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Methodology

How the Financial Clarity Score works

A fast read on reliability and decision-readiness. Built to show what’s working, what’s unreliable, and what to fix first.

What we review

At minimum, we review your most recent Profit & Loss statement and Balance Sheet.

When available, we may also review supporting exports for deeper context:

  • Bank and credit card activity
  • Accounts receivable and accounts payable aging
  • Prior-period comparisons

What the score measures

The score reflects whether your reporting is reliable enough for founder-level decisions and where the biggest risks live.

Close discipline

Are the numbers current, consistent, and repeatable month to month?

Balance sheet hygiene

Does the balance sheet reflect reality or hidden distortions?

Cash visibility

Can you see cash clearly enough to plan without guessing?

Profitability clarity

Do margins and operating costs tell a trustworthy story?

Working capital signals (AR/AP)

Are receivables and payables clean and actionable?

Data consistency

Are accounts categorized consistently or drifting month to month?

How to interpret your score

The score is designed to be practical, not dramatic. These ranges are guidelines.

90–100: Clean, current, decision-ready

Maintain cadence and focus on optimization.

70–89: Mostly reliable with a few gaps

Generally trustworthy, but a few issues may distort decisions if ignored.

50–69: Stabilization needed

Prioritize cleanup and close discipline before relying on reporting for major decisions.

Below 50: Reliability is likely compromised

Backlog or structural issues are common. The next step is a clear cleanup plan.

What the score is not

The Financial Clarity Score is a clarity tool. It is not:

  • Tax advice
  • A valuation
  • A guarantee of future performance
  • A substitute for legal or regulatory guidance

How to improve your score

Improvement usually comes from doing a few fundamentals consistently:

  • Build a calm monthly close cadence
  • Reconcile accounts and clean up the balance sheet
  • Tighten categorization so reporting stays consistent
  • Create simple AR/AP workflows that protect cash
  • Establish a small KPI set for founder-level review

FAQ

Higher usually means more reliable. The goal is not perfection. The goal is decision-ready reporting.

Yes. The score simply shows where the risks and blind spots are so you can reduce them.

No. It focuses on your internal reliability and clarity.

You’ll receive prioritized next steps. You can implement internally or engage EJC for cleanup, monthly close, and ongoing advisory.

Get clear on what’s real.

Start with the Financial Clarity Review and get clear next steps.