The nvisin tool for this: Monthly Review. Monthly financial review for accounting firms.
Plenty of firms close their clients' books every month. Far fewer turn that close into something the client reads and acts on. A monthly financial review is the bridge: a short, regular report that explains what happened, and the best reason for a client to keep paying you every month instead of once a year.
This guide covers what to put in it and how to deliver it. For the analysis itself, step by step, see how to review a client's P&L every month.
What clients want from it
Most business owners aren't going to read a full set of financial statements. They want three answers:
- How did we do? Revenue, profit and cash, compared with something they recognise.
- Why? The two or three things that moved the numbers, in plain words.
- What next? Anything they should decide, fix or watch.
Every section of the review should serve one of those.
The sections to include
| Section | What goes in it | Answers |
|---|---|---|
| Summary | Four or five headline numbers: revenue, gross margin, net income, cash, and one KPI that matters for their industry | How did we do? |
| P&L review | Each line against last month, the same month last year and the trailing twelve months | How did we do, and is it a trend? |
| Balance sheet | Cash, receivables, payables and debt over the last 13 months | Where did the profit go? |
| Flags and notes | Only lines past your materiality and percentage thresholds, each with a one- or two-sentence note | Why? |
| Actions | Questions for the client and anything they should decide | What next? |
For the headline KPIs by industry, see the KPIs to put on a monthly client dashboard. For how to write the notes, see month-end commentary clients actually read.
A worked example
Tamsin & Webb, a fictional bookkeeping firm, sends Ostrander Bakery Co. (also fictional) its September review. The summary reads:
| Measure | September | vs August | vs Sept last year |
|---|---|---|---|
| Revenue | $84,200 | +6.1% | +11.4% |
| Gross margin | 58.2% | −2.3 pts | −1.1 pts |
| Net income | $7,900 | −$1,600 | +$900 |
| Cash at month end | $31,500 | −$6,200 | +$4,100 |
| Wholesale share of revenue | 38% | +4 pts | +9 pts |
Two lines are flagged. Ingredients: "Butter and flour prices rose in August and hit September's cost of sales. The new café prices from October 1 should win back about half of the 2.3 points." Cash: "Down $6,200 because the new wholesale accounts pay in 30 days. Receivables are up by about the same amount; nothing is overdue yet." One action: "Decide by October 15 whether to add a delivery fee for wholesale orders under $200."
That's the whole review a client reads. The detail sits behind it for anyone who wants it.
When and how to deliver it
Timing: pick a day after your usual close, such as the 12th, and keep it. Clients start expecting it, which is half the value.
Format:
- PDF by email. Easy to make, and easy to ignore. Past months end up scattered across inboxes.
- Shared spreadsheet. Flexible, but clients can break formulas, and it rarely looks finished.
- Client portal. Every month in one place, notes beside the numbers, and you can see whether it's being read. We compare the options in client portal vs PDF reports.
Scope it and charge for it
Put the review in the engagement letter as its own line: what's included (the sections above), the delivery day, and what isn't included (forecasts, budgets, board packs). A review that's written down is a service; one that isn't becomes a free extra. For pricing approaches, see how to price monthly reporting and advisory.
Doing it for every client
A review takes a long time the first month and should take much less after that. Keep the sections the same for every client, set thresholds per client so only real changes are flagged, and reuse the account mapping each month. That's how Monthly Review works: upload each client's P&L and Balance Sheet exports from QuickBooks Online or Xero (or an Excel template), lines past your $ and % thresholds are flagged, you add a note beside each, and the client logs in to the review at your own web address, with every past month kept. Nothing is visible to the client until you publish.
More for accounting firms on our accounting page, and you can test thresholds on your own numbers with the free P&L variance calculator.
Frequently asked questions
What is a monthly financial review?
A monthly financial review is a short report an accountant or bookkeeper prepares after closing a client's books for the month. It compares the month's results with prior periods, highlights the changes that matter, explains them in plain language and suggests next steps.
What should a monthly financial review include?
A summary of four or five headline numbers, the P&L against last month, the same month last year and the trailing twelve months, the balance sheet with cash, receivables and payables, the material variances with a note beside each, and any questions or actions for the client.
How long should a monthly client review take to prepare?
Once the close is done and the format is standard, 30 to 60 minutes per client is typical. Most of the time goes into investigating and explaining the flagged lines, not building the report.
How should I deliver monthly reports to clients?
Pick a format clients will actually open. A PDF by email is simple but often goes unread; a client portal keeps every month in one place with the notes beside the numbers. Whatever you choose, send it on the same day each month.