It’s key to think practically when presenting financial statements and financial information. So how can you present financial information successfully?
Generally, accountants present regular financial statements that we’re all familiar with, but the concepts can be applied to all other types of financial information.
This might include financial information used to supplement or enhance the presentation of financial data such as:
- Commentary on financial statements
- Management reports
- Financial summaries
- Non-financial data i.e. your entity’s operations, sales activities, production metrics, etc.
The skill is not about providing advice on financial standards or compiling financial statements but concentrating on practical suggestions that you can use when standing before your audience.
I’m sure as you are reading this you can think of times that you knew you weren’t getting your point across. So what’s the best way to present financial information to a range of stakeholders?
8 Tips for Presenting Financial Information
We have identified 8 key tips that you can use to present financial information to an audience which are:
1. Think about the numbers
You need to make the transition between financial statement preparer to financial statement presenter. So think about the numbers from the perspective of others in order to make your points clear.
2. Formulate your message
Think about the message you are looking to convey and try and understand what the focus of your audience will be.
3. Avoid jargon
When designing reports, take the organisation’s most meaningful measures into account and convey them in a simple way that will be understandable across departments and skills.
4. Use visual software
People tend to respond well to visuals in presentation as it makes information easier to take in. Use software such as Excel, Tableau and Powerpoint to create simple visuals that engage and inform.
5. Read your audience
Try and understand the different groups, are they internal or external stakeholders, or a mixture of both.
6. Match content with expertise
What you are presenting might be complex but the audience may also be well versed in the topic. Ensure your presentation technical is matching the expertise of the audience.
7. Prepare for the presentation
Look at the business form a businessperson’s perspective and not necessarily and accountant’s perspective.
8. Practice presentation delivery
Prepare, practice and put the content in a logical order. Make sure to ask your audience regularly for questions and recap the key points.
Presentations should generally be kept short, to the point and simple so the main message is communicated and understood.
The crucial part about presenting financial information is that it is understood by everyone it is directed at.
Conclusion
If you want to know more about how to present financial information we have a CPD course available worth 2 units that you can complete online.
Once you complete it, we will send you a certificate you can download and share across your networks.
FAQs
Top Tips: Presenting Financial Information
- Be Precise and Accurate. ...
- Be Clear When Using Financial Terms. ...
- Use Only Relevant Information. ...
- Keep Visuals Straightforward. ...
- Make Sure Data Matches. ...
- Use a Summary. ...
- Provide Follow-up Information.
8 Tips to Make Financial Presentations (Without Being Boring)
- Know Your Audience.
- Go Heavy On Simple Visuals.
- Let Your Audience Know What To Expect Up Front.
- Find The Story Your Numbers Tell.
- Only Dive Deep Where It's Necessary.
- Keep A Narrative Thread Between Slides.
- Use Your Slides To Support Your Points, Not Repeat Them.
8 Tips for Presenting Financial Information
- Think about the numbers. ...
- Formulate your message. ...
- Avoid jargon. ...
- Use visual software. ...
- Read your audience. ...
- Match content with expertise. ...
- Prepare for the presentation. ...
- Practice presentation delivery.
18 Ways To Effectively Communicate Financial Data To Stakeholders
- Anticipate Stakeholder Expectations. ...
- Make It Simple. ...
- Report Metrics Consistently. ...
- Communicate The Risk. ...
- Build Trust With Clarity. ...
- Avoid Technical Terms. ...
- Provide Contextual Details. ...
- Be A Good Storyteller.
Here are some best practices to follow:
- 1 Know your audience. Before you prepare your presentation, you need to know who your audience is, what their goals and challenges are, and how they prefer to receive information. ...
- 2 Simplify your data. ...
- 3 Tell a story. ...
- 4 Invite feedback. ...
- 5 Here's what else to consider.
Financial statements are important to investors because they can provide information about a company's revenue, expenses, profitability, debt load, and ability to meet its short-term and long-term financial obligations.
What is a fair presentation of financial statements? ›
Fair presentation requires the faithful representation of the effects of transactions, other events and conditions in accordance with the definitions and recognition criteria for assets, liabilities, income and expenses set out in the Conceptual Framework for Financial Reporting (Conceptual Framework).
What are 5 elements of financial statements? ›
The major elements of the financial statements (i.e., assets, liabilities, fund balance/net assets, revenues, expenditures, and expenses) are discussed below, including the proper accounting treatments and disclosure requirements.
What are the four key financial statements? ›
For-profit businesses use four primary types of financial statement: the balance sheet, the income statement, the statement of cash flow, and the statement of retained earnings. Read on to explore each one and the information it conveys.
What are the three basic financial statements need to be presented? ›
The income statement, balance sheet, and statement of cash flows are required financial statements. These three statements are informative tools that traders can use to analyze a company's financial strength and provide a quick picture of a company's financial health and underlying value.
Some ways of ensuring accuracy in financial reporting are by implementing strong internal controls, using reliable accounting software, conducting regular audits, maintaining proper documentation, and staying updated with accounting standards.
What are the 4 methods of communicating information? ›
The four main types of communication that we use on a daily basis are verbal, non-verbal, visual and written.
What is the importance of effective financial communication? ›
Effective banking communication improves relationships among customers, stakeholders, managers, employees, and employers. It also improves the banking system, employee behaviour, and core banking services.
How do you start a financial presentation speech? ›
Start your presentation with a review of why you are holding the meeting. Tell the attendees that you will first present raw numbers, then show how certain financial information affects the areas of the business you are examining today.
How do you show financial performance? ›
The most widely used financial performance indicators include: Gross profit /gross profit margin: the amount of revenue made from sales after subtracting production costs, and the percentage amount a company earns per dollar of sales.
What makes a good budget presentation? ›
A budget proposal doesn't have to be much longer than ten slides. Outline the problem, propose your budget, and explain how the budget will help you achieve your goal. Remember to include a mission statement in the beginning of your presentation. Use one or two sentences to explain the purpose of your budget proposal.
