One of the responsibilities of participating on a Board of Directors is financial oversight through planning and monitoring. Financial statements provide Board and staff with information on actual revenue and expenses throughout the budget year. Each Board member should understand what information is reported in each report.
According to Board Competencies prepared by Nurses on Boards Coalition Board Preparation Work Group, nurses who participate on Boards of Directors should have the ability to read and interpret information provided on four basic financial statements: (1) Balance Sheet; (2) Income Statement; (3) Retained Earnings Statement; (4) Statement of Cash Flow.
The below videos were designed and published (on YouTube) by Brandon C. Foltz, M.Ed. The series was developed for those new to accounting and are an excellent resource to get you started in understanding the four basic financial statements.
Retained Earnings Statement
Statement of Cash Flow