Why Financial Communication is a Key Skill for Professional Development

Talking about company finances isn’t everyone’s cup of tea. To some graduates, it's a skill that comes naturally. For others, it's more of an uphill struggle. But whatever position you’re in, being able to talk about financial ideas is key for your future career development.

At this point, you might be thinking “I don’t want to work in finance, does this really apply to me?” The answer is yes. Whether you want to work in HR or IT, financial communication is an essential skill.

But why is financial communication so important? More significantly, how can it advance your future career prospects? Let’s find out.

The importance of financial communication in professional settings

Financial communication helps organisations function properly. It enables companies to keep tabs on their financial health. They can spot money-saving opportunities, identify risks, and plan future growth.

Of course, as mentioned, financial communication doesn’t just apply to the finance department. The ability to communicate finances can help your employer in lots of ways. That’s why many organisations seek to build an environment where financial ideas are exchanged from top to bottom.

Imagine, for example, that you’ve been tasked with leading a new IT project. To remain within budget, your teams must have an understanding of how spending decisions impact company finances. Effective financial communication is the only way to achieve this.

But strong financial communication doesn’t arrive overnight. It’s a skill that’s developed through experience and commitment.

Whether you want to work in a large enterprise or a small company, this can be an essential skill. You’ll find yourself ahead of the curve compared to other applicants. If you’re already employed, you’ll open the door to career progression and development opportunities.

Benefits of effective financial communication

So, there’s no denying that financial communication is a key part of professional development. Let’s explore why, whether you’re a graduate or in between careers, financial communication can help you.

Power organisational growth

Developing your financial communication skills will mean that you're not only able to navigate financial processes, such as creating quarterly reports or invoices, but that you'll also be able to use your knowledge to develop your organisation.

For example, you should be able to present your financial quarterly reports in an accessible way, with clear action points or advice. Alternatively, you can push for changes like upgrading from manual invoices to the use of invoice software, helping to make processes more efficient, save time, and improve client communication.

Remain compliant

Staying within the bounds of financial regulations is a major priority for employers. But with more and more legislation arriving, this task becomes more difficult. That’s why compliance is an issue that most employers want graduates to know about.

A key part of financial communication is keeping up-to-date with the latest regulations. You’ll be able to recognise and convey when certain actions might jeopardise company compliance. This skill won’t be overlooked by your employers. They’re more likely to see you as an employee they can trust, and view you as a prime candidate for promotions.

Keep everyone on the same page

Financial communication is all about, you guessed it, communication. Strong dialogue should be at the heart of every business. It keeps projects moving and guarantees smooth collaboration. Most importantly, with everyone on the same page, there is less risk of costly mistakes. Communication helps to make sure that all colleagues work towards the same financial goals.

Ultimately, employers look for team members who can share ideas clearly. By focusing on financial communication, you’ll make yourself a more attractive proposition to recruiters.

Speedier decision making

Without clarity, making spending-related decisions takes much longer. There’ll be lengthy discussions while you justify the need for company funds. Stakeholders will need to ask additional questions to better understand your proposals.

If you can communicate financial ideas effectively, though, team members will have a much clearer idea of your project. You can get the ball rolling more quickly, speeding up project and company growth.

Improves customer trust

With scandals frequently making the news, many businesses are taking steps toward greater financial transparency. This might involve placing financial reports on company websites or posting statements from financial directors.

Equally, many organisations are focusing on one-to-one communication with customers. When customer-facing team members talk to clients, they should be able to clearly explain the payment process. Employers are more interested in employing staff with the “gift of the gab”. Financial communication acts as proof of your ability to connect with customers and increases your graduate employability.

Developing financial communication skills

As mentioned, financial communication is a skill that is honed over time. But what steps can you take to improve your communication? We’ve listed some examples below.

• Cut the jargon - Financial communication isn’t about confusing co-workers and customers. Instead of opting for a blizzard of statistics and technical terms, think about how you can convey messages in simple terms.
• Seek training - Training can build on skills gained as a graduate, as well as provide expert insights. There are courses available specifically for communicating financial information. Speak with your employer to see whether this form of training is available.
• Practise active listening - Remember, communication isn’t just about talking. Active listening involves showing an interest in what another person is saying. Make sure you always maintain eye contact and a steady flow of dialogue when sharing financial ideas.
• Improve presentations - Sometimes, you’ll be required to share financial information on a wider scale. Consider how you can improve your presentations to share concepts more easily. For example, you might include more visuals or real-life examples.

4 Practical applications of financial communication skills

We’ve established that financial communication is useful for graduates. But how can you apply this skill to your future work life? Here are four practical ways to utilise financial communication.

1. Staying up-to-date with financial updates and reports

The only way to steadily improve your financial communication over time is through learning. So, take careful note of financial updates and reports from your employer. What lessons can be learned from the data? How can they be applied to your area of expertise? Use this information to improve your work and further company growth.

Showing an interest in company finances will send positive signals to managers. By sharing frequent valuable insights, you can become the go-to source for information. And, of course, the more you stand out as an employee, the greater the chances of career advancement.

2. Creating and delivering a professional business plan

Not everyone will go down the route of traditional employment after graduation. Instead, you might opt to start your own business. For this, you’ll need to prepare a detailed business plan. This is a fantastic opportunity to put your financial communication skills to work. You can clearly outline your vision for your business, including the length of time before you can make a profit, and the steps you’re taking to mitigate any financial risks.

Choosing the right tools will give you a huge boost when starting your own business. Self employed bookkeeping software provides easy access to business finances and key insights, helping to create a more detailed business plan. All this will help you to communicate more clearly with investors.

With the right business plan, you’ll provide greater confidence in your investors as well as your team.

3. Job interviews and networking

First impressions are everything in job interviews. Within a few moments, an interviewer will form an opinion of an applicant. You’ll quickly get ahead of other candidates if you can convey ideas effectively.

You can use your financial communication skills to impress recruiters in a range of ways. You might talk about your knowledge of finance regulations and the importance of compliance. Or, you might mention your ability to instil trust in customers by clearly explaining payment processes.

Prior to interviews, networking can also be a fantastic way of getting your foot in the door. Think about how you can impress potential employers on professional networks. Why not write blogs showcasing your financial knowledge?

4. Communicating financial information effectively to different audiences

A key part of financial communication is adaptability. You should be able to alter the technicality of your language alongside your audience. For example, if you’re talking to the finance team, it makes sense to use more technical language. The same can’t be said, though, if you’re speaking with a customer.

Whether through visualisations or sharing technical reports, always think about the best way to convey messages to individual audiences. Demonstrating your adaptability will prove that you’re a versatile team member to employers.

Final thoughts

Hopefully, by now, you realise the importance of financial communication. This isn’t a skill reserved just for finance experts. It’s an ability that will help graduates’ careers universally, regardless of their department.

As we’ve reflected, there’s a whole host of benefits associated with financial communication. Improved customer trust, guaranteeing compliance, and boosting growth are just a few examples of the advantages of growing this skill.

But, as we’ve also explained, it's an ability that takes time for employees to develop. Discussing finance and numbers doesn’t come naturally to everyone. What we can guarantee, though, is that putting in a little effort now will pay dividends in the long run.

So, why not give rocket boosters to your professional development? Start building your financial communication skills.