Financials are central to every board meeting and help guide spending decisions. Below are a few practical steps to improve how financials are reviewed and used during meetings.

Pre-Meeting Financial Review

Strong financial discussions start with clear internal review. For most managers, that includes:

  • Understanding the overall financial position, including current surplus or deficit, major trends, and anything that may affect near-term decision-making.
  • Identifying budget variances that are significantly over or under expectations and may require explanation at the meeting.
  • Reviewing the general ledger to confirm what’s driving variances, verify that items are posted to the correct accounts, and ensure descriptions are clear enough to speak to if asked.
  • Checking accounts receivable to confirm collections are stable and that follow-up steps have been taken. Being able to report what actions have been taken on overdue accounts helps avoid uncertainty during the meeting.

Practical tip: If one director tends to ask the most financial questions, often the Treasurer, it’s worth reviewing the financials with them briefly before the meeting. This reduces clarifying questions during the meeting and improves how the rest of the board views the financials. When that director is already comfortable with the numbers, it often reinforces confidence across the room. A conversation in advance can prevent unnecessary questions or doubt once the meeting is underway.

Using a Monthly Budget Breakdown Effectively

Variance reports only have value when they’re based on realistic month-to-month expectations. This is why reviewing against a monthly budget breakdown, not just the annual budget, is essential. These breakdowns allocate the approved budget across each month based on expected timing of expenses.

When building or reviewing that breakdown, it helps to separate categories into three types:

  • Unpredictable expenses, such as legal costs or repairs following emergencies, where the timing is unknown. These are generally left flat across the year.
  • Seasonal expenses, like snow removal, pest control, power washing, and other services that occur more heavily in certain months. These should be weighted toward the periods they’re expected to happen.
  • Fixed-pattern expenses, such as landscaping contracts with different summer and winter monthly rates. These should be entered exactly as billed to avoid recurring variances.

Only seasonal and fixed-pattern categories should be weighted. If the entire budget is spread evenly across the year, reporting will show variances that don’t reflect real activity, and that reduces the usefulness of variance review during the meeting.

Establishing Financial Context Before Business Items

According to Robert’s Rules of Order, reports are typically presented before the board moves into new business. Financials fall under this category. As a result, they are normally reviewed immediately after the approval of previous minutes and before any new items are introduced.

This placement helps ensure the board has the right context before making any decisions tied to spending or project timing. Directors have an opportunity to understand the current financial position, ask clarifying questions, and identify which categories may be under pressure or have available flexibility.

Supporting Decisions with Financial Context

When discussing business items that involve spending or project approvals, tie the decision back to the budget. For example:

  • If you’re reviewing quotes and one is slightly higher but preferred, a surplus in that category may support proceeding with that option.
  • If the item is essential but the budget is tight, it may be necessary to reduce scope or negotiate more assertively.
  • If it’s a non-essential item and the budget is already under pressure, deferring the expense becomes a clear and responsible decision.

This doesn’t require a lengthy discussion. A brief note connecting the decision to the financials helps reinforce that the board is making informed, fiscally responsible choices during the meeting.

Clear Financial Decisions, Clear Minutes

Financial decisions should be stated in a way that makes them easy to record and easy to reference later. Managers play a key role in framing approvals clearly so the minutes reflect exactly what was decided.

The typical order of information should include:

  • Which vendor is being approved.
  • What work is being done or what is being purchased.
  • The amount, ideally noting whether tax is included.
  • The funding source, especially if it’s coming from the reserve.
  • The duration, whether it’s a one-time cost, recurring expense, or a contract with a defined term.

For example:

“I’m recommending that we approve ABC Contracting to complete the stairwell painting for $14,500 plus tax, as a reserve fund expense.”

When phrased clearly in the meeting, the minute taker can capture the decision accurately without needing to piece together fragments after the fact. Clear approvals support clear minutes, reduce confusion later, and give future directors or auditors the full context without revisiting old decisions.

Closing Thoughts

A strong financial section supports the entire meeting. When numbers are reviewed early and referenced during approvals, boards make decisions that align with the corporation’s position and timing. Clear approvals lead to clear minutes, and clear minutes support continuity, accountability, and future review.