Test Your Business’ Financial Management

February 11, 2013 Published by
Post Categories: Financial PerformanceManaging Growth

When it comes to managing your company’s finances, it’s okay to be your own toughest critic. It’s good to evaluate and re-evaluate yourself and how your company is performing.

Start by answering the following 25 questions with Yes, No, or Not Applicable. This is far from an exhaustive list, but it should get you thinking about the right things.

Financial Management Quiz:

1.  We take pride in accurate books & records
2.  Our business is based on a business plan
3.  That plan has 1 & 3 year projections
4.  Our business meets or exceeds these projections
5.  Our financial info is quickly accessible
6.  We keep to a cash flow budget
7.  We use credit to lever our revenues
8.  We follow a credit policy
9.  We manage our receivables
10. We use measurable sales & profit goals
11. We have a good relationship with our bank
12. We use more than one financial institution
13. We are eligible for good loan rates
14. I get monthly income (P&L) statements & balance sheets
15. I get a weekly summary
16. I have / use a strategic coach or mentor
17. I get annual financial statements
18. I plan for taxes, both business and personal
19. We measure our financial statements against our budgets
20. We’re aware of the cost of money and its effect on profits
21. We know our breakeven point
22. We regularly analyze our ratios and compare them to industry standards
23. We have good relationships with our professional advisors
24. We use current electronic/ online financial management tools
25. We have a strong human resources team

Again, this is less of a pass/fail test. This is more of a series of questions to get you thinking about the state of your finances. However, a high number of “Yes” answers means you’re on the right track. A high number of “No” answers may mean you need to take a deeper look at your finances.