Last updated on Jul 14, 2024

Here's how you can transform financial data into compelling stories for stakeholders.

In the world of accounting, the ability to convey financial information effectively is as crucial as the numbers themselves. When you present data to stakeholders, it's not just about the figures; it’s about telling a story that resonates. This narrative approach can make the difference between a report that gets shelved and one that inspires action. Whether you're addressing shareholders, team members, or clients, transforming financial data into a compelling story is a powerful skill that can drive understanding and engagement.

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1 Know Your Audience

Before diving into the numbers, take a moment to consider who will be receiving this financial story. Different stakeholders have varying levels of financial literacy and diverse interests in your data. Tailor your narrative to speak directly to their concerns and objectives. For instance, while a shareholder might be focused on return on investment, an employee could be more interested in how financial stability translates to job security. Understanding your audience lays the groundwork for a story that not only informs but also connects on a personal level.

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Avinash More, CGMA, ACMA

Board-level CFO with global expertise spanning the UK, Middle East, Africa, and India, specializing in Oil & Gas, Chemicals, Manufacturing, Construction, Engineering, Consultancy, and Private Equity.
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One time at work, I tailored a financial presentation for the HR department by focusing on how budget allocations affected employee benefits and job security. This approach made the data more relevant and engaging for them. In my experience, understanding the diverse interests and financial literacy levels of your audience is crucial. Tailoring your message to address their specific concerns makes the narrative more impactful. One thing I have found helpful is conducting brief pre-meetings with different stakeholders to gauge their priorities and concerns, ensuring that the financial story addresses their specific interests.

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2 Craft the Plot

Every good story has a clear beginning, middle, and end. Start by setting the scene with an overview of the financial period in question. Then, delve into the heart of your narrative: the key financial events and results. Highlight significant achievements, challenges faced, and the strategies implemented to address them. Finally, conclude with an outlook on the future, discussing upcoming goals and how past performance shapes the road ahead. This structure helps stakeholders follow along and grasp the full picture.

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Avinash More, CGMA, ACMA

Board-level CFO with global expertise spanning the UK, Middle East, Africa, and India, specializing in Oil & Gas, Chemicals, Manufacturing, Construction, Engineering, Consultancy, and Private Equity.
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One time at work, I structured a financial report as a story, starting with an overview of the fiscal year, followed by key events and results, and concluding with future projections. This made the information more accessible and engaging. In my experience, a clear narrative structure helps stakeholders follow along and understand the significance of the financial data. One thing I have found helpful is to highlight significant achievements and challenges, providing context and showing how past performance influences future goals.

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3 Visualize Data

Visual aids are your allies in storytelling. Transform complex tables and spreadsheets into charts, graphs, and infographics that make trends and patterns immediately apparent. Visualizations can illustrate a point more effectively than rows of numbers ever could. For example, a line graph showing revenue growth over time is instantly more impactful than a table listing quarterly figures. By carefully selecting visuals that enhance your narrative, you make your financial story both accessible and memorable.

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Avinash More, CGMA, ACMA

Board-level CFO with global expertise spanning the UK, Middle East, Africa, and India, specializing in Oil & Gas, Chemicals, Manufacturing, Construction, Engineering, Consultancy, and Private Equity.
Report contribution
One time at work, I transformed a dense financial report into a series of charts and graphs, making it much easier for the team to grasp key trends and patterns. In my experience, visual aids like infographics and charts are far more effective at conveying complex data than text-heavy tables. One thing I have found helpful is using visual storytelling tools to create engaging and easily digestible presentations that highlight key financial insights.

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4 Emphasize Key Points

Within your financial narrative, certain elements will be more crucial than others. Identify these key points and ensure they stand out in your presentation. Use summaries, callouts, or even a change in tone to draw attention to them. For example, if profit margins improved significantly due to cost-cutting measures, make that a focal point of your story. By emphasizing these highlights, you guide your audience's attention to what matters most.

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5 Add Personal Touch

Numbers might be impersonal, but your story shouldn't be. Incorporate real-world implications of financial data to give your story a human element. Discuss how financial outcomes affect stakeholders directly—like how increased profits will lead to more community investment or better employee benefits. This personal touch can transform dry data into a narrative that stakeholders care about because it relates directly to their experiences and expectations.

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6 Encourage Dialogue

Finally, invite your audience to engage with your financial story. Ask questions, solicit feedback, and encourage discussion about the data presented. This interaction not only ensures that your message is understood but also fosters a sense of involvement among stakeholders. When people feel they are part of the story, they're more likely to invest in its outcome and contribute positively to future chapters.

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7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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Here's how you can transform financial data into compelling stories for stakeholders.

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1 Know Your Audience

2 Craft the Plot

3 Visualize Data

4 Emphasize Key Points

5 Add Personal Touch

6 Encourage Dialogue

7 Here’s what else to consider

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