GET STARTED WITH COMPLIATRIC!
Schedule a demo and organize your compliance program on one secure cloud-based platform today.
Best Practices for Presenting Financial Data to the Board of Directors
A health center’s Board of Directors have a fiduciary responsibility over the health center program. Presenting financial data to the BOD is a crucial task as it leads to informed decision-making, ensures accountability, and builds trust. At times, presenting financial information to a diverse group of board members can be challenging. In this post, we’ll explore best practices for presenting financial data to a health center board in ways which will encourage transparency, engagement, and informed decision-making. The following approaches may prove helpful when presenting final fiscal data:
Health centers should also track additional financial measures which may include, but are not limited to, revenues and expenses, days in account receivables, days in account payables, days cash on hand, debt to equity ratios, etc. Regardless of the number of financial measures tracked, it’s important that the board receive metrics on a consistent basis and develop baselines in order to compare them to national and state data. Some health centers choose to find other health centers that are similar in size and complexity to compare financial metrics.
Effectively presenting financial data is essential for the financial health and sustainability of a health center. By tailoring the presentation of financial data, focusing on key metrics, and encouraging open dialogue, the culture of the board will foster transparency, engagement, and informed decision-making. Ultimately, these best practices will empower the board to make sound financial decisions that support the mission and vision of a health center.