Finance department is awash of data that comes from ERPs, general ledgers, sub-ledgers and subsystems. These data are then stored in several places such as databases, data warehouses, spreadsheets etc. It often creates inconvenience for the finance leaders to gauge through different data-set in order to find relevant information. Data visualization is one-stop solution to all the problems that finance leader’s deals with. Not to mention, the retrieval of probable significance and advantages that can be drawn out of visualization.
Interested yet? Let’s dig more into the advantages that data visualization has in store for finance leaders to explore.
Finance & Visualization
These two words even though seem to be far apart but let me tell you how they are not and how simple visualization of financial data, can change everything.
Points to Remember
- Quick and Detailed Overview: “Data in finance is all over the place. But if they can really see the data rather than looking at endless rows and columns of numbers, they begin to comprehend what’s going on much faster,” said Elissa Fink, chief marketing officer at the Seattle-based Tableau Software. That pretty much explains the need for data visualization in Finance department.
- Communication Made Easy: Data visualization proves to be a critical tool for finance leaders in order to communicate across operational departments. And also help all areas of an organization quickly grasp actionable insights. When given the fact that not everyone is fluent in the language of finance. What’s more complex to look at in spreadsheets, can be made easy with visualization.
- Develop Metrics: The two-way communication with data visualization can further help an organization to develop metrics that in turn supports business strategy. This is because operational data and financial data are closely linked and can depict the benefits that a particular strategy would render.
- Real-time Exploration: Traditional graphics like pie charts and bar are commonly used in several companies across industries. But ever wondered what if you could see those graphics constantly changing with respect to incoming data? Data visualization provides you dynamic dashboards that enables you to explore your data in real-time.
- Forecasting and scenario analysis: This could help you project future revenue and see how the operational costs and projected profits are affected with increased hiring. This would allow you to make informed decisions that are highly likely to benefit the business.
- Mapping: Mapping, though often referred to as a simple spatial representation of data, can lead to important discoveries. Such as correlations between specific attributes and physical, political or cultural geographies. Heat maps can both segment and show relationships at the same time. The use of size, color, textual and numeric data is a prime example of “piling on the context” to gain greater comprehension and insight.
Data Visualization brings in much more for the finance sector. Just like Jerry Pellizzon chief financial officer at Ceradyne Inc, said, “With data visualization, your mind doesn’t have to recalculate numbers into intelligence. Instead, it can analyze the data right away. You don’t have to go do extra work.by Most people prefer that.”
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