Depends entirely on your business size and industry volatility. A retail operation with daily cash flow might want monthly reviews, while a consulting firm with stable clients could get away with quarterly deep dives.

That said, someone should be looking at cash flow weekly—even if it's just a quick check. Running out of cash is the fastest way to kill an otherwise healthy business. The comprehensive analysis with ratios and trend comparisons? That can wait for month-end when you've got proper time to think through what you're seeing.

Most businesses find a rhythm where they do quick health checks weekly and detailed analysis monthly. Quarterly works if you're really stable, but you might miss warning signs until they become problems.

You can be profitable on paper while your bank account empties—happens all the time. Profit is an accounting concept that includes non-cash items like depreciation and accounts for timing differences. Cash flow is what actually moved in and out of your bank.

Example: You make a $50,000 sale in December but don't get paid until February. Your December profit and loss shows that revenue, but your December cash flow doesn't. Meanwhile, you've got payroll and rent to cover in January.

This gap between profit and cash is why businesses with growing sales can suddenly collapse. They're funding customer payment terms with their own money, and eventually they run out.

There's no universal answer here—it varies wildly. A software company cares about different metrics than a manufacturing operation or a retail store.

For most service businesses: gross margin, operating margin, and days sales outstanding matter most. Manufacturers need to watch inventory turnover and working capital ratios. Retailers live and die by inventory turnover and gross margin return on inventory investment.

Start with whatever ratios your bank or investors care about, then add industry-specific ones. Your accountant should be able to tell you what's standard for your sector. If they can't, that's a red flag about their industry knowledge.

Basic analysis? Absolutely you can learn it yourself. Understanding your current ratio or gross margin isn't rocket science—it's division. There are plenty of resources for business owners who want to get comfortable with their numbers.

Where specialists help is pattern recognition and benchmarking. We've seen thousands of financial statements across different industries. When something looks off, we know it immediately because we've seen what "normal" looks like in your sector.

Most business owners do well with monthly self-review and quarterly professional analysis. Annual deep dives are worth the investment, especially if you're planning major changes or seeking financing.

Declining gross margins while revenue grows usually means pricing pressure or cost creep. Both are problems that get worse if ignored.

Accounts receivable growing faster than sales suggests collection issues. Inventory building up faster than sales growth means you're potentially sitting on slow-moving stock.

On the balance sheet, watch for current liabilities growing faster than current assets—that's a liquidity squeeze forming. And if you see retained earnings shrinking year over year, the business is consuming capital rather than building it.

Any sudden jumps or drops deserve investigation. Financial statements should tell a story that makes sense with what's actually happening in your business.

Public companies have to publish their financials, so that's the easiest comparison point. Industry associations often compile aggregate data from members. Your bank might have access to industry benchmarking reports.

The trick is finding genuinely comparable businesses. A $2 million operation has different economics than a $20 million one, even in the same industry. Geographic differences matter too—operating costs vary significantly by location.

Rather than obsessing over matching industry averages, focus on your own trends first. Are you improving year over year? That matters more than whether you're at the median for your sector. Use benchmarks as context, not as targets you must hit regardless of your specific situation.

Start with "What surprised you?" Good accountants notice anomalies and should flag them without prompting.

Ask about trend changes: "Why did this number move?" Not in an accusatory way—genuinely asking what drove the change. Sometimes there are good reasons, sometimes not, but you need to understand.

Get them to explain any ratios that have shifted significantly: "Our current ratio dropped from 2.1 to 1.6—is that something I should worry about?" Force specific answers, not generic reassurances.

And always ask: "If this was your business, what would you be watching closely over the next quarter?" That question tends to surface what they're actually thinking versus what they think you want to hear.