A finance operations assessment for service businesses
A finance operations assessment looks at how money moves through your business and how quickly you can see the results. This guide lists the areas worth reviewing and the questions that usually reveal bottlenecks.
Close and reporting
How many days after month-end are the books final, and who reviews the reports? A late close is often a symptom of issues elsewhere, such as missing receipts or manual reconciliations.
Money in and money out
For receivables: how invoices are created, sent and chased. For payables: how bills are received, approved and paid. Delays and repeated owner involvement in either flow are common time sinks.
People and dependency
If one person holds the passwords, the process knowledge and the spreadsheets, the business is exposed when that person is away. Documenting who does what is part of most assessments.
Forward-looking numbers
Whether there is a budget, a cash forecast and a regular comparison of actuals against both. Many businesses have the history but not the forward view.
What to check
- Days to close the books
- Who approves bills and how
- Days from work completed to invoice sent
- Whether anyone else could run the close
Free Sam's List diagnostic
Take the free Finance Operations Review. Built by Sam's List. Related Sam's List profile: System Six.
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Frequently asked questions
How long does an assessment take?
A first pass can be done in an hour with the right person. Sam's List's free Finance Operations Review takes a few minutes and covers the same areas at a high level.
Is this finance operations guide advice?
No. Sam's List writes these guides for education. They describe common questions and processes, not advice for your specific situation.
Sam's List is a directory. Listing or paid status does not imply endorsement or ranking.