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How to run a business health check that actually helps

What is a business health check?

A business health check is like a physical exam for your company. You’re not just checking if the books balance. You’re asking: Are we profitable? Do we have enough cash to operate? Are we getting more efficient, or less?

It’s how you:

  • Catch issues before they snowball

  • Measure cash flow, profit margins, and team performance

  • Track progress toward your goals

  • Build trust with investors or partners

If you’ve hit $1 million or more in annual revenue, a business health check should be a regular habit, not a one-time report.

Why it matters

A business health check gives you a clear view of how your company is really doing, beyond just top-line revenue. It’s how you spot red flags early, stay cash-smart, and make sharper decisions.

We use tools like FathomHQ to help you turn your financial data into a real-time pulse check.

Why we use FathomHQ for business health checks

FathomHQ connects directly to platforms like Xero and QuickBooks. Once synced, it turns your accounting data into dashboards and reports you can actually use to make decisions.

We use FathomHQ with our clients because it:

  • Automates data pulls—no manual spreadsheet work

  • Highlights key performance indicators (KPIs)

  • Offers trend and variance analysis at a glance

  • Lets you benchmark and forecast with real data

  • Creates clean visuals for board or investor reports

It’s not just about reports. It’s about knowing what’s working and what’s not, so you can act fast.

Key steps to run a business health check

Here’s how we guide our clients through the process:

1. Review your business goals

Set your direction before diving into the numbers. Make sure your financial reporting supports the goals you’re actually trying to hit.

2. Look at core KPIs

Focus on the metrics that matter most. Examples include:

  • Gross and net profit margins

  • Operating cash flow

  • Accounts receivable (DSO)

  • Return on assets and equity

  • Gross profit per employee

These tell you if your business is growing sustainably or burning out your resources.

3. Compare trends and variances

Use FathomHQ’s trend and variance tools to spot what’s really going on. If profit is up but cash flow is tight, that’s a red flag. These reports help you find the gap and fix it fast.

4. Benchmark and forecast

Benchmark your performance against your own targets or industry norms. Then run what-if scenarios—like hiring a new employee or raising prices—to see how they’ll affect your cash and margins.

5. Share your findings

FathomHQ creates clean visuals for board packs and investor updates. You can share these directly without needing a spreadsheet deep dive. It’s the easiest way to keep everyone on the same page.

What this means for your business

A business health check gives you a clear path forward. You’ll stop guessing and start making decisions based on real numbers.

If you want better visibility across your finances, we’ll help you build a reporting stack that works. One that delivers answers, not just more data.

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