By: Jarred Liscio
In today’s data-driven world, financial information is critical to making informed decisions. However, simply having access to financial data is not enough. Businesses that can use this data to “tell a story” are better equipped to communicate complex information and engage in advanced conversations. By weaving a narrative around the numbers, businesses can make their financial data more accessible and understandable, leading to better decision-making and greater overall success.
Leveraging financial data to tell a story can provide several benefits to businesses of any size. Financial storytelling can be a powerful tool for family-owned firms or those accountable to a Board of Directors or investors, enabling them to provide reports or address questions about the company’s financial outlook with clarity and effectiveness. Similarly, for early-stage businesses as well as those seeking to expand, financial storytelling can be a critical asset during attempts to secure third-party funding. Management needs to be able to communicate their financial performance and prospects in a clear and compelling way. Those who can allow potential investors or creditors to understand the company’s financial performance, as well as possible risks and strategic opportunities, will have tremendous success securing funding as investors will be more comfortable partnering with these businesses.
Telling the story with data can also be a powerful tool for companies to communicate critical information internally, particularly when it comes to specific projects or business units. One of the most powerful attributes of financial storytelling is that it can be utilized to present information to a non-financial audience. Furthermore, it can foster a culture of accountability within businesses, leading to improved identification of risks and opportunities. Mid-level staff can employ financial storytelling to easily communicate challenges and successes to upper management with increased clarity to ensure better decision-making throughout the firm.
Overall, financial storytelling can have massive impacts on a business, enabling them to drive growth, improve efficiency, and reach long-term goals, regardless of the industry they operate in. If your business struggles to consistently organize and interpret its financial data, the Wiss Financial Planning and Analysis (FP&A) Team is here to help. Our team provides a sense of relief, utilizing historical data to understand the root cause of what drove past successes and challenges. We then break down the basic operational information about your business to determine what will drive future growth or mitigate risks, providing tailored predictive models and financial dashboards to aid in making sound decisions.
Regardless of if your company is in its early stages, or has been around for decades, proper financial storytelling is an invaluable asset. With the support of the Wiss FP&A team, you can feel more secure and certain about your financial decisions, knowing that you have a partner who can help your business achieve its biggest goals.
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