Finance departments are constantly evolving, so data visualization use cases for finance needs to keep up. Data visualization for finance simplifies finance analytics and makes it easy to analyze financial data within the dashboard. Organizations can combine multiple data sources to provide complete visibility into their finances, enabling finance teams to analyze real-time financial data to gain deeper insights or uncover hidden patterns.
Data visualization streamlines financial reporting and puts the power of analytics in the hands of financial analysts. Finance teams can spend less time in data preparation and more time in strategic initiatives that drive profitability. Here are a few benefits and use cases of data visualization in finance.
Key Benefits for Finance Teams
1. Consumer Analytics and Insights
Data visualization can shed light on how your consumers interact with your business and help you identify your most profitable customers. Real-time data from customer behavior can be used to inform decision making and improve forecasting. You can analyze consumer behavior by location or market segment and quickly share the results with your team. You can get a single view of your customers, their preferences, and focus on retaining those customers who drive the most profits for your business. Personalized offerings and loyalty programs can help you increase customer satisfaction and increase profitability.
2. Fraud Detection and Prevention
Finance teams can use data visualization software to quickly identify and flag suspicious transactions or consumer spending behavior in real-time. This can help you act quickly and effectively to identify and minimize fraudulent transactions. Acting quickly to prevent fraud and alerting the authorities in time can also save you from huge potential losses for both your business and your customers. You can also take measures to prevent it from happening again in the future.
3. Management Reporting
CFOs and other C-level executives need comprehensive reports that provide a complete financial picture of the organization. This could include reports on the performance of individual entities within the organization or the company as a whole. This requires integrating and visualizing data from multiple systems to provide the complete picture of your business performance. Modern data visualization software offers advanced drill down functionality that allows you to quickly see which business units or departments are doing well and which are not.
4. Financial Reporting
You can also build a financial reporting visualization that offers a high-level view of KPIs such as revenue by division and revenue vs. operating margin over different periods of time. You can also easily customize this visualization to help you perform detailed analysis of variables such as expense type and other expense details, so that finance analysts can track and manage expenses in real-time.
5. Cash Flow Analytics
Cash flow analytics helps determine your working capital or the amount of cash available to run your business operations. Traditional accounting software can perform basic analysis by looking at month-end account statements but it cannot account for data from different sources. Data visualization tools collect financial data from multiple sources offering a 360-degree view of financial data. This allows you to reduce risk, build more accurate financial forecasts, and get a better understanding of your cash flow situation.
6. Financial Forecasting
Financial forecasting helps you estimate or predict how your business will perform in the future. Visualizing your financial data from a variety of sources including various business applications can help you get a holistic picture of your finances and make accurate predictions about future financial performance including the company’s sales numbers, revenues, fixed and variable costs, and capital expenditure requirements.