As businesses emerge from a time of delicate financial balance associated with the economic impacts of the pandemic, now is the time to be considerate of updates to financial structures and financial reporting that allow for more efficiencies and greater natural control over unforeseen events. Financial visualization allows a company to create greater relevance in its fiscal structure. There is a trend underway where even very small businesses are beginning to incorporate data visualization more greatly in their operations. While this sounds like a daunting task, once it's incorporated, the idea is relatively basic: save time while creating efficiencies.
Recent technology advancements have presented business owners with new ways to improve their operational standards. While savvy owners have a firm grasp on their financial well-being, very few involve visualization in their financial activity. Visualizing specific content allows existing spreadsheets to make more logical sense. This can include forecasting revenue, assessing market scenarios, understanding the changes in transactions per client, and developing realizations in year over year analysis, among many other possibilities. Each of these areas allows a business to tweak operations that impact the financial well-being without extensive effort.
As an example, a fundamental area of regard especially in our renewed, post-pandemic economics is risk assessment. The challenge is that most business owners, especially those without regular access to a financial advisor, don’t know how to evaluate risk. By allowing the data to be visualized in a chart rather than simply through figures on a spreadsheet, almost anyone can assess that unusual line-chart movement, as one example, indicates something is amiss. Too often risk is not noticed because transaction records based numerically don’t allow for heightened visualization.
Another area of immediate need is financial forecasting. This sounds like a process that should involve outside parties and come at a great cost. But by creating visuals with historical and present financial data, forecasting becomes something that can be regularly understood. If, for example, 2019 financial data shows growth among certain clients during specific periods of the year, further evaluation can help to show that to continue that trend those clients need to be targeted similarly. In this, actual revenue can be more closely aligned to estimated revenue based on client involvement in the historical references.
There are numerous tutorials available that help guide the development of visuals using existing financial data. The good news is that once visuals are created, they will organically populate as data becomes available. This means that a small initial effort will pay off for a long time.