Data visualizations is the new way of presentation for financial professionals, accountants, and business analysts. As technology continues to rapidly expand, data visualizations and story-telling have become invaluable resources for understanding financial information.
Unification and simplification of data
Data visualizations unify data that a business is using and enable stakeholders to easily see the key takeaways at a glance. Dashboards enable financial professionals to start their analysis with a consolidated view of the numbers and basic data analysis. The best way to ensure everyone is on the same page is to present data in a clear and concise format. Excelling in data analysis requires basic knowledge of the tools and techniques available, but the most essential features are preparing a well visualized dashboard, using filters, and identifying what information is and isn’t important. There is a fine balance between providing enough detail and keeping the presentation simple. Too much information can clutter the dashboard, making it difficult for the audience to glean the most important points.
Tools for data visualization
With the proliferation of business intelligence tools, power pivot, and Excel graphs, accountants are now able to create meaningful visualizations with less effort. Knowing the principles of data visualization, such as less is more and simplification, accountants can create powerful visualizations that easily convey complex ideas in a few seconds. Accountants also have the ability to create customized visualizations tailored to their business needs, such as bar charts, heat maps, waterfall charts, line charts, variance charts, pie charts, and pareto charts.
Providing clarity and depth to financial information
Data visualization can also be extremely useful in providing clarity and depth to financial information. Visual representations of data allow accounts and finance professionals to easily view trends, anomalies, and outliers. This can help them identify areas of improvement and understand the impact of their decisions with greater accuracy. In addition, visualizations can help to communicate complex pieces of information in a compelling way that engages stakeholders and helps to drive organizations forward.
Storytelling by analyzing data
By presenting data in a narrative, the data can be engaging and easy to understand. Stories can be used to show how data changes over time or how different entities are related. A narrative should be used in combination with data visualization to provide a comprehensive understanding of the data.
The ability to effectively convey key points in a presentation is of paramount importance. Presentation templates are available to help build a structure for the presentation and make it easier for the audience to follow along. Knowing the story behind the data and being prepared to answer questions is essential. Moreover, financial presentations should always include a summary of key points and a call to action.
The use of templates such as ‘what’, ‘why’ and ‘now what’ can be particularly useful to help focus the conversation. The use of such templates encourages the audience to think more objectively and critically about the data. One key factor when trying to effectively tell stories through data is to create an understanding and common approach to data analysis.
Become a better finance professional with data visualization and story telling
Data visualizations, story-telling, and presenting have become essential skills for financial professionals. By mastering these techniques, a financial analyst can become a more valuable team member by presenting their insights in an effective manner. In the end, the goal is to open a dialogue and better understand the data to ensure the entire team is on the same page.
Ultimately, data visualization and storytelling have the potential to provide deep insight in a powerful and engaging way. They allow finance professionals and accountants to present data in a meaningful way and make better decisions. By confidently leading business conversations and identifying insights, these tools will help drive success and provide meaningful insight for organizations.
PS: This blog is based on a podcast by FP&A Today on Data Visualization & Storytelling by Paul Barnhurst. For more resources on FP&A, do subscribe to its podcast and/or visit - https://www.thefpandaguy.com/
