Five Numbers Every Owner Should See Each Monday, Before the Monthly P&L
By the time the monthly P&L reaches you, the month is over. Whatever it tells you, you can no longer do anything about it.
That is not an argument against monthly reporting. It is an argument for five numbers you should see every Monday morning, none of which require a close.
Cash, and what is committed against it over the next 30 days. A balance on its own tells you nothing. A balance sitting next to payroll, rent and supplier commitments tells you whether you have a problem.
Cash collected this week. Not invoiced. Collected. Revenue recognised is an accounting event. Cash received is a business one, and the gap between them is where companies get into trouble.
Receivables past 60 days. One number. If it grows week on week, your collections process has stopped working, and you will feel it in about a month.
Work delivered but not yet invoiced. Money you have already earned and have not asked for. It is almost always larger than people expect, and it is the fastest cash in the business to unlock.
New work signed this week. The only forward-looking item on the list. Everything else tells you where you have been.
Five numbers. Fifteen minutes. No close required.
The monthly P&L is still how you understand the business. These five are how you run it.
PrimeCFO #CFO #CashFlow #FractionalCFO #FPandA #FinanceLeadership#
Turning these ideas into a disciplined monthly practice is core to the work of a fractional CFO. To see where your company stands today, start with the instant financial diagnosis, free during our founding period.
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