Identify Red Flags In Your Small Business Financial Statements | Ep 7

🔍 How to Spot Red Flags in Your Financials & Avoid Costly Mistakes | Full Send CFO

👉 Link to YouTube Video

📢 61% of financials contain material misstatements. Are yours accurate? The financial reports you send to investors, stakeholders, and your board may be wrong—leading to bad decisions and financial surprises. In this episode, we break down:

✔️ How to identify critical errors in your financial statements

✔️ Common red flags that CFOs & accountants often miss

✔️ Why reviewing your financials monthly reduces cash flow surprises

✔️ Best practices to prevent reporting mistakes before they snowball

⏱️ Chapters

00:00 - Most Financial Statements Are Wrong—Here’s Why

00:26 - How Misstatements Lead to Bad Business Decisions

01:17 - Common Accounting Errors That Impact Financial Ratios

02:00 - Balance Sheet Red Flags: Negative & Stale Accounts

03:05 - P&L Red Flags: Duplicate Transactions & Anomalies

04:00 - AR & AP Risks: How to Catch Aging Balances Early

05:00 - Payroll Tax Liabilities: A Hidden Danger

06:37 - Duplicate Expenses: How Bill Pay Systems Cause Errors

07:49 - Owner Expenses: Why They Must Be Classified Correctly

08:30 - How to Fix These Issues: Monthly Review Strategies

09:32 - Why Businesses That Review Financials Monthly Perform Better

10:00 - Final Thoughts: How to Build a Financially Healthy Business

✅ Key Takeaways:

✔️ Negative balances and unclassified assets are red flags for accounting errors.

✔️ Aging AR & AP can indicate cash flow problems before they escalate.

✔️ Payroll tax liabilities must be actively monitored to avoid hidden debt.

✔️ Duplicate expenses from bill pay systems can quietly distort financials.

✔️ Regular monthly reviews reduce the risk of financial surprises by 78%.

📢 How do you ensure financial accuracy in your business? Drop a comment below!

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Full Send | Accounting & Data

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