The February Finance Reset: 7 checks directors should run now

February is a good month to reset. January is deadline heavy, and March often becomes reactive. A short finance reset now can make the rest of the quarter calmer and more predictable.

Cash runway and the real bank positionLook at your bank balance, then adjust for what is already committed: payroll, VAT, suppliers, finance payments, and any large one offs due in the next 30 to 90 days.

Simple test: build a 13 week weekly view with expected receipts and payments. Stress test receipts by reducing them 10% and see if you still stay safe.

Debtor ageing and who owes you moneySort debtors by age and value. Focus on the largest and oldest first. If debtor days are drifting, cash pain is coming.

Simple test: list your top 10 overdue balances, the reason each is late, and the next action with a date.

Gross margin driftCompare gross margin this month to the last three months. Margin drift often comes from pricing pressure, discounts, subcontractor costs, mix shift, or unrecorded cost increases.

Simple test: pick your top 10 revenue lines and compare selling price, direct cost, and margin percentage now versus three months ago.

Upcoming tax payments and cash drainsList VAT, PAYE, and any corporation tax payments you expect. If funding tax is always stressful, you need a set aside process.

Simple test: create a tax reserve line and treat it as untouchable. If you are using VAT or PAYE to fund trading, address it quickly

Director loan account positionCheck if the director loan accounts are overdrawn and whether this is increasing. If they are creeping up, agree a clearance plan before year end.

Simple test: confirm the trend over the last 3 months and document the plan to bring it back under control.

Forecast accuracyCompare last month’s forecast to what actually happened. Where were you wrong, and why. Forecasting improves quickly when you review it monthly and correct assumptions.

Simple test: record the three biggest variances and the decisions you will make differently next month.

The next 60 days of deadlines and risk pointsScan the next 60 days for anything that can create surprises:

• Key filings and payment dates
• Large customer invoices due and credit risk
• Supplier renewals or contract changes
• Staffing or capacity constraints
• Projects that require cash before income lands

Simple test: put the top five risks on one list with an owner and a date.

A simple next stepPick the top two issues revealed by the checks and assign actions, owners, and dates. That is the reset.

If cash is the issue, move to a weekly cash rhythm for the next four weeks until stability returns.

How can Oldfield help you?

These checks work best as a monthly rhythm, but many owner managers do not have the time, or the reporting clarity, to keep it consistent. If cash, debtors, VAT, payroll, forecasts, and deadlines feel like too many moving parts, we can help.

Oldfield works with business owners day in, day out on management reporting, financial advisory, and tax planning. We take the pressure off owners and support wider finance teams, so you get clearer numbers and fewer surprises, and can run the business rather than the business running you.

If you want to see how we can help you, contact us or book a free 30 minute review below.

Frequently Asked Questions
 

Q: How long should this take?
A: Most directors can run the seven checks in 30 to 45 minutes if the information is available. If it takes hours, that is a signal to improve reporting.

Q: What if I do not have reliable numbers?
A: Start with cash, debtors, and known tax dates, then prioritise cleaning up bookkeeping so the next reset is easier.

Q: Should this be done monthly?
A: A light version monthly works well. February is a strong reset point because it is early enough to act.

Q: What is the biggest director loan account risk at year end?
A: Having an overdrawn balance at the company year end can trigger a company tax charge and personal benefit in kind issues. Timing and documentation are key.

Remember, if this is something you are concerned about, Oldfield are happy to guide you through the process.

Please note: This article is for general information purposes only and was correct as at the time of writing (16/02/26) and does not constitute financial advice. Tax rules and legislation are subject to change, and their application depends on your individual circumstances. We recommend seeking advice from a suitably qualified tax adviser. No responsibility for loss occasioned by any person acting or refraining from action as a result of the material contained in this article can be accepted.