Purpose: To clearly communicate the financial performance and key insights from the previous month to company owners, ensuring transparency, accountability, and strategic alignment.

Process Owner: Financial Coordinator

Timing:

• Monthly financial statements received on the 12th of each month.
• Financial recap due on the first Thursday after the 15th of each month.

Process Steps:

1. Recieve and Review Financial Statements on the 12th:
   • Receive and verify completeness and accuracy of financial statements.
   • Review key financial documents: Income Statement (P&L), Balance Sheet, Cash Flow Statement.
2. Financial Performance Analysis (12th - 14th):
   • Analyze revenue, gross profit, net profit, and significant expenses.
   • Identify trends, anomalies, or variances from budget and previous months.
   • Document key financial highlights (e.g., record revenues, cost savings).
3. Identify Financial Highlights and Lowlights (14th - 15th):
   • List major achievements and positive trends (Highlights).
   • List areas of concern or underperformance (Lowlights).
4. Draft Financial Recap (by end of day 15th):
   • Prepare a concise summary of:
     • Total Revenue
     • Gross and Net Profit
     • Significant Expenses
     • Balance Sheet Highlights (cash position, accounts receivable/payable, debt status)
     • Notable changes month-over-month or year-over-year
     • Highlights and Lowlights
   • Clearly state any Key Asks (decisions, actions, resources needed from owners).
5. Distribution (First Thursday after 15th):
   • Send the finalized Financial Recap document via email to all owners.
   • Confirm receipt and answer immediate questions if any.

Document Structure Example:

Subject: Monthly Financial Update – [Month, Year]

Hi Team,

Please find below our financial update for [Month, Year]:

Introduction: A brief overview of this month's performance, highlighting key points that impacted our financial position.

Financial Summary:

• Revenue: [$Amount] ([% increase/decrease from previous month])