How to Create Financial Reports for Stakeholders

Your financial report shows 40% growth.  But investors just pulled out. What are they seeing that you're not? The startup founder couldn't understand what happened. His reports showed impressive growth metrics. Yet investors were walking away after reviewing his financials. His executive team was confused. His board was losing confidence.  His funding round was in jeopardy. His reporting? Beautiful dashboards hiding critical structural problems. Here's what we discovered: - The reports were technically accurate but strategically misleading: - Revenue recognition was aggressive - Cash burn was buried in supplemental schedules Key risks were minimized or omitted. The framework we implemented: 1️⃣ Investor Lens Analysis – Restructured reports to highlight what investors actually care about 2️⃣ Cash Reality Spotlight – Brought cash flow to the forefront of all reporting  3️⃣ Metric Standardization – Aligned KPIs with industry benchmarks investors recognize  4️⃣ Risk Transparency – Created dedicated sections for contingencies and challenges  5️⃣ Narrative Alignment – Ensured story and numbers told the same truth The results? ✅ Funding round successfully closed  ✅ Investor confidence restored  ✅ Leadership gained true financial clarity Later, the founder admitted: "We were reporting what made us look good, not what would build trust. The difference cost us millions." Financial reporting isn't about showcasing strengths. It's about building credibility through transparency. Don't let poor financial reporting sabotage your growth. I help startups create investor-ready financial reporting that builds trust. DM "Reports" to learn more. #financialreporting  #businessgrowth  #finance

How I Learned to Become a Better Financial Storyteller to My Board, and How in 90 Days You Can Too When I first became a #CFO, I thought being 'accurate and thorough' was enough for Board presentations. But after seeing glazed-over looks (and sometimes confusion), I realized that telling the story behind the numbers made all the difference. Here’s a 90-day game plan that transformed my updates from bland spreadsheets into compelling insights: 30-Day Mark: Gather “Story Seeds” In my early presentations, I focused on data alone. Then I started gathering “mini case studies” - for example, a program that had exceeded impact goals or a donor who’d been personally moved. By weaving these into my updates, I gave context to the numbers. Action: Spend the next 30 days meeting with program staff, collecting anecdotes, and noting real outcomes connected to specific budget lines. These “story seeds” will help you frame your financials in a more relatable way. 60-Day Mark: Reframe Your Reports I once replaced a dry budget slide with a short slide on “What This Means for Our Mission.” Instead of showing total expenses for youth programs, I highlighted “100 teens received mentorship, and 85% increased their graduation prospects.” Suddenly, the Board saw the story behind the expense. Action: Take the second month to revamp how you present financial reports. For every major line item, add one sentence that connects the number to a tangible outcome or beneficiary story. 90-Day Mark: Engage the Board in Dialogue I used to rush through my presentation decks, hoping to finish on time. Then I realized the real power was in the conversation. By asking the Board open-ended questions like “How might we allocate resources to grow this success further?", I turned my presentations into strategy sessions. Action: During your next Board presentation, dedicate a slide or two to discussion. Invite Board members to weigh in on how the financial story can guide future decisions. This collaborative approach keeps them engaged and invested. Bonus Tip: Practice your storytelling out loud before the meeting. Share it with a colleague or mentor. Their feedback can help you refine the narrative and keep it succinct. In just 90 days, you can transform your Board updates from monotonous financial reviews to powerful mission-driven stories. Numbers are crucial, but the narrative behind them is what truly captures hearts and minds. What storytelling approaches have you found the most effective in engaging your Board?

Many businesses focus on revenue to attract investors. But revenue won’t matter if there's no clear path to profit. I helped a business organize their finances for some potential investors, and redirected them to build a story around growth and showcasing a path to higher profits. I get it, traction is important, but without a clear path to profit revenue can be a false market if it's not enough for the product/service to become a viable profitable business. The Balance Sheet and P/L statement can easily verify future growth. Here's how I built a profit plan that helped obtain the financial investment they needed.  → 2 statements with notes and talking points. ↳ Profit and Loss (P/L) statement: 1. Showing trends in revenue growth, gross margin, and net profit over time indicates the company's trajectory. 2. Investors often look for specific metrics such as (CAC), (LTV), and operating margins. Providing these metrics alongside P/L statements shows a solid understanding of the business model and profitability potential. 3.Use historical P/L data to create realistic financial projections. Clearly outline assumptions for revenue growth, cost management, and market conditions. 4. Compare P/L with industry benchmarks or competitors. This helps investors see how the you stacks up and your potential for capturing market share. 5. Identify specific factors driving growth, such as new products, market expansion, or strategic partnerships. Linking these drivers to expected changes in the P/L can provide a compelling narrative. 6. Highlight any operational efficiencies or cost-saving measures that have been implemented or planned. A well-managed cost structure leads to improved margins. 7. Clearly outline how investments will be used to fuel growth, such as scaling operations or marketing. Linking capital needs to specific P/L outcomes. 8. Address potential risks to growth, backed by P/L analysis, and explain how the company plans to mitigate these risks. A planned approach to risk reassures investors. ↳ Balance Sheet: 1. Highlight valuable assets, such as proprietary technology, intellectual property, or a solid inventory. 2. Showing manageable levels of debt and a clear strategy for repayment instills confidence in investors regarding the startup's financial prudence. 3. A strong equity position indicates investor confidence and suggests that the startup is on a positive trajectory. 4. Emphasizing cash reserves or effective cash flow management reassures investors of your ability to sustain operations in downturns. 5. Presenting trends in key metrics, such as increasing revenues and improving margins, alongside the balance sheet provides a narrative of growth. 6. Presenting how current assets are being invested shows commitment to future growth. 7. Benchmarking by comparing key metrics to industry standards help position a business favorably within its market segment. Please share your thoughts! #Business #Finance