How to breathe life into your reports: turning numbers into narratives

In this month's edition of The Exchange, we explore financial storytelling. We’ve been hearing more about this in the industry, with finance leaders exploring how to transform mundane numbers into engaging stories that their stakeholders can relate to.

Learn from five experts as they give tips on how to refine your reporting process and breathe life into your clients’ financial data.

Numbers to Narratives

Paul Barnes reminds us that financial data should reflect the story of your client's journey. It’s key to include insights from various departments to show the impact each has on the business.

"Financial reports should weave together past actions with future possibilities, helping chart a course forward."

Action: Treat your financial reports as stories. Blend quantitative data with qualitative insights to create a strategic narrative that guides decision-making.

• Collect Diverse Data: Pull insights from all relevant departments—marketing, sales, operations, HR, and finance. This comprehensive approach ensures your report reflects the true state of the business.
• Highlight Milestones: Incorporate significant events and achievements. Show how past decisions have impacted current results and set the stage for future success..
• Contextualise Data: Explain the 'why?', ‘how?’ and ‘so what?’ behind the numbers. Describe the external and internal factors influencing performance, providing a clearer picture of your business environment.

Make Reports More Than Just Mandatory

Kate Douglass emphasises that financial reports should go beyond compliance and become tools that inform strategic decisions and encourage business growth.

"Our reports should do more than fulfil obligations—they should inspire and inform strategic decisions."

Insight: One of the fundamental issues is that without clear goals and a strategic plan, it's challenging to understand or utilise financial reports effectively. If people don’t know where they are going or how they are going to get there, maintaining consistency, success, and energy becomes difficult.

• Establish Clear Goals and KPIs: Create a business plan with defined objectives, KPIs, and targets. Regularly update this plan to maintain its relevance.
• Dynamic Planning: Adapt your business plan to changes, making it dynamic and regularly updated to stay relevant.
• Engage Continuously: Stay involved in updating plans, tracking progress, and understanding financial data to make informed decisions.

Action: Turn your compliance documentation into a strategic tool by incorporating these elements. Use your reports to guide the business towards its goals. This approach ensures that your efforts in setting up and running the business are aligned with achieving long-term success.

Simplify for Impact

Jennifer Raines advocates for simplicity in financial reporting, emphasising the importance of focused, streamlined reports that drive action.

"Focus on what’s essential. Simple, clean reports cut through the noise and drive meaningful action."

Insight: It's all about discipline and setting a routine. Simplifying your reporting process makes it easier to understand and more impactful.

• Set a Routine: Schedule regular times to review your metrics. Book specific days in your calendar to gather and analyse the information you need. This consistent approach ensures you stay on top of your data.
• Delegate Data Collection: Empower your team to gather the necessary information and set deadlines for them. Have regular meetings to review this data together so you can make sure everyone is on the same page.
• Ask Critical Questions: Always question the value of your management information. Ask yourself and your team, "What was the last decision we made based on this data?" If the information isn't driving decisions, reassess how useful it actually is.

Action: Regularly prune your reports to remove redundant metrics. Concentrate on key performance indicators that directly influence business outcomes, making sure each report has impact.

Embrace technology to tell your story

Edward Perry discusses the benefits of moving from traditional tools like Excel to integrated software solutions, with a focus on being more efficient and accurate.

"Using modern tools can transform raw data into engaging, insightful stories that highlight your business dynamics."

Insight: Switching from Excel to advanced reporting software like Fathom can significantly improve efficiency and accuracy, allowing more time to dig into the insights.

• Efficiency Gains: Moving away from Excel can eliminate the risk of errors from overwritten formulas and reduce the time spent on generating reports; freeing up valuable time to focus on analysing data rather than just compiling it.
• Consistency and Accuracy: With tools like Fathom, data can be consistently reported directly from accounting software, ensuring that any material variances are due to actual data discrepancies rather than human errors in data entry or formula editing.
• Template Utilisation: Develop standard templated packs for reporting. During client onboarding, customise these templates based on the client’s specific needs and preferences. Tailor the reports to provide the necessary visibility and insights.

By moving to dedicated reporting software, you can improve efficiency, ensure data accuracy, and provide stakeholders with tailored insights that influence better decision-making.

Tailor Your Tale

Patrick Arnold stresses the importance of customising reports to meet the unique needs of various stakeholders within the business.

"A good financial narrative is adaptable, ensuring it resonates with everyone from the boardroom to the back office."

Insight: Customising your financial reports to address the specific needs of different stakeholders helps you present information that is relevant, actionable, and engaging. Here’s how to tailor your financial narratives effectively:

• Identify Stakeholder Needs: Different stakeholders need different information. Executives might prefer high-level summaries and strategic insights, while managers might need detailed operational data. Identify what each group values most.
• Create Customised Reports: Develop multiple versions of the same report tailored to different audiences. For example, an executive summary for the board, detailed metrics for department heads, and graphical insights for operational teams. This way, each report delivers the most relevant information to its intended audience.
• Engage Stakeholders: Regularly engage with your stakeholders to understand their evolving needs. Hold meetings to discuss what information they find most useful and adjust your reports accordingly. This ongoing conversation helps keep your reports aligned with stakeholder priorities.

Head to our resource centre to explore these concepts further. Here, you’ll be able to view some sample reports, and see how to use Fathom to bring your financial storytelling to life.

?? Until next time,

Team Fathom

Whenever you're ready, here’s how you can learn more about Fathom:

Want to understand the product? Watch our overview video here .

Want to take Fathom for a spin? Start a free 14-day trial here .