What to keep in mind
Develop financial reporting, key indicators, supporting schedules and clear explanations of material changes.
Management decisions based on outdated or unreliable numbers can create avoidable exposure.
Distinctions often confused
A statutory annual balance sheet is not the same as a monthly management report.
Frequently asked questions
Should boards review cash flow as well as profits?
Yes. Earnings and available liquidity are different indicators.
Does financial advice replace the board's decision-making role?
No. Directors must exercise their own judgment and duties.
Informational content. It is not a substitute for professional advice.