At a glance
By Beth Wallace
Accounting encompasses much more than numbers – it requires telling the financial story of a business. While technology can help with visual representations, accountants are increasingly required to help paint the picture.
Yet according to Primrose Russell, who has a background in accounting and is now general manager at Presentation Studio, there remains a critical gap in how financial data is communicated across organisations.
“While accountants excel at analysing numbers, transforming that analysis into compelling narratives requires specialised expertise,” she says.
To harness this skill, accountants must learn to simplify complex data, Russell notes. They can do this by identifying key takeaways and framing them within a larger narrative.
“It’s about understanding your audience – what matters to them and what decisions need to be made.”
The ‘story’ challenge
One of the most important things to remember when crafting a story is not to overthink it.
“The word ‘story’ may have problematic attachments for some accountants, perhaps as something that’s just entertaining or even made up,” says Shawn Callahan, Anecdote founder and author of Putting Stories to Work.
“But it’s often just about making a point and giving an example – moving away from technical language to something that's more memorable and meaningful to your customers, stakeholders and clients.”
Start your narrative with structure
The first step towards building a strong narrative, says Russell, is to start with the ‘why’. Before diving into financial data, she suggests establishing context by answering:
- What business problem needs to be solved?
- Who is the audience and what do they care about most?
- What decisions need to be made based on this data?
Adding a narrative structure with a clear beginning (context), middle (data insights) and end (recommendations) “makes the information engaging and memorable”, says Russell.
Using time markers, such as “just the other day” or “in the first quarter” can also help the narrative flow, says Callahan.
He cites the example of an accountant helping a business review marketing costs.
“They might say: ‘Over the past few years, our expenses have been pretty flat. But last month, we kicked up our marketing costs. As a result, we've seen a 20 per cent increase in leads. We think in the next quarter, you'll see a bump up in sales that should balance out the expense’.”
“As soon as you put it into that narrative structure, it makes it more understandable,” Callahan says.
“It makes it more meaningful because you're giving context. Probably most importantly, it makes it more memorable.”
Cautionary tales and success stories can also help to illustrate significant points and guide clients towards decisions.
“The accountant might say: ‘We're facing this regulatory risk and need to submit these forms’,” says Callahan.
“They then might add, ‘I had a customer just six months ago who didn't submit the forms and ended up with a $250,000 fine. We want to avoid that.’”
Use number translations
In some scenarios, number translations can be an easy way to reframe information into something the audience has personally experienced or can visualise.
Callahan shares his experience working with an insurance company reporting on employee engagement scores.
“Thirty per cent were engaged, 45 per cent were disengaged and 25 per cent were totally checked out,” he recalls.
“So, they included a picture in their report of a soccer team on a pitch to illustrate how many were playing the game, as opposed to those wandering around aimlessly or actively trying to lose.
“It's a little mini story that is visual and, because of that, it becomes very memorable.”
Concise is key
The principles of good storytelling apply to both face-to-face presentations and financial reports, says Russell.
“Compelling financial reports combine clarity, structure and design,” she explains.
She recommends organising data into logical sections that answer key stakeholder questions.
“Use concise summaries and visuals – charts, graphs and tables – to highlight trends and outliers,” she suggests.
Russell also recommends avoiding jargon, instead using plain language to explain financial metrics.
“Include context, such as comparisons with past performance or industry benchmarks, to provide a clearer narrative.”
The aim is to go beyond presenting numbers and focus on what the numbers mean, she continues.
“Accountants should identify patterns, anomalies and opportunities within the data and relate these findings to business goals or challenges.”
Visualise financial data
Technology and visuals play a vital role in making data engaging.
“Infographics, dashboards and interactive charts are powerful aids for telling a story around numbers,” says Russell. “These tools make data easier to digest and allow stakeholders to interact with the information.”
Useful platforms for creating visual aids include:
When creating a chart or other visual aid, just focus on one idea, advises Callahan.
“A common mistake people make is filling charts with information. The reader or audience then has to work out what it all means,” he says.
As an alternative, Callahan recommends adopting the “small multiples” method. This is a visualisation concept created by statistician and artist Edward Tufte. It involves using a series of small charts or graphs featuring the same basic design to simplify data.
This approach allows accountants to convey complex, multi-layered information in a way that’s easy for the audience to digest, Callahan says.
