How communications plays a role in end-of-financial year preparation

As we rapidly approach the end of the financial year here in Australia, businesses everywhere are gearing up for one of the busiest periods on their calendar. From finalising annual reports to planning Annual General Meetings (AGMs), the finance and investor relations teams are hard at work. However, it's not just the finance folks who are up to their eyeballs in spreadsheets and audit reports—communication teams also play a pivotal role in ensuring a smooth and effective end-of-year wrap-up and we’ve got the lowdown on how to navigate it.

1. Balance your shareholders with the public perception

Publicly listed companies often prioritise the sentiments of their shareholders when they start to communicate end-of-year results… and we can’t blame them because shareholder confidence is directly tied to the company's share price, alongside its overall viability. However, with the rise of media (and social media - think Tik Tok!) and openly available public opinion, it's becoming more important than ever to try and balance the public’s consensus with shareholders’ sentiment.

For example, yes, it’s important to highlight strong financial performance - but it’s become equally as important that companies become mindful of the broader context, such as a cost-of-living crisis. Celebrating profits without acknowledging the challenges faced by the general public can backfire, potentially harming the company's reputation and bottom line. 

2. Employees first… the rest after

It’s no secret that internal communication is just as important as external messaging. Employees can be the company's greatest advocates or its harshest critics, so it's a good idea to keep them informed and engaged - BEFORE the rest.

For publicly listed companies, legal constraints mean employees often find out results after the public release. However, in private companies, there's more flexibility to brief employees beforehand. Regardless of timing, the messaging should always be tailored to acknowledge their contributions and address any concerns they may have.

3. Don’t skip your leaders

Leaders are the face of the company both internally and externally, and how they present the end-of-year results can make or break a company’s communication of their results… alongside significantly impacting the company’s reputation. Make sure you’ve prepared your leaders as best you can with FAQs, tough questions and tailored materials.

4. Don’t be boring - get creative!

Don’t lie, we know that financial results can be as interesting as reading the back of a cereal box when it comes to the nitty gritty. Try to make your results memorable by thinking outside the box and use storytelling to illustrate achievements and progress. You can incorporate visuals, different media platforms, interactive elements and more. 

5. Cut to the chase

One of the core skills for communicators is the ability to translate complex financial data into understandable and meaningful information for a broad audience. You need to be able to tell the audience the same story the finance pros heard, but in a way your audience will understand.

To do this, avoid jargon and explain financial terms in plain English while using simple, clear graphics to convey any key points. Also, make sure your message is relevant by providing context. For example, rather than simply saying, “we hit our goal of a 60% increase in sales,” you could say: “We hit our goal of a 60% increase in sales, compared to last year where an increase of only 30% was achieved.” Go one step further and reframe your data to make it meaningful to your audience - for example, how many of each product did you sell to result in that 30% increase?

When we put all of these tips together, you’ll achieve a significantly higher cut-through in your messaging, alongside effective understanding with your stakeholders - both of which are essential to navigating this busy period successfully.