Monitoring financial performance
The road to recovery will require ongoing financial monitoring along with identified metrics and targets that you can work towards. You will need to make a concerted effort to monitor your budgets and financial statements, ensure that costs are reduced and activities are aligned with expected forecasts. It is critical that you stay alert to changing conditions and are ready to respond to new issues as you navigate your way back to stability.
To get a snapshot of your business’s financial health and keep money flowing, review these financial statements frequently and at the end of the year:
- Balance sheet: Shows the health of your business at any point in time.
- Profit and loss statement: Reveals income and expenses over a period of time.
- Cash flow statement: Shows money coming in and out for a period of time.