3 proven data visualization methods for CPAs

August 30, 2022 11:39 AM

CPAs are masters at collecting, analyzing and presenting data to their clients in valuable financial reports. Visualizations are essential tools for CPAs in this process as they look to convey meaningful knowledge. Research has shown that visuals deliver details in a way that words can't possibly match. People inherently learn better with visuals, as they process information 60,000 times faster this way than with text.

As CPAs present their analysis to clients, delivering it the right way will ensure their work is understood and put to use. Compiling data and transforming it into stunning visualizations will give businesses compelling reports that are essential to their long-term planning and strategy. Here are three proven data visualization methods to consider with putting together reports.

Basic visual graphics

There isn't a lot of fanfare for charts and graphs, but these methods of visualizing data are quite useful for clients. Basic graphics are tried and true for a reason — they are simple to present and easy to understand. Bar graphs can easily show clients a comparison for year-over-year figures, and charts can help explain trends and showcase forecasted growth. Using a variety of visual tools, CPAs can show clients where their business is meeting expectations and where goals have not been reached.

Interactive tools

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While basic visualizations tell an accurate story, they don't always give clients the most detailed information in a usable way. Automated reporting software expands on the tried-and-true visual representations and gives CPAs and clients more control over their data. Rather than static monthly visuals, data can be shown in dynamic, real-time dashboards. The same data can be presented with instant results and give clients a far more accurate look at how their business is performing and where it is going.

These reporting tools also allow CPAs to present information to specific individuals and adjust the results to fit the intended audience. Using automated visualization software gives clients a product that not only looks better but also tells a timely, more accurate story about their financials.

Find the right data

Companies have a wealth of data that can be analyzed and used to drive business decisions. As the mountains of information to sort through increase, CPAs must find the best data that tells an accurate story. Bad data, incomplete information and inaccurate interpretations don't do clients any good and may be misleading. Weeding out extraneous information and drilling down to what matters most is vital in the digital age.

Using automation software, CPAs can continuously bring in data from all areas of a business. Automation and artificial intelligence technology eliminate data silos and sort through information to give CPAs a complete look at what is affecting their clients' profitability and growth. With the right data in hand, CPAs can use visualization to tell their clients the full story of their finances and build a roadmap to keep them on track for long-term success.

Visualization is a powerful tool for CPAs to show clients their data and what it means to their business. Pulling together the right data and displaying it in a meaningful way gives clients the information they need to drive their business.