6.2Recurring problems (playbook)
The essentials in 30 seconds
- Reflex: one symptom = probable causes = an action sequence — diagnose before fixing.
- Root: a recurring difficulty almost always comes down to the same fundamentals (result ≠ cash, double-entry, real cost, anticipation).
- Order: start from the table's most frequent cause, then verify on your accounts before applying the rest.
Rachid thread — 1 year on: the playbook posted in the office
One year on, Rachid keeps this playbook near his dashboard. Verdict: three lines served him most — the profitable month with no cash, the VAT distorting his cash, and the budget never compared to actuals. For each, he ended up fixing the root (managed WCR, VAT treated as pass-through, variances tracked) instead of repeating the incident.
Observed symptom, verified causes, actions in order: the reflex holds in three steps.
One reflex per symptom
Most financial difficulties recur for classic reasons. Linking each symptom to its probable causes and to an action sequence saves precious time and avoids bad surprises.
| Symptom | Likely causes | Actions |
|---|---|---|
| Profitable company but no cash | WCR too high (customers who pay late, heavy inventories), fast growth | calculate the WCR, speed up collections, optimise inventories, negotiate terms, build a cash plan (L3.3, L3.5) |
| Tax higher than expected | confusion accounting result / taxable result, add-backs | tax is calculated on the taxable result; set aside cash, rely on the chartered accountant (L2.5, L5.1) |
| The balance sheet does not balance | single-line entry, missing counterpart | every flow has a debit AND a credit (double-entry); check the balance of each entry (L1.1) |
| We sell a lot but don't earn | insufficient margin, loss-making products hidden, poorly known costs | calculate the real cost per product (cost accounting), review prices and range (L4.1, L3.4) |
| VAT badly managed / distorted cash | VAT recorded as income/expense, collected VAT confused with turnover | VAT passes through (collected − deductible = to remit); it is neither income nor expense (L1.4) |
| An employee's cost exceeds the budget | budget on net or gross, employer contributions forgotten | think in employer cost (gross + employer contributions) (L5.2) |
| Chaotic year-end closing | documents in a jumble, accounts not justified all year | sort and justify as you go, regular reconciliations, collaborate with the accountant (L5.4, L1.5) |
| Risky investment decision | undiscounted flows, a single criterion, fragile assumptions | calculate NPV/IRR (discount), cross payback and ROI, test the assumptions (L4.4) |
| Budget never tracked, variances ignored | budget set then forgotten, no comparison to actuals | plan → execute → compare → correct loop; analyse the variances (L4.2) |
Ready-to-say script — naming the symptom before fixing (1 min)
“My symptom: [profitable with no cash / surprise tax / balance sheet that won't balance]. My hypothesis #1: [the playbook's most frequent cause]. I check on the accounts then apply the sequence. Review in two weeks.”
Copy-paste template — express diagnostic sheet
Observed SYMPTOM (facts and figures): ...
Since when / frequency: ...
Likely CAUSES (playbook 6.2): ...
Verification (trial balance, WCR, costs, budget variances): ...
ACTIONS (in order): 1) ... 2) ... 3) ...
Targeted FUNDAMENTAL (result ≠ cash, double-entry, real cost, anticipation): ...
REVIEW in 2 weeks: improved? stable? worse?Small business / tight budget
No formal table: one symptom, one cause verified on the accounts, one noted fix.
Algeria SME
Include real collection times and tax and social deadlines in the causes before concluding a management problem.
Remote / hybrid
Add the document circuit to the likely causes: at a distance, an unforwarded document looks like a wrong account.
Cross-cultural
Check the local accounting and tax framework before acting: correct treatment here may be non-compliant elsewhere.
48h challenge — apply tomorrow
Spot 1 current symptom in your management, fill the express diagnostic sheet and test the 1st action.
- I can link a symptom to its likely causes.
- I have filled (or scheduled) an express diagnostic sheet.
- I know the referral to the level worth deepening for my case.
Rachid finds VAT is distorting his cash. Which reflex does the playbook apply?
A recurring problem is not ten incidents: it is a missing reflex to fix at the root (result ≠ cash, double-entry, real cost, anticipation).