Transparency in Financial Reporting

I still remember the moment I read GiveDirectly's blog post openly admitting they'd been defrauded by members of their team in Uganda. 🤯 Most organizations would bury this information. They highlighted it. They shared exactly what happened, their investigation process, and the changes they made to prevent future errors. Instead of hiding their mistake, they leaned into transparency. Studies consistently show that strategic vulnerability builds more trust than projecting perfection. We're wired to trust people and organizations that show their humanity. We all instinctively know that nothing is perfect. The key is giving your flaws the right context. Pair it with a strength - what will you learn? Where will you go from here? 🔑 Effective transparency looks like: → Sharing real-time impact alongside setbacks → Revealing your finances in digestible ways → Creating spaces for honest conversations with stakeholders → Publishing external reviews (even mixed ones) → Empowering beneficiaries to tell their unfiltered stories In the nonprofit world, where donor skepticism runs high, authenticity is your most powerful asset. So, how is GiveDirectly doing in the decade since revealing this setback? Find out on the fully transparent financials page of their website: https://lnkd.in/emVYqvsR

I thought sharing the company’s cash flow showed transparency, until my team said it felt like watching their parents panic about money. In 2023, like many tech companies, we faced tough financial decisions. I believed the best way to build trust during uncertainty was to put everything on the table. During town halls, I openly shared balance sheets, cash flow, and even our exact bank balances. After one meeting, a respected colleague approached me privately and said, “Janine, I appreciate what you're trying to do, but this is too much information. I don’t need to see every detail—it just makes me anxious.” That feedback completely shifted my thinking. Transparency is essential, but it isn’t about showing every detail. It's about carefully choosing what to share, ensuring your team feels informed and empowered, not overwhelmed. Think of how parents handle tough financial times: They acknowledge challenges honestly, but don’t burden their kids with specifics beyond their control. They create stability and confidence, even if they're still figuring things out behind the scenes. As leaders, our role is similar: • Be honest about challenges without oversharing details that don’t help. • Provide context that's actionable and relevant. • Filter out information that causes unnecessary anxiety or confusion. • Communicate clearly and confidently about the path ahead. Trust isn't built by revealing everything. It's built through steady guidance, thoughtful transparency, and consistently keeping your word. I learned that the most effective transparency isn't about how much information you share, but choosing the right information to help your team move forward confidently. I'd welcome hearing from others who've navigated this balance between transparency and over-sharing.

"You want to be the best, but say detailed reporting is a hassle?" Who cares? With or without you, someone’s company will get funded, and someone’s valuation will soar. The only question is—will it be yours?"   Before you roll your eyes, I’ve been there—running multiple startups, burning out, and avoiding transparency early because it felt like a distraction.  Spoiler: It wasn’t.  Investors? They don't just bet on the idea—they bet on how WELL you can account for the journey. If they see sloppy reporting, red flags start waving, and so does their confidence in your company’s valuation.   Transparency isn’t just a dull box to tick—it’s the trust currency that drives higher valuations and long-term partnerships.   📊Here’s How to Make It Happen: 1️⃣ Clean Books, No Surprises Messy financials are like bad training habits. Investors hate surprises. Clean and accurate reports signal that you know exactly where every dollar is going.   2️⃣ Regular Reporting = Confidence Quarterly updates show consistency—just like showing up to the gym every day. Trust builds with every check-in, even when numbers aren’t perfect. It’s the patterns that matter. 3️⃣ Proactive Disclosure = Stronger Valuation When you share potential risks upfront, investors feel reassured. Better to hear it from you first than to discover it down the road. 4️⃣ Detailed Forecasts = Long-Term Trust Investors care about your future as much as your past. Show them how cash flow will move through your business—not just now, but 6, 12, 24 months from today. That’s how you get them excited about your next round.   Trust and transparency aren’t the "sexy" part of running a startup, but they’re exactly what separates the top tier from the rest.   Look, raising capital is hard, but so is building a company that lasts. The key to doing both? Consistent, transparent reporting that makes investors want to bet on you.

How I helped a client go from “uncreditworthy” to getting a $2,000,000 loan: Last year my team and I worked with an 8-figure manufacturing client. They were doing cash-based accounting. So they would have months where they lost $500,000 and then the next month they would make $500,000. Their gross margin would be negative one month and the next month it would be 98%. Really inconsistent. This made their financial statements completely useless. With our help, they were able to get a $2 million loan with no personal guarantee attached to it. They would have never had that opportunity if we hadn't done all that work on his books. No one would lend you money if your books show that you may lose half a million dollars the next month. Now all their business looks consistent. These are 3 main changes we made: 1. 𝗧𝗿𝗮𝗻𝘀𝗶𝘁𝗶𝗼𝗻𝗲𝗱 𝗳𝗿𝗼𝗺 𝗰𝗮𝘀𝗵 𝗯𝗮𝘀𝗶𝘀 𝘁𝗼 𝗮𝗰𝗰𝗿𝘂𝗮𝗹 𝗯𝗮𝘀𝗶𝘀. The main change we made was switching from cash to accrual. This change provided a more accurate reflection of the company's financial health. Smoothing out the extreme fluctuations. It made everything more consistent. 2. 𝗜𝗺𝗽𝗹𝗲𝗺𝗲𝗻𝘁𝗲𝗱 𝗮𝗻 𝗶𝗻𝘃𝗲𝗻𝘁𝗼𝗿𝘆 𝗺𝗮𝗻𝗮𝗴𝗲𝗺𝗲𝗻𝘁 𝗽𝗿𝗼𝗰𝗲𝘀𝘀. Then we put in place a real process for inventory management. So that they know: • When to buy inventory • When NOT to buy inventory • When they had too much inventory No more guessing games, impulse buys, and unnecessary costs. 3. 𝗖𝗿𝗲𝗮𝘁𝗲𝗱 𝗺𝗼𝗿𝗲 𝘁𝗿𝗮𝗻𝘀𝗽𝗮𝗿𝗲𝗻𝗰𝘆. Transparency is the cornerstone of trust. The people that don't want to show the books to their team are the ones that are underpaying them. We wanted to build more transparency for his leadership team. We opened the curtains wide: • Full P&L • Net Income • Credit cards • Cash accounts • Full balance sheet The whole shebang. This helped build trust with the team and enhance accountability. After working with 75+ clients, I've found that the companies that have had the most value from our CFO engagement have been manufacturing clients. And these 3 are the most impactful changes we've made in most cases. If you’d like me to take look at your business finances, DM me.

When a major brand collapses, it doesn’t just disrupt markets; it jolts every CFO who’s responsible for safeguarding liquidity and trust. That’s where I started my conversation with Andy Lee from SAP Taulia. In the wake of the First Brands Group, LLC situation, we explored how finance leaders can build real confidence in their financing strategies and, more importantly, prove it to their partners. What stood out was how the definition of “confidence” has changed. It’s no longer about relationships or reassurance; it’s about transparency. Financial institutions are looking past presentations and into data. They want to see systems that can validate what the business claims, in real time. In today’s environment, CFOs who can demonstrate that level of clarity through automation, clean reporting, and verified information are the ones still earning trust when others lose it. How are you proving reliability to your lenders and investors right now? Because confidence isn’t built in a boardroom anymore; it’s built in your data. P.S. This conversation comes from a 10-minute interview on Liquidity, Trust & Automation, exploring how finance leaders can strengthen credibility through transparency.

I am excited to share the findings of the World Bank's recent report on state-owned enterprise (SOE) governance practices in the Middle East and North Africa (MENA) region. The report highlights the importance of good governance in driving successful and sustainable SOE reforms. One key takeaway is the significant participation of SOEs in the MENA region's economy, with assets representing a substantial percentage of GDP in countries like Egypt, Jordan, Morocco, and Tunisia. The report emphasizes the importance of clear and transparent ownership policies guiding countries’ ownership and management of SOEs, including by establishing centralized ownership entities or coordinating bodies. Transparency and disclosure are identified as critical areas for improvement, with many SOEs in the region lacking in timely and complete financial reporting. The report suggests that adopting international financial reporting standards (IFRS) and enhancing disclosure practices, including by publishing aggregate reports of the full SOE portfolio, can enhance accountability and decision-making. However, the report also emphasizes the need for comprehensive reforms beyond governance, including fiscal, competition, and environmental policies, to maximize the benefits of SOE reform programs. Another important aspect highlighted in the report is the emerging focus on climate change reporting and ESG issues in SOEs. While progress is still nascent in this area, there is a growing recognition of the need for SOEs to integrate sustainability into their operations and governance practices. Overall, the report provides valuable insights into the challenges and opportunities for SOE governance in the MENA region. It calls for stronger transparency, improved financial reporting, and greater attention to climate change and ESG issues. These recommendations can help drive economic dynamism, growth, and job creation in the region. #SOEgovernance #MENAregion #WorldBank #economicreforms #transparency #sustainability #ESG #climatechange #financialreporting The link to the report is here: https://lnkd.in/dC9AYiRy