Open Book Sharing: Best Way to Help Your Team Members Understand Finances

Most team members don’t have a clear picture of what it takes to keep an organization running. They may not realize the full scope of expenses or how they personally contribute to the financial health of the business. This lack of awareness can create misunderstandings about budgets, raises, new hires, or equipment upgrades.

To bridge this gap, try this powerful, hands-on exercise that visually breaks down your company’s finances in a way that’s easy to understand.

How to Show Your Team Where the Money Goes

1. Schedule an All-Team Meeting
   Gather everyone together, either in person or virtually, to walk through the financial breakdown.
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2. Get 100 One-Dollar Bills
   These will serve as a tangible way to demonstrate how revenue is allocated. If meeting virtually, use a digital representation of $100.
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3. Prepare a Visual Breakdown
   On a flip chart or virtual whiteboard, illustrate two key things:
   • Where the $100 comes from – Break down revenue streams by percentage.
   • Where the $100 goes – Show expenses as percentages based on your Profit & Loss statement.
4. Walk Through Revenue First
   Explain how money flows into the organization. For example:
   • "$X comes from Service A."
   • "$X comes from Product B."
   • Continue until you account for the full $100.
5. Distribute the Dollars to Represent Expenses
   Assign team members to represent various expense categories and hand them the corresponding amount of cash:
   • "Paul, you represent utilities—here’s $X."
   • "Marika, you represent insurance—here’s $X."
   • "Miguel, you represent marketing—here’s $X."
   • Finally, payroll: "Anne, you represent payroll and benefits—here’s $X."
   (Pro tip: Include owner compensation within payroll for transparency.)
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6. Reveal the Remaining Profit
   Once all expenses have been handed out, show the team how much profit is left. Explain that this isn’t just extra cash—it must cover debt repayment, savings, and reinvestment in the business. This is where funds for raises, bonuses, new hires, and equipment upgrades come from.
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7. Empower Your Team to Contribute
   Help your team understand:
   • Which numbers they can directly impact through their efforts to increase revenue or cut costs.
   • Which expenses are fixed and beyond their control.
   • Which products or services are "cash cows" versus "loss leaders," providing insight into strategic business decisions.

Why This Works

This exercise is eye-opening for team members, helping them see that leadership isn’t just pocketing leftover money after payroll. It builds trust, fosters financial awareness, and creates more compassion when budget limitations arise. Plus, it empowers team members to take ownership of their role in the organization’s success.

By making financial transparency a regular part of your culture, you create a stronger, more engaged team that understands how their efforts contribute to the bigger picture.

Pro-Tip: Make sure you share why the money matters.

Here's to deepening the culture pillar of Included by sharing the financials!