This checklist is designed to ensure a thorough review of the financial performance of the organization over a specified period. It is focused on analyzing revenue, expenses, profitability, and other key financial metrics to provide insights for decision-making.
Collect the latest financial statements including the income statement, balance sheet, and cash flow statement for the review period.
Review and assess the different sources of revenue and evaluate their performance compared to previous periods and forecasts.
Examine all major expense categories to identify trends, variances, and justify any significant increases or decreases.
Compute key profitability ratios such as gross margin, operating margin, and net profit margin to evaluate overall financial health.
Assess cash flow from operations, investing, and financing to understand liquidity and financial stability.
Compile the findings into a summary report that highlights key insights, trends, and actionable recommendations for management.
Present the summary report to management for discussion and to make informed decisions based on the financial performance review.