[Finance] Thoughts and suggestions related to our last meeting

Mike Johnson mdjohnson2112 at gmail.com
Sun Oct 29 17:55:10 CDT 2017


Hi everyone, after giving it some thought I'd like to suggest some changes
to how financial data is reported to the BOD.  Note that I think the
reports currently being prepared should still be created.

Based on what I have seen so far it appears that the reports being used are
driven primarily by accounting conventions that can seem arcane or
incomprehensible to nonfinancial people.  They do serve a critical purpose
in any reporting arrangement by providing the detail necesssary to make a
deep dive into financial activity.  However I submit that for the BOD it
would be useful to have a more summarized view as well.

Basically I'm talking about management reporting here.  We've got a solid
foundation of accounting reports, but for those that do not use the data
every day it can be difficult to separate out the most important
information when staring at a detailed ledger.  I propose the primary
report the BOD should see is one that summarizes the 3-5 key financial
issues, then the detail would be available in case anyone wanted to see
it.  This should be done both for actual/historical results and for
forward-looking forecasts.

I can send out some examples using some reports from my work, but does the
concept make sense?  And if it does, we need to consider who would be
responsible for creating these reports (it would definitely require more
work).

Thanks everyone, looking forward to your feedback!

Mike Johnson
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