Have you ever pretended to understand something when you have no clue what’s going on? It’s a scary place to be, especially when it comes to finances. Your clients feel the same way. They yearn for the lightbulb moment when the numbers tell a story, and they have the answers to their questions.
As a financial professional, you have the power to provide clarity and understanding to your clients through proper financial reporting. Here are some ways to create confidence in your clients by improving your reporting:
Keep It Simple
Overcomplicating a financial report can lead to confusion and anxiety for clients. While you don’t want to leave out essential data, you can make the report easy to understand. Visualizing data with dashboards and displaying key performance indicators relevant to your client’s goals can help them make informed decisions.
Avoid Accounting Jargon
To help clients understand the report, you must avoid using complex accounting jargon. Instead, use straightforward language that is professional and easy to understand. Speak in layman’s terms, and remember to explain any technical terms that clients may not be familiar with.
Open Lines of Communication
Communication is essential for building trust with your clients. It is also critical to teach your clients how to read the financial reports that you provide. Explain the relevance of each KPI to their everyday decisions. By doing this, you will be teaching your clients how to fish and helping them make informed decisions.
Providing incorrect data can shake a client’s confidence faster than anything else. It is imperative to ensure the data you provide is accurate. Mistakes can occur when using spreadsheets, with one small error having a domino effect leading to significant problems.
According to Forbes, almost 9 out of 10 spreadsheets (88%) contain errors, with a majority being from human error. Reach Reporting provides an automated solution that reduces the risk of errors in financial reports. You can create a report once, save it, and it will be auto-populated the next time, saving you time and reducing the possibility of errors.
Giving your clients the confidence to make informed financial decisions is essential. By keeping your financial reports simple, avoiding jargon, maintaining open communication, and providing correct data, you can help your clients achieve their goals. By working hand-in-hand with your clients, you can become a vital partner in their financial journey. Reach Reporting offers a tool to streamline the financial reporting process, reducing errors and increasing efficiency.