Writing For Finance Industry

Many accountants email the balance sheet and income statement to their CEOs and think,   “Job done.”  But here’s the problem: Your CEO is not necessarily trained in reading financial statements. Even if they were, you've just given them an assignment to "figure it out" If your boss doesn’t understand the numbers, then you haven’t communicated. You’ve just forwarded a report.  🚨 A financial statement without context is just data.   📊 Your job is to turn that data into insights.  How to Present Financials the Right Way  📌 1️⃣ Give a One-Page Summary 🔹 Highlight key figures—Revenue, Profit, Cash Flow, and Key Ratios.   🔹 Include clear takeaways (e.g., “Revenue grew 10%, but margins dropped due to rising costs.”).   🔹 Avoid technical jargon—simplify complex metrics.  📌 2️⃣ Answer the Big Questions   Your CEO doesn’t want numbers—they want meaning. Help them understand:   🔹 What changed? (“Profit dropped 5% due to higher shipping costs.”)   🔹 Why did it happen? (“Fuel prices increased 20% this quarter.”)   🔹 What should we do next? (“We should renegotiate supplier contracts.”)  📌 3️⃣ Use Visuals   🔹 Graphs > Tables—a well-designed chart can explain in seconds.   🔹 Use color-coded trends (e.g., 🔴 Negative, 🟢 Positive).   🔹 Keep it clean—no clutter, no distractions. 📌 4️⃣ Speak the CEO’s Language   🔹 Skip the accounting terminology—focus on impact.   🔹 Tie financials to business goals:     - Sales grew 15% → “We’re expanding market share.”     - Cash flow dipped → “We need to tighten collections.” ✅ Financial statements don’t speak for themselves—you do.   ✅ Numbers are useless without insights.  If your CEO isn’t making better decisions because of your reports, then your job isn’t done.  💡 Don’t just report numbers—explain them. That's how you add value and impact.

IFRS 18: A New Era for Financial Reporting The International Accounting Standards Board (IASB) has released IFRS 18 : Presentation and Disclosure in Financial Statements (April 2024), reshaping how organizations present and communicate their financial performance. The focus is clear: greater clarity, comparability, and transparency. While the standard doesn’t alter how profit is measured, it transforms how it’s told; standardizing structure, improving disclosure, and aligning global reporting practices. Key developments to note: 1️⃣ Structured income statement – All income and expenses must be classified into five categories: operating, investing, financing, income taxes, and discontinued operations. 2️⃣ New mandatory subtotals – Companies must now present operating profit or loss and profit or loss before financing and income taxes. 3️⃣ Management-defined performance measures (MPMs) – Non-GAAP figures like “adjusted EBITDA” must be disclosed transparently, reconciled to IFRS subtotals, and explained in detail. 4️⃣ Aggregation & disaggregation – IFRS 18 raises the bar for how items are grouped and presented, ensuring material information is clear and not lost in the fine print. 5️⃣ Effective date – Applicable for periods beginning on or after 1 January 2027, with restated comparatives and early adoption permitted. This isn’t just a compliance update, it’s a strategic opportunity for finance leaders to enhance reporting quality, strengthen investor confidence, and align performance communication with global best practices.

Inside the Analyst’s Notebook: How I Break Down a 200-Page Annual Report into 3 Pages of Insights When I first started in investment banking, reading a 200-page annual report felt like wading through quicksand. By the end, I remembered nothing… except that my coffee had gone cold. Over time, I developed a system that helps me distil even the most complex report into three pages of usable insights, the kind I can use in a pitch, an interview, or a deal discussion. Here’s the process. Step 1: Read for Structure Before reading, scan the index and note the key sections. Mark the ones that matter most for your purpose: - Business Overview - Management Discussion & Analysis (MD&A) - Financial Statements - Notes to Accounts Knowing where the important pieces live will save you hours later. Step 2: The Company Story Go through the Business Overview and MD&A. Ask: - How does the company describe its own business model? - What are the key growth drivers and risks they emphasise? - Is management tone optimistic, cautious, or defensive compared to last year? - Note only the shifts and themes, not every number. Step 3: Financials Move to Financial Statements. Look for: - Revenue growth breakdown (volume vs. price) - Margin changes and their stated causes - Cash flow conversion and working capital movement - Debt profile and capital structure shifts - Do not copy the entire table, summarise movement and reason. Step 4: Look into lesser seen details Go into Notes to Accounts. This is where the hidden details live: - Related-party transactions - Contingent liabilities - Changes in accounting estimates - Segment reporting footnotes Highlight anything that could change your view of the business. Step 5: Distill Into Three Pages - Page 1: Company story and sector position - Page 2: Key financial highlights and drivers - Page 3: Risks, red flags, and unanswered questions If it does not fit in three pages, you have captured too much unwanted details. Follow Pratik S for Investment Banking Careers and Education

Most CFOs are terrible storytellers. → Net profit is $18.2 million, down from $21 million → Operating margin decreased from 22% to 19% → Revenue grew by 7.3% since last quarter → G&A expenses increased by 12.5% You know what's wrong with this? This is data dumping. The audience doesn't know what to do. No decisions get made. Instead the better way is this. (WHAT) - (WHY) - (GOOD/BAD) - (NEXT STEPS) Here's how. (WHAT) Last quarter, revenue grew by 7.3%. But that growth came at a cost. Our G&A expenses increased by 12.5%. This led to a drop in operating margin from 22% to 19%. The result? Net profit fell to $18.2 million, down from $21 million. (WHY) Here’s why this happened We invested heavily in marketing to drive top line growth. Operational inefficiencies increased costs in key departments. (GOOD OR BAD) But it’s not all bad news. Our investments are paying off in improved brand awareness. And we have identified three areas to optimize operations and reduce expenses. (WHATS NEXT) Next steps- Streamline our supply chain by Q2. Reassess non core spending. Focus on high margin products for sustainable growth This is storytelling. - It gives context. - It connects the dots. - It drives decisions. Follow this flow - - WHAT - WHY - GOOD OR BAD - NEXT STEPS #Story

I've reviewed hundreds of financial models across 100+ clients. Most of them fail in the first 30 seconds. https://lnkd.in/eHYUr9Jc The numbers might be fine. But I open the file and see 47 tabs with names like "Sheet2_final_v3" and I already know what I'm dealing with. Assumptions buried in random cells. No flow. No structure. If I can't follow your model, nobody else will either. This is the same 9-part structure I use at my firm and teach to every fractional CFO I work with. → Drivers TabThis is the most important tab in your entire model. One place for every assumption. Revenue growth, headcount, tax rates. Change one input and the entire model updates. No hunting through tabs. → Source Data TabsRaw exports from QBO or your ERP. Keep them separate from your calculations. One formula pulls from here to populate everything else. → Error Check TabValidates that data made it from source to destination. Assets equal liabilities plus equity. Revenue ties across statements. Green means fine, red means stop. → Instructions TabMost people skip this. Don't. Which cells are editable, which tabs are read-only, what each color means. Your model will get passed around. Make it easy to audit. → Three Financial StatementsIncome statement, balance sheet, cash flow. All pulling from the drivers tab. Historicals and projections in one place. → Revenue TabYour most important forecast. Build it separately, link it back to drivers. Every business is different here, but the connection to the model stays the same. → Headcount TabYour largest expense needs its own schedule. Start dates, salaries, departments, prorated amounts. One mistake here and your cash forecast is off by six figures. → Balance Sheet SchedulesAR, AP, CapEx, debt. Waterfalls that show how balances move over time. These connect your P&L to your cash flow. → DashboardsThe view your board actually sees. KPIs, summary financials, budget vs actual. Everything else feeds into this. You can build your own following this structure, or grab a free template here: https://lnkd.in/eHYUr9Jc What does your model structure look like?

I’ve spent nearly 20 years working with CFOs. …and there’s one consistent blind spot: 𝐄𝐯𝐞𝐧 𝐭𝐡𝐞 𝐬𝐡𝐚𝐫𝐩𝐞𝐬𝐭 𝐟𝐢𝐧𝐚𝐧𝐜𝐞 𝐥𝐞𝐚𝐝𝐞𝐫𝐬 𝐬𝐭𝐫𝐮𝐠𝐠𝐥𝐞 𝐭𝐨 𝐭𝐞𝐥𝐥 𝐭𝐡𝐞 STORY 𝐨𝐟 𝐭𝐡𝐞𝐢𝐫 𝐚𝐜𝐡𝐢𝐞𝐯𝐞𝐦𝐞𝐧𝐭𝐬. From ASX-listed giants to SMEs and fast-scaling startups… Either: a) They’ll talk about what they did BAU but leave out the exceptional gains they added…and how they did it. Not the numbers. The STORY. Or b) They’ll be all fluff and no substance. 🧨 And if you can’t clearly communicate your impact, you risk being underestimated or overlooked…especially in interviews, board meetings, or succession planning conversations. So here’s a practical habit I encourage CFOs to build: 🔥The “Impact Log” 🟰your secret weapon for career storytelling. No fluff. Just a regular, disciplined process to: • Track your results • Capture business impact • Turn raw wins into boardroom-ready stories Here’s how I recommend doing it: ⭐️ 1. Friday Flashbacks Every Friday, take 15 minutes to jot down key achievements: • What did you influence, improve, or drive this week? • Any decisions that saved money, unlocked growth, or solved a major issue? Keep it brief…but consistent. ⭐️ 2. Monthly Milestones Once a month, pick 1 or 2 standout wins and write them up using this structure: • What was the challenge? • What did you do? • What changed as a result? This gives you a steady flow of stories for: • Interview prep • Performance reviews • Board updates • Your resume or LinkedIn ⭐️3. Quarterly Storyboarding Each quarter, choose your top 2 or 3 wins and build them out into full leadership narratives. Frame them around: • Context • Action • Outcome • Commercial impact Optional: Use AI to refine the story, tighten the language, or tailor it for a specific audience or job. Example: • Raw win: Renegotiated funding terms with bank • Milestone format: Secured revised $10M facility with reduced interest margin, improving cash flow by $320K annually. • Story version: In Q1, with tightening liquidity, I led negotiations with our lender to secure more favourable funding terms. By repositioning our risk profile and backing it with strong forecasting, we secured a $10M facility with lower interest, improving our annual cash position by $320K. Finance leaders: your story matters just as much as your spreadsheet. Don’t wait until you need a new job or a board seat to start crafting it. Keen to hear: How do you keep track of your wins?

I've been writing finance reports for over 30 years. Most people do it wrong. They start with background. Build up slowly. Save the conclusion for page 47. There's a better approach. It's called the Minto Pyramid. It flips everything upside down: 𝗟𝗲𝘃𝗲𝗹 𝟭: 𝗔𝗻𝘀𝘄𝗲𝗿 𝗳𝗶𝗿𝘀𝘁 Lead with your conclusion. Don't make readers wait. "We need to cut the capital budget by £2.3m" beats "Following extensive analysis of Q3 variances..." 𝗟𝗲𝘃𝗲𝗹 𝟮: 𝗞𝗲𝘆 𝘀𝘂𝗽𝗽𝗼𝗿𝘁𝗶𝗻𝗴 𝗽𝗼𝗶𝗻𝘁𝘀 Give 3-4 reasons why your answer is right. The budget cut is needed because: • Revenue is 8% below forecast • Two major projects are delayed • Cash reserves are at minimum threshold 𝗟𝗲𝘃𝗲𝗹 𝟯: 𝗗𝗮𝘁𝗮 𝗮𝗻𝗱 𝗱𝗲𝘁𝗮𝗶𝗹𝘀 Now show the evidence. Tables, charts, calculations. This is where most finance professionals start. It's where you should finish. 𝗪𝗵𝘆 𝗜𝘁 𝗪𝗼𝗿𝗸𝘀 Barbara Minto developed this at McKinsey in the 1970s. She found that busy executives need the answer immediately. If they agree with it, they move on. If they question it, they drill into your supporting points. If they still have doubts, they check your data. 𝗙𝗼𝗿 𝗳𝗶𝗻𝗮𝗻𝗰𝗲 𝗽𝗿𝗼𝗳𝗲𝘀𝘀𝗶𝗼𝗻𝗮𝗹𝘀 Use it everywhere: • Board papers (conclusion in the executive summary) • Emails (answer in the first line) • Budget reports (variance explanation before the tables) Stop burying your conclusions. Put them first. Your readers will thank you.

Morgan Housel ignored every finance rule and built a 9-million-copy empire. While experts pushed complex formulas, he wrote about janitors who died millionaires. The result? The most influential money book of the decade. Here's how understanding human behavior beats knowing every financial model: In 2007, young columnist Housel watched the finance world obsess over sophisticated strategies and mathematical models. But he'd seen something different growing up: His ER doctor father retired early from a lucrative career—choosing freedom over money. Then went back to medical school at 40 with three kids, teaching Housel what real financial stress looked like. Those experiences revealed what Wall Street missed: Money isn't about math. It's about behavior. "Doing well with money has little to do with how smart you are and a lot to do with how you behave," Housel realized. While finance writers competed with increasingly complex analysis, Housel chose radical simplicity: • Stories over statistics • Psychology over portfolio theory • Lessons from skiing applied to investing • Janitors and billionaires over charts and graphs Finance professionals called it naive. Until the results: → 9+ million copies sold worldwide → Translated into 60+ languages → NYT bestseller without a single stock tip → Transformed how millions think about money But here's the purposeful part: Despite massive success, Housel and his wife maintained their twenties lifestyle. "Independence doesn't mean you'll stop working. It means you only do the work you like, with people you like, at the times you want, for as long as you want." Morgan Housel is a Purposeful Performer. He proves that stepping outside your field's conventional wisdom to focus on timeless human truths creates exponential impact. In sales, this same principle transformed my path: Live below your base. Invest every commission dollar. That gap between what you earn and what you spend? That's not deprivation—it's your runway to freedom. When you understand money as stored options rather than lifestyle inflation, everything shifts. Each deal closes not for a nicer car, but for another month of "I can walk away if I need to." That's the behavior that matters. 🐝 P.S. The most powerful insights often come from looking where your industry isn't. What conventional wisdom are you ready to challenge? If you like this, you’ll benefit from the members-only content I drop every week here: https://lnkd.in/eXTuBrdH #PurposefulPerformer

Your Impact Report is Probably Boring (And It's Costing You Donors) One approach puts donors to sleep. The other opens wallets. Which are you choosing? Effective storytelling in impact reports is key. Here's how to do it: Start with a Hook: Before: "We provided 10,000 meals last year." After: "Maria turned our food bank into a stepping stone for her family's future.” Use the "Before and After" Technique: Before: "Our job training program had a 75% success rate." After: "John went from homeless to homeowner in 18 months. Here's how our program made it possible..." Incorporate Sensory Details: Before: "We built a new playground." After: "Where there was once an empty lot, kids now laugh and play. The bright red slides and yellow swings have brought new life to the neighborhood. Parents chat on nearby benches, watching their children make new friends and create lasting memories.” Showcase Donor Impact: Before: "Your donations helped us achieve our goals." After: "Because of supporters like you, Sarah received the life-saving surgery she needed. Here's a letter from her family..." Use Data Visualization: Before: "We increased literacy rates by 40%." After: [Include an infographic showing a child's journey from struggling reader to honor roll student, with key stats along the way] End with a Clear Call-to-Action: Before: "Please consider donating." After: "For just $50, you can provide a month of tutoring for a child like Tommy." How to implement this: ☑️Identify your most compelling success stories ☑️ Gather quotes and personal anecdotes from beneficiaries ☑️Collect before-and-after photos or data points ☑️ Craft your narratives using the techniques above ☑️ Test different versions with a small group of donors ☑️ Refine based on feedback and roll out your new, story-driven impact report

CFOs, VPs of finance and FP&A must understand numbers = noise. So you must dominate in finance with stories. Here's what can happen if you don't build your storytelling skills: 1. Your board will stop listening. They’ll tune out numbers they don’t understand. 2. Investors will punish you. They’ll interpret weak quarters as failure instead of part of a larger journey. 3. Your team will disengage. They won’t see how their work ties into strategy, so they’ll walk. And your competitors who tell better stories will raise more capital, recruit better talent, and command higher valuations, even if their numbers are the same as yours. Markets don’t reward the best numbers. They reward the best story about the numbers. COPY-PASTE Prompt: You are the CFO of a Fortune 500 company preparing a 3-minute earnings call narrative. You have access to: • Financials: [upload quarterly P&L, revenue, margin, etc.] • Strategy docs: [upload board decks, roadmaps, KPIs] • Market context: [upload analyst notes if available] Your task: Write a narrative for investors and the board that: 1. Celebrates the wins: Highlight the revenue growth (drivers, new product launches, customer adoption). Frame success as the payoff of prior strategic bets. 2. Acknowledges challenges with transparency: Call out margin pressure or operational headwinds clearly. Explain root causes using uploaded KPI data. Share corrective actions underway. 3. Connects to long-term vision: Tie today’s results into the company’s bigger story of innovation, operational excellence, and strategic transformation. Use uploaded strategy docs. 4. Uses a storytelling device: Apply a metaphor (journey, comeback, turning point) so the message sticks with investors and employees. 5. Delivers with conviction: Close with optimism about the next quarter and confidence in long-term growth. Instructions for GPT-5: • Write in plain, confident language. • Use short sentences and natural cadence (like delivering live). • Blend data with story: never just present a number, explain what it means. • Structure like a mini arc: hook, challenge, solution, vision and call to action. ** The right story can: Buy time. Rebuild belief. Transform a company’s future. The CFOs and finance operators who master storytelling will be the ones who can dominate. The ones who don’t can be replaced by leaders who can. The choice is yours: Be the spreadsheet operator… Or be the storyteller who makes the market believe.