Tips to Improve Success with Financial Communications

Edward Ed Schinik, COO, Yorkville Advisors

Organizations that struggle to effectively communicate the financial happenings in their businesses can have trouble when it comes to planning things like cash flow improvements and strategies for a better bottom line. In any industry, better communication is often the key to keeping a company running smoothly. 

The right communications around finances can be essential when it comes to helping executives and other workers understand the complexities of a brand's financial situation, whether the aim is to help leaders make more effective budgetary decisions or ensure that investors can see the benefit in a specific company valuation or stock price. 

Financial communications can shape a company's reputation in the eyes of investors, partners, lenders, and customers alike. The question is, how can brands get their strategy right?

1.     Keep It Clear and Simple 

For those outside of the financial industry, the highly quantitative data collected in the cash-flow world can be difficult to absorb and understand. In today's fast-paced world, the best financial communication happens when the data to be portrayed is as clear as simple as possible. This often means that financial experts need to be on hand to translate the jargon-filled information about a company's cash flow, into something everyone can understand.

2.     Report on Everything That's Important 

In today's digitally-focused world, there's more technology than ever before gathering information about the transactions taking place in a business. This means that the average company has more data to work with when compiling financial reports. Rather than risking the threat of information overload, it's important for financial experts to find and communicate only the most relevant information for the audience they're speaking too. Financial Communications can be more efficient when professionals keep their audience in mind.

3.     Be Honest and Transparent 

It can be tempting to blur the lines of truth in a financial report when things aren't going entirely well for a company. However, in an environment that's more connected than ever, most organizations will see their lies uncovered sooner rather than later. Eventually, the truth comes out and brands that are honest with their investors, customers and employees from the beginning usually see the best results. Everyone makes mistakes from time to time, and transparency is key to making sure that people can trust a business.

4.     Stay Up to Date 

Financial Communications can be complex. One of the reasons for this is that reports can change within a matter of moments or days. For the people within a business to make the best, most informed decisions about the future of their company, they'll need as much relevant and accurate information as possible about cash flow, transaction, and other cash-related data. Staying up-to-date is a crucial part of staying ahead of the competition.

5.     Listen and Adapt 

Finally, Financial Communications should be a conversation, not just an announcement from one part of a company to another. After the financial experts in a team offer the information they've gathered about the financial side of the organization to the executives, investors, or employees, it's important for those experts to listen to what people have to say in response and answer any questions they might have. This will keep misunderstandings to a minimum.