Review changes in your business records

Use the figures as a starting point

Business health highlights changes in the information you entered, such as weekly movement and accounts that have become inactive. Review the transactions behind a change before interpreting its cause.

Missing expenses, late entries or a different date range can change the picture. These indicators do not predict guaranteed profit or replace a complete accounting review.

Worked example: a lower weekly net ledger movement

This indicator subtracts recorded new debts and expenses from recorded payments and income. It is not the cash balance or accounting profit. Fictional records in one currency: payments and income of 1,200 minus new debts and expenses of 900 leave 300 this week. The previous week had 1,000 minus 600, leaving 400. Net ledger movement decreased by 100.

Open the underlying entries to distinguish new credit sales, payments on old debts and expenses. These have different effects on cash and profit, so the indicator alone does not establish a loss or a future cash shortage. The weekly comparison uses a Monday-based week; compare an unfinished week with a completed one carefully.

Worked example: an account with no recent movement

An account whose latest transaction was more than 45 days ago is counted as inactive; an account with no transactions is also counted. An illustrative account last used 46 full days ago meets that rule, while one used 45 days ago does not.

Check whether the account is seasonal, already settled or simply missing recent entries before acting. Inactivity and internal follow-up flags are not an external credit score and do not prove that an account holder will fail to pay.

Turn a signal into a check

• Compare periods of similar length and check whether all entries have been recorded.
• Keep currencies separate and reconcile balances with source documents.
• Use account statements and collection follow-up to investigate the item that needs attention.