How to Share Financial InformationJul 25, 2021
Learning How to Carefully Share Financial Information is more than Just a Good Idea...It is Essential to Long-Term Success!
One of the hardest things to do for many business owners is to share financial information about the company with the management team. There is alway concern about confidentiality that relates to competition and personal issues. Such concerns are real and deserve consideration, but the benefits of providing the team with the "true" report card for the business are significant enough to argue for every owner to find the right way to include the management team in this way.
Timely distribution of monthly statements or portions of same that related to each manager's responsibility will put the managers in a better position to act to improve the results. There is also a hidden benefit. Once the managers feel that they are more "inside" the company they may react differently to various situations.
Think about the financial reporting that is used in your company. Does it provide the information and the stimulus necessary for managers to make critical decisions in a timely manner. If not...now is the time to find a way to "share" such information and to build a new level of trust and "ownership" in your management team.