How to Nail the Financial Section of Your Annual Report – Yearly
The financial section of any annual report always seems to be the most stressful. It’s hard to know what to include, what to exclude, and how to go about presenting the information. Creating this section of the report is usually the part of the process that most of us dread, and for good reason. It’s not always as fun to gather accurate numbers and stats as it is pictures of volunteers and supporters.
To help lighten the load, let’s break down some best practices for nailing the financials.
Use graphs
Financial data can be cumbersome, especially when it’s formatted as a list or a spreadsheet. By utilizing graphs, like a pie graph, readers will be able to better understand your finances. This will allow them to tune into the bigger picture—they won’t be bogged down by some of the more minor financial details.
Be transparent
The best way to build trust with your donors is to practice transparency, especially when it comes to the financials of your nonprofit. Don’t shy away from including pertinent information about your operational expenses, revenue, and more. Your supporters will want to feel that you’re being as candid as possible, so they never have to question where their money is going.
Provide context
We all know that financial information can be confusing, especially for the average reader. To avoid any misconceptions, include helpful information about where your financial information is coming from, and how you’ve organized it. This section of your annual report should be crystal clear—don’t be afraid to include bullet points or sidebar information about your results.
Tell a story
It’s easy to think that the financial section of your report only serves as a functional aspect of the project. In reality, it’s a crucial piece to your story. The financial section of the annual report backs your story up with evidence and shows readers where you’ve been and where you’re headed. It shows the progress and the pitfalls—all essential pieces to the puzzle.
For data hygiene tips, check out our blog.
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