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.
Discover how finance teams can move beyond reporting to lead strategy—turning data into direction and driving better, faster business decisions.
When did finance become the department of “no”? “No, we can’t spend that.” “No, that’s not in the budget.” “No, that’s not how we do it.” Here’s the truth: If finance is just a gatekeeper, it’s failing the business. Finance Isn’t Just About Numbers Andrew Brown put it bluntly on the FP&AI Podcast: “Finance should be leading conversations about the future, not just reporting the past.” Think about it— What’s the point of a month-end pack that no one reads? What’s the point of perfectly reconciled accounts if they don’t change the way decisions are made? Finance isn’t just about accuracy. It’s about impact . The Business Partner Mindset T he best finance professionals think like entrepreneurs. They ask: Where are we really making money? What assumptions are broken? How do we change the levers to hit our goals? They don’t just report results. They interpret them. They walk into the room with a story, a strategy, and a plan. What Johan Taught Us Remember Johan, the volunteer deacon who turned financial updates into action? He wasn’t trying to impress anyone with accounting jargon. He used a worm chart and a waterfall chart to tell a simple story: Are we on track with donations? If not, where are we falling behind—and why? It worked because it made the future clear. That’s what business partnering looks like. The Shift Every Finance Team Must Make B ookkeepers report. Business partners lead. The shift is subtle but powerful: From data-dumping to decision-driving. From hiding behind compliance to leading with insight. From “here are the numbers” to “here’s what they mean—and what to do next.” Your Move So, is your finance team stuck in bookkeeping mode? Or are you stepping up as a commercial conscience— the team that sees ahead and helps the business win? The mindset shift starts here: Stop asking “What happened?” Start asking “What’s next?” ________________________________________ This article is inspired by my conversation with Andrew Brown on the FP&AI Podcast – Episode 1: Finance as a True Business Partner – Beyond the Numbers.
