A CFO’s monthly analysis should tell you three things: what happened, why it happened, and what you should do about it. Raw financial statements don’t accomplish this. The value comes from interpretation and strategic context.

Start with variance analysis comparing actual results to budget and prior periods. This means looking at your income statement line by line to identify where you came in above or below expectations. Revenue down 8% from plan requires different action than revenue down 8% because one large client paid late. A good CFO explains the why, not just the what.

Cash flow forecasting is essential every month. This isn’t a cash flow statement showing what happened. It’s a forward-looking projection of when cash comes in, when it goes out, and what your runway looks like over the next 60 to 90 days. For businesses with seasonality or lumpy revenue, this forecast prevents surprises and informs decisions about timing major expenses or taking on new projects.

KPI dashboards should track the metrics that actually drive your business. For a professional services firm, that might be utilization rates and average billing rate. For a distributor, it could be inventory turnover and gross margin by product line. The CFO identifies which handful of numbers matter most and tracks them consistently so you see trends before they become problems.

Balance sheet analysis often gets overlooked but matters for established businesses. AR aging tells you if collections are slipping. AP aging shows whether you’re managing vendor relationships well or just delaying payments to cover cash gaps. Debt covenants need monitoring if you have bank financing. Working capital trends reveal whether growth is consuming more cash than you’re generating.

The strategic commentary ties everything together. This is where a fractional CFO earns their fee. Instead of just reporting that margins dropped two points, they explain it was driven by a pricing decision on a specific product line and recommend whether to adjust pricing or accept lower margins for volume. They connect financial results to operational decisions and strategic goals.

Monthly analysis should also include a brief look ahead. What’s coming next month that affects the numbers? A large contract renewal, a seasonal slowdown, a planned equipment purchase. This forward view helps you prepare rather than react.

The format matters less than the substance. Some businesses want a formal deck, others prefer a one-page summary with a discussion. What you shouldn’t accept is a stack of reports with no explanation. Our Boca Raton advisory services focus on analysis that drives decisions because numbers without context don’t help you run a better business.

If you’re getting monthly financials but not understanding how to act on them, the analysis is incomplete. A CFO’s job is translating financial data into strategic direction.