Finance Meeting Minutes

Finance Meeting Minutes

Date: October 26, 2023

Time: 9:00 AM - 10:30 AM PST

Location: Conference Room A & Virtual (Zoom)

Attendees:

• John Smith (CFO)
• Jane Doe (Controller)
• David Lee (Financial Analyst)
• Sarah Chen (Budget Manager)
• Michael Brown (Head of Sales)

Absent:

• Emily White (Senior Accountant) - Excused

1. Opening Remarks (John Smith)

John Smith opened the meeting by welcoming attendees and outlining the agenda: review of Q3 performance, discussion of the proposed 2024 budget, and update on cost-saving initiatives.

2. Review of Q3 Performance (Jane Doe)

Jane Doe presented the Q3 financial results. Key highlights included:

• Revenue exceeded projections by 5%, primarily driven by strong sales in the Western region.
• Gross profit margin remained stable at 42%.
• Operating expenses were slightly higher than anticipated due to increased marketing spend.
• Net income was $1.2 million, exceeding Q3 2022 by 10%.

David Lee provided a detailed analysis of the revenue breakdown by product line and customer segment. A discussion ensued regarding the effectiveness of the increased marketing spend, with Michael Brown providing insights into the specific campaigns that contributed to the increased sales.

Action Item: Jane Doe to provide a more detailed breakdown of the marketing spend by campaign for further analysis.

3. Discussion of Proposed 2024 Budget (Sarah Chen)

Sarah Chen presented the proposed 2024 budget. The budget projects a 12% increase in revenue, driven by new product launches and continued growth in existing markets. Key assumptions underlying the budget were discussed, including inflation rates, projected sales growth, and anticipated capital expenditures.

Significant discussion revolved around the proposed capital expenditure budget, particularly the planned investment in new technology infrastructure. John Smith emphasized the importance of prioritizing investments that will generate a positive return on investment and improve operational efficiency.

Action Item: David Lee to conduct a sensitivity analysis on the budget assumptions to assess the potential impact of economic fluctuations.

Action Item: Sarah Chen to refine the capital expenditure budget based on the discussion and prioritize projects with the highest ROI.

4. Update on Cost-Saving Initiatives (John Smith)

John Smith provided an update on ongoing cost-saving initiatives. He reported that the company is on track to achieve its goal of reducing operating expenses by 5% in 2023. Key initiatives include renegotiating supplier contracts and streamlining administrative processes.

Several attendees suggested additional cost-saving opportunities, including reducing travel expenses and consolidating office space. Michael Brown suggested exploring alternative shipping options to reduce freight costs.

Action Item: Jane Doe to explore potential savings from reducing travel expenses and consolidating office space.

Action Item: Michael Brown to investigate alternative shipping options to reduce freight costs and report findings.

5. Adjournment

The meeting was adjourned at 10:30 AM. The next finance meeting is scheduled for November 16, 2023.

Minutes Prepared By: David Lee