Why a health check matters
Most business owners only look closely at their numbers when something forces them to: a loan application, a tax deadline, or a cash-flow scare. A short, regular check-in catches problems while they're still small and surfaces opportunities you might otherwise miss.
Question one: do you know your current cash position?
Know your cash, not just your profit. It's possible to be profitable on paper and still run short of cash if money is tied up in unpaid invoices or stock. What's actually in the bank, and what's due in and out over the next month, is the starting point for every other decision.
Question two: are your records up to date?
If your bookkeeping is more than a few weeks behind, every other number in this list becomes a guess. Up-to-date records don't need to be complicated. They just need to be current.
Question three: do you know your break-even point?
Understanding roughly how much revenue you need each month to cover your costs gives you an early warning system. If a quiet month arrives, you'll know immediately whether it's a problem or just normal variation.
Question four: are you paying yourself, and HMRC, correctly?
Director's pay, dividends, and tax obligations are easy to get informally wrong, especially early on. A quick review against your current structure can prevent an expensive correction later.
Where to go from here
If any of these questions gave you pause, that's normal. It's exactly what a health check is for. A short conversation with your accountant can usually clarify where you stand.
