How can you use plain language to make financial reports user-friendly?

1 Define your purpose

Before you start writing your financial report, you need to define your purpose and your audience. What is the main message you want to convey? What are the key questions you want to answer? Who are you writing for and what do they need to know? By clarifying your purpose and audience, you can focus your report on the most relevant and important information, and avoid unnecessary details or technicalities that may distract or confuse the readers.

2 Use simple and consistent language

One of the main challenges of writing financial reports is to use language that is both accurate and understandable. You want to avoid using jargon, acronyms, or terms that are unfamiliar or ambiguous to your readers, unless you explain them clearly and consistently. You also want to use simple and direct words, short and active sentences, and clear and logical transitions. For example, instead of writing "The company achieved a favorable variance of 15% in its net income as compared to the budgeted amount", you can write "The company earned 15% more net income than planned".

3 Organize your information

Another challenge of writing financial reports is to organize your information in a way that is easy to follow and digest. You want to use headings, subheadings, bullet points, tables, charts, and graphs to break up your text and highlight your main points. You also want to use a consistent and logical structure for your report, such as an executive summary, an introduction, a body, and a conclusion. You should also provide an overview of your report at the beginning, and a summary of your findings and recommendations at the end.

4 Design your report

The design of your report can also affect how user-friendly it is. You want to use a clear and readable font, a suitable font size, and appropriate spacing and margins for your text. You also want to use colors, images, and icons to enhance your visual appeal and emphasize your data. However, you should avoid using too many or too flashy elements that may distract or overwhelm the readers. You should also use consistent and meaningful labels, captions, and legends for your tables, charts, and graphs.

5 Proofread and test your report

The final step of writing a user-friendly financial report is to proofread and test your report. You want to check your report for any spelling, grammar, punctuation, or formatting errors that may undermine your credibility and clarity. You also want to test your report with a sample of your intended audience, or someone who can provide you with honest and constructive feedback. You should ask them if they understand your message, if they find your report interesting and useful, and if they have any questions or suggestions for improvement.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?