The key to better financial outcomes is better financial routines.
Better routines involves following a system. And following it consistently.
Below is a financial routine you can use daily, weekly, and monthly, to help you achieve better financial results in your beer business.
Daily Financial Routines
- Track and update key performance indicators (KPIs)
- Build the daily scorecard
The key to KPI’s is to identify your most important numbers and then watch them like a hawk. Every day. Use these KPI best practices as a starting point.
The daily scorecard is a tool you can use to watch other key numbers in your beer business: cash, access to capital, inventory, and accounts receivable, to name a few. Use this daily numbers template, and update to fit your beer business.
Weekly Financial Routines
- Hold weekly financial huddles
- Update the 8-week cash flow tracker
In my opinion, weekly financial huddles are the best way to stay on top of your numbers and improve financial results in your beer business.
The huddles bring managers together to review the numbers, and take action to get better. What could be better than that?
The 8-week cash flow tracker is a tool you can use to put a laser focus on cash. Money in, and money out. Where did it come from, and where did it go. This cash tracker gives you answers.
Monthly Financial Routines
- Use the month-end checklist
- Update the rolling 12-month forecast
The goal of the month-end checklist is to make sure all the things that need to be done, get done. You want numbers that are complete, accurate, and finished on time. The month-end checklist will help.
The rolling 12-month forecast is a tool you can use to update the budget every month. Business changes all the time, and so should your financial plan.
Don’t wait until year-end to update your financial plan. Build a model that you can update each month. Regular, consistent, routines that help you see 12-months into the future, all year round.
Wrap up and next steps…
Better financial results don’t happen by accident, they happen when we follow a consistent process.
Use the daily, weekly, and monthly process above. Your income statement will thank you.
P.S. Check out the Beer Business Finance Association. A network of beer industry professionals just like you. We come together on a quarterly basis to share ideas and best practices to improve financial results in our beer businesses.
