Reports to adviser: Overview, definition, and example
What are reports to adviser?
Reports to adviser refer to the regular or ad-hoc updates provided by a business or individual to an adviser, such as a financial, legal, or business consultant. These reports typically contain relevant information about the status of a project, financial performance, progress toward goals, or other matters that the adviser needs to review in order to offer informed guidance or recommendations. These reports help the adviser understand the situation, make appropriate decisions, and advise the client accordingly.
In simpler terms, reports to adviser are updates or summaries that a business provides to a consultant or expert so they can offer useful advice or support.
Why are reports to adviser important?
Reports to adviser are important because they enable the adviser to monitor the progress of the client’s projects, financial health, or business activities. Regular reporting ensures that the adviser is fully informed and can provide timely advice based on accurate and up-to-date information. These reports help establish clear communication, ensure that the adviser’s recommendations align with the client’s current status, and keep the business on track to achieve its objectives.
For SMB owners, maintaining open communication with advisers through regular reports helps ensure that external guidance is relevant, effective, and aligned with the business's goals.
Understanding reports to adviser through an example
Imagine your business has hired a financial adviser to help manage cash flow and investments. As part of your agreement, you are required to submit monthly reports that include financial statements, sales data, and any significant business updates. These reports help the adviser assess the financial health of your business and provide recommendations on how to improve cash flow or make more strategic investments.
In this case, the reports to the adviser allow the financial consultant to stay informed and offer the best advice based on your company’s current situation.
Example of a reports to adviser clause
Here’s an example of what a "reports to adviser" clause might look like in an advisory agreement:
“The Company shall provide the Adviser with quarterly reports detailing financial performance, operational updates, and any major business developments. These reports will be delivered no later than 15 days after the end of each fiscal quarter. The Adviser shall review the reports and provide recommendations or feedback within 10 days of receipt.”
Conclusion
Reports to adviser are a key tool for maintaining an ongoing, informed advisory relationship. For SMB owners, ensuring that regular and accurate reports are provided helps advisers offer relevant, timely advice that can drive business success. By keeping advisers updated on business performance and developments, you can ensure that their guidance aligns with the company’s current needs and future goals.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.