Financial Fitness Quiz
- Are you able to rely on your financial data system to make timely decisions?
- Do you save a backup of all your important business data and store it off-site on a daily basis?
- Do you have competent and trustworthy accounting personnel keeping your books?
- Do you have a system to ensure that you are billing 100% of what you can bill?
- Do you have a diversified client base so that you are not relying on one client or contract for more than 20% of your annual revenue?
- Do you have an emergency fund or a line of credit to help you pay fixed expenses for 90 – 120 days?
- Do you collect most of your accounts receivable in less than 90 days? (120 days if you are a sub consultant)
- Do you actively manage cash flow with collection policies and follow-up processes?
- Is your debt payment less than 10% of your monthly net income?
- Do you open and review all bank and investment statements before anyone else does?
If you’ve answered NO for three or more of these questions, you may need help in improving your financial fitness. To get started, please contact me at the email address on the left.