The Power of Finance: Visualising Data for Impact
clerissa • March 18, 2025
The Power of Finance: Visualising Data for Impact
In the world of finance, numbers tell a story. However, that story is often buried beneath layers of spreadsheets and complex datasets. For financial professionals, the challenge is not just about understanding these numbers but also presenting them in a way that drives decision-making and inspires action. Enter data visualisation – the art of transforming data into clear, compelling visuals. Among the tools that have proven especially powerful are the line graph and the waterfall chart. These visuals help finance teams translate dry statistics into impactful narratives. In this article, we explore how these graphs can transform financial storytelling.
The Importance of Data Visualisation in Finance
The Waterfall Chart: Bridging the Gap Between Figures
The Importance of Data Visualisation in Finance
Finance professionals are accustomed to handling vast amounts of data, from profit margins and revenue growth to expense tracking and risk assessments. Yet, presenting these figures effectively to stakeholders is a different ballgame. Visualisation simplifies this process, turning complex data sets into accessible insights.
When done correctly, data visualisation:
- Enhances comprehension: Humans process visuals 60,000 times faster than text, making it easier for stakeholders to grasp key information quickly.
- Drives decision-making: Clear and compelling visuals help executives make informed decisions without wading through dense reports.
- Highlights trends and outliers: Visual tools can bring hidden trends and anomalies to light, prompting timely actions.
- Improves understanding and communication with business
- Business doesn't always get what Finance is trying to communicate and good visualisations go a long way to bridging the gap. Better communication improves alignment to strategic financial goals.
The line Graph: Unravelling Trends Over Time
The line graph, also known as a stream graph or a stacked area graph, is a powerful tool for visualising changes in data over time. It is especially effective in showing how multiple categories contribute to an overall trend. In finance, line graphs can illustrate revenue streams, expense categories, or investment performance in a visually engaging manner.
Use Case: Revenue Streams Analysis
Imagine a financial report for a company with diverse revenue streams, such as product sales, services, and subscriptions. A line graph can display how each stream has evolved, highlighting peaks and troughs. The thickness of each ‘line’ represents the contribution of that revenue stream to the total, making it easy to spot which areas drive growth.
Benefits of line Graphs:
- Trends Made Simple: Displays how multiple components evolve over time.
- Visual Impact: The fluid, organic design makes it easier to follow changes.
- Comparative Insight: Helps compare different categories intuitively.
The Waterfall Chart: Bridging the Gap Between Figures
Waterfall charts excel at breaking down the cumulative effect of sequential data points, making them ideal for financial analysis. They help bridge the gap between figures by showing how individual elements contribute to a total. Commonly used in profit and loss statements, budget analysis, and variance reports, these charts provide clarity in understanding how specific actions impact the bottom line.
Use Case: Profit and Loss Analysis
A financial analyst preparing a quarterly report might use a waterfall chart to demonstrate how various factors—like increased sales, higher marketing spend, and cost savings—impacted net profit. The chart’s structure, with its clear progression from starting figures to the final result, makes it easy for stakeholders to follow the financial narrative.
Benefits of Waterfall Charts:
- Clarity: Simplifies complex financial data by showing individual contributions to total figures.
- Transparency: Clearly distinguishes between positive and negative impacts.
- Decision Support:
Helps executives understand the key drivers of financial performance.
Choosing the Right Visual for the Right Data
Selecting the appropriate visual tool depends on the story you want to tell:
- Use line graphs for illustrating trends across multiple categories over time.
- Opt for waterfall charts when you need to detail the step-by-step impact of specific factors on an overall financial figure.
By mastering these tools, finance professionals can enhance their storytelling, transforming raw data into insights that drive strategic decisions.
Conclusion: From Data to Decisions
Conclusion: From Data to Decisions
The ability to visualise data effectively is a powerful advantage. The line graph and waterfall chart are more than just visual aids—they are essential tools for financial professionals looking to make data-driven decisions that resonate with stakeholders. By adopting these techniques, finance teams can turn numbers into narratives that not only inform but also inspire action.
In the end, the power of finance lies not just in analysing data but in presenting it with impact.
Welcome to the FP&AI Podcast, where finance meets the future. In this episode, Roger is joined once again by Anthony and Donovan to dive into one of the most critical pillars of a successful finance function: planning. Stay tuned for the next episode, where the discussion moves to collaboration and business partnering in finance. Conversation Highlights: [0:00] Roger welcomes listeners back and recaps the previous episode on setting 3–5 year strategic objectives. He now moves on to the internal perspective of the balanced scorecard, asking: Which processes must finance excel at to satisfy stakeholders? [1:30] Roger notes that while Deloitte’s shareholder value framework lists hundreds of options, most internal objectives can be grouped into a few big themes: planning, quality, collaboration, speed, efficiency, innovation, and governance. [3:00] Anthony emphasizes the importance of planning, analysis, and reporting in finance. He highlights accuracy, timeliness, cost-effectiveness, and well-defined processes across cycles such as month-end, year-end, and budgeting. Clear roles, timelines, and responsibilities are critical for smooth execution. [6:00] They discuss practical planning rhythms. Processes should be reviewed at the start of cycles (e.g., January year-end planning), with regular team meetings—weekly or daily as needed—to monitor progress and address issues. Donovan adds that planning should start before year-end, often as early as mid-December. [9:00] The conversation shifts to dependencies on other departments during cycles like budgeting. Since other teams may not prioritize finance timelines, communication and early engagement are vital. Finance should build these requirements into processes and send reminders to ensure collaboration. [12:00] Roger stresses that budgeting must be framed as a business-wide responsibility , not just a finance deliverable. Departments should take ownership and accountability for their inputs, with finance facilitating and translating commitments into value. [16:00] Examples from IT planning illustrate how continuous engagement with business units avoids last-minute pressure. Finance should adopt similar practices, using ongoing communication and relationship management to integrate planning into everyday operations. [19:00] The concept of finance business partners is introduced. These roles embed in operations, bridging the gap between finance and other departments. They improve collaboration, ensure timely information flow, and enhance the quality of reporting—though organizations often fail to measure the ROI of these roles. [23:00] Roger returns to the importance of early communication and budget guidelines , which help divisions prepare and align. Effective planning should include communication checkpoints and reminders across cycles. [26:00] He adds that planning applies beyond finance—HR, IT, marketing, and all business processes should start with planning. Poor follow-through on insights can leave “money on the table,” highlighting the value of business partners in ensuring opportunities are realized. [28:00] As the podcast wraps up, Donovan stresses the quality and speed of planning , not just the act itself. Standardization and automation can improve efficiency. Anthony adds that planning must be continuous and iterative —even a bad plan provides useful feedback for replanning. [31:00] Roger closes by emphasizing that planning is central to finance and business success. Whether strategic or operational, good planning creates clarity, drives collaboration, and enables long-term value creation.
I’ve built an activity-based costing system. For my own group of companies. It works. The logic works. The reports work. The numbers run beautifully. Except for one thing. The data. The master data isn’t quite right. Not wrong. Just... inconsistent. So we start investigating. We doubt the results. We trace back through layers of transactions to find the flaw. Hours go by. Not because the tool is broken. Because the foundations were never right in the first place. And here’s the bigger problem. The real problem. Our trial balance and our financial statements? They don’t reflect the real business. At all. Even though we’ve done everything right. Dedicated finance team? Check. Excellent outsourced accountants? Check. Senior chartered accountants with carte blanche to "sort it all out"? Check, check, and check. We have clean audits. We're compliant. We tick every box. And yet... The insights we get? High-level. Irrelevant. They don’t help our managers. They don’t help our pricing. They don’t help us decide what to stop doing. Meanwhile, finance is pushing debits and credits into the general ledger at a furious pace. If they were paid per journal, they’d all be millionaires by now. And when those journals land? We look at the information. And it helps us squat. Nothing. No insights. Just questions. No answers. No decisions. Just a few more tasks to investigate what’s going on. Are the entries complete? Are they valid? Are they even useful to anyone outside of finance? Because here’s the truth most people won’t say out loud: Finance doesn’t understand the business. They process hundreds of journals efficiently. Fast. Neat. Organised. But the entries are wrong. Allocated to the wrong products. The wrong services. The wrong lines of business. Calculated on the wrong ratios. Based on assumptions that no one in operations would agree with. So when decisions are made? They’re based on fiction. Or worse - on “efficiently processed” fiction. And nobody sees it. Except business. They feel it. They just don’t have the time to audit finance’s work. Why should they? Isn’t that what we pay Finance to do? Because financial systems are built for someone else. For SARS. For the taxman. For the auditor. Not for the operator. Not for the person running the business. Not for the one asking, "Where are we actually making money?" And here’s the part that really gets me. We are master data junkies. We pride ourselves in clean, structured, standardised data. We obsess over naming conventions, hierarchies, mappings. So if we're struggling? What about the companies who don’t care? Who hire people who don’t care? Who don’t even know what master data means? What chance do they have? As a qualified accountant, I deeply want the financials to be right and adding value - all at the same time. I tell everyone I’m an accountant. I love playing for the winning team. Who doesn’t? I want our sweat to generate the numbers and tick all the boxes (I’m all for that). But at exactly the same time, I want them to add business value. Win/win. Finance and Business, joined at the hip. Partners. Winning together. Who wouldn’t want that? So we end up with financials that are easy to print. Easy to submit. Easy to tick off. But useless to run a business. What would it look like... ...if we rebuilt financial systems from scratch? Not for compliance. But for clarity? That’s what I’m working on. And it’s harder than it sounds. But it’s possible. And it’s necessary.
