At London Accountants, we’re often asked by small business owners whether they should share financial information with their teams. It’s a fair question – and one that doesn’t come with a one-size-fits-all answer.
Known as “open book management,” the practice of sharing company financials with employees is gaining traction among forward-thinking businesses. Done well, it can increase engagement, drive performance, and build a culture of trust. Done poorly, it can create confusion or expose your business to unnecessary risks.
So, is financial transparency right for your business? Here are a few things to consider.
Your Team Becomes Part of the Bigger Picture
When employees are given insight into key financial figures—such as turnover, profit margins, or projected sales—they begin to understand how their roles directly influence business performance. Their day-to-day tasks take on new meaning, especially when they can see a clear connection between effort and outcome.
This sense of ownership can lead to higher levels of motivation, teamwork, and accountability. Employees begin to think like stakeholders rather than simply staff members.
Example: If the business sets a target to improve cash flow or increase profit by a certain percentage, teams may feel more invested in helping make that happen—whether it’s through cost-saving initiatives, better customer service, or finding efficiencies in how they work.
A Boost for Collaboration and Innovation
Transparency often fosters better communication across departments. With more understanding of the bigger financial picture, employees are more likely to engage in creative problem-solving and joint initiatives.
When everyone is pulling in the same direction—and knows why—you create a unified culture where ideas are shared and contributions are valued.
An Opportunity to Build Financial Literacy
Some business owners worry that sharing financials might confuse or overwhelm their teams. And it’s true—terms like EBITDA, net margin, or accruals aren’t always easy to digest.
But this also presents an opportunity. With a bit of training and explanation, you can empower your staff with a better understanding of how the business operates. This is especially valuable for those being considered for management roles or additional responsibilities. Financially literate employees are more confident, more capable, and better decision-makers.
Final Thoughts
Every business is different. But when handled carefully, financial transparency can be a powerful way to build loyalty, boost morale, and align your team around shared goals.
The key is to strike the right balance: share information that’s relevant and useful without overloading your team with unnecessary detail. And if you decide to open the books, be prepared to support your employees with the context they need to truly understand the numbers.
At London Accountants, we help business owners put the right systems in place to improve financial clarity and drive smart decision-making—both at the leadership level and across the wider team.
Considering more transparency in your business? We’d be happy to discuss how to do it in a way that works for you. Get in touch to arrange a chat.
e: info@londonaccountants.co t: 0203 137 9791
Kind Regards,
The Team at London Accountants
