The whole world is talking about data right now. Data is not new to accounting, but what you do with it is a hot topic. The question many ask as they look to be more advisory is how to present financial information to clients without their eyes glazing over.
Even the best accountants and advisors can get lost in the numbers, which obviously don’t mean anything if the customer doesn’t understand them. Whether you’re talking to one person or a board of directors, you want to bring your facts and figures to life.
But first, why?
It’s a simple question, but also a loaded one. There are still accountants who don’t feel like they need to be effective communicators, believe it or not. But technology has sort of caught up to all the number-crunching. Today, we no longer need to be the best at inputting or charting the numbers, we need to be better communicators.
“Most accountants don’t realize that they are speaking a foreign language and that foreign language is accounting,” said Peter Margarits,
No wonder other people don’t find data as exciting as we do!
Keep it simple, stupid
Accountants can get stuck in their technical jargon easily because it’s where we live each and every day. We’re talking to our team and they get it. So it’s easy to forget that our business owners can look like a deer in the headlights. We need to make it simpler.
“We as accountants ... love to give them everything we think they want and then more. And I challenge accountants to think like Lincoln,” Margaritis said.
Remember how the Gettysburg address was so memorable but only about five minutes long? There was a guy who spoke before Lincoln that day — for two hours, Margaritis shared. No one really remembers that part.
“What information does your client need? Get out from behind your desk and find the story in the numbers,” he said.
Now, if you’re saying to yourself, “But Jody, we don’t have the full story because we only see the financial statement” — that’s true. So flip the conversation as if you’re a three-year-old. Margaritis shares the following sample questions:
- “Why?”
- “Why did this happen?”
- Can you tell me more?”
- “Why did this number change so dramatically from last period?”
- “What happened within the business?”
Find the story behind the numbers by developing that client relationship. It will come over time but be ready to push a little when you need to. Even if the client seems to be getting a little defensive, Margaritis suggests reminding yourself to dig deeper because something’s there.
And this approach is more consultative than simply delivering the financial statement, which is where we want to evolve as a profession anyway.
How do I get comfortable?
Many accountants don’t consider themselves extroverted enough to be comfortable asking all sorts of questions of their clients. How to become comfortable having these types of conversations begins with getting out of that comfort zone, Margaritis said. Begin to accept failure, because you will probably say something wrong at some point.
“Overprepare,” he said. “And when we walk into a room, we throw that script away and we go off script because we’re trying to engage with the audience and have this conversation.”
He likened it to improv comedy, but that does take time, practice and effort. Don’t be discouraged.
Let’s have that conversation now
Now that you’ve overprepared, you totally rock the conversation with your client. It’s time to go back into your firm and present to your colleagues or the partner group. So many people are afraid of public speaking, but it’s necessary to move up within a firm.
Margaritis said to think of these internal firm-facing presentations as just another conversation. Because really, the conversation with the client was a presentation, just not how we’re normally used to thinking about it. Work on developing the presence of mind to free yourself, open up to questions and react to conversations and whatever else is thrown at you.
And “Don’t forget to breathe,” he said. “I know it sounds kind of weird, but we panic. We become shallow breathers.”
What happens next is that basically you’re restricting oxygen to your brain, and that causes you to fumble your words.
Anyone currently uncomfortable telling stories with numbers and presenting to a group or to a client should be careful not to “eat the whole elephant,” Margaritis advises.
“Pick one thing at a time for 30 to 60 days that we want to improve or start developing a habit. And then start working on another one and just continue to practice doing it every day,” he said.
Basically, do this until that one thing becomes part of your DNA. The process of including micro-habits in a daily routine is pretty similar to this.
It’s so important for accountants to continue to evolve so we can remain relevant in the future. The numbers will always be there. The stories can be harder to find but are much more valuable to our clients.
