登录查看更多内容

How can you effectively communicate final accounts forecasts to stakeholders?

由人工智能和领英社区提供技术支持

Final accounts forecasts are projections of the financial performance and position of a business for a future period, based on assumptions and estimates. They are essential for planning, budgeting, decision making, and reporting to stakeholders. However, communicating them effectively can be challenging, especially when there is uncertainty, complexity, or disagreement involved. In this article, you will learn some tips and best practices on how to present and explain your final accounts forecasts to different audiences, such as managers, investors, lenders, regulators, and employees.

本文章的要点总结

Focus on audience needs:

Start by identifying the specific interests and concerns of your stakeholders. Tailor your presentation format and content to align with their familiarity with accounting concepts.### *Show your work:Clearly explain the assumptions, methods, and key drivers behind your forecasts. This builds trust and helps stakeholders understand the rationale behind your projections.

本摘要由 AI 和以下专家提供支持

1 Know your purpose and audience

Before you prepare and deliver your final accounts forecasts, you need to have a clear idea of what your purpose and audience are. What are the main objectives and messages you want to convey? Who are the stakeholders you are addressing and what are their interests, expectations, and concerns? How familiar are they with the accounting concepts and methods you are using? How much detail and explanation do they need? By answering these questions, you can tailor your content, format, tone, and style to suit your purpose and audience.

添加您的观点

CPA Ishmael Opande

MEA FP&A Advisory Council | Financial Management | Strategy | Financial Analyst | ESG & Sustainability | Project Finance Expert
举报内容
Let's start with a fitment analysis to identify if current reports meet stakeholders' needs. Define the desired state by addressing issues like forecast data quality, comprehensiveness, or ease of access. Prototype the updated report with stakeholders, then prioritize rapid implementation, validation and rollout. Then in a fresh setting, begin with a needs analysis. Those responsible for preparing and presenting financial forecasts must consider that not everyone will understand the information being presented. Dashboards are great for board reporting; however, too much analysis can be overwhelming. Drill down on those things that are important to the audience to ensure any major changes in the financial forecast are discussed in detail.

已翻译

赞
GIVEN LUNGU

Experienced accountant
举报内容
To make a simple submission, an organization forecast is something very important because it's growth or downfall depends on it. So having a clear understanding of the past experiences, the forecast needs to be prepared and reported in : 1 : the format in which those who will use the information must be very clear and easy to understand. 2. The forecast must include all relevant information so that stakeholders can make the right decision. Having the fore knowledge of those who will analyze and make sound decisions on the forecast will help to either include charts and graphs to help them understand.

已翻译

赞

2 Use appropriate tools and methods

Depending on your purpose and audience, you may need to use different tools and methods to communicate your final accounts forecasts. For example, you may use graphs, charts, tables, dashboards, or slides to visualize and summarize your data. You may use scenarios, sensitivity analysis, or variance analysis to show the impact of different assumptions or changes on your forecasts. You may use ratios, benchmarks, or indicators to compare and evaluate your forecasts with past performance or industry standards. You may use narratives, stories, or examples to illustrate and explain your forecasts. Whatever tools and methods you use, make sure they are clear, accurate, consistent, and relevant.

添加您的观点

3 Provide context and rationale

Your final accounts forecasts are not just numbers; they are the result of your analysis, judgment, and estimation. Therefore, you need to provide context and rationale for your forecasts, so that your stakeholders can understand and trust them. You need to explain the sources, methods, and assumptions you used to prepare your forecasts. You need to highlight the key drivers, trends, and factors that affect your forecasts. You need to acknowledge the limitations, uncertainties, and risks involved in your forecasts. You need to justify your choices, opinions, and recommendations based on your forecasts.

添加您的观点

Darlene Casstevens, Ph.D.

CTE Business Teacher @ Wake County Public School System | Ph.D. in Business Administration
举报内容
In my experience, explaining the key drivers, trends, and factors affecting your forecast is the most important part of the forecasting role. Once the stakeholders understand how the projected forecast was created, they will be more likely to buy-in. It will open up a line of communication between the forecaster and the stakeholders. Two-way communication is a critical part of the forecasting process.

已翻译

赞

4 Anticipate questions and feedback

Your final accounts forecasts are not the end of the communication process; they are the start of a dialogue with your stakeholders. Therefore, you need to anticipate the questions and feedback they may have and prepare your answers and responses. You need to be ready to clarify, elaborate, or defend your forecasts if challenged or questioned. You need to be open to listen, learn, and adapt your forecasts if new information or perspectives emerge. You need to be respectful, courteous, and constructive when interacting with your stakeholders.

添加您的观点

5 Follow up and update

Your final accounts forecasts are not static; they are dynamic and subject to change. Therefore, you need to follow up and update your forecasts as the situation evolves and new data becomes available. You need to monitor the actual performance and compare it with your forecasts. You need to identify and explain any deviations or discrepancies. You need to revise and adjust your forecasts if necessary. You need to inform and communicate with your stakeholders about any changes or updates in your forecasts.

添加您的观点

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?

添加您的观点

Corporate Accounting

+ 关注

给文章评分

我们借助人工智能创建了此文章。您认为这篇文章怎么样？

很棒不太好

举报此文章

查看全部

How can you effectively communicate final accounts forecasts to stakeholders?

1

2

3

4

5

6

1 Know your purpose and audience

2 Use appropriate tools and methods

3 Provide context and rationale

4 Anticipate questions and feedback

5 Follow up and update

6 Here’s what else to consider

Corporate Accounting

给文章评分

感谢您的反馈

更多Corporate Accounting相关文章

更多相关阅读内容