Here’s something you don’t usually see in most financial statement reporting packages.

The one page summary.

I like the one page summary because that gives the busy reader the chance to capture the essence of the package on just one page pulling in different elements from various parts of the financial package. It provides an opportunity to focus them on areas of most importance and sets them up with the big picture understanding before they give into the core of the financial package.

Here are some things that we like to see in that package:

1. Summary P&L items. This can be kept at a very high level. Revenues might just be one line, gross margins another. Perhaps, operating expenses a third and then ebitdah and, perhaps, net income to wrap it up. Point is we’re not there to rehash the whole income statement, but rather just give particular high spots from it.

2. Balance sheet summary items. Cash should be a certain, as well as probably a couple working capital items, such as receivables and if applicable inventory. Then depending upon the asset base, there might be one line for fixed assets and one for other assets. Other significant assets could be broken out. Then things like accounts payable and accruals might be together on the liability side. Other liabilities might be summarized in different key groups, such as a line of credit being separate, term loans being another one. Finally, you come to the total for equity.

3. Cash flow summary. Normally, like to see the three core things in cash flow, cash from operations, cash from investing and cash from financing. This all comes together to a net cash flow number.

After that can be optional depending upon your company and circumstances. It might be some key dashboard items that you might want to show. It might be some departmental expense information, certainly could be nonfinancial data that gets in there.

So, if you don’t have a one page financial summary at the top of your financial reporting package, consider putting it in. It sets a great stage for the rest of the package.

Jon Paul, MBA, CPA, CMC, CM&AA

President, Value Added Finance Resources
Bringing new insights on results and maximizing company value