Here’s a truth bomb: if the first time you seriously look at your financials is when your CPA asks for them in March… you’re already in trouble.

Waiting until tax season to review your profit and loss is like looking in the rearview mirror to steer your truck. You’re reacting to the past, not leading your business into the future.

You don’t have to be a financial expert. But if you’re not reviewing your numbers monthly — at minimum — you’re missing real opportunities to course correct. Small problems become big problems. Profitable jobs become break-evens. And your pricing may not reflect rising costs until it’s too late.

A monthly review is where you ask:

• Are we hitting our gross margin target?
• Did we overspend on labor or materials this month?
• Which clients are slow-paying?
• Did overhead spike?
• Am I still on track to meet my goals?

One contractor I worked with only saw his financials when his tax preparer sent a summary. He felt like things were “fine.” When we looked together, we found three issues: (1) job costing was off by $40K, (2) a major supplier increased prices mid-year without notice, and (3) overhead crept up as he added staff. No one was watching the store. We implemented monthly financial reviews and trained his office manager to highlight key metrics. Within 60 days, he uncovered $22K in recurring cost leaks and raised pricing on future bids.

It’s not about being perfect. It’s about being aware — so you can act in time.

Want to know what to look for in a monthly review?

Pick up your free copy of my new book, “The 7 Minute Conversation-How to Hear the Story Your Small Business Financial Statements Are Telling You-CONTRACTOR EDITION”.  Go to www.7MinuteConversationBook.com

Ready to find out where your cash and profits are really going? Book your free 15-minute Profit and Cash Flow Call with me. No pressure. Just real clarity. I’ll help you see where your money’s hiding — and what to do about it. Schedule at www.CashFlowCallWithLarry.com