Does your small business operate as a company? All publicly listed, and some privately listed, companies will have a board of directors who require regular reports about business performance to operate strategically as a team.
One of the paramount responsibilities for the board of a company is to strategically guide a business through future decisions, which can only be confidently made with the knowledge of past performance, business trends and concrete data. A common problem facing company boards is not everyone has the same level of knowledge when it comes to understanding and interpreting this information.
The need to share
What company boards require is a convenient way to share the necessary information, in an easily understandable format for members, regardless of their financial background.
For businesses with a diverse range of financial understanding amongst their board members, visualised data can be an effective way to communicate. As the adage goes, “a picture paints a thousand words”, and graphical representations of data take what can be abstract information and provide board members a way to visualise their business’ performance at a glance.
The need to predict
All company boards are looking to make strategic business decisions with minimised risk. Using a scenario-planning tool allows businesses to model the impact of different business decisions based on forecasted business conditions, giving a board peace of mind moving forward.
Your company board reports should summarise the performance of the business over the past month or quarter (depending on the frequency of your meetings) and compare your performance with the goals and expectations you have set previously. For these comparisons, boards need to work from a single source of truth about their performance data, including budgets, cash flow forecasts, account receivables and balance sheets of assets and liabilities.
Streamline the process
If this sounds like too much work for the capacity of your small business, there are ways you can streamline this process.
Reep is a cash flow forecasting and scenario-planning tool that gives you a helicopter view of your financial data presented in an easy-to-understand, visual format. It uses up-to-date information provided by your banking feeds and compatible accounting software, keeping you focused at a high level without being bogged down in detail. Reep is designed specifically with the needs of small businesses in mind and can be accessed by all members of your board from anywhere at any time.
If you’d like to simplify the way you generate board reports in your small business, sign up to a free trial of Reep today.