Quarterly Business Review Checklist with a Fractional CFO
A ten-step checklist, a 90-minute agenda and a worked variance example for turning each quarter's numbers into decisions about cash, margins, tax, risk and the quarter ahead.
1. What a Quarterly Business Review Is
A quarterly business review, or QBR, is a structured meeting at the end of each quarter. You compare results with the budget and the prior quarter, check cash and risks, review a few key metrics, confirm tax and compliance obligations, update the forecast and agree on what to do next. It is short enough to be repeatable and long enough to change a decision.
Monthly reports tell you what happened. A quarterly review asks what it means and what to do about it. Three months is long enough for trends to appear, such as margins slipping or receivables stretching, and short enough to correct them before the year is lost.
Done with a fractional CFO, the review also brings senior finance judgment without a full-time salary. Our CFO advisory services use the checklist below, and the same structure works whether you run it with us, with your own finance lead or on your own.
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2. Where the Quarterly Review Fits
| Rhythm | Focus | Typical output |
|---|---|---|
| Weekly | Cash, collections, upcoming payments | Short cash view and a payment list |
| Monthly | Close the books; results against budget | Financial package and variance notes |
| Quarterly | Trends, forecast, risk, tax and strategy | Updated forecast and an action log |
| Annual | Budget, tax planning, structure, long-term goals | Next year's plan and tax strategy |
This guide is not a replacement for the monthly close. A good quarter depends on good months; see bookkeeping experts on common small business mistakes for the errors that most often corrupt the numbers before they reach the review.
3. The Ten-Step Checklist at a Glance
| Step | Action | Question answered |
|---|---|---|
| 1 | Prepare and close the quarter | Can we trust the numbers? |
| 2 | Review results against budget and prior quarter | How did we do? |
| 3 | Investigate variances | Why, and is it a trend? |
| 4 | Review the balance sheet | What do we own and owe, and is it healthy? |
| 5 | Review cash and runway | Can we fund the next two quarters? |
| 6 | Check tax and compliance | What is due and is it funded? |
| 7 | Review three to five key metrics | Are we executing our plan? |
| 8 | Refresh the forecast and scenarios | What now looks likely? |
| 9 | Review risks | What could hurt us next? |
| 10 | Decide and log actions | Who does what by when? |
4. Step 1: Prepare and Close the Quarter
A review built on unreliable numbers wastes everyone's time. One practitioner's monthly review routine suggests meeting your accountant first, checking whether uncategorized transactions were pushed into a "cleaning bucket" and asking which reconciliations took longer than usual. The same discipline applies to quarter-end.
- Reconcile: every bank, credit card and loan account, tied to statements.
- Clear the suspense: no large uncategorized or unexplained items left in miscellaneous accounts.
- Tie out taxes: GST, PST and payroll accounts agree with filings and remittances; see our guide on how tax experts in Regina handle GST/HST returns.
- Accruals and adjustments: record accrued costs, prepaid items, depreciation and inventory changes.
- Package: income statement, balance sheet, cash flow, budget versus actual and aged receivables and payables, delivered a few days before the meeting.
Our guide to double-entry bookkeeping for SMEs explains the ledger discipline that makes this step quick.
5. Steps 2 and 3: Results and Variance Review
Start with the income statement against budget and last quarter. Look at revenue by line, gross margin, operating expenses and net profit. Then investigate variances. One published practitioner approach flags any income statement line that moves more than 5% and asks the owner of that line to explain it; treat that as a starting point and set thresholds that suit your business.
| Line (hypothetical quarter) | Budget | Actual | Variance | Flag at 5%? |
|---|---|---|---|---|
| Revenue | $300,000 | $276,000 | −$24,000 (−8.0%) | Yes |
| Cost of sales | $165,000 | $160,000 | −$5,000 (−3.0%) | No |
| Gross profit | $135,000 | $116,000 | −$19,000 (−14.1%) | Yes |
| Operating expenses | $90,000 | $96,000 | +$6,000 (+6.7%) | Yes |
| Operating profit | $45,000 | $20,000 | −$25,000 (−55.6%) | Yes |
Hypothetical Quarter: Budget vs. Actual Operating Profit
Hypothetical figures. An 8% revenue miss combined with a 6.7% overspend on expenses cut operating profit by more than half, which is why variances are reviewed together, not one at a time.
The questions are always the same: is the variance one-off or a trend, what caused it, what will it do to the year and what do we change? For each flagged line, record the explanation and the action.
6. Steps 4 and 5: Balance Sheet and Cash
The balance sheet shows what the income statement hides. Review trends, not just balances.
| Item | What to look at | Warning sign |
|---|---|---|
| Accounts receivable | Aging; receivables as a share of revenue | Rising balances or older invoices |
| Inventory | Turnover and slow-moving items | Growing stock with flat sales |
| Accounts payable | Aging; payables as a share of expenses | Stretching suppliers to fund operations |
| Debt | Balances, payments, covenants | Headroom shrinking toward limits |
| Tax liabilities | GST, PST, payroll and income tax owing | Balances unfunded or growing |
| Working capital | Current ratio: current assets divided by current liabilities | A ratio below 1 |
Lenders commonly look for a current ratio in roughly the 1.2 to 2 range, and a ratio below 1 can signal that a business may not have enough current assets to pay its current bills. Then turn to cash: how much do you have, what is coming in and out over the next two quarters and how many months can you operate if revenue drops?
Hypothetical Cash Runway vs. a 3 to 6 Month Reserve Guideline
Hypothetical business with $40,000 of monthly operating costs ($120,000 ÷ $40,000 = 3.0 months). The 3 to 6 month range is a commonly cited rule of thumb; the right level depends on revenue stability, debt and access to credit.
- Forecast cash weekly or on a rolling 13-week view if cash is tight, and monthly otherwise.
- Set a trigger: agree in advance what happens if cash falls below a set level.
- Plan large outflows: equipment, tax instalments, bonuses and loan payments in the next 90 days.
7. Step 6: Tax and Compliance
The quarterly review is the right moment to check what is due and whether the cash is set aside. The obligations below vary by business, so confirm your own schedule.
| Obligation | Quarter-end check |
|---|---|
| GST returns | Quarterly filers generally file one month after quarter-end; confirm the return ties to the ledger and cash is ready |
| Saskatchewan PST | Check your reporting frequency and the due date for the quarter |
| Payroll remittances | Confirm withholdings were remitted on schedule and reconcile to payroll reports |
| Corporate tax instalments | Published guidance says eligible small CCPCs may pay quarterly, on the last day of each fiscal quarter, while other corporations pay monthly; check your eligibility and amounts |
| Year-end planning | Review profit to date, owner compensation, capital purchases and other planning opportunities |
| Lender and covenant reporting | Confirm what the lender needs and when |
Instalments matter because shortfalls can attract interest and, in some cases, penalties, so build them into the forecast. If a lender or investor asks for professional statements at quarter-end, our core accounting and tax services can help, and our page on how Custom CPA is different from other tax experts explains how we work.
8. Step 7: Key Metrics
Pick three to five metrics that reflect how your business actually makes money, and track them consistently. More than that and nobody reads them.
| Business type | Candidate metrics |
|---|---|
| Service firms | Utilization, average rate collected, receivable days, repeat client share |
| Retail and e-commerce | Gross margin by line, inventory turnover, average order value, return rate |
| Construction and projects | Job margin versus bid, cost-to-complete, backlog, change orders |
| Manufacturing | Gross margin, inventory days, scrap or rework rate, on-time delivery |
| All businesses | Cash runway, gross margin, current ratio, revenue versus budget |
For project-based businesses, the review should include cost-to-complete and contingency use; see cost overruns in Canadian construction and residential vs. commercial construction feasibility for how those numbers drive decisions.
9. Step 8: Refresh the Forecast
The forecast should change every quarter. Take what actually happened, adjust the assumptions and look at the rest of the year. Then test scenarios so decisions do not hinge on one number.
- Base case: the most likely outcome given what you now know.
- Downside case: revenue lower and costs stickier than planned; what is the trigger to cut or borrow?
- Upside case: faster growth; what must you fund first, such as inventory, staff or equipment?
- Assumption log: record what changed and why, so next quarter's review can test it.
Our business planning and financial modeling work builds this rolling forecast so the review starts from a living model, not a blank spreadsheet.
Need a Rolling Forecast and a Review Routine?
Custom CPA can build the forecast, the financial package and the agenda, then run the review with you each quarter.
10. Step 9: Risk Management: Financial Risk and Business Risk
Every quarter, update a short risk list. Financial risk is the exposure inside the numbers. Business risk is the exposure around operations, people and relationships.
| Risk | Type | Quarterly question |
|---|---|---|
| Cash shortfall | Financial risk | Does the forecast show cash below our trigger within two quarters? |
| Margin erosion | Financial risk | Are costs or discounts eating into gross margin? |
| Debt and covenant pressure | Financial risk | How close are we to covenant limits? |
| Tax surprises | Financial risk | Are instalments, GST, PST and payroll funded? |
| Customer or supplier concentration | Business risk | Does one customer or supplier represent too much? |
| Key people and owner dependence | Business risk | What happens if someone leaves or is unavailable? |
| Weak records or controls | Business risk | Can we trust the numbers and trace each entry? |
| Slipping delivery or quality | Business risk | Are errors, delays or complaints rising? |
11. Step 10: Decisions and the Action Log
A review without actions is a status update. End the meeting by agreeing decisions, owners and dates, and prioritize by impact and ease of implementation.
| Action | Owner | Due | Expected impact | Status |
|---|---|---|---|---|
| Chase receivables over 60 days | Finance lead | Within two weeks | Improve cash by clearing overdue balances | Open |
| Review pricing on low-margin lines | Owner | Within 30 days | Recover gross margin | Open |
| Update forecast with revised revenue | Fractional CFO | Before next month-end | More reliable cash view | Open |
| Confirm tax instalment plan | Accountant | Before the next due date | Avoid interest and surprises | Open |
Open the next review by checking this log first. It builds accountability and shows whether the review is actually changing anything.
12. A 90-Minute Agenda
Illustrative 90-Minute Review Agenda (Minutes)
Illustrative split totalling 90 minutes (10 + 20 + 15 + 10 + 15 + 20). Adjust to your business; most of the value comes from the preparation done before the meeting.
13. What a Fractional CFO Adds
| Role | Contribution to the review |
|---|---|
| Bookkeeper | Accurate, timely records and reconciliations |
| Accountant | Statements, tax compliance and planning |
| Fractional CFO | Variance interpretation, cash and runway planning, forecast, scenarios, financing and decision support |
| Owner or CEO | Strategy, priorities and final decisions |
For complex situations such as multiple entities, funding rounds or transactions, our specialized services add depth to the review.
14. Common Mistakes
- Reviewing unclosed books: debate becomes about the numbers instead of the business.
- Too many metrics: three to five that matter beat twenty that do not.
- Looking backward only: skipping the forecast turns the review into a history lesson.
- No owners or dates: actions without accountability do not happen.
- Ignoring tax cash: instalments and remittances that were never forecast.
- Skipping quarters: the review only works if it is regular.
15. One-Page Checklist
- Books closed, reconciled and free of unexplained items.
- Financial package delivered several days before the meeting.
- Results compared with budget and the prior quarter; variances explained.
- Balance sheet trends reviewed: receivables, inventory, payables, debt, tax balances.
- Cash and runway reviewed against a stated reserve target.
- GST, PST, payroll and instalment obligations confirmed and funded.
- Three to five key metrics reviewed.
- Forecast refreshed with base, downside and upside cases.
- Risk list updated with financial risk and business risk.
- Actions assigned with owners, dates and expected impact.
16. Frequently Asked Questions
What is a quarterly business review?
A structured meeting at the end of each quarter to compare results with the budget and the prior quarter, check cash and risks, review key metrics and tax obligations, refresh the forecast and agree on actions for the next quarter. Done with a fractional CFO, it turns accounting numbers into decisions.
What should be on a quarterly business review checklist?
Preparation and closed books, results and variance review against budget, balance sheet and cash runway, tax and compliance deadlines, three to five key performance indicators, a forecast refresh with scenarios, a risk review and an action log with owners and due dates.
How long should a quarterly business review take?
Many small businesses can run a focused review in roughly 60 to 90 minutes if the books are closed and the financial package is ready beforehand. Larger or more complex businesses may need longer or a pre-read. The preparation matters more than the meeting length.
How much cash reserve should a small business keep?
A commonly cited rule of thumb is three to six months of operating costs, but the right level depends on how volatile your revenue is, your debt, your industry and access to credit. Your fractional CFO can help set a target and a trigger for action if cash falls below it.
How is a fractional CFO different from my accountant in a quarterly review?
An accountant typically focuses on accurate records, financial statements and tax compliance, while a fractional CFO focuses on forward-looking decisions such as forecasts, cash planning, financing, pricing and performance reporting. In a quarterly review the two work from the same numbers but ask different questions.
17. Final Thoughts
The value of a quarterly review is not the meeting; it is the habit. Close the books, compare results, find the cause of each variance, protect cash, check the tax calendar, refresh the forecast and write down who will do what. Do it every quarter, and risk management stops being a document and becomes a rhythm, with financial risk and business risk reviewed before they turn into surprises.
Ready to Start Your Quarterly Review Routine?
Book a conversation with Custom CPA about setting up a checklist, a forecast and a review rhythm that fits your business.
