Financial graphs and charts are visual tools that allow companies to monitor various performance metrics in areas such as liquidity, budgets, expenses, cash flow, and others. By doing so, they can successfully manage risks to ensure healthy finances and steady growth.
To ensure the best possible performance for a company, conducting regular financial analytics and ensuring the highest quality of data management must be the top priorities of companies no matter the size. If the finance department raises an alarm, everyone must carefully listen because it concerns the most crucial information and can lead to serious damages if ignored. That's why financial charts need to be created with the utmost care and attention. Let's see this in more detail.
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As humans, we respond to, and process visual data better than anything else. That said, when it comes to digesting and taking action upon vital financial metrics and insights, well-designed finance graphs and charts offer the best solution. According to Illinois State University, when it comes to visual aids of this kind, three standards apply: graphs and charts should display unambiguous information, meaningful data, and presently said insights in the most efficient way possible.
Financial data visualizations such as interactive dashboards are complete with charts and graphs that assist in the tracking of all of your core KPIs on one navigable platform. For optimizing reports and detailed analysis, you can check our blog article about financial report examples.
A financial dashboard offers all of the metrics and insights needed to ensure the success of your overall performance, cash flow, cash management, and profit and loss analysis. The business dashboard above not only makes extracting key data swiftly but is developed in a way that makes communicating your findings to important stakeholders within the business far more simple. And in contrast to a traditional Excel chart, these ones serve real-time data that will prove invaluable to the financial future of your business.
Not only your business will have the opportunity to explore, monitor, and access real-time data, but the interactivity levels are an invaluable resource for managing enormous amounts of information, especially in the financial sector where a small mistake can lead to millions of damages. That's why interaction with the finance charts and graphs is of utmost importance: a single KPI can be viewed in numerous useful ways and angles that static presentations could never offer.
Graph use in financial reports is already a business standard in today's environment. When you add up intelligent tools, automation, stunning visuals, and interactivity for your data visualization process, your finance department will significantly increase productivity, and decrease costs. Let's see this through our top 25 financial chart templates.
The higher your operating income, the more profitable your business will potentially be, and this chart will help this metric from dipping through a mix of historical data and priceless real-time insights.
The operating expense ratio (OER) will give you the power to understand the operational efficiency of your business by comparing your operating expenses to your overall revenue. This is the best visual to show profit and loss, but you do need to connect it with other charts to create a proper financial data story. By monitoring this information regularly, you will be able to decide whether your venture is scalable and make necessary changes to your commercial strategy if you feel it isn't.
Presented in the form of two visual ratio calculations for swift access to your overall liquidity health or performance as well as a column chart to help you compare data and spot trends, this chart will ensure that you will be able to meet obligations, commit to payments, and quash detrimental roadblocks before they unfold.
The cash conversion cycle (CCC) is a metric that helps companies in tracking how much time a company needs to convert its resources into cash from sales. In our example, the formula is also simply depicted so that it can easily be followed: you need to add the day's sales outstanding to the days of inventory outstanding and deduct the days payable outstanding to calculate the cash conversion cycle. If you use a finance graph that you can interact with, and calculates the data automatically based on your input, the possibility of making a human error is minimized. You don't have to manually calculate each time you need a report, but you can monitor your data in real-time, with just a few clicks.
To create such a chart, there are some data visualization techniques that are useful to study and follow. That way your analysis and presentation of vital information will yield the best possible value and ensure the most profitable results.
We couldn't finish this article before mentioning a very important aspect to consider when analyzing or presenting your financial data: charts and graph types. Choosing the right business graph to display your information is just like taking a picture of something and showing it to others, you want it to be understandable and focused on what you need in order to support a discussion. Here we show you some of the most common charts types to visualize your financial insights:
Although these 7 chart types that we just mentioned are often used for displaying financial data, you should always consider what is the aim of your analysis and what questions are you trying to answer when picking your visualizations. Here we give you a useful overview to help you choose the right type of business charts depending on your goals.
As you have seen throughout this insightful post and our list of 25 interactive examples, charts have the capacity to turn the most complex data points into understandable values that can significantly enhance the decision-making process and drive business growth. That said, financial data is not easy to deal with. While it might sound easy to just build a chart to display your most important performance indicators, there are still a few best practices you need to follow in order to make your visualizations successful. Here we tell you a few of them.
Charts and graphs are integral in communicating complex financial information in an intuitive way. That said, when building them, the colors you use can significantly affect the way the data is perceived. A carefully selected color palette can help your audience understand the values better as well as keep them focused during the analysis process. On the contrary, a poor color palette can make the visualization process less effective and harder to understand.
Expanding on the point above, it is no secret that finance users are acquainted with numbers and formulas, probably more than any other department. That said, in order to achieve a collaborative environment with other relevant business players, the data needs to be displayed in a way that tells a cohesive understandable story. Data visualizations allow non-technical users to identify trends and patterns in the data. However, this is not possible without a correct organization of the different graphs and charts. Modern dashboard software assists you with this task by providing a centralized view of your most important financial indicators.
We have expounded on what graphs to include in financial analysis and explained in detail each of them. We hope these graphs and charts templates have given you the inspiration you need to optimize your overall financial reporting and analysis. If you would like more data-driven, business-based pearls of wisdom, explore these sales report examples that you can use for daily, weekly, monthly, or annual reporting.
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