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How do you pay attention to your numbers without obsessing over them?
Hi this is Judi Otton with GrowthCast and today I want to wrap up this series that we’ve been doing on financial statements for non-financial folks. And I want to talk about the financial review rhythm. Now today I’m going to talk about the vast majority of businesses, I realize if you’re in a high transaction business like retail or restaurant, you may be looking at sales figures daily. But in addition to that, I also want you to get into this regular broader financial review rhythm. And let me tell you what I mean by that.
Every period – at the very least once a month, but maybe as much as once a week, I want you to review your Profit and Loss Statement, your Balance Sheet, your Cash Flow Statement, and one other one, your Accounts Receivable. This will keep you aware of how your business is doing and whether are you on track to meet your goals each period. Again, you can look at this and obsess over this and check your bank account balance daily, hourly, but it doesn’t help you.
This is just a quick review again, at the very least every month or at the very most every week. I do take a quick look at all my financial statements every Friday when I do my admin work and if you check out this playlist here (https://bit.ly/3Bwlii8) I go over all the things that you should be looking at in each of these individual reports. This is Judi Otton with GrowthCast and I’ll be back next week with a new Fiscal Fitness Tip of the Week.