What Story Are Your Financials Telling You?
By Sam Stroup, CPA and VP of Finance
Let me paint a picture… You’re in a board meeting. The Controller is delivering this month’s financial review. You are only on page 2 of a 12-page packet. You hear the room flipping pages trying to find where we are or skim the financial report. Half the room is quietly panicking over a cash flow dip they don’t fully understand; the other half is checked out; eyes glazed over numbers that feel like a foreign language. And that heartfelt mission moment at the top of the meeting? Well, that feeling has dried up and you think to yourself, “what went wrong?”
I’ll be honest – financial reporting is not exciting! And I say this as a CPA with over a decade of experience delivering financial reports to nonprofit executives and board members. But I believe that’s not because it isn’t interesting – it’s that the story behind the numbers isn’t being told.
Financial statements are supposed to show where you’ve been. But great ones also show where you are going – and why it matters. In short, financial storytelling isn’t just about accuracy. It’s also about clarity, trust, and leadership.
Financials Are Written in a Foreign Language
There’s a reason most financial statements come with a healthy dose of confusion. Accountants are trained to speak GAAP (the Generally Accepted Accounting Principles) to make financials more comparable and consistent. Ironically, these very standards often make financial reports hard to interpret for the very people who need to use them.
Executive directors, board members, and program staff are not always fluent in nonprofit accounting, but they are, nonetheless, expected to read between the lines. And instead of generating insight, boardroom conversations can stall out with clarifying questions like, “Wait, what’s restricted revenue again?” Meanwhile, the finance staff will spend time explaining formatting choices or why the numbers look the way they do – instead of focusing on what the numbers actually mean.
I’ve seen the transformation that happens when financial reporting is designed for comprehension, not just compliance. When reports speak the audience’s language, the conversation shifts from gaining clarity to aligning with strategy.
Storytelling = Strategy
You remember Forrest Gump – the box of chocolates, Jenny, the ping pong, the shrimp boat, the hours spent on that park bench? He wasn’t telling one long story. He was telling lots of little ones, and slowly a bigger picture emerged. Financial storytelling works the same way. It takes intention, care, and a willingness to sit with the numbers long enough to find the meaning behind them.
A dip in revenue? Maybe it’s due to rising supply costs or maybe a grant payment that hasn’t come in. Ahead of budget on salaries? Perhaps that’s due to a long-standing open position and it’s affecting your program outcomes. Storytelling frames these issues instead of overlooking them. That context brings people into the conversation, not just to listen, but to lead and make informed decisions.
This is particularly important during times of change like launching a new program, hiring key staff, or navigating economic shifts. Organizations need financial narratives that align dollars with direction. With the right information, financial storytelling builds confidence, drives alignment, and opens doors to smarter decisions.
What Are Your Financials Telling You?
When it comes to financial reporting, compliance is the floor not the ceiling. Financials should be accurate, yes – but also timely, audience-appropriate, and insightful. At Ascend Nonprofit Solutions, we believe financial reports should inform, inspire, and lead. We’ve helped organizations reimagine their finance presentations to do just that – not with flashy dashboards, but with strategic intention and a mindset shift. If your organization is looking for a full-service finance solution, reach out to our team to learn more.
