Great businesses know where they are going and how they're going to get there. They also know nothing is more important than performance and delivering a good return. When people talk about company governance they're usually talking about the role of the board of directors. Boards exist to ensure a company is well run, and well governed so that shareholder value can be maximised and no 'funny business' goes on.
In small and mid-size businesses governance often begins when an owner or manager steps outside of their operational role and seeks help from a trusted advisor. They begin to realise the value of this external perspective and as the business grows, they formalise this into a governance structure of a board.
Understanding financial reporting and financial literacy are core competencies for directors. The board needs to ensure the probity of financial reports and processes and that there is a high standard of regulatory compliance. Directors have a legal duty to exercise their powers and duties with the care, diligence and skill that a reasonable director would exercise. This includes taking steps to be properly informed about the financial position of the company.
Small and mid-size businesses often struggle to get comprehensive company performance reports delivered to their board on time and with expected quality information. Data has to be retrieved from a number of financial and operational systems and then compiled, checked and double-checked to produce a report suitable for the board.
But there are smarter ways for achieving this goal. Modern ERP and BI solutions can greatly simplify and speed up the process of obtaining quality company performance information and produce highly usable reports.
If you want to find out more, talk to Topaz Solutions about how you can create effective board reports by the push of a button.