How do you answer the following questions?

Yes

No

Is there a documented business plan regularly referred to by management?

Are regular reviews undertaken comparing major cost elements to sales?

Are annual profit and loss projections and cash flow forecasts prepared against which actual performance is monitored?

Does the business monitor movement of aged debtors and creditors?

Do the directors and/or management team meet regularly to review operational issues?

Is the business breakeven point known?

Does the business readily know how much it is owed and how much it owes?

Has management considered the impact of accident or disability of key personnel on the business?

Does management set aside time from the operational side of the business to understand the financial position and what the key financial drivers are? For example, stock levels, grossprofit margin, debtors and creditors.