Why financial health matters
A full schedule and strong sales do not always mean there is enough cash for payroll, materials, and tomorrow's expenses. You don't need to master every line of every report. Start with a reliable view of the numbers that guide your decisions.
Before using this check, ask whether your books are current, whether bank and credit card accounts are reconciled, whether business and personal spending are separate, and whether you can access your key reports when you need them.
The 10 numbers every owner should know
01 Revenue
Money the business brings in before expenses.
Track trends and seasonality so you know whether sales are moving in the right direction.
02 Gross profit
Revenue minus the direct costs of delivering your work.
Use it to review pricing, materials, job labor, and project costs.
03 Net profit
What remains after business expenses are paid.
It shows what the business actually earns, beyond its sales volume.
04 Cash flow
The timing of money coming in and going out.
Profitable businesses can still face a cash squeeze when payments arrive late.
05 Accounts receivable
What customers owe for work already completed.
Watch overdue invoices and how quickly customers pay.
06 Accounts payable
What the business owes suppliers, subcontractors, and vendors.
Plan payments and protect relationships with the people you rely on.
07 Operating expenses
Recurring costs such as rent, insurance, fuel, software, and marketing.
Review them regularly for changes or expenses that no longer serve the business.
08 Owner compensation
The money you take from the business to pay yourself.
Plan it deliberately and keep personal and business money distinct.
09 Business debt
Loans, credit lines, equipment financing, cards, and other obligations.
Know each balance, payment, purpose, and effect on cash flow.
10 Cash reserves
Money set aside for slow periods, surprises, and opportunities.
Build a buffer that makes sense for your operating costs and seasonal pattern.
Your financial health scorecard
For each number, choose the answer that best describes how well you understand and track it today. Complete all ten, then get your score and a short action plan. Your choices and results stay in your browser; they are not sent to Altora or Jackie.
| Number | On track | Needs work | Not sure |
|---|---|---|---|
| Revenue | |||
| Gross profit | |||
| Net profit | |||
| Cash flow | |||
| Accounts receivable | |||
| Accounts payable | |||
| Operating expenses | |||
| Owner compensation | |||
| Business debt | |||
| Cash reserves |
Your financial clarity snapshot
Your recommended action plan
Want another set of eyes on your numbers? Jackie can help you decide what to tackle first.
Talk with JackieThis self-check measures how clearly you understand and track these numbers. It is not a financial audit, credit score, or financing eligibility assessment. Jackie will only see your answers if you choose to share them.
Awareness is the first step. Start with one or two areas marked “Needs work” or “Not sure.”
Warning signs to watch
- Little or no net profit over time
- Cash regularly feels tight
- Unpaid invoices keep growing
- Operating expenses are rising
- New debt is covering routine costs
- There is no clear budget or plan
- You feel unsure what the numbers mean
A simple action plan
As your business grows, also ask whether your financial processes are consistent, whether you know which work is profitable, and whether someone else could follow your day-to-day systems.
Jackie Freeman · Business With Purpose LLC
Jackie works with small business owners, especially in trades and service businesses, on bookkeeping, financial organization, useful reports, and understanding the numbers behind everyday decisions.
Altora is sharing Jackie's educational resource with her credit. If you're exploring financing as part of your next step, tell us about your business.