Closing the books is only half the job. This page turns last month's numbers into a one-screen scorecard: your margins, your growth, how long your cash lasts, how fast customers pay, and how far sales sat above break-even. Seven inputs, a grade for the month, and a clear answer on what to fix next.
Monthly Business Review
Ten minutes, seven numbers, and a grade for the month you just closed.
Pull these seven numbers from last month's books
Net profit this month
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—Your scorecard
| Metric | This month | Healthy | Status |
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Estimates only. Results update as you type. Nothing you enter leaves your browser.
The ten-minute monthly review
Most small businesses fail slowly and visibly. The warning signs show up in the numbers months before they show up in the bank account, but only if somebody looks. A short, fixed review once a month is the cheapest insurance you can buy.
Put it on the calendar for the first week of every month, right after your bookkeeping is done. Ten minutes is enough. The point is not to build a perfect model; it is to notice a trend while you still have time to act on it.
The six numbers that matter
1. Gross margin
Revenue minus direct costs, as a percentage of revenue. This is the single most diagnostic number in a small business, because it tells you whether the work itself is profitable before overhead. A falling gross margin means your pricing, your material costs, or your job estimates have drifted. Fix it at the source with the profit margin and markup calculator.
2. Net margin
What is left after everything, including your own pay. Across small businesses, 10% is a reasonable target and many healthy firms run between 5% and 15%. What matters more than the benchmark is the direction: three months of decline is a trend, not a blip.
3. Revenue growth
Compared with last month, and ideally with the same month last year if your business is seasonal. A landscaper comparing February with January learns nothing useful. Comparing February with last February tells them everything.
4. Cash runway
If you are losing money, how many months of cash you have left. Profit and cash are not the same thing, and businesses go under holding a profitable income statement. Three months is the minimum cushion; six is comfortable. Dig deeper with the cash runway calculator.
5. Days to get paid
Also called days sales outstanding. Unpaid invoices divided by monthly revenue, times about 30. If you bill on 30-day terms and this number reads 55, you are financing your customers for nearly a month. The accounts receivable calculator shows what that delay costs you.
6. Sales above break-even
Your margin of safety: how far revenue could fall before you stop covering costs. Under 20% means a single bad month puts you in the red. The break-even calculator breaks this down by unit and by price.
What the grade means
Each of the six metrics scores two points when it is in healthy range, one when it needs watching, and none when it needs fixing. The letter is simply that score out of twelve. It is a rough instrument on purpose: an A means nothing is obviously broken, and a C means you have one or two specific things to work on, not that your business is in trouble.
Benchmarks vary enormously by industry. A grocery store running a 25% gross margin is healthy; an agency running 25% is in trouble. Use the healthy column as a starting point, then replace it with what is normal for your own trade.
What to do after the review
- Move the tax money. Transfer the set-aside figure into a separate account the same day. Money that stays in checking gets spent. The self-employment tax calculator gives you a more exact rate.
- Chase anything past terms. Collections get harder every week an invoice ages. A five-minute call in week one beats a collections agency in month six.
- Pick one number to improve. Not six. Write it down, pick one action, and check it next month.
- Pay yourself deliberately. Use the owner pay calculator so the amount comes out of a rule rather than out of whatever is left over.
Frequently asked questions
How long should a monthly business review take?
Ten to twenty minutes once your bookkeeping is done. The value comes from doing it every month without fail, not from doing it thoroughly once. If it takes an hour, you are analyzing rather than reviewing.
What is a good net profit margin for a small business?
Around 10% is a common target, with many healthy small businesses between 5% and 15%. It varies widely by industry: professional services often run much higher, while retail and food businesses run lower on volume. Your own trend month to month matters more than the benchmark.
Why does my profit not match my bank balance?
Profit counts income when you earn it and expenses when you incur them. Cash moves on a different schedule: customers pay late, you buy inventory ahead of selling it, and loan principal leaves the bank without showing up as an expense. That gap is exactly why this review tracks runway and days-to-get-paid alongside margin.
Should I include my own salary in operating expenses?
Yes. If your pay is not in the numbers, the business looks more profitable than it is and you cannot tell whether it can actually support you. Include what you take out, whether it runs through payroll or as an owner's draw.
What if my business is seasonal?
Compare each month with the same month a year earlier rather than with the month before, and judge runway against your slow season rather than your average. A business that is fine in July can still run out of cash in February.
More free small business calculators
See all thirteen on the small business calculators page.
These calculators give planning estimates, not tax, legal, or financial advice. Check important decisions with your accountant or lender.
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