What do you do if your financial reporting lacks clear and concise communication?

“If you can't explain it simply, you don't understand it well enough.” If your financial reporting lacks clear and concise information, it is time to initiate 1:1 with key stakeholders to understand their information needs to drive (business) performance & growth. Good financial information helps team to ask good questions in a meeting which in turn helps you understand business driver better and it in turn helps you to continuously improve financial reporting to meet stakeholder needs to drive performance & growth. It’s important to approach this situation with a mindset to simplify, create transparency and solve the problem.

Decide what specifically is causing the lack of clarity. Consider who will be reading and using your financial reports. Avoid jargon and technical terms whenever possible. Use plain language that is easily understandable by a wide audience. Present information in a logical and structured manner. Incorporate charts, graphs, and tables to visually be data and make complex information easier to understand briefly. Help your audience interpret the financial data by providing context and explanations. Offer training and resources to staff involved in financial reporting to improve their communication skills. By implementing these aims, we can enhance the clarity and conciseness of financial reporting,

If your financial reporting lacks clear and concise communication, some steps to take are: 1. Use plain language and avoid jargon 2. Explain complex topics simply 3. Highlight key messages upfront 4. Use visuals like charts and graphs 5. Get feedback from non-finance users 6. Take training in financial writing and presentation skills The goal is to make financial information accessible and actionable for all stakeholders.

Although there are various aspects of a good financial report I.e. comparability, relevance , completeness etc. But what should always be in our mind while preparing the report is the end user of the information. We should be aware that these financial reports will also be used by non financial stakeholders.That is avoid using complex financial data that might be not relevant or using excessive financial jargons.

key points for assessing the quality of financial reporting: 1-Accuracy: Verify data accuracy and calculations. 2-Completeness: Ensure all necessary information is included. 3-Relevance: Align data with stakeholders' needs and expectations. 4-Clarity: Present information clearly and transparently. 5-Consistency: Maintain consistency across reports and periods. 6-Timeliness: Meet regulatory deadlines and stakeholder expectations. 7-Comparability: Enable easy comparison with industry benchmarks. 8-Compliance: Adhere to accounting standards and regulations. This assessment ensures reliable, transparent, and compliant financial reporting for informed decision-making.

When finance reporting lacks clear and concise communication, it can be difficult to make sound decisions and take appropriate actions. In order to improve communication in this area, there are a few steps that can be taken: 1. Review the current reporting process and identify areas where communication could be improved. 2. Establish clear and consistent communication channels, both internal and external. 3. Encourage transparency and open communication between all stakeholders. 4. Make sure that financial reports are easy to understand and interpret. By taking these steps, you can help to ensure that your finance reporting is clear and concise.

Avoid Technical jargon as you explain the numbers you are presenting. A Well thought out PowerPoint presentation makes it easy for non finance people to follow through. Be deliberate during your presentation to get feedback.

If your financial reporting lacks clear and concise communication, you may want to consider the following steps to improve it: 1. Review and analyze your current financial reports to identify areas of confusion or ambiguity. Consider seeking feedback from stakeholders to understand their perspectives and address any specific concerns they may have. 2. Simplify your reporting format and structure, focusing on presenting key information in a clear and easy-to-understand manner. Avoid using technical jargon or complex terminology that may be difficult for non-experts to comprehend. 3.Consider using visual aids such as charts and graphs to enhance understanding and facilitate data visualization.

One thing I have found helpful is to understand your audience and provide examples they can relate to. A well organized transparent flow of information allows auditors, internal and external customers to understand where the numbers came from and any calculations or documents used. Clear and simple data promotes confidence in the financials, the company and the finance team.

A simplified accounting presentation makes easy communication and further use of the accounting data. It’s important to breakdown complex financial concepts into digestible parts such as notes to the accounts and use simple understandable words. Charts and graphs are great ways to show trends and growth patterns instead of tables.

The accounting team should be trained to suit the company’s reporting style through workshops etc. the training will ensure that they have the skills to communicate financial information effectively.

To enhance training for financial reporting: Interactive Workshops: Conduct workshops with hands-on activities to reinforce learning. Case Studies: Use real-world case studies to illustrate concepts and challenges. Simulations: Utilize simulations to practice financial reporting tasks in a risk-free environment. Role-Playing: Engage participants in role-playing scenarios to simulate reporting challenges and solutions. Feedback Mechanism: Establish a feedback system for participants to receive guidance and improve skills. Continuous Learning: Provide ongoing training opportunities to stay updated with industry trends and regulations. Customization: Tailor training programs to address specific needs and skill levels of participants.

Regular training and reviews of SOPs should be done. New and more sophisticated ways should be adopted and teams should be motivated to align themselves with more smart methods.

Accuracy, compliance and clarity should be key factors in training to ensure all staff are able to provide reports that are tailored to the needs of the client and easily understood by those needing to review the reports.

Always consult stakeholders after releasing or prior to approval of the financial reports for constructive feedback. Conduct a session for stakeholders to review the financial reports for clearing and incorporate their suggestions to make the reports more easy to understand by its users.

Make sure to always speak with your stakeholders. Understand the numbers and what is behind the numbers. I have worked with many a financial professional that doesn’t understand the processes behind the numbers. If you work in manufacturing you need to understand how the manufacturing process works. You cannot communicate with your stakeholders if you are not speaking the same language.

The key pillar in financial reporting is to have a common base on what is the purpose of the reports and who are the target audience for the report. External users have certain requirements and that is governed by the IFRS.yet the internal users are the key challenge because they all have their different views and needs from the reports hence it is major to identify their needs and customized views

You should have regularly monthly or weekly reviews in the same format so there is an expectation of reviews. This also allows your stakeholders to share their concerns and will allow you to adapt the format that works the best for them. To have consistent contact will allow for better conversations and allow you to get better feedback.

Reviewing financial reporting regularly is crucial for accuracy and compliance : Scheduled Reviews: Set regular intervals (monthly, quarterly) for comprehensive reviews. Data Verification: Verify data accuracy, calculations, and consistency across reports. Compliance Check: Ensure compliance with accounting standards and regulatory requirements. Trend Analysis: Analyze trends and variances to identify potential issues or opportunities. Quality Assurance: Conduct thorough checks to maintain high-quality reporting standards. Stakeholder Feedback: Gather feedback from stakeholders to improve reporting relevance and clarity. Documentation: Document review processes, findings, and corrective actions for accountability and transparency.

Use AI and Chat GPT. They are the future. AI based tools make it easy to resolve issues. Use these techniques frequently to analyze financial data.

There is a lot of technology out there. Make sure to pick a platform and stick with it. Something that allows you to streamline is better. The best software are ones where there is one contact point. People are entering a contact point, you set up a report and then it will automatically refresh based on your expectations. You should not have to constantly adjust your reporting, and you should only have to do exception reporting to deal with errors. You should spend time looking at the anomaly and then working to build the story behind the numbers.

In my experience, I've observed that finance departments often seek new implementations of resources or technology. However, I recommend ensuring that we fully utilize the available technologies and resources, while also addressing existing process issues. Below is have listed: 1. Identify the root cause of inaccuracies 2. Streamline data collection 3. Utilize automation availability. 4. Improve inter-departmental communication for accessing relevant financial information. 5. Establish KPIs for the team to track performance. 6. Provide training for finance staff to improve reporting skills. 7. Conduct regular reviews and audits. 8. Seek external assistance These steps will help ensure accurate and actionable financial reports.

It is important to understand assumptions behind the comparative data so that you are able to highlight and speak to the variances.

In my opinion, improving clarity and conciseness in financial reporting involves tailoring communication to the audience, simplifying language, utilizing visual aids, structuring content logically with clear hierarchies, highlighting key points effectively, providing contextual explanations, seeking feedback for continuous improvement, and investing in training to enhance communication skills among staff involved in reporting. These strategies collectively ensure that financial information is more accessible and impactful for stakeholders, fostering better understanding and informed decision-making.

I agree with all of the advice shared and want to add that you need to know what information the shareholders are “expecting” to see; what is it they are looking for that they do not see clearly? Sometimes the important information is overlooked with a little “extra” information but if you don’t include what they are looking for, they will not feel you are communicating. If you know what information is valuable to the person you can then tie the information to the key information in your reporting. It involves educating your audience, but it’s also educational to the financial department regarding what key metrics can best represent those specific wants within the reporting needed & provided. When in doubt, ask, it could be a little thing.

If financial reports lack clear communication, several measures can be taken to improve them: - Reviewing the format and structure to make them more organized and accessible. - Simplifying language and avoiding excessive technical jargon. - Including detailed explanatory notes to clarify terms and concepts. - Using examples and practical cases to illustrate complex concepts. - Obtaining feedback from users to identify areas for improvement. - Providing training to staff on best practices in financial communication. - Considering the use of professional services to enhance clarity. - Following accepted reporting standards such as GAAP or IFRS. These actions can help ensure that financial reports are more understandable and useful to users.