The presentation of financial statements is important for clearly painting a picture of what’s happening within an organization. Storytelling is the primary way to efficiently communicate that message. Many individuals aren’t financially savvy, so the best approach is to break down financial statements in a way that everyone can understand. Here are a few tips to follow when presenting financial statements.

First, you never want to start by reading off numbers. Today’s technology makes it easy to create graphs, and using visuals like pie charts or bar charts helps people understand the big picture. Direct people’s attention to the visuals and summarize what they are seeing.

Second, give comparisons. Comparisons are a great way for people to grasp what is happening within the organization. There are many ways to compare financials, such as month-to-month, current year to previous year, or against the current market. Using visuals along with comparisons reflects a strong understanding of financial data.

Third, focus on storytelling. Practice articulating and summarizing the financial statements. No one knows what they’re looking at without context. The better you can communicate what you want investors, board members, or leadership to understand, the more effective your message will be.

Presenting financial statements can be a bit tricky, but with the help of visuals and comparisons, it becomes much easier to paint a clear picture. Practicing your delivery and summaries will make your presentation smoother and more impactful. With these tools, you’re on your way to becoming a financial expert.

Do you present financial statements? How can understanding financials help your business with decision-making? Let me know in the comments!