How Wendy turned potential problems into proactive action.
The maple trees outside Wendy’s studio were blazing orange when she opened her CreateBooks™ dashboard for her monthly “CEO Day.” Steam curled from her coffee mug as she flipped to her Profit & Loss report.
Most of the numbers looked fine… but a few made her pause.
A project that had been a big win in spring now showed shrinking margins. Office expenses had crept up — again. And one line item in “Miscellaneous” had a number next to it that made her raise an eyebrow.
Old Wendy might have sighed, closed the report, and told herself she’d look at it “later.” But this Wendy knew better — small red flags could turn into big problems if left unchecked.
The First Rule: Don’t Ignore the Weird Stuff
Financial reports tell a story. When the story changes, it’s a sign to ask why.
With the help of her Full-Circle CFO Advisory™ partner at Number Crunchers®, Wendy tackled her red flags one at a time:
- Declining Margins on a Key Project
She compared the original budget to actual hours and costs in CreateBooks™. The culprit? A client who’d quietly expanded scope without a formal change order. Wendy put a stop to it immediately and updated her contract templates to protect margins going forward. - Rising Office Expenses
A deeper look in Dext showed recurring software subscriptions that no one on the team was using anymore. She canceled them, saving hundreds a month. - “Miscellaneous” That Wasn’t So Miscellaneous
Turns out, a few charges were being coded incorrectly in the books. Wendy worked with her bookkeeper to clean up the chart of accounts and add clearer categories, making future reports more accurate.
Why Red Flags Matter
By catching these issues in October, Wendy avoided:
- End-of-year cash flow stress
- Underpricing in next year’s proposals
- Paying for things she didn’t need
Wendy’s Quick Red Flag Checklist
When reviewing her statements, Wendy looks for:
- Sudden changes in revenue or expenses
- High “Miscellaneous” or uncategorized spending
- Declining profit margins on recurring work
- Consistent budget-to-actual mismatches
As she closed her laptop, Wendy smiled. The leaves outside were falling fast, but her business was steady — because she’d learned that every red flag was really just an early warning signal.
Call to Action:
Start Your Financial Journey with Number Crunchers® today and let us help you spot and fix financial red flags before they become costly problems.