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Financial Capability Checklist
Twelve questions every leader should be able to answer about their organization's finances.
- finance
- governance
The checklist
If you cannot answer these twelve questions in under five minutes, your financial reporting needs work.
- What is your current cash runway in months?
- What are your three largest recurring expenses?
- What is your gross margin by service line?
- Which receivables are more than 60 days overdue?
- What is your break-even revenue per month?
- What percentage of revenue comes from your largest client?
- What is your debt service coverage ratio?
- When does your next major contract renew?
- What is your cost to acquire one new client?
- What reserve policy has your board approved?
- Who reviews your bank reconciliation, and how often?
- What single number would tell you a month early that things are going wrong?