Key Financial Reports to Share with Your Board

Key Financial Reports to Share with Your Board

As a new business or start-up, there will be some big meetings ahead with your board and shareholders. Without financial expertise, you may be wondering which financial reports are best suited to show that you’re on the right track to building an established, profitable business.

Take a look at a few of the key financial reports needed to impress your board and kickstart your growth.

Profit & Loss Report

The profit and loss report shows the company’s revenue and expenses over a specific period of time. It is a critical report for board members to understand the company’s profitability, and it can help identify areas where the company may need to cut expenses or increase revenue.

Investors and creditors also use the profit & loss report to assess a company’s financial health and potential for growth. By analyzing a company’s revenue, expenses, and net income over time, they can identify trends and patterns that may indicate opportunities or risks.

With this report, shareholders can evaluate a company’s performance and make informed business decisions.

Balance Sheet Report

This financial report shows the company’s assets, liabilities, and equity at a specific point in time. This report is essential in helping board members to understand the company’s financial position and whether it has enough assets to cover its liabilities.

A balance sheet report is used in financial analysis and evaluation against other companies in the same industry, and are crucial for industry benchmarking. They are a vital tool for managers to monitor and manage the financial performance of a company and make informed decisions about investment.

Cash Flow Statement

This report shows the company’s cash flow over a certain period of time. It is a critical report for board members to understand the company’s ability to generate cash and whether it has enough cash to cover its expenses.

By analyzing a cash flow statement, investors can gain insights into a company’s ability to generate cash and its ability to meet its financial obligations in order to be profitable. The cash flow statement is also crucial for CEOs, board members, and shareholders as it allows them to monitor the company’s cash and make strategic decisions about the allocation of resources.

Overall, this report needs to be included in your presentation as it is a valuable tool for financial analysis.

Budget vs. Actuals Report

This financial report shows the company’s budgeted revenue and expenses compared to actual revenue and expenses. It is a critical report for board members to understand whether the company is staying within its budget and whether it needs to make adjustments.

This report helps businesses to measure their financial performance and make informed decisions based on actual results. It provides real insights into areas that require adjustment and allows management to take corrective actions to improve financial performance.

KPI Dashboard

This financial report shows the company’s key performance indicators (KPIs) in a visually appealing way. It is an essential report for board members to understand how the company is performing in critical areas such as revenue growth, sales, and employee productivity.

This report provides a real-time snapshot of critical metrics and performance indicators that help managers and executives make informed decisions about their business strategy. The importance of a KPI dashboard lies in its ability to provide actionable insights and set industry benchmarks to stay competitive in a fast-paced business environment.


How should you present financial reports to a board

How should you present financial reports to a board?

Presenting financial reports to a board requires careful planning and preparation to ensure that the information is presented clearly and accurately. We’ve put together some steps you can take to make sure you present your figures without losing your cool.

Make sure the reports are organized

Organize the financial report in a clear and logical way, with a summary of the key points up front. Use headings, subheadings, and bullet points to make the report easy to navigate. You can brighten this data using tables, graphs, and charts.

Don’t use industry jargon

Avoid using technical financial jargon or complicated financial terms that the board may not be familiar with. Use simple language to explain complex financial concepts, and provide examples where necessary.

Be transparent

Be transparent about any potential risks that could impact the financial performance of the business. Explain the assumptions made in preparing the report, and highlight any areas where there is uncertainty or variability.

Make reasoned recommendations

Based on the financial data presented, make recommendations for future actions or strategies that the board could consider. This will help to guide their decision-making and ensure that they are well-informed.

Address Questions

Be prepared to answer any questions the board may have about the financial report. Make sure that you have a good understanding of the data presented, and be able to provide additional context or explanation where necessary.

Generating Financial Reports with Brixx

Generating these financial reports can be a long process, especially when considering that you may not have the financial expertise compared to an accountant. Typically, these reports require lengthy processes of spreadsheets and equations to figure out exactly how your business is running, and at what cost.

A financial reporting tool can ensure that this part of your business plan, alongside other key components, is created with ease – simply needing a few data entries to be entered throughout the software.

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