Financial transparency – Why it matters

Business, Finance - 11/11/2021

The level of financial transparency will vary from business to business. Some business owners are hesitant to share the accounts with their employees. After all, it’s very sensitive information and needs to be managed properly. 

But overall, a fear of disclosing too much information can prevent you from giving your team the information they need to help achieve financial objectives. There are more advantages to financial transparency than you might think. 

It develops trust between you and your employees

Financial transparency between you and your employees will make them feel valued in the business. If you can trust them with important information like the business accounts, they’ll appreciate that respect. 

It can really help to boost job satisfaction. Where trust is given, trust will often be returned. You’ll develop a stronger relationship with your employees, which helps to maintain morale, as well as reduce staff turnover.

Being open and honest with your employees also minimises the risk of gossip and misinformation. You don’t want employees, or even clients, to get the wrong picture. It could lead to damaged reputation, not to mention mistakes and inaccuracies in your accounts management. 

At the end of the day, honesty is always the best policy. And the same goes for your financial transparency.

Employees gain a better understanding of your business

If you want your employees to improve and develop, they can’t do that in the dark. Financial transparency helps employees track their goals and manage profitability.  If they have a better awareness of the big picture, they can set more specific goals that aim towards the company’s overall success. 

It also takes the pressure off you as a business owner to do all the work, giving you space to focus on other aspects of the business. In more ways than one, it’s a win-win for everybody.  

It boosts morale and empowers the team

Developing trust and including your employees in the bigger picture is a great morale booster. Giving them these opportunities empowers them to aim higher, develop and progress. It boosts confidence.

If everyone is on the same page, you’ll also open more opportunities for collaboration. Sometimes, the best ideas come from where you least expect them. The more open you are with your staff, the more space there will be for those ideas to grow and be nurtured.

Not to mention, you’ll also be improving employees’ financial literacy, equipping them with valuable skills they can use in their personal and professional lives.

Ultimately, a happy team makes for better productivity, efficiency and job satisfaction. As an employer, you want your employees to feel valued. By sharing and involving them in aspects of the business, like the accounts, you’re giving them opportunities to show their potential and feel a part of the team.

Financial transparency is important, but it’s no good if your accounts aren’t organised and up-to-date. Your employees need a clear, accurate picture. If you need advice with your accounts management, or you’re looking for outsourced bookkeeping services, Numero is here to help. Get in touch with us today to find out more about working with us.