How often should I review financial statements?

Financial statements act as the temperature of the business.

In general, we recommend these rhythms:

  • Profit & Loss
    • Monthly, as books close out from the previous month
    • Bi-annually, to set a budget for the upcoming six months
  • Balance Sheet
    • Quarterly, to gauge how the "pie" is getting bigger
    • As needed to understand expected cash position in upcoming months
  • Cash Flow Statement
    • As needed to troubleshoot or understand cash flow timing