How can you make your financial report for the board of directors more strategic?

As a corporate finance professional, you know how important it is to present your financial report for the board of directors in a clear and concise way. But do you also know how to make it more strategic? A strategic financial report goes beyond the numbers and shows how your company is achieving its goals, facing its challenges, and creating value for its stakeholders. Here are some tips on how to make your financial report for the board of directors more strategic.

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1 Align with the vision and mission

Your financial report should not only reflect the past performance and current situation of your company, but also how it aligns with the vision and mission of the board. You can do this by highlighting the key drivers and indicators of your strategy, such as market share, customer satisfaction, innovation, social responsibility, and so on. You can also use stories and examples to illustrate how your financial results support the strategic objectives and values of the board.

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Ebamugha Suoware (MNIM, CIPSMN)

Assistant Director at FIRS
(edited)
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Financial reporting is a business tool, that aids decision making. Therefore, indicators for revenue growth and expenditure should be detailed and at the same time free from ambiguity.

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Jai Prakash Jhankal

Insuretech Leader | Service Delivery | Product Implementation | Applications | Insurance | LLOYDS | P & C | PRINCE2 | ITIL | RPA | Digital
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A board financial report goes beyond numbers; it weaves financials into the organizational narrative. It must align with strategy and vision, using key indicators to succinctly show performance against board goals. Highlighting trends adds dynamism. Customizing data based on the board meeting's agenda ensures contextual relevance. In essence, it's a strategic communication tool, connecting financials to organizational vision, board goals, and ongoing governance discussions.

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2 Focus on the big picture

Your financial report should not overwhelm the board with too much detail and complexity. Instead, you should focus on the big picture and the main trends and issues that affect your company. You can use graphs, charts, and dashboards to summarize and visualize your data, and avoid jargon and technical terms that might confuse the board. You can also use ratios, benchmarks, and comparisons to show how your company is performing relative to its peers, competitors, and industry standards.

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3 Provide insights and recommendations

Your financial report should not only report the facts, but also provide insights and recommendations that can help the board make better decisions. You can do this by analyzing the causes and effects of your financial outcomes, identifying the risks and opportunities that your company faces, and suggesting actions and solutions that can improve your performance and position. You can also use scenarios, forecasts, and projections to show how your company might perform under different conditions and assumptions.

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Ebamugha Suoware (MNIM, CIPSMN)

Assistant Director at FIRS
(edited)
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True. While, reporting on the financial statement of the organisation, recommendations on how to curb wastage and also reinforce revenue potentials should be clearly stated. This would aid the Board take better decisions and align the organisation with its goals,thereby achieving its vision and mission.

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4 Communicate clearly and confidently

Your financial report should not only inform the board, but also persuade and influence them. You can do this by communicating clearly and confidently, using simple and direct language, and avoiding ambiguity and uncertainty. You can also use positive and constructive tone, emphasizing the strengths and achievements of your company, and acknowledging the challenges and areas of improvement. You can also use feedback and questions to engage the board and demonstrate your understanding and responsiveness.

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Ebamugha Suoware (MNIM, CIPSMN)

Assistant Director at FIRS
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Communication is key in any business environment. If instructions are misunderstood it can be costly to the organisation. For the Board, financial reporting can be seen as a feedback tool, as it shows if strategies implemented are yielding the desired results or not. The report should be detailed, highlighting strength, weaknesses, opportunities and threats.

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5 Adapt to the audience and context

Your financial report should not only follow the standards and guidelines of your company, but also adapt to the audience and context of your presentation. You can do this by researching and understanding the needs, expectations, and preferences of the board, and tailoring your report accordingly. You can also consider the timing, format, and channel of your report, and adjust your content and style to suit the situation. You can also use follow-up and support materials to reinforce your message and provide additional information.

By following these tips, you can make your financial report for the board of directors more strategic, and more valuable for your company. A strategic financial report can help you showcase your skills and expertise, build trust and credibility with the board, and contribute to the success and growth of your company.

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6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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Syed Irfan Akhter

Assistant Manager - Finance & Reporting at MABANI STEEL LLC المباني للحديد
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Create dashboard reports for better analysis and quick decision making. Interactive dashboard reports allow senior management to drill down into specific data points or time period for more detailed analysis. This enhance their ability to explore trend and indentify areas of improvement.

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How can you make your financial report for the board of directors more strategic?

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1 Align with the vision and mission

2 Focus on the big picture

3 Provide insights and recommendations

4 Communicate clearly and confidently

5 Adapt to the audience and context

6 Here’s what else to consider

Business Reporting

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