Quarterly Financial Health Checks: What to Review (And What Most Skip)

Quarterly financial health checks keep your business agile.

They help you spot problems early-before they become costly surprises. By measuring growth and determining financial health more frequently than annually, you can identify areas for improvement and address challenges as they emerge.

Unlike annual reviews, quarterly checkups let you adjust in real time.

Many businesses only look at the basics. They miss hidden risks and growth opportunities.

This guide shows you what to review every quarter.

It also highlights the blind spots most teams skip.

Are you ready to make your next financial review count?

Core Financial Statements: The Starting Point for a Quarterly Financial Health Check

Your financial health check begins with three core statements.

These are the profit and loss statement, the balance sheet, and the cash flow statement.

Each provides essential financial insights for your business.

• Profit and Loss Statement

  • Track revenue, expenses, and profit margins.

  • Spot seasonal trends or emerging cost issues.

    
    

• Balance Sheet

  • Review assets, liabilities, and equity.

  • Assess liquidity using ratios like current and quick.

    
    

• Cash Flow Statement

  • Analyze operational, investing, and financing flows.

  • Ensure you’re not profitable but cash starved.

    
    

These statements are intricately linked. Analyzing them together is key to understanding your business’s financial story.

Cash Flow & Liquidity: More Than Just a Snapshot

Cash flow shows how money moves in and out of your business.

It is more than a simple snapshot-it reveals your ability to meet short-term obligations.

Key points to review each quarter:

• Identify delayed receivables or tight payables that could strain cash flow.

• Review working capital needs and runway to understand how long you can operate without new income.

• Consider cash reserves for unexpected events or emergencies.

Often skipped: Stress-test your liquidity for 60–90-day scenarios.

This means simulating worst-case cash flow situations to ensure you can cover expenses even if income slows down.

Regularly testing liquidity helps you prepare for surprises and avoid cash crunches.

Debt & Repayment Review

Debt can help your business grow-but only if managed well.

Each quarter, list all your debts with balances, interest rates, and due dates.

This gives you a clear picture of what you owe and when payments are due.

Review your debt-to-equity ratio to understand how much debt you carry compared to your business value.

Consider if refinancing or adjusting payment strategies could ease your cash flow.

Often skipped: Assess the risk of debt maturing in the next 2 to 4 quarters.

Knowing when large payments are due helps you avoid surprises and plan.

Create a strategic repayment plan based on your cash flow.

Prioritize loan repayments in your budget to maintain a good credit score and avoid penalties.

Set up automated payments to reduce missed deadlines.

Keep a contingency fund for loan payments during slow periods.

Maintain open communication with lenders if you anticipate difficulties.

Expense and Cost Analysis

Reviewing your expenses helps you control costs and improve profitability.

Start by examining overhead and operational costs.

Look for unnecessary spending or contract creep-small costs that add up over time.

Benchmark your costs as a percentage of revenue to see if you are spending more than industry norms.

Often skipped: Check for subscription or software waste.

Many businesses pay for unused or duplicate services without realizing it.

Also, watch for process duplication that increases costs without adding value.

Cutting these hidden expenses can free up cash for growth or debt repayment.

Regular expense reviews keep your budget aligned with your business goals.

Budget vs. Actual Variance Analysis

Comparing your budget to actual results reveals how well your business is performing.

Variance is simply the difference between what you planned and what happened.

Calculate variance by subtracting the budgeted amount from the actual amount.

This can be expressed as a dollar value or a percentage.

Key steps for your quarterly review:

• Compare planned versus actual income and expense categories.

• Identify consistent overruns or underperformance.

• Analyse why variances occur-did costs rise unexpectedly? Did sales fall short?

• Adjust your forecasts and budgets based on these insights.

Often skipped: Use rolling reforecasting instead of relying on static budgets.

This means updating your budget regularly to reflect changing conditions, rather than sticking to a fixed plan.

Budget vs. actual variance analysis helps you spot issues early and make smarter financial decisions.

It keeps your business flexible and aligned with reality.

Tax and Compliance Check-In

Staying on top of tax and compliance tasks is crucial every quarter.

Make sure VAT, PAYE, and other tax submissions are timely and accurate.

Check that estimated tax payments or provisions are up to date.

Keep track of payroll tax filings and reconcile them with your records.

Often skipped: Watch for changes in tax rules or industry regulations that could affect your business.

Regularly review deadlines and update your tax calendar to avoid penalties.

Maintain clear records of all filings and payments for easy reference.

Assign responsibility within your team to ensure nothing slips through the cracks.

Being proactive with tax and compliance reduces risks and keeps your business in good standing.

Review of KPIs and Strategic Metrics

Tracking the right key performance indicators (KPIs) helps you measure progress toward your goals.

Focus on metrics relevant to your business model, such as sales growth, gross margin, customer churn, or customer acquisition cost (CAC).

Include qualitative insights from sales, operations, and marketing teams to add context.

Often skipped: Leading indicators like pipeline-to-revenue conversion.

These forward-looking metrics help predict future performance and guide strategic decisions.

Regularly reviewing KPIs lets you spot trends early and adjust your strategies accordingly.

Make sure your KPIs align with your financial goals and overall business strategy.

Risk Review and Internal Controls

Assessing risks and controls protects your business from financial and operational threats.

Each quarter, review potential fraud risks, financial control gaps, and compliance concerns.

Check segregation of duties to ensure no single person has control over all parts of a financial process.

Review approval workflows to confirm they are followed consistently.

Often skipped: Cross-departmental risks, such as overlaps between accounts payable and accounts receivable or potential cash leaks.

Identifying these hidden risks helps prevent errors and fraud.

Strengthen internal controls where needed to safeguard your assets and data.

Regular risk reviews build trust with stakeholders and support long-term stability.

Market and Competitive Position Review

Understanding your market and competitors keeps your business competitive.

Each quarter, monitor competitor movements, pricing changes, and shifts in market share.

Review your internal positioning and conduct a SWOT analysis-identifying strengths, weaknesses, opportunities, and threats.

Often skipped: Scenario planning tied to competitive disruptions.

Consider “what if” scenarios like new competitors entering the market or changes in customer preferences.

This helps you prepare strategies to respond quickly to market changes.

Regular market reviews ensure your business stays relevant and can capitalize on emerging opportunities.

Updates to Financial Goals and Forecasts

Regularly revisiting your financial goals keeps your business focused and adaptable.

Review your short-, medium-, and long-term goals each quarter.

Align your forecasts with current performance and market trends.

Use SMART criteria-specific, measurable, achievable, relevant, and time-bound-to refine your goals.

Often skipped: Document progress and assign accountability to owners or teams.

Tracking who is responsible for what ensures follow-through and drives results.

Updating goals and forecasts based on real data helps you stay on track and make informed decisions.

 

Act Early, Grow Strong: The Power of Quarterly Checks

Quarterly financial health checks build resilience and support smarter decisions. They help you spot issues early and adjust before problems grow.

Do not just run through the motions, take time to review, reflect, and refine your financial practices.

The best operators do not just track numbers, they act on what others overlook.

Make your next quarterly review a powerful step toward financial strength and business growth.

Need expert support reviewing your numbers or refining your financial processes?

AMS Admin Services is here to help!

From cash flow clarity to compliance check-ins, our team ensures your finances stay on track, quarter after quarter.

Message us today to schedule a no-obligation financial review!