Most founders I work with have financials.
They have a model.
They have a runway number.
They have reports they send to investors.
What they often don’t have is a consistent financial rhythm.
Instead, finance shows up reactively:
- Before a board meeting
- When cash feels tight
- When an investor asks a hard question
That’s when stress creeps in — not because the numbers are bad, but because they feel reactive, not grounded. A monthly financial rhythm fixes that by creating consistency and giving you a clearer sense of how decisions will impact the business.
This post is a practical guide to what an effective monthly finance review looks like for an early-stage founder — and why it matters more than most people realize.
Finance Isn’t a Report. It’s a Habit.
Early on, most founders treat finance as an output:
- “What does the model say?”
- “What’s our runway?”
- “What do I need to send the board?”
But strong financial management is less about outputs and more about process.
A monthly rhythm turns finance into a leadership habit — a regular moment to:
- Check assumptions against reality
- Understand how decisions are affecting the business
- Reduce surprise
Before long, you’ll understand how changes impact your financial model without having to look at a spreadsheet. Repeatability leads to predictability.
What a Monthly Financial Review Should Actually Do
A good monthly finance review isn’t about explaining every line item.
It should answer five simple questions:
- What changed since last month?
- Where did reality diverge from our assumptions?
- What decisions does this force or enable?
- What risks are emerging?
- How did our runway move — and why?
If you can answer those clearly, you’re doing real finance work — even if your systems are still simple.
A Simple Monthly Finance Framework for Founders
Here’s a concrete structure I recommend for early-stage companies. This entire review should take 60–90 minutes, not days.
1. Review Actuals vs. Expectations (Not Just Budget)
Start with a simple comparison:
- What you expected to happen
- What actually happened
- Why the difference exists
The goal is to understand the material differences. Much of the time the explanation will be simple (often timing). But sometimes the explanation will drive important decisions:
“CAC looks good so let’s spend more on marketing.”
“Do we hire more engineers to hit our product milestone on time or do we let the milestone slip and keep our runway unchanged?”
2. Update the Model for Key Differences
Most early-stage models are driven by a few key inputs (customer acquisition costs, website conversion rate, headcount, product margin). These should be monitored closely and updated accordingly.
Each month, ask:
- Which assumptions still feel right?
- Which ones no longer reflect reality?
Other metrics (in particular, costs) determine what is material versus noise. Small monthly outliers can be ignored. But if differences are persistent and/or material, the model should be updated accordingly.
3. Recalculate Runway — Then Explain It in Plain English
Runway isn’t just a number. It’s a story.
Instead of saying:
“We have 11 months of runway.”
Try:
“At our current burn, we have 11 months.
If we hire the two planned roles, that drops to 9.
If revenue slips by one month, it’s closer to 8.”
This is where runway becomes a decision-making tool, not a countdown clock.
4. Identify Decisions and Tradeoffs
This is the most important — and most skipped — step.
Ask explicitly:
- What decisions does this data force?
- What tradeoffs are now clearer?
- What can we do because of our financial position?
- What can’t we do without changing something else?
If the numbers aren’t informing decisions, they’re just reporting history.
5. Capture Risks Before They Become Emergencies
Finally, name what feels fragile:
- Sales cycles stretching
- Hiring dependencies
- Customer concentration
- Burn creeping up quietly
You don’t need to solve everything immediately. You just need visibility.
Good finance work doesn’t eliminate uncertainty — it reduces surprise.
Why This Rhythm Changes Everything
When founders adopt a monthly financial rhythm, a few things happen quietly:
- Board conversations become easier, with less anxiety
- Decisions feel grounded instead of rushed
- Finance stops stealing time and starts reducing fire drills
More importantly, founders regain a sense of control.
Not because the future is predictable — but because they understand how today’s decisions shape tomorrow’s outcomes.
The Bottom Line
Finance isn’t something you “catch up on.”
It’s something you practice.
A simple monthly rhythm:
- Builds confidence
- Sharpens decisions
- And creates space for better leadership
If you don’t have a consistent monthly financial rhythm today, that’s normal — especially at an early stage.
But if your numbers only feel “real” right before a board meeting, it may be worth stepping back and asking whether your current approach is giving you the clarity you need.
That’s often the right moment to introduce a bit more structure — or to talk through what “good enough” finance looks like for where your company is today.