Your Financials Should Help You Make a Decision
Here's my favorite test for a financial report:
Does it help someone make a decision?
If the answer is no, we may need to rethink the report.
Financial statements aren't supposed to be something the board receives, glances at and files away.
They should help leadership answer questions.
Can we afford to hire?
Are we collecting the tuition we're owed?
Are expenses tracking with budget?
Do we have enough cash for the summer?
Which programs are financially sustainable?
Good accounting records history.
Great financial reporting helps you decide what to do next.
That's when the numbers become a leadership tool.
Something to think about:
What's one decision you're facing right now that your financial reports should be helping you answer?
If your reports aren't giving you the clarity you need to make that decision, let's talk.
Schedule a conversation here: