Finance meetings are essential for ensuring the financial health of your business. They provide a platform for reviewing performance, discussing strategy, and making crucial decisions. We’ve all been in meetings where we feel it’s a complete waste of time so, to be truly effective, finance meetings need to be well-structured and focused. We’ve developed a guide to running an effective finance meeting, complete with a template agenda.
Preparing for the Meeting
Set Clear Objectives
Define what you aim to achieve with the finance meeting. Whether it’s reviewing the monthly financials, year-end financials, discussing budget variances, or planning for the next quarter or financial year, having clear objectives will keep the meeting focused.
Invite Relevant Participants
Ensure that all key stakeholders are invited. This typically includes the CFO/Finance Manager/Financial Controller, other finance team members, department heads or CEO in smaller businesses, and any other relevant personnel. You may like to include your external Accountant.
Distribute Materials in Advance
Send out the meeting agenda, financial reports, and any other relevant documents at the very least 48 hours before the meeting. I typically prefer to give participants at least 5 business days to prepare and review the information provided, especially if you’re holding meetings for not-for-profits where the board is typically non-paid volunteers. Ideal Timing for Finance Meetings
The ideal timing for finance meetings depends on the size and complexity of the organisation. Larger organizations with more complex financial structures may need more frequent and formal meetings, while smaller businesses may benefit from more informal gatherings.
Monthly Meetings: Hold monthly finance meetings at the beginning of the second week of the month. This timing allows for the collection and analysis of financial data from the previous month, ensuring that participants have current information to review and discuss. Monthly meetings could be more informal and have fewer attendees, but financial information should still be distributed in advance for review.
Quarterly Meetings: Schedule these meetings at the start of the second month of each quarter. This gives time to assess the previous quarter’s performance and make necessary adjustments for the upcoming quarter.
Annual Planning Meetings: Conduct these in the last quarter of the financial year, ideally in May (for 30 June financial year end). This allows for thorough planning and budgeting for the next financial year, taking into account year-end adjustments and forecasts.
Template Agenda for a Finance Meeting
[Your Company’s Name] Finance Meeting Agenda
Date: [Insert Date]Â Time: [Insert Time]Â Location: [Insert Location]
Attendees: [Insert Attendees]
Apologies: [Insert Apologies]
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1. Welcome and Objectives (5 minutes)
Welcome attendees
Review meeting objectives
2. Review of Previous Meeting Minutes (5 minutes)
Approve the minutes from the last meeting
Discuss any follow-up outstanding action points
3. Financial Performance Overview (15 minutes)
Review the latest financial statements (Profit & Loss, Balance Sheet, Cash Flow Statement)
Highlight key metrics and variances
4. Departmental Reports (20 minutes)
Department heads present their financial performance and forecasts
Discuss major variances and action plans
5. Budget Review and Adjustments (20 minutes)
Compare actuals vs. budget highlighting any significant or material variances.
Discuss necessary adjustments to the budget
Address any significant discrepancies
6. Strategic Financial Planning (20 minutes)
Discuss long-term financial strategies and goals
Review upcoming capital expenditures and investment opportunities if applicable
Plan for the next quarter/year
7. Risk Management and Compliance (10 minutes)
Identify any emerging financial risks
Review compliance with financial regulations and policies and tax laws.
8. Open Discussion (10 minutes)
Open the floor for any additional questions, concerns, or suggestions
9. Action Items and Next Steps (5 minutes)
Summarise agreed-upon action items
Assign responsibilities and deadlines
Schedule the next meeting
10. Closing Remarks (5 minutes)
Conclude the meeting with final thoughts and reminders
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Tips for holding a Successful Finance Meeting
Stick to the Agenda
Follow the agenda closely to ensure all topics are covered within the allocated time. This helps maintain focus and prevents the meeting from running over.
Encourage Participation
Foster an environment where everyone feels comfortable contributing. Encourage questions and discussion to ensure all perspectives are considered. You could also consider having various staff members present at the meeting so they feel included and heard.
Use Visual Aids
Use charts, graphs, and presentations to make data more accessible and understandable. Visual aids can help highlight key points and trends.
Record Minutes
Designate someone to take detailed minutes of the meeting. These should include key decisions, action items with the accountable person/people allocated, deadlines and suggested date for the next meeting. Distribute the minutes promptly after the meeting.
Follow-Up
Ensure that all action items are tracked and followed up on. Review progress on these items in the next meeting to maintain accountability.
Running an effective finance meeting requires preparation, structure, and active participation. By following this guide and using the provided template agenda, you can ensure your finance meetings are productive and contribute to the overall financial health of your organisation.
If you need assistance with preparing and running your finance meetings, Cassey & Co. is here to help. We can provide the expertise and support you need to ensure your meetings are effective and aligned with your business goals. Contact us today to learn more about our services and how we can assist you.