This checklist is designed to ensure a thorough review of the financial performance of the organization on a monthly basis. It aims to identify trends, variances, and areas for improvement in financial management.
Gather the latest income statement, balance sheet, and cash flow statement for the review period.
Analyze revenue figures against the previous month and budget projections to identify any significant variances and trends.
Examine each expense category for variances from the budget to assess spending patterns and identify areas for cost control.
Calculate gross and net profit margins to assess the overall profitability of the organization.
Review the cash flow statement to ensure sufficient cash reserves and identify any cash flow concerns.
Compile a summary report outlining key findings, trends, and recommendations for the management team.
Arrange a meeting with relevant stakeholders to discuss the financial performance review and gather input.
Record any action items or follow-up tasks that arise from the review meeting and assign responsibilities.