Share financial data: a thoughtful choice, not a clear-cut answer.

TLDR:

• Firm leaders have to decide whether to share financial information with staff.
• Some benefits of transparency include increased engagement, setting expectations, developing trust, and keeping partners accountable.

When it comes to disclosing financial information, some firm leaders take an open-book approach while others believe the numbers are for partners’ eyes only. The middle ground involves balancing disclosure to motivate staff while protecting sensitive data. In the annual IPA Firm Administration Survey, responses varied on whether to share financial information such as net revenue, firmwide utilization, and net income with all staff. Transparency can lead to increased engagement, setting expectations, developing trust, and keeping partners accountable to firm goals. As part of a larger effort to educate staff about the business of running an accounting firm, some firm leaders believe that sharing financial information is essential to developing professionals with good business acumen.