FINANCIAL MANAGEMENT Self awareness surveY FOR BUSINESS OWNERS
How well you manage your business’ finances is a strong indicator as to how well it would survive a cash flow crunch due to a slowdown in sales, market fluctuations, business reorganization, etc. It is also a strong indicator of your business’ capacity for growth. Take this Financial Management Awareness Survey to rate your ability to navigate a cash flow crunch and your ability to plan for your business’ future. (You can also download this survey in a word document by clicking here.) Use the scale that follows to rate each of the statements below. Then total the ratings to arrive at your Business Cash Flow Management score for each section. Call us at 410-937-2323 or e-mail survey@hfs-associates.com to obtain your scores and find out what they mean for you.
4=Always 3=Often 2=Sometimes 1=Rarely 0=Never
| Cash Flow Management |
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| I manage my business’ cash flow according to a written plan. |
4 |
3 |
2 |
1 |
0 |
| I avoid paying personal expenses with my business checking or credit account. |
4 |
3 |
2 |
1 |
0 |
| My cash flow plan allows for “slow periods.” |
4 |
3 |
2 |
1 |
0 |
| All of my business bills (rent, electricity, vendors, etc.) are paid on time. |
4 |
3 |
2 |
1 |
0 |
| I pay my payroll and sales taxes on time. |
4 |
3 |
2 |
1 |
0 |
| I use business credit to support business growth wisely, not to just ‘make ends meet’. |
4 |
3 |
2 |
1 |
0 |
| I am able to pay myself a regular salary. |
4 |
3 |
2 |
1 |
0 |
| Cash Flow Management Score: ______ |
| Accounting and Bookkeeping |
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| I have a reliable system in place for tracking revenues and expenses. |
4 |
3 |
2 |
1 |
0 |
| I use my system for tracking revenues and expenses on a daily basis. |
4 |
3 |
2 |
1 |
0 |
| My financial statements are accurate and timely (I know my profit or loss up to the minute). |
4 |
3 |
2 |
1 |
0 |
| I have an annual budget that is monitored regularly. |
4 |
3 |
2 |
1 |
0 |
| Accounting and Bookkeeping Score: ______ |
| Liquidity and Business Development |
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| I establish clear short, mid-, and long-term goals for strengthening my business and plan my savings accordingly. |
4 |
3 |
2 |
1 |
0 |
| I have between 4 and 6 months of business expenses (including payroll) set aside for low cash flow periods. |
4 |
3 |
2 |
1 |
0 |
| I am able to set aside 10% of my business’ net income for unexpected business opportunities that may arise. |
4 |
3 |
2 |
1 |
0 |
| I have adequate capital (cash) and credit to support business growth. |
4 |
3 |
2 |
1 |
0 |
| I allocate at least 20% of my budget for marketing my business. |
4 |
3 |
2 |
1 |
0 |
| I allocate at least 6% of my budget for professional services and advice (i.e. accountants, lawyers, etc.). |
4 |
3 |
2 |
1 |
0 |
| Liquidity and Business Development Score: ______ |
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