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Financial Review: How to be proactive in 2023

A financial review is fundamental in being financially proactive in your business. “Acting in anticipation of future problems, needs, or changes,” as the definition of the term tells us, is crucial for any business owner. We shouldn’t sit idly by and wait for something to occur in order to prepare an appropriate (or at stressful times, an inappropriate) response. While those situations may be unavoidable from time to time, most often, they’re not … when we’re appropriately anticipating them.

Often, the inability to be more proactive rests, as much else does in business, on a lack of understanding about the business’s financials. If a business has incorrect or incomplete financials, it becomes extremely challenging to be proactive in any respect. This is a common issue for many owners and CEOs. They may know their numbers are off or simply don’t feel very confident in their accuracy because they don’t necessarily understand them to begin with. And because they are unsure about what needs to be fixed and how to do so, rather than being proactive about the problem, they put it off.

It’s understandable that such level of preparedness can be challenging for busy owners and executives. That’s why, at Agile Planners, we recently started providing a financial review. With this service, we review every aspect of the financials and provide a report as to which items need attention. It’s perfect for business owners who know their financials are incorrect but aren’t sure how to go about fixing them. 

What is in the Financial Review?

During the financial review, we look at the areas that have the potential for the largest impacts on a business and identify all areas of concern. For example, we’ll examine the balances on the balance sheet, identify the accounts that need to be updated, assess the volume and complexity of transactions, and provide suggested changes to the chart of accounts.

Specifically, the financial review is broken up into three primary categories—Banking transactions and reconciliations, Profit and Loss, and Balance Sheet.

  • Banking Transactions and Reconciliations
    • The last date the bank and credit card accounts were reconciled
    • Uncleared items in the bank reconciliation
    • Undeposited funds

  • Profit & Loss Review
    • Uncategorized Income
    • Uncategorized Expenses
    • Unusual or unexpected balances
    • Large negative balances
    • Miscategorized transactions

  • Balance Sheet Review (accrual basis)
    • Unusual or unexpected balances
    • Large negative balances
    • Negative balances in A/R
    • Miscategorized transactions
    • Accounts with old balances
    • Miscategorized fixed asset added as an asset (should be an expense)
    • Loans/Notes Payable (principal balance, interest expense that is not recorded correctly)
    • Sales taxes and payroll taxes
    • Owner distributions (equity, owners draw)
    • A/R and A/P aging reports

After our review, we provide an in-depth explanation of the findings, as well as our recommendations, and thoroughly answer all questions. Any ongoing accounting needs will also be evaluated during this time. These services are critical to a business owner in having a solid financial connection and understanding of their financial data to make more informed business decisions.

And regardless of whether they choose us to do the work or not, at a minimum, they have a road map of items to address moving forward.  At Agile Planners, we take care of the numbers, so you can sleep at night. We provide strategic guidance and outsourced CFO services to companies of all sizes. We understand that no two organizations are the same and will help provide a tailored strategy your organization needs for the growth you want. And with our experience and financial knowledge, we can help develop the right strategic plan for your business to grow and reach its goals. Simply, we’ll be your trusted partner, so you can focus on running your organization. Contact us today to learn more about how we can help.

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