Posted by Mary Milorrie Campos
Aug 23, 2021
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So, you’re excellent with numbers and strategic thinking? Chances are these skills aren’t enough to turn you into a sought-after chief financial officer (CFO). Today, companies need finance leaders who can deliver complex data in an easy-to-understand way to various stakeholders — even to those with little background in finance.
Read: CFO Skills and Abilities: Essential Skills The Modern CFO Should Have
On top of your skill sets in finance and accounting, it’s also important to develop good communication skills. These “soft skills” might seem secondary compared to your technical expertise, but they can make a big difference in how effectively you perform your growing list of responsibilities.
According to Deloitte’s inaugural Asia Pacific Survey of CFOs, on average, 77% of surveyed CFOs in the Asia-Pacific region reported that their responsibilities particularly the expectations from the C-suite have broadened slightly to significantly over the past two years.
This shift shows that modern CFOs are now expected to be more than just experts in numbers. They need to be communicators, collaborators, and strategic partners who can turn financial insights into clear and meaningful business decisions.
In this comprehensive guide, we’ll explore:
a. Why CFOs should improve their communication skills
b. The biggest misconceptions CFOs have about communication
c. How CFOs can use storytelling and data visualization to drive clarity and alignment
d. How communication shapes strategic partnerships
Why CFOs Should Improve Their Communication Skills
Below are some of the reasons why you should improve your communication skills as CFO:
1. Your role is transforming
As a modern CFO, you’re probably taking on bigger responsibilities than before. You’re no longer limited to finance and accounting roles. Instead, you may find yourself:
- Spending more time working alongside the C-suite to drive strategic planning and growth
- Collaborating across departments to align business goals
- Communicating with clients, investors, and key partners
- Leading and nurturing strong relationships to finance teams, so they can connect the dots between data, financial strategy, and business outcomes.
With your role now extending beyond traditional finance, communication has become one of your most valuable leadership skills. You’re expected to deliver insights that influence direction, explain financial impacts in ways others can act on, and ensure that every stakeholder, from the boardroom to frontline team members understands what the numbers really mean.
And to do that competently, you need to effectively communicate complex information in a clear, relatable, and inspiring way. When you speak with clarity and confidence:
- Stakeholders trust your recommendations
- Teams understand the “why” behind financial decisions
- The organization moves on the same wavelength, faster and with fewer misunderstandings
Strong communication doesn’t replace your technical skills. It amplifies them. It’s what turns your insights into action and your data into decisions that drive real growth.
2. Helping stakeholders understand complex data
Understanding complex data is far different from explaining them to another person, especially to those who don’t have finance backgrounds. Sad to say, this is where most CFOs fall short.
Many finance leaders can interpret data with ease but struggle to communicate what those numbers actually mean for the business. The result? Missed opportunities, confusion among decision-makers, and slower execution of key initiatives.
As a modern CFO, your ability to translate numbers into narratives is just as important as your ability to analyze them. You need to present data in ways that help others understand why it matters and what actions to take next.
Here are a few ways to bridge that communication gap:
- Simplify without oversimplifying. Avoid technical jargon that could lose your audience, but don’t remove the substance. Focus on the story the data is telling.
- Use storytelling techniques. Frame your financial findings around the beginning, middle, and end — the challenge, insight, and solution. People remember stories, not spreadsheets.
- Leverage data visualization. Use charts, dashboards, and infographics to make trends and relationships easier to grasp at a glance.
- Tailor your message to your audience. Board members might need high-level insights and forecasts, while department heads may prefer specific operational implications.
This approach allows you to turn financial reports into actionable insights that drive collaboration and alignment. Instead of overwhelming your audience with figures, you’re guiding them toward understanding — and ultimately, toward better business outcomes.
When stakeholders clearly see the “why” behind the numbers, they don’t just understand your message; they act on it.
3. Improving communication skills is essential when negotiating
Transforming complex financial data into clear, useful insights isn’t just valuable for internal discussions — it’s also a game-changer when you’re negotiating deals.
Whether you’re closing partnerships, working with investors, or discussing terms with vendors, your ability to communicate financial implications well can determine the outcome of the negotiation.
Here’s how strong communication gives you an edge over your competitor:
a. You clarify the value behind the numbers.
Instead of just presenting the whole figures, you can explain how certain terms or decisions impact both your organization and the other party.
b. You build trust faster.
When people understand what’s at stake in plain language, they’re more likely to see you as a credible, transparent, and trustworthy partner.
c. You can influence outcomes.
By framing the data strategically, it can highlight opportunities, trade-offs, and long-term benefits, which is a win-win situation for you and the company.
d. You prevent misunderstandings in the long run.
Miscommunication often leads to delays or lost deals. Clear, confident explanations help everyone stay aligned with expectations.
4. Inspiring employees into action
The world is in the digital era now, and most organizations are using technology to their advantage — automating processes, improving efficiency, and transforming how they operate.
As a CFO, your role in this transformation is bigger than ever. You’re not just overseeing budgets or monitoring financial performance. You’re also helping shape how the organization adapts to change.
However, digital transformation often brings resistance. Employees may fear automation, new tools, or unfamiliar systems. This is where your communication skills become essential.
When you communicate effectively, you can:
a. Help teams understand the “why.”
Explaining the purpose and benefits behind the changes within the organization makes employees more open and motivated to adapt.
b. Simplify complex ideas.
Finance and technology can be an intimidating topic for some. However, clear communication helps your teams grasp how these innovations support the company’s goals.
c. Foster collaboration.
Transparent discussions, especially with senior managers, allow you to identify areas for improvement, highlight potential risks, and celebrate progress. This kind of open dialogue can encourage everyone to work toward the same vision.
d. Trust your leadership.
When you communicate with clarity and conviction, people within the organization can see you as a trusted leader that they can follow with confidence — even during uncertain times.
Being a great communicator allows you to lead not just through numbers, but through influence, trust, and shared purpose within the organization.
The Biggest Misconceptions CFOs Have About Communication
Now that we’ve talked about why communication is an essential skill for modern CFOs, it’s also important to recognize the common misconceptions that often hold finance leaders back from becoming better communicators.
Below are some of the most common myths about communication:
1. "Numbers speak for themselves"
While the accuracy of data is important, you must also note that numbers don't set up the direction — people do. Your job as CFO is not only to present data but to help others understand what those numbers mean for the organization.
When you translate complex financial information into clear insights, you empower stakeholders to make informed, strategic decisions.
2. “I only need to communicate with my finance team.”
As the CFO role continues to expand, communication now goes beyond your finance department. You’re expected to collaborate closely with the CEO, operations, HR, and other leaders to align the entire organization's goals with each department’s financial strategy.
This cross-functional collaboration helps create a shared understanding of the company’s priorities and ensures that every team’s actions are financially sound and strategically aligned.
3. “Soft skills can’t be developed.”
Some CFOs think communication and interpersonal skills are innate — you either have them or you don’t. The truth is, these are learned abilities that can be developed through continuous practice, feedback, and experience.
Just as you’ve honed your technical and analytical skill sets, you can also strengthen how you express ideas, listen actively, and engage others in meaningful conversations.
4. “Technical accuracy matters more than simplicity.”
Finance professionals often prefer to be precise and detailed — which is great when working within your team. But when you’re working with non-finance stakeholders, simplicity is key.
Simplifying your message doesn’t mean dumbing it down; it means making complex data easier to grasp so others can make smarter decisions faster.
By breaking these misconceptions, you position yourself not just as a finance leader but as a trusted communicator who can bridge the gap between numbers, people, and strategic partners.
Read next: Understanding the Value of Narrative in Business Intelligence
How CFOs Can Use Storytelling and Data Visualization to Drive Clarity and Alignment
As mentioned above, it’s not enough to just present spreadsheets or reports but it’s more about how well you can make others understand what that data means.
When you communicate data with context and purpose, you help everyone — from department heads to external stakeholders — see the story behind the numbers. This approach allows you to move from simply reporting performance to shaping strategic direction.
Here’s how you can use storytelling and data visualization to make your message clearer and more impactful:
a. Turn data into a story that resonates
Every number has a story — one that reveals performance, opportunities, or risks. Instead of presenting raw figures, frame your message around what the data means for the business. For instance:
- What’s driving this change in revenue or cash flow?
- How does this trend affect our long-term growth strategy?
- What actions can the team take to improve performance?
When you turn financial data into a story with a beginning (the context), middle (the insight), and end (the action), you make your message easier to remember and act upon.
b. Use visuals to simplify complex insights
Another you can do is to use charts, dashboards, and infographics so your message can be easier to grasp, especially for non-finance audiences. The goal isn’t to impress them with data density, but to make the key insights stand out. For example, make sure to:
- Choose the right visuals for the data (bar charts for comparisons, line charts for trends, pie charts for proportions).
- Limit visual clutter and be sure to highlight the most important figure.
- Use consistent colors and clear labels to guide your audience’s focus.
c. Focus on the “so what?”
Every time you present data, ask yourself: So what does this mean for the business? The best communicators don’t stop at presenting numbers — they translate them into actions and implications.
By highlighting what the data suggests and what decisions it supports, you give your audience the clarity and confidence they need to act on.
d. Turn data into decisions
Lastly, data alone doesn’t move people — relevance does. That’s why it’s important to tailor your message to what’s most relevant to your target audience. For executives, that might mean connecting numbers to strategic goals and growth opportunities. For employees, it could be about showing how financial results affect day-to-day operations or future stability.
Doing this means you’re not just presenting figures, but you’re also guiding people toward better decisions that support the company’s overall objectives.
You may also read: A CFO's Guide to Outsourcing Finance and Accounting Services
How Communication Shapes Strategic Partnerships
Having good communication skills isn’t just useful within the organization, it’s also essential for building better relationships with external partners such as vendors, investors, clients, and outsourcing partners. As finance chiefs and part of the top management, you represent the organization in key discussions that can influence its growth, sustainability, and reputation.
Whether you’re negotiating with suppliers, presenting performance updates to investors, or coordinating with outsourcing partners, your ability to communicate clearly helps build trust and alignment.
When communication is open and consistent, you can:
- Negotiate better terms by clearly articulating risks, benefits, and shared goals.
- Strengthen vendor relationships through open dialogue and fair, data-driven decisions.
- Build investor confidence by translating complex figures into clear, forward-looking insights.
- Strengthen partnerships by aligning financial goals with strategic objectives.
The bottom line
At the end of the day, being a great CFO isn’t just about mastering numbers — it’s about being flexible enough to adapt, connect, and communicate effectively with people across all levels of the organization.
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This post was first published on 23 August 2021 and updated on 17 December 2025 for relevancy and comprehensiveness.
Edited by: Angelica Garcia
