Company Financials – When and What to Share?

At QBS we place a great deal of value on integrity. We believe that honesty and candidness with our employees and clients are key to maintaining relationships built on trust. So, when it comes to sharing company financials, how much should you share with your internal team? It’s an important question. And, truth be told, the answer will shift over the life of an organization.

New Company = New Hires + New Investors
In the early years of your company, there’s a good chance that you will need to be more forthcoming with detailed financial information as you try to recruit new employees and secure investors. Depending on your industry, new hires could also be an avenue to grow capital – a potential win-win where these employees gain a sense of ownership and responsibility in the continued success of the organization.

Middle Years: A Growing Organization
As your company grows, however, it does make sense to disclose less detailed information. But do this gradually. A quick switch in your level of sharing could create an atmosphere or distrust or even make folks fearful for the jobs.

The Big Leagues: You Made it to IPO
If your organization decides to go public, your employees will then have to wait to get financial information at the same time as everyone else to avoid any risks of insider trading. Compensate by being more open on other areas of the business including growth initiatives and new products. When your company is large, or if it spans a large geographic area, over communication can actually be a good thing – ensuring you keep everyone on the same page and maintain a united feeling among employees near and far.

No matter what stage of life your organization is in, the most important thing to remember is that communication up and down the company ladder is extremely important. Employees want to feel trusted, informed and confident in the future success of the organization.