10. FINANCIAL REPORTING

This section specifies

• the what, where, when, and how of financial reporting.
• when and under what circumstances audits will be performed.

Specify what you want to see from the JV by way of cash flows, capitalCapital: cash, property, equipment, services, and contracts or leases., year end budget, pro formas, profits and losses, and balance sheet. Also specify how regularly you want them.

Let common sense and the nature of the JV guide your decision about the amount of reporting. It goes without saying that you must have monthly statements. Bi weekly reports may be useful in some businesses. Seldom do owners require information more frequently than this.

Do not confuse “financial accountability” with an urge to know the daily or weekly operations of a business. Too much financial analysis is devoted to the quarterly performance and cash flows, instead of a corporationCorporation: the most common form of business organization. It pursues set objectives and is empowered with legal rights usually only reserved for individuals, such as to sue and be sued, own property, hire employees, or loan and borrow money.’s annual and long term financial performance. Since the 1970s, managerial performance has been measured increasingly against the previous quarter. Knowing "more and more about less and less," people have lost sight of the bigger picture. To help you decide what you want and how often, take a look at the industry's standard procedures.