A financial health check helps business owners understand where they stand and what needs attention. Here's what to include and how to use it.
A financial health check is a systematic review of a business's financial condition. It examines key metrics across profitability, liquidity, efficiency, and stability to identify strengths and areas for improvement.
Is the business making money? Key metrics: Gross Margin, Net Margin, EBITDA Margin. Compare to industry benchmarks.
Can the business pay its bills? Key metrics: Current Ratio, Quick Ratio, Cash Runway. Healthy businesses have current ratio > 1.5.
How well does the business use resources? Key metrics: AR Turnover, AP Turnover, Inventory Turnover, Cash Conversion Cycle.
How much debt does the business carry? Key metrics: Debt-to-Equity, Interest Coverage, Debt Service Coverage.
Is the business growing sustainably? Key metrics: Revenue Growth Rate, Customer Acquisition trends, Revenue per Employee.
The financial health check template provides a framework, but data entry is manual. For automated financial health assessments, BizDoc pulls data directly from QuickBooks and generates comprehensive analysis in 30 seconds.