking.
Note Actions
What to note:
- Action items created
- Priorities set
- Deadlines established
- Follow-up needed
Why it matters: Notes enable follow-through.
Update Dashboard
What to update:
- Financial dashboard
- Tracking spreadsheet
- Review log
- Trend charts
Why it matters: Updates maintain visibility.
Pro tip: Document quickly. Record metrics, note actions, update dashboard. See our financial health checkup guide for documentation templates.
Your Next Steps
Set up routine. Review monthly. Maintain health.
This Week:
- Review this guide
- Schedule first review
- Gather financial data
- Set up workspace
This Month:
- Complete first review
- Calculate all metrics
- Analyze results
- Create action plan
Going Forward:
- Review monthly
- Track trends
- Take actions
- Maintain routine
Need help? Check out our Current Ratio Calculator for liquidity, our Working Capital Calculator for cash position, our Debt-to-Equity Ratio Calculator for leverage, our Profit Margin Calculator for profitability, and our financial health checkup guide for comprehensive assessment.
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Sources & Additional Information
This guide provides general information about monthly financial health reviews. Your specific situation may require different considerations.
For current ratio calculation, see our Current Ratio Calculator.
For working capital calculation, see our Working Capital Calculator.
For debt-to-equity calculation, see our Debt-to-Equity Ratio Calculator.
For profit margin calculation, see our Profit Margin Calculator.
For financial health checkup, see our Financial Health Checkup Guide.
Consult with professionals for advice specific to your situation.
