A common question amongst business owners is “how much information should we share with the employees?”. In businesses with multiple principals, there is often disagreement about sharing the financial information. Some owners want to be transparent, so employees understand their decisions, but others are nervous that the information will be used against them. Transparency into the numbers can yield great results if it’s done correctly. Here are some tips for sharing financial results:

1) Never share information on payroll and benefits. It’s just not good sense to let everyone have this information. When you do share financial information, make sure this information is concealed. For example, if you only have one employee in sales and sales salary is on the income statement, you’ll want to consolidate that account with others to keep the information confidential.

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