Renzo DemartiniIn short
- Start with the decision: who acts, on what and how often. Then pick the few measures that serve it.
- Agree each measure’s definition, source, owner and refresh time before building any dashboard.
- Before it’s sent, check it ties to the ledger, is complete, uses agreed definitions, is current and shows exceptions.
A report can arrive on time and still give the wrong picture. Then the meeting debates the numbers instead of acting on them.
Three things fix that: design the report around one decision, agree what each measure means before building anything, and check the figures before the CEO and board read them.
Start with the decision
Build the report for the decision, not the other way round
A daily dashboard
- Wasted on a monthly decision
A month-end report
- Arrives too late for a same-week capacity call
A report for one decision
- Names the person who acts
- States the decision in plain language
- Refreshes as often as the decision is made
A report should help a named person take an action. A delivery manager might need to move a crew before promised work runs late. A CEO might need to look into a service line whose contribution keeps falling. Write the decision in plain language, name the person who makes it and agree how often it’s made.
More detail
Different decisions need different records, definitions and refresh times. ‘Which overdue accounts need a call?’ and ‘Which jobs need a margin review?’ are separate questions, even if they share a page.
Pick measures that explain the result
Results say what happened. Operational measures explain how
Financial results
- What the business earned
- What it spent
Operational measures
- Completed work waiting to be billed
- Rework
- Committed work against available capacity
A job-cost forecast
- Agreed revenue
- Actual direct costs
- Commitments not yet billed
- A dated estimate of the remaining work
Pick measures that relate to the decision and that someone will maintain. Room on a dashboard isn’t a reason to add a metric.
The job margin guide shows the forecast calculation. Automating the collection saves preparation time, but it doesn’t make an out-of-date estimate reliable.
Agree definitions and sources first
Five records for every measure, agreed before any chart
| Record | Illustrative example |
|---|---|
| Definition | Job margin = revenue less direct cost, including labour on-costs |
| Source | Job system for costs, Xero for invoiced revenue |
| Owner | Operations manager, with finance review |
| Refresh | Overnight; month-end figures locked once the ledger closes |
| Known limits | Cost to finish is only as current as the supervisor’s last update |
Bridge A$155,000, pack A$160,000: the A$5,000 gap stays open until someone explains it
| Line | Entities added | Inter-entity out | Group | In the pack |
|---|---|---|---|---|
| Revenue | A$872,000 | −A$20,000 | A$852,000 | A$852,000 |
| Cost of sales | A$468,000 | −A$8,000 | A$460,000 | A$455,000 |
| Operating expenses | A$249,000 | −A$12,000 | A$237,000 | A$237,000 |
| Operating profit (EBIT) | A$155,000 | A$0 | A$155,000 | A$160,000 |
Sample month, three entities, accrual, excl. GST. The pack was built before an A$5,000 supplier bill reached one entity’s ledger.
Illustrative figures, not client data.
If two teams define a measure differently, settle it before adding another chart, or the meeting keeps debating the numbers instead of acting on them.
A group pack adds several ledgers, but the sum is not the group number. What one entity charges another must come out. A bridge puts the entity totals, the eliminations and the pack figure on one sheet, and a difference stays open until a named person explains it.
Download the board-pack evidence bridge (Excel): a filled three-entity sample and a blank sheet for up to four entities. Agree the GST basis first, as business.gov.au asks for a cash flow statement. Then run the checker below on the finished figures.
Five checks before you trust an automated report
Five checks run before the report reaches the CEO and board
- 01Reconcile to the ledger
Totals match the accounting records for the same scope and period.
- 02Completeness
Every expected entity, job and source is in, with the right date filters and status rules.
- 03Definitions
Each measure means what the agreed definition says, this month and last.
- 04Freshness
‘Last updated’ describes the source data, not when someone opened the screen. If one source fails to refresh, the report says so.
- 05Exceptions visible
A failed connection, unmatched record or unexpected total has an owner and shows on the page, not inside ‘Other’.
A monthly report, checked before it’s sent
What gets caught: A total that doesn’t tie is caught at step 2, ‘Reconcile to the ledger’.
- Claude reads
- Rules check
- A person decides
The ledger is closed for October.
Revenue A$186,400.00 in Xero, after credit note CN-0417.
Then the monthly report is built.
Every job in, every source fresh. It looks routine.
Ledger, October
The ledgerOctober
1–31 October, excl. GST
- RevenueA$186,400.00Invoices less credit notes
- Credit notesA$4,800.00CN-0417 on job J-1182
- Period1–31 October
Management report, October
Management reportOctober
Source data 1 Nov, 6:00 am, excl. GST
- RevenueA$191,200.0017 of 17 jobs in
- Credit notesA$0.00None
- Period1–31 October
Claude (Anthropic’s AI model) reads both.
Claude turns the ledger and the report into the same fields. It doesn’t decide anything.
Plain rules match them, line by line.
Totals against the ledger, for the same period, every month.
- ✓Debtors tie to Xero
- ✓17 of 17 jobs in
- ✕Revenue A$4,800.00 over the ledger
The mistake, in dollars.
The report’s revenue is A$4,800.00 above the ledger.
October revenue, excl. GST
In XeroA$186,400.00revenue
+2.6%In the reportA$191,200.00revenue
- Report revenue
- A$191,200.00
- Ledger revenue
- A$186,400.00
- Credit note CN-0417, job J-1182
- A$4,800.00
- Revenue overstated by
- A$4,800.00
The credit note never reached the report.
It waits for the finance lead.
Nothing is sent until a person decides. Here, that’s you.
Finance leadMessage from the ledger check
Held. Not sent.
Needs your decision
October’s report shows revenue A$4,800.00 above Xero. Credit note CN-0417 on job J-1182 is missing. Correct it and approve, query the gap, or hold the report?
You decide: pick one to see what happens, or the run goes with “Query the gap”.
Held until the figures tie.
Claude (Anthropic’s AI model) reads. Rules check. A person decides.
Approved at A$186,400.00Revenue ties to Xero before anyone reads the report.
October’s report, corrected and sent to the CEO and board, with Claude’s commentary.
Management reportSentSample
October management report
To the CEO and board · excl. GST
- Revenue
- A$186,400.00, ties to Xero
- Credit note
- CN-0417 on J-1182, A$4,800.00, now in
- Jobs
- 17 of 17 in
Commentary: revenue was A$186,400.00, after an A$4,800.00 credit note (CN-0417) on job J-1182.
Commentary drafted by ClaudeApproved and sent by the finance lead
- Claude read the ledger and the report into the same three fields, then drafted the commentary from the checked figures, leading with the A$4,800.00 credit note on J-1182.
- Plain rules found revenue A$4,800.00 above Xero, and credit note CN-0417 missing from the report.
- The finance lead added CN-0417 to the report, so revenue ties to Xero at A$186,400.00, and approved it.
Once the finance lead has checked each point against the figures, the report goes to the CEO and board with actions and named owners.
Held. Not sent.No report goes to the board A$4,800.00 overstated.
Claude’s question to accounts in #accounts, posted by the finance lead.
Slack #accountsSample
Finance lead6:20 am
October’s report shows revenue A$191,200.00; Xero has A$186,400.00. Credit note CN-0417 on J-1182 (A$4,800.00) isn’t in the report. Can you confirm CN-0417? The report is held until revenue ties to Xero.
Drafted by ClaudePosted by the finance lead
- Claude read the ledger and the report into the same three fields. It drafts no commentary until the figures tie.
- Plain rules found revenue A$4,800.00 above Xero, and credit note CN-0417 missing from the report.
- The finance lead asked accounts to confirm CN-0417 on J-1182. The report waits until revenue ties to Xero.
With revenue tied to Xero at A$186,400.00 and all 17 jobs in, Claude drafts the commentary and the finance lead approves the report before it goes to the CEO and board.
Held. Not sent.No report goes to the board A$4,800.00 overstated.
The report, held on tomorrow’s morning list with the A$4,800.00 gap named.
Morning listHeldSample
October management report
- ✓Done: Debtors tie to Xero
- ✓Done: 17 of 17 jobs in
- To do: Revenue A$4,800.00 above Xero: CN-0417 on J-1182 missing
- Owner
- Finance lead
- Due
- Tomorrow morning
Held by the finance lead
- Claude read the ledger and the report into the same three fields. It drafts no commentary until the figures tie.
- Plain rules found revenue A$4,800.00 above Xero, and credit note CN-0417 missing from the report.
- The finance lead held the report, with the A$4,800.00 gap named for next morning.
With revenue tied to Xero at A$186,400.00 and all 17 jobs in, Claude drafts the commentary and the finance lead approves the report before it goes to the CEO and board.
Sample data: a fictional business and figures, excl. GST.
ClaudeWhere Claude helps
- Drafts commentary from figures that have already passed the checks
- Groups unmatched records and suggests where to look first
- Turns the meeting’s notes into a list of actions and owners
RulesWhat the rules check
- Report totals reconcile to the ledger for the same period
- Every expected job, entity and source is present and refreshed
- Items over the materiality limit are shown, not folded into ‘Other’
PersonWhat a person decides
- The CEO names the decision the report supports
- Finance lead signs off definitions and any reconciling difference
- Finance lead approves the report before it goes to the CEO and board
NoWhat Claude doesn’t do
- Explain why a result changed without evidence
- Change a definition or a figure to make the totals tie
- Send the report without a person’s approval
Sample data. Claude reads, plain rules check, and you make the decision. Press run to watch it get caught.
Agree these checks before building the presentation. AI can draft the commentary, but a plausible explanation isn’t evidence of why a number moved. Keep the calculated result separate from the suggested explanation, check each statement against the figures, and keep a person responsible for the report and what happens next.
More detail
A figure can tie within one source and still leave out a set of records. Where records cross systems, decide how they match. Names are ambiguous. A job or customer number is stronger, but missing, changed and duplicated numbers still need a response.
Test it like an acceptance record
Break the report on purpose before you rely on it
| Test | Expected response |
|---|---|
| Missing source: leave one expected source out | An incomplete-data warning and a hold on finalising |
| Duplicate record: supply the same reference twice | Rejected, held or reconciled, as agreed, and the total isn’t counted twice |
| Late correction: post one after the period closes | What the report shows, agreed before the test |
Exhibit 9 · Try itRun the acceptance checks on a monthly reportSwitch faults on in the sample report, then run the checks. Each one shows who catches it, marks the affected figure and says whether the report is fit to send.Open the checker ↓Close ↑
Sample business, illustrative figures. These checks suit this report’s scope; no set of checks catches every possible error in every system.
Each record needs four things: the input, the expected response, the evidence kept and the person who signs it off. These are proposed tests for one scope, not a promise that every system can catch every error.
What to do first
Start with the report that keeps going back to spreadsheets
- 01Name the decision
Who acts, on what and how often.
- 02Write the five records
Definition, source, owner, refresh and known limits for each measure.
- 03Agree the checks, then break it
The five checks, tested with a missing source, a duplicate and a late correction.
- 04Give the review a rhythm
An owner, a record of the actions it produces, and a regular look at measures that never change a decision.
Measure the whole process too. Time removed from one step isn’t time saved overall until preparation, review and corrections are measured on the same scope.
Common questions
What should a monthly management report include?
Only what the decision needs. For a growing business that’s usually revenue and contribution by job or service line, a forecast for jobs in progress, completed work waiting to be billed, debtors that need a call and a short list of exceptions with owners. Each measure needs a written definition, source, owner and refresh time.
How do I check an automated finance report is right?
Run five checks before it’s sent: totals reconcile to the ledger for the same period, every expected job and source is in, definitions match what was agreed, each source is current and exceptions are shown with an owner rather than folded into ‘Other’. A person signs off before it goes to the CEO and board.
Can AI write the commentary for a management report?
It can draft it from figures that have already passed the checks. It shouldn’t decide why a result changed, because a plausible explanation isn’t evidence. A finance lead checks each statement against the figures and the business context, edits it and approves the report before it’s sent.
Chartered Accountant (CA ANZ) and finance executive, based in Canberra. Practical AI and automation for SMEs, and adviser to owners, CEOs and boards on integration and finance.