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Board Financial Package Template

Five documents and four sheets, including a register that gives every explanation the board was handed last quarter a verdict this quarter.

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Commentary Register

[Entity] — claims made to the board

An explanation is a claim. A claim is not finished until it can be tested in a quarter you can name.

FieldWhat goes in it
ClaimA number assigned once and never reused
Line and varianceThe line it explains and the amount, to the dollar
CauseOne cause, from the closed list. Never two
Closeout quarterThe quarter this cause predicts something checkable
The testA sentence that can only come out true or false
VerdictEntered in the closeout quarter, not before
Consecutive packsHow many packs running this cause has appeared on

Three verdicts, and one that is not a verdict

HeldThe test came out true
Did not holdThe test came out false. Say so in the next pack
Below floorThe line came back inside the floor untested
PromotedThree packs running. It is the plan, not the quarter

The closeout runs before any new commentary is drafted. A pack that writes this quarter's sentences before testing last quarter's agrees with itself and with nothing else.

Every board pack template prescribes the same run of sections: an executive summary, financials against plan, a metrics dashboard, variance commentary with named drivers, then a forward look. The advice is sound and the format stays consistent from meeting to meeting. The commentary does not. A cause named in March is never revisited in June, so the same sentence can be offered four quarters running and nothing in the process is built to notice. Boards remember the format. They forget the claim.

Here every explanation is a numbered claim carrying one cause, the amount it explains, a closeout quarter and a test that can only come out true or false. Calderwood Instruments, an illustrative instrument maker, backfilled four packs into the register and got verdicts on 28 claims. Seventeen held. All six failures sat on two lines, and both lines had carried the same cause for three quarters or more. Added up, those two causes were worth 1,803,640 that no single pack had ever shown as one number.

Service revenue was called late in four consecutive packs and never once came in above plan, because the plan recognised it 60 days after the order while the median install landed at 101. Both causes moved into the planning assumptions rather than into a fifth sentence. The pack is also a record with weight: a director is fully protected in relying on the records of the corporation, and materials given to a board are books and records a stockholder can demand. Feed it from a finished close.

Four of the pack's files, worked through for one quarter

The Commentary Register, Budget vs Actual Summary, Variance Narrative and KPI Trend.

Commentary Register

Calderwood Instruments, Inc. Four packs backfilled, Q3 2025 to Q2 2026. An illustrative company.

#PackLineVarianceCauseCloseoutVerdictPacksCumulative
03Q3 2025Gross margin(109,440)Price or rateQ4 2025Did not hold1
04Q3 2025Service revenue(278,000)Timing, later periodQ4 2025Did not hold1
07Q3 2025G and A58,000One time eventQ4 2025Held1
11Q4 2025Gross margin(128,160)MixQ1 2026Did not hold1
12Q4 2025Service revenue(323,000)Timing, later periodQ1 2026Did not hold2
19Q1 2026Gross margin(167,040)MixQ2 2026Did not hold2
20Q1 2026Service revenue(341,000)Timing, later periodQ2 2026Did not hold3
23Q1 2026Sales and marketing67,000Timing, later periodQ2 2026Below floor1
27Q2 2026Service revenue(342,000)Timing, later periodQ2 2026Promoted41,284,000
29Q2 2026Gross margin(224,440)MixQ2 2026Promoted3519,640
30Q2 2026Net burn380,000Plan errorQ3 2026Open2
28 closed     17 held 1,803,640

Every one of the six failures sits on two lines, and both are now promoted. Claim 20 was the promotion point under the standard and it was missed, because the register was not yet in use.

Budget vs Actual Summary

Q2 2026. Floor 50,000, set at 0.7% of Q4 2024 revenue and written down before the year's first pack.

LineActualPlanVarianceClaimableAbove floorClaimQ2 2025
Instrument revenue5,882,0005,610,000272,000YesYes285,409,000
Service revenue1,358,0001,700,000(342,000)YesYes271,196,000
Total revenue7,240,0007,310,000(70,000)No6,605,000
Gross profit4,191,9604,459,100(267,140)No3,996,025
Gross margin57.9%61.0%(3.1)ppYesYes2960.5%
Sales and marketing1,486,0001,452,00034,000YesNo1,341,000
Research and development1,372,0001,248,000124,000YesYes321,186,000
General and administrative913,000852,00061,000YesYes35802,000
Operating income420,960907,100(486,140)No667,025
Net burn2,465,0002,085,000380,000YesYes301,742,000
Installation backlog3,864,0002,352,0001,512,000YesYes311,986,000

Nine of the ten claimable lines cleared the floor, so this pack opened nine claims numbered 27 to 35. Sales and marketing missed it by 16,000 and gets no claim, which is the floor doing its job rather than a line being ignored.

Variance Narrative

Promotions

Claim 27. Service revenue, cause timing, four packs

PackPlanActualMissCumulativeRecovered above plan?
Q3 20251,540,0001,262,000278,000278,000No
Q4 20251,610,0001,287,000323,000601,000No
Q1 20261,655,0001,314,000341,000942,000No
Q2 20261,700,0001,358,000342,0001,284,000No

The test for a timing cause is that the amount arrives above plan in a named later quarter. It never did, in four attempts. The plan recognises service revenue 60 days after the purchase order. The median order to install now runs 101 days, so the plan is 41 days early on every order it has ever forecast, which is 45% of a quarter.

New assumption, effective Q3 2026 plan: service revenue recognised at order plus 101 days, reviewed quarterly against the measured median.

Claim 29. Gross margin, cause mix, three packs

PackRevenuePlan GMActual GMGapGross profit effect
Q4 20257,120,00061.0%59.2%1.8pp128,160
Q1 20266,960,00061.0%58.6%2.4pp167,040
Q2 20267,240,00061.0%57.9%3.1pp224,440
Cumulative    519,640

Service attach on the two lowest margin instrument lines is 31%, against a planned 48%. That is the composition the plan assumed and did not get, and it widened every quarter rather than reverting.

Q3 2025 carried the same margin gap under a price or rate cause, which failed its own test when realised price came in at plan. That is why the mix run counts three packs and not four.

KPI Trend

Eight quarters. Operating income is gross profit less operating expense on every row.

QuarterRevenueGMOpexOperating incomeNet burnCashClaimsHeld
Q3 20245,920,00061.7%3,014,000638,6401,388,0009,617,000
Q4 20246,480,00061.3%3,146,000826,2401,204,0008,413,000
Q1 20256,310,00060.8%3,258,000578,4801,611,00018,802,000
Q2 20256,605,00060.5%3,329,000667,0251,742,00017,060,000
Q3 20256,840,00059.4%3,447,000615,9601,908,00015,152,00095
Q4 20257,120,00059.2%3,564,000651,0401,974,00013,178,00085
Q1 20266,960,00058.6%3,682,000396,5602,131,00011,047,00097
Q2 20267,240,00057.9%3,771,000420,9602,465,0008,582,0009open
Change+1,320,000(3.8)pp+757,000(217,680)+1,077,000(1,035,000)3517

Q1 2026 is flagged because deferred revenue was reclassified on 1 January and the prior periods are restated on the same basis. An unmarked definition change is the most common way a board trend chart misleads, because the reader assumes a consistent series and nothing on the page says otherwise.

What's in the pack

01

Commentary Register sheet

One row per claim, with a stable number, the cause, the amount, the closeout quarter, the test, the verdict, the consecutive pack count and the cumulative amount. This is the file the rest of the pack exists to serve.

02

Commentary Standard

The materiality floor with its basis, the closed list of eight causes and what closeout tests each one against, the four verdicts, and the promotion rule. Set once a year so the floor cannot move to suit a variance.

03

Board Financial Memo

The finance section itself, opening with the closeout of last quarter's claims rather than with this quarter's results. Then the quarter in one paragraph, the new claims, cash, unit metrics and the decisions being asked for.

04

Variance Narrative

One section per claim: the arithmetic decomposed into units, rate and mix, one named cause, a dated test, an owner, and the prior claim history on that line so a second appearance is visible before it becomes a third.

05

Cash and Runway Note

Runway with the denominator stated first: six months of measured burn rather than plan burn, restricted cash excluded, and the levers ordered by lead time so the board reads past the one it can no longer use. Where a lever needs a date rather than an ordering, that is the runway and scenario pack. Pairs with a thirteen week cash forecast.

06

Budget vs Actual Summary sheet

Actual, plan, variance, prior year and the source query for every line, plus two columns nothing else carries: whether the line is claimable and whether it cleared the floor. The claim numbers are assigned here.

07

KPI Trend sheet

Eight quarters of revenue, margin, opex, operating income, burn and cash that roll forward against each other, with a column marking any quarter where a metric definition changed and prior periods were restated.

08

Unit Metrics sheet

Each metric with its definition, the query that produced it, three comparison periods and the claim it supports. A metric whose definition changed carries the date and the restatement, or it does not go on a trend.

09

Board Finance Deck

Seven slides plus appendices, each naming the sheet it reads from, with the closeout as slide one. No figure is retyped, so the deck cannot disagree with the memo. Complements the board question prep brief.

10

Space rule

Every claim carries a closeout quarter and a test, closeout runs before drafting, and three consecutive packs is a promotion rather than a fourth explanation. It governs every prompt in the space.

How to use it

  1. 1

    Open in River, or download it

    Open the pack in River and let the agent build it from your own close package, or download the blank Word and CSV files instantly with no account.

  2. 2

    Send the last four board packs first

    These matter more than the current close, because every claim in the register comes out of a prior pack. Decks, memos, PDFs and board minutes all work, and three packs is enough to start.

  3. 3

    Let the closeout run before anything is drafted

    Each prior explanation gets reconstructed as a claim with the test its cause implies, then tested against what actually happened. Verdicts go in the register, and inferred tests are marked as inferred.

  4. 4

    Promote anything at three packs, then build the deck

    A cause on three consecutive packs moves into the planning assumptions with the measured quantity behind it and its cumulative amount. Only then is this quarter's commentary written and the deck generated from the sheets.

Frequently asked questions

Is this template free?

Completely. Take the Word documents and CSV sheets with no signup, no card and no trial. Edit with AI is an optional second path for anyone who would rather the agent backfill the register from their own prior packs than reconstruct four quarters by hand. More packs sit in the template library.

We have never written commentary this way. Is the register useless at first?

The opposite. The first run is a backfill: prior packs are read, each variance they explained becomes a claim, and the test its cause implies is inferred and marked as inferred. Calderwood got verdicts on 28 claims in one pass and found two causes that should already have been promoted.

What is the materiality floor and who sets it?

A dollar threshold below which a variance gets no claim, because a claim inside normal variation cannot be tested either way. You set it once a year against a stated basis, a small percentage of quarterly revenue, and write both the basis and the number down before the year's first pack goes out.

How is this different from a board deck template?

A deck template gives you slide structure and page-count advice, which this pack also has in its deck document. What it adds is the register underneath: the deck is generated from four sheets, and slide one is the verdict on the last pack rather than a summary of this one.

Does it produce the whole board pack?

It produces the finance section, which is the part that has to reconcile. Operating and strategic sections come from elsewhere in the business. The internal monthly read the quarter is assembled out of is the monthly management report pack, whose register scores commitments against the ledger rather than testing explanations. Alongside it sit unit economics and the investor update figures tool.

What format are the downloaded files?

Five .docx documents covering the memo, the variance narrative, the cash and runway note, the commentary standard and the deck outline, plus four .csv sheets, all in one zip. Everything opens natively in Word, Pages, Google Docs, Excel, Numbers and Sheets with no conversion step.

What does Edit with AI actually do?

It opens a free River account with this pack installed as a private workspace, primed to read your prior board packs and your close package, backfill the register, run the closeout and flag every cause at three packs. Send nothing and it writes nothing. Covenant reporting runs alongside in the lender pack.

Test the last pack before you write the next one

Download the blank pack as Word and CSV files, or open this exact pack in River and let the agent backfill the register from your own prior board packs.

Edit with AI