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Become a Financial Storyteller

insightsoftware -
November 4, 2022

insightsoftware is a global provider of reporting, analytics, and performance management solutions, empowering organizations to unlock business data and transform the way finance and data teams operate.

Become A Financial Storyteller

Financial statements tell an important story, but they rarely tell the entire story. It often requires a sharp eye and a healthy measure of experience to elicit meaningful information from the numbers.

Even people with keen financial acumen will have questions, and they can easily overlook important realities that lay buried somewhere within the details. For those with less experience reading financial reports, this task is far more difficult. Both groups can benefit from added context and expert guidance to help them fully grasp the underlying realities of the financial statements.

The numbers don’t lie, but understanding them is inevitably easier when those numbers are put in context with meaningful commentary. By adding depth and meaning to the numbers, finance teams can help everyone in their organization, as well as important external stakeholders, to better understand the realities that drive the business. In doing so, they can bolster the financial competency of their peers and improve business results. They can also elevate the standing of the finance team within the company as a whole, shedding light on the strategic importance of their department.

A wave of finance teams is making that shift right now; instead of just delivering plain reports, they aim to make their reports come to life by putting the numbers in context. That’s not always easy to accomplish, especially when you’re limited to using traditional tools like static spreadsheets. To achieve excellence in financial reporting and storytelling, finance teams need a set of tools specifically designed to support that mission.

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How to Educate and Inform With Financial Storytelling

Financial storytelling educates and informs. It enhances the financial literacy of the target audience. There are some key ingredients to a good story, and It’s important not to skip any of them. Here’s a brief overview of the elements on which finance leaders should focus:

  1. Set the stage. Like any good story, financial narratives begin with setting the stage. Effective communication begins with a background understanding of where the business has been, what it is aiming to accomplish, and what has led to the status quo. This might include a recap of the company’s strategic priorities, a summary of major events that have occurred over the past year, and a brief overview of market dynamics for your industry. Setting the stage provides a common starting point for understanding the rest of the financial story.
  2. Use visualizations. It’s often said that a picture is worth a thousand words. When summarizing or presenting numeric figures, that is especially true. Modern executive dashboards provide a wealth of information in easily digestible formats, often in mere seconds. Instead of poring over reams of columnar data, users can intuitively grasp what is happening in the business with just a glance. The best dashboard software enables users to drill down to the details in the ERP system to further explore what is happening and why.
  3. Highlight key takeaways. Great financial storytelling enables the audience to ponder the results, ask questions, develop a deeper understanding of the situation, and ultimately to draw their own conclusions. But financial storytelling must also offer team members a head start in that process. By highlighting key conclusions, finance leaders can move their audience toward a deeper understanding, giving them a better foundation for good business decisions and actionable insights.
  4. Propose a path forward. When finance teams engage others in strategic thinking, they naturally elevate the role of their department within the organization. Key takeaways typically imply the existence of opportunities or threats to the business. Those, in turn, call for a response. That might include increased marketing spend in an organization suffering a downturn in sales, for example, or expansion of sales resources to capture market share from a struggling competitor. The finance team is uniquely positioned to understand and communicate the implications of such decisions with respect to cash flow, profitability, and capital allocation.
  5. Add an exclamation point. Like any good story, your financial narrative should culminate in a sense of urgency. Whether you’re highlighting an opportunity or a threat, this is your chance to spell out the consequences of inaction and to highlight the powerful need to move forward decisively. A forward-looking conclusion drives your audience toward alignment around a positive outcome for the organization, based on your recommended plan of action. Clearly articulate what you’re proposing, ask for agreement, and align around next steps and responsibilities.

To Tell Great Stories, Upgrade Your Toolset

To achieve the desired results, financial storytellers need the right tools. Many rely on static data exported from ERP and other software systems, then imported into a spreadsheet. Microsoft Excel offers flexibility, but it’s missing so many of the elements required to assemble data quickly and easily for powerful (and accurate) financial narratives.

The reports created within static spreadsheets are based on a snapshot of reality, taken the moment the data was exported from ERP. That means there’s a lag between real-time events in the business and the moment that information becomes available to your stakeholders. Information delayed is information denied, and in today’s fast-paced business world, that isn’t good enough.

CXO from insightsoftware delivers complete integration with EPM systems to create financial reports​ for group companies. Unlike most other financial reporting and EPM systems, CXO allows finance users to add key messages, annotations, line-item comments, and more. It offers real-time collaboration via a conversational chat interface, speeding the pace at which finance teams can develop and refine their financial narratives.

Unlike static spreadsheets, CXO offers roll-up of comment threads, locking comments, and a clear audit trail indicating who made each change, and when.

When it is done effectively, storytelling helps organizations to respond more rapidly to opportunities and threats. It helps to create strategic and tactical alignment, from investors and executive management to department level leaders. With a better understanding of their own financial story, everyone in the organization can have a clear picture of what drives success and failure.

To learn more about CXO from insightsoftware, contact us today for a free no-obligation demo.

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