Financial transparency refers to the openness and clarity with which an organization shares its financial information. This includes details about income, expenses, and financial decisions, allowing stakeholders to understand how funds are managed. By being transparent, organizations can build trust with investors, employees, and the public. In practice, financial transparency often involves regular reporting and disclosure of financial statements, budgets, and audits. Tools like financial reports and annual audits help ensure that all relevant information is accessible and understandable. This practice is essential for promoting accountability and preventing fraud within organizations.