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
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.
The standard requires a complete set of financial statements to comprise a statement of financial position, a statement of profit or loss and other comprehensive income, a statement of changes in equity and a statement of cash flows.
How do you effectively communicate financial information? ›
One of the best ways to communicate financial information is to use visuals and stories that illustrate your points and make them memorable. Visuals, such as charts, graphs, tables, or diagrams, can help you simplify and summarize your data, highlight trends and patterns, and compare and contrast different scenarios.
How should financial statements be presented? ›
An entity may present its income statement in (1) a single-step format (all expenses are classified by function and deducted from total income to arrive at income before tax) or (2) a multiple-step format (operating and nonoperating expenses are separated before presenting income before tax).
How to display financial data? ›
Financial data visualizations are methods of visually (usually pictorially) representing financial data such as profit & loss, sales figures, income & expenses, assets & liabilities, and equity. Some common examples include charts, graphs, maps, infographics, diagrams, and virtual dashboards.
How to visualize financial data? ›
Common types of financial visualizations include bar charts, line graphs, scatter plots and heat maps to effectively communicate information; Akkio offers a comprehensive solution for creating effective financial data visualizations that enable users to access actionable insights and drive performance.
How to present financial statements to non-accountants? ›
What are the best ways to present financial information to non-financial stakeholders?
- Know your audience.
- Simplify your data.
- Tell a story.
- Invite feedback.
- Here's what else to consider.
Be sure that any major changes in the financials are discussed in detail. Create clear and understandable reports. Make sure that the data is presented with the conditions of transparency and materiality, and that the reports are customized to the specific audience. Avoid complex jargon and technical terms.
What are the 4 characteristics of financial information? ›
In order to be useful, financial information must be both relevant and faithfully represented. Comparability, verifiability, timeliness and understandability are identified as enhancing qualitative characteristics.
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.
Investment decisions: Businesses can use financial information to determine if they have the necessary funds and solid financial standing to invest in new areas. Credit decisions: Banks and lenders can use a business's financial information to determine if a business is in a healthy enough position to receive a loan.
How to communicate financial information to stakeholders? ›
Here, Forbes Finance Council members share essential strategies that can help leaders excel in this critical aspect of corporate governance.
- Anticipate Stakeholder Expectations. ...
- Make It Simple. ...
- Report Metrics Consistently. ...
- Communicate The Risk. ...
- Build Trust With Clarity. ...
- Avoid Technical Terms. ...
- Provide Contextual Details.
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.
What sets rules for preparing and presenting the financial statements? ›
Accounting policies are the specific principles, bases, conventions, rules and practices applied by an entity in preparing and presenting financial statements.
What is a GAAP disclosure checklist? ›
The International GAAP® checklist: Shows the disclosures required by the standards. Includes the IASB's encouraged and suggested disclosure requirements under IFRS. Summarizes relevant IFRS guidance regarding the scope and interpretation of certain disclosure requirements.
How do you present financial statements to non accountants? ›
- 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 generally to be prepared annually. If the date of the year-end changes, and financial statements are presented for a period other than one year, disclosure thereof is required. Current/non-current distinction for assets and liabilities is normally required.
