Publishing Financial Data in Annual Reports May Do More Harm Than Good

For many membership organisations, the annual report has become a routine fixture, a box to tick in the governance calendar. And within that box, one item is almost always included without question: a summary of the organisation’s financial accounts. Should it be?

In my view, publishing financial data in an association’s annual report, especially out of context, does more to mislead than to inform. It doesn’t foster accountability. It feeds speculation. And ultimately, it distracts from what truly matters: the association’s performance, value delivery, and strategic priorities.

Let me be clear. I’m not advocating for secrecy.

I’m not questioning the need for strong financial oversight or regulatory compliance. Associations have a duty to be transparent with their members and stakeholders; but transparency and disclosure are not the same as information overload or the public display of complex financial figures that lack explanation or context.

Numbers Without Narrative

The summary financial tables that often appear in annual reports (abridged balance sheets or profit-and-loss snapshots) are rarely meaningful to the average reader. Most members are not accountants. Most readers are not seeking to audit the association's books. And without supporting narrative, explanatory notes, or comparative analysis, these figures are wide open to misinterpretation.

A modest surplus can trigger grumbles about hoarding resources. A planned deficit, perhaps posted as part of a longer-term investment strategy, can be misread as fiscal mismanagement. A drop in income may say more about the economic climate than organisational performance. Yet published in isolation, these figures too often become lightning rods for gossip, confusion, or ill-informed commentary.

This isn’t transparency. It’s theatre.

Accountability Comes Through Governance, Not Glossy Reports

True accountability isn’t about data dumps, it’s about decision-making. It’s about members knowing that their organisation is well-led, well-governed, and acting in their interests. That confidence is earned through effective board oversight, robust audit processes, ethical leadership, and clear reporting to regulators, not through reproducing rows of figures in a glossy report.

In most jurisdictions, full financial statements are already lodged with regulators. They’re audited, reviewed, and available to any member or stakeholder who wants them. That’s the appropriate channel for detailed financial scrutiny, not the pages of a document that should be focusing on impact, delivery, and the organisation’s future.

So if not financial tables, what should be in an annual report?

Focus on What Matters Most

The annual report should be a story of the year, told in terms of purpose, impact, progress, and ambition. It should highlight the value the organisation delivered for its members, the strategic risks it navigated, and the opportunities it’s preparing for. It should reflect on lessons learned and share future priorities. There’s more value in a two-page reflection on how the association influenced public policy, supported members through a crisis, or improved professional standards than in a table showing last year’s depreciation costs or a swing in restricted funds.

That’s not to say financial stewardship shouldn’t be covered at all, but it can be summarised in a sentence, i.e., “The association remains solvent, with finances managed responsibly and in line with the strategic plan.” Add a note on audit outcomes, or an invitation to review the full accounts if desired, and move on.

Time to Reframe Our Reporting Culture

Associations often cling to the inclusion of financials in their reports out of habit, not need. In some cases, it’s done in the name of “transparency,” but this risks confusing transparency with exposure. Transparency means clear communication and responsible governance, not the unfiltered publication of technical data.

We must also recognise that publishing financial data invites performative scrutiny. Well-meaning members, absent context or explanation, may jump to conclusions. Opponents may cherry-pick figures to fuel criticism. In the end, the noise generated by these numbers drowns out the message the association actually wants to share.

We should be asking what information do members need to know to feel confident in the organisation’s direction, leadership, and performance. What helps stakeholders understand the difference the association makes? What builds trust in the long term? Those answers are not found in spreadsheets but in stories, strategies, testimonials, and outcomes.

A More Purposeful Alternative

So, let’s be bold. Let’s stop filling annual reports with numbers that mean little and invite misunderstanding. Instead, let’s use these reports to reaffirm the association’s mission, celebrate progress, and chart the path ahead.

Let’s put purpose at the centre of our reporting, and trust that financial responsibility, when properly overseen, does not need to be paraded to be proven.

After all, members don’t want data. They want direction. They want results. They want assurance. And that doesn’t come from a balance sheet, it comes from leadership.