A financial review provides an overall summary of your financial statements; it can also be used as a roadmap to better decision-making, operational efficiency, and long-term financial health.
Richard Allen, Director of Allen Audit & Advisory, explains how Australian organisations, including charities, schools, and sporting, cultural and social clubs, can turn financial review findings into actionable strategies.
The purpose of a financial review
Richard says a financial review is not the same as a full audit and involves limited analysis of an organisation’s financial statements.
“A financial review assesses whether an organisation’s financial statements meet accepted Accounting Standards,” he says.
“This process helps identify financial trends, risks, and opportunities while ensuring transparency and accountability.
“For charities, sporting clubs, and non-profits regulated by the Australian Charities and Not-for-profits Commission (ACNC), financial reviews help maintain donor confidence and regulatory compliance.”
Key insights from financial reviews
A financial review highlights the organisation’s financial position, liquidity levels, and sustainability. Richard says metrics such as cash flow trends, debt levels, and revenue diversification can help leaders make informed financial decisions.
“Assessing operational efficiency can reveal whether costs are being managed well,” he says.
“A financial review identifies inefficiencies, such as over-the-top expenses or under-used assets, which can help organisations streamline operations and reduce waste.”
Richard says compliance and risk management are also critical areas where financial reviews play a key role.
“The review looks at whether Australian Accounting Standards have been followed, as well as sector-specific regulations, helping mitigate legal and financial risks,” he says.
“Non-profits relying on external funding or investment can leverage a strong financial review to improve credibility and help secure grants, loans, or investor interest.
“By highlighting growth opportunities through revenue trends, cost-saving areas, and potential investments, financial reviews can be an important tool for strategic planning and sustainable expansion.”
Turning data into actions
Aligning financial performance with organisational goals is key. Richard says financial review insights can show if current financial strategies support long-term objectives.
“For example, if a non-profit’s review highlights cash flow issues, it may need to adjust donation strategies or diversify revenue sources,” says Richard.
“Financial review data means organisations can optimise their budgeting processes and set more realistic financial projections, so resources are allocated effectively.”
Richard says findings can also be used to improve internal controls, reduce financial mismanagement risks, and strengthen stakeholder confidence.
“Being proactive with any compliance gaps allows organisations to take corrective actions,” he says.
“This helps prevent compliance breaches and financial penalties, securing long-term stability for organisations.”
Making the most of your financial review
Richard encourages organisations to view financial reviews as more than a regulatory requirement.
“They can be a powerful tool to drive decision-making and long-term success,” he says.
“By understanding and acting on financial review findings, Aussie organisations can strengthen their financial resilience, improve operations, and better achieve their broader mission.”
Allen Audit & Advisory provides expert financial reviews tailored to your organisation’s needs. Contact us today to ensure your financial data supports your future success.
