Open book sharing: The 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—as well as a sense of unfairness or entitlement in compensation.
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—and begins building a culture of financial transparency.
How to show your team where the money goes
Schedule an all-team meeting
Bring everyone together, either in person or virtually, to walk through the financial breakdown.
Get 100 one-dollar bills
These will serve as a tangible way to demonstrate how revenue is allocated. If you're meeting virtually, use a simple digital visual—just make sure it’s clear and interactive.
Prepare a visual breakdown
Use a flip chart, slide deck, or virtual whiteboard to illustrate two key things:
- Where the $100 comes from – Break down revenue streams by percentage.
- Where the $100 goes – Show expenses as percentages based on your most recent Profit & Loss statement.
Walk through revenue first
Break down where the money comes from:
“$X comes from Service A.”
“$X comes from Product B.”
Continue until you’ve accounted for the full $100.
Distribute the dollars to represent expenses
Assign team members to represent different expense categories and physically (or visually) give them the appropriate share of cash:
“Paul, you represent utilities—here’s $X.”
“Marika, you represent insurance—here’s $X.”
“Miguel, you represent marketing—here’s $X.”
“Anne, you represent payroll and benefits—here’s $X.”
Pro tip: Include owner compensation within payroll for true financial transparency. You don't have to call it out specifically; just include it in the final % of payroll when you're calculating.
Reveal the remaining profit
After all expenses are distributed, show what’s left. Then explain:
This leftover isn’t just bonus cash—it’s what covers debt repayment, savings, reinvestment, raises, new hires, bonuses, and more.
Framing it this way helps your team see the bigger picture—and why financial decisions aren’t always as simple as they may seem.
Empower your team to contribute
Use this moment to help your team understand:
- Which numbers they can directly influence through increasing revenue or cutting costs (even on simple things)
- Which expenses are fixed and non-negotiable
- Which products or services are “cash cows” vs. “loss leaders”—and why both may be part of your strategy
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.
When people understand the finances, they’re better equipped to work with them—not against them.
Pro tip: Wrap up by reinforcing why the money matters.
Here's to building a culture of financial transparency
When you make financial transparency a consistent part of how you lead, you build trust, clarity, and a stronger, more aligned team. And when people understand how they fit into the financial story, they show up with more intention, energy, and ownership.
Does your team need more than just financial transparency?
