This checklist is designed to guide finance teams through a structured review of the organization's financial performance over a specified period, ensuring that all critical financial metrics and indicators are evaluated in a systematic manner.
Collect all relevant financial data, including income statements, balance sheets, and cash flow statements for the review period.
Examine and compare revenue figures against previous periods to identify trends and anomalies.
Break down expenses into categories and assess whether spending aligns with budgetary expectations.
Calculate gross and net profit margins to determine the organization's profitability and operational efficiency.
Compute key financial ratios such as current ratio, quick ratio, and debt-to-equity ratio to evaluate financial health.
Compare actual financial performance against budgeted figures to identify significant variances and investigate their causes.
Compile all analysis results and findings into a report that summarizes the financial performance and identifies areas for improvement.
Schedule a meeting with management to present findings, discuss implications, and recommend actions based on the performance review.