Finance generates a huge amount of data. They assist businesses with conducting analyses, recognizing trends, increasing performance, creating better products and services, setting realistic goals, and making informed decisions. However, it is not only important to collect and process information, but also to present it to readers in a simple, logical manner. It is hard to draw conclusions from endless rows and columns of figures. Financial data visualization can help companies present their data and statistics in a logical and easy-to-understand manner.
People process images 60k times faster than text. This is why you should add different charts, pictures, and diagrams to your report. Actually, it is data visualization that allows you to make your text easy to understand and compelling for your partners, colleagues, and customers. Your data can be better understood by presenting them in a visual context, such as maps or graphs.
Types of Data Visualization
There are the following general types of data visualization:
All of them share one goal -- to make it easy for users to:
- Explore the data
- Discover underlying patterns
- Tell an impressive story based on the revealed facts.
Using visualizations facilitates accurate analysis and avoids user confusion. By using data visualization tools, you can create a wide variety of charts and diagrams to display your figures and other information.
What Are Data Visualization Tools
Visualization software is an application that helps you transform raw data into formats you can easily understand. Today, there are many different types of data visualization software available, providing visual representations of statistical data in the form of charts, infographics, videos, etc. Out of all these software, Toucan is the highest rated on G2. This is due to a user-first design and ease of use while meaning all the functionalities that every other solution can offer.
Information is king. You will save money and time by using data visualization tools instead of digging through data in the traditional format. In addition, you will have the opportunity to improve all areas of your business by leveraging the data. Researchers have already demonstrated the effectiveness of data visualization.
However, visualizing your data analytics is half the battle. Picking the right tool is the key to success. Remember that the goal of an ideal data visualization tool is to turn your stats into easily digestible information. The information you have is valuable, and you need to make it easy for partners and customers to read and understand it.
Doing Data Visualization Right
All data visualization isn’t created equal. When done well, it makes complex concepts easier to comprehend. When done poorly, data visualizations can actually confuse your audience or misrepresent your data.
The following tips can help finance leaders improve their analytics efforts and communication by using data visualization:
- Invest in the right tech.
During this digital era, there are many technology tools that enable us to create compelling visualizations. To begin with, you need an ERP that eliminates data silos and creates a single point of access to information. You should then look for features that can automatically visualize data by dragging and dropping assets, charts, and graphs; offer search functions and guided navigation to answer questions; and allow anyone on your finance team to create visuals.
- Know your purpose.
You must understand what you hope to accomplish before you can create effective visuals. Determine whether your purpose is declarative or exploratory. understand your financial KPIs. Determining the answers will help inform the types of tools and formats you’ll need.
- Keep your audience top of mind.
Your data visualizations will require different levels of detail depending on who is viewing them. Financial data presentations for the C-suite need high-level, highly relevant information that helps leaders make strategic decisions. However, if you are presenting to LOB leaders, digging into the finer details can provide them with useful information.
- Enhance your team’s data visualization skills.
Sixty percent of agile finance leaders rate their team's ability to visualize data as excellent, while only 24 percent of their peers agree. While everyone on your finance team can master the basics of data visualization, training and a new hiring focus can take your team’s data visualization competencies to the next level. Implement training on data visualization tools so that your team is aware of the capabilities of your technology. When making new hires, look for people with a strong data analytics background and deep experience in data visualization.