the right dashboards can optimize your data … and your value.
by bonnie buol ruszczyk
business leaders are constantly called upon to make snap – yet important – decisions. yet, poring through spreadsheets, reports and financial statements can be a laborious and time-consuming process, especially for those who need to act on urgent matters.
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this is where data visualization tools can be a tremendous boon to organizations. automatically pulling from various data sources, these cloud-based, interactive dashboards present business data visually using charts, graphs and other widgets. once designed, these repositories save precious time for analysts, managers and key decision-makers, allowing them to focus on the information and analysis rather than on the grueling process of gathering it and creating reports.
benefits of data visualization
you collect a lot of data, and within that data is a goldmine of opportunity. dashboard systems seamlessly consolidate data from multiple sources, providing quick and efficient analysis and eliminating the need for tedious documentation. these performance dashboards are game changers when it comes to understanding the current state of a business.
- decision-makers can quickly identify trends, patterns and outliers, allowing them to take proactive actions.
- data visualization and centralization encourage cross-functional collaboration, data-driven discussions and shared accountability.
- automation saves time and effort and supports the scalability and efficient management of data-driven insights.
- dashboards can be created with varying levels of access, so employees in different roles and departments can see what they need to – and not what they don’t.
armed with the right dashboard, decision-makers can get laser-focused on the specific data and insights that matter most and track their performance against their key performance indicators (kpis). with visual metrics across various business functions, dashboards offer a comprehensive and continuous pulse check. this real-time monitoring highlights issues and risks early, allowing businesses to act before it’s too late. and the best part? customized dashboards allow companies to significantly improve their business operations and even create new revenue streams. this is particularly beneficial in today’s highly competitive market, where data-driven choices are often necessary, and clients expect prompt results.
avoiding garbage in/garbage out
while data visualization can be a valuable tool, it is only constructive if the information it pulls from is clean and accurate. “in reality, the majoriy of the work is done at the data level. most firms have data in a number of different places that must be organized, categorized, optimized and mapped properly before creating a dashboard,” said diana peralta, senior manager of data & analytics, corporate finance & advisory, scrubbed. while a cloud-based dashboard platform can pull data from multiple sources, you must first identify what end result you want and then work backward to ensure you have the clean data points from which to code the dashboard. without that properly laid foundation, the final result could only paint a partial picture or, worse, provide inaccurate data.
constructing indispensable dashboards
custom data visualization requires a specific skill set, often a degree in data science or data analytics, and coding experience. in accounting firms, it is equally important to understand accounting principles, financial analysis, predictive modeling, fraud detection, budgeting and forecasting. in-house, you might want a consolidation dashboard to drill into client data. however, for your clients, there may be more value in constructing a dashboard to help them keep an eye on inventory and sales. several dashboard tools are available, from tableau and power bi to cloud-based software like clicdata and advanced tools like plotly. “the impact of the right data visualization tool on revenue can be significant, so it’s important the system you choose works with existing software, meets your reporting standards, and offers a visually appealing product,” said peralta.
let’s say you want to create a dashboard for a client. understanding their business model, reporting needs, current applications or systems and the pain points they’re looking to solve will help you choose the right system and design the right product. and because the data coming out of a dashboard is only as good as the data going into it, your team needs to be adept at data cleansing, transformation and optimization. “maintaining data integrity should also be top of mind. before you take on a data client or start using data visualization in your firm, create validation and verification processes and document how you will implement data governance practices,” warned peralta.
data visualization relies on accuracy, functionality and, surprisingly, aesthetics. it’s important to incorporate color schemes, logos and other design elements to enhance engagement. and rigorously test the dashboard to ensure the result is seamless, easy to use and simple to understand.
properly interpreting the data
whether you’re interpreting the data for your firm’s stakeholders or a client, the final threshold is delivering the dashboard. “be sure you have the means to offer interpretation and insights alongside the visualizations. explain the key findings, trends and anomalies and provide context for the results,” peralta said. with clients, consider providing ongoing training and support. this could be webinars or documentation to educate them on best practices or monthly meetings to review the dashboards and takeaways.
if you are ready to harness the power of data visualization but don’t have the resources to do so, consider hiring a data partner. specialized data teams can help accounting firms consolidate data and build dashboards in a range of systems so you can focus on producing insights and analysis. look for outside resources that include cpas, cfas, statisticians, data analysts, supply chain experts, process improvement specialists and coders who truly understand what you need and how it will be used.