The 3 Financial Questions Every CEO Must Answer Monthly

You don’t need to be running a Fortune 500 company to need real financial clarity.

In fact, some of the people who need it most don’t even call themselves CEOs.

They’re business owners. Founders. Operators. The ones wearing ten hats and still trying to grow something real.

Whatever you call yourself, there are three financial questions you should be able to answer every single month – without guessing. And the answers are sitting right in your financial statements.

Not in complicated reports. Not buried in accounting jargon. Just three simple questions that tell you exactly how your business is really doing.

1. How did my revenue and profit actually perform?

This starts with your Profit & Loss statement (P&L), and it always starts at the top.

Before you dive into expenses, budgets, or any “what should I cut?” conversations, you need to understand what happened with your revenue.

Ask:

• How did we do compared to last month?

• Are we trending up, down, or flat?

• Did we actually make money?

  
  

But don’t stop at the total number. You also want to understand how you earned that revenue.

Was it mostly recurring revenue?

Was it project-based?

Was it seasonal?

Did something unusual happen this month that boosted or hurt results?

This gives you context. It helps you see whether growth is repeatable or just a one-time bump.

Then you move down the P&L to expenses:

• Did expenses change?

• If they did, why?

• Were those increases planned or unexpected?

And finally, the most important number on the page:

Did I turn a profit?

Not in theory. Not “it feels like we’re doing okay.” But on paper – did your business actually make money this month?

This alone puts you ahead of most business owners.

2. Who owes me money – and who do I owe?

Next, you look at your balance sheet.

This is the reality check.

Your P&L might look great, but if you haven’t actually collected the money, that “profit” isn’t paying your bills.

Your balance sheet answers two critical questions:

• Who owes me money?

• Who do I owe?

This tells you what’s sitting in Accounts Receivable (money customers still owe you) and Accounts Payable (bills you still need to pay).

If your books are on accrual accounting, you can show strong revenue without strong cash. That’s how profitable businesses still end up stressed, behind on bills, or dipping into credit lines.

The balance sheet shows you whether your profit is real – or just theoretical.

3. Did I actually generate positive cash flow?

This is where everything comes together: your cash flow statement.

Your cash flow statement answers one simple but powerful question:

Did my business actually bring in more cash than it spent this month?

This matters because cash is what pays employees, covers taxes, funds growth, and lets you sleep at night.

You can be profitable on paper and still lose cash.

You can have strong revenue and still feel broke.

You can be “growing” and still be heading toward a cash crunch.

Your cash flow statement tells you the truth.

Positive cash flow means your business is self-sustaining.

Negative cash flow means something needs attention – whether it’s collections, pricing, expenses, or growth strategy.

Every month, at a minimum, every business owner should be able to answer:

1. How did my revenue and profit perform?

2. Who owes me money and who do I owe?

3. Did my business generate positive cash flow?

You don’t need complex dashboards or finance degrees to get clarity. You just need to review your P&L, balance sheet, and cash flow statement – and actually understand what they’re telling you.

Because when you can confidently answer these three questions, you’re no longer guessing about your business.

You’re leading it.