Skip To The Main Content

When was your last financial check-up?

  • Blog
  • 12 October 2017

Keeping an eye on your business’s finances is key to running a successful business. Knowing the state of your financial situation helps you to make wiser, more informed decisions, investments and to plan for the future.

But how often should you give your business a financial check-up?

When was your last financial check-up?

Prior to major decisions

Whenever you’re considering a major undertaking as a business it’s worth looking at the state of your finances beforehand. If you are planning to relocate, expand, invest or hire, you should consider  carrying out a health check to better understand the budgets you can utilise.

This can impact your decision-making process. Can you afford to move to different premises, or do you need to look at renovating your current place of work, for instance? Can you afford to hire new staff members or is it better to look at training existing staff? Your financial health check can help you to work out the practicality of any major financial business decisions you choose to make.

Periodic checks

It might be worth having a set time each year when you assess your business’s financial standing.

This could be once a year to give you a baseline to work out your goals as a business and plan ahead for the next 12 months. You can use your health check to identify if you need to drive additional sales, cut spending, or confirm that you’re in a much more positive position than you predicted.

A frequent financial check can give you a foundation to help build your planning. This doesn’t have to be annually. If you’ve already set a plan in motion, it might be worth looking at your company finances during its execution. For example, if you’re planning to redevelop your business premises you might be able to afford to complete all the work at once. However, if something overran or went over budget you might not to be in a position to do so and would need to change to a phased plan where work is completed in stages. Doing a health check beforehand would help you know how much money you could spend during each stage.

What if it’s been a while since my last check?

If you haven’t checked your business’s financial health in a while it might be worth considering a check-up. Not necessarily because there might be something wrong, but because the information it provides can be incredibly useful. You could discover everything is fine, or identify an issue or spot a problem before it escalates, for instance. You can find out more about the things you can discover in our blog, What can a financial health check uncover about my business.

Finding out about the financial health of your business makes good business sense. It can help  identify opportunities to change the financial services you utilise to get better deals and save money.