Data should tell the story of what’s happening in an organization, and today’s stakeholders demand personalized, accurate, and real-time data to make their business decisions. This charge, facilitated by CFOs who present and interact with financial data daily, lends itself to storytelling. Data storytelling can transform the way organizations report and communicate financial information, motivate employees, and instill confidence in a company’s stakeholders—making them feel more informed and in control of their decision-making.
Additionally, by tailoring financial stories to different stakeholder audiences (internal executive teams, investors, board members, etc.) and highlighting relevant information about past, present, and future scenarios, CFOs can create compelling financial narratives that resonate with and best empower each group.
Elements Every Compelling Data Story Needs
Certain stakeholders may have different preferences for how they receive financial information. For instance, a board member may prefer summary data, while a regional manager or director may want to see market-based data. However, no matter who the audience is, to effectively build and convey your business’s story, it should include a beginning, middle, and end.
When we think about a traditional storytelling format, in the:
- Beginning: It’s all about creating context—establishing the main characters, the setting, etc.
- Middle: There may be a conflict or problem to solve.
- End: Finally, there’s a resolution to that problem, perhaps even a dramatic rescue from the protagonist.
For CFOs and finance and accounting teams, storytelling with data will take on a similar format.
Starting Point: A Look-Back at Historical Data
When developing your company’s story, you might begin with historical data (context), enhanced by data visualization, to create a plan. By using data visualization tools, you can visually represent your starting point and even incorporate forecasting and predictive analytics to outline that plan.
In the Meantime: Real-Time Progress Monitoring
As financial transactions and other business activities unfold, we are in the middle part of the story. With a cloud-based financial management solution, CFOs and finance teams can monitor this progress in real-time, empowering them to take action on any insights gained. Since data is available 24/7 on any device, it allows for immediate course correction before the end of any reporting period.
Results: A Comprehensive View of Business Performance
The end of the story involves marrying operational and financial data by that reporting period, creating a cohesive and comprehensive view of business performance. For instance, the healthcare vertical is all about per-patient, per-day data.
So, if we look at a senior living care facility, employees can track operational data like the use and inventory of drugs and medical supplies per patient and combine it with the financial costs of those ancillary expenses to generate key performance indicators (KPIs). This comprehensive approach to integrating financial and operational data is essential for satisfying the interests of investors and board members.
Importance of Data Visualization Throughout the Entire Story
Data visualization is a key component of financial storytelling. Traditional financial reports often involve complex data sets that can be challenging for audiences to interpret. However, by using visualization tools like roles-based dashboards, line graphs, bar graphs, and pie charts, information becomes easier for stakeholders to understand and allows finance teams to better identify trends, patterns, and outliers within the data.
For example, software and SaaS companies typically gather a substantial amount of information and operate in a fast-paced recurring revenue accounting environment. However, it is crucial to organize the data visually to make sense of the vast sea of numbers and information. While pure data is useful, it is incomplete from a storytelling perspective.
Therefore, data visualization plays a critical role in financial reporting for various reasons, both at the stakeholder level and across the organization. It unifies understanding, provides accessibility to all team members, efficiently scales large data sets, and enhances credibility.
At the not-for-profit level, nonprofit organizations can use data to illustrate the impact of their programs and services. By tracking data points such as the number of people served, the percentage of goals achieved, and the amount of funds raised, nonprofits can create a clear picture of their impact and success. This information can also be used to create powerful stories that resonate with donors and stakeholders, increase funding and support, and inspire action.
Using Sage Intacct to Tell Your Company’s Story
Sage Intacct, a comprehensive cloud-based accounting and financial management software, provides CFOs and their financial teams with powerful features that facilitate the practice of data storytelling.
Detailed and Customizable Finance Dashboards
Sage Intacct’s core financial reporting capabilities enable businesses to create custom dashboards, analyze data, and gain insights into financial performance. The tool provides a flexible chart of accounts that can be customized to track financial data based on specific business needs. Users can customize layouts, add columns for specific calculations, and other basic analytical functions. Sage Intacct’s customizable reporting also allows for financial and non-financial data to be combined.
For instance, a controller-based dashboard may be configured to view tactical financial data, such as the number of Accounts Payable (AP) bills paid or transactions entered. On the other hand, Board Members and investors are primarily interested in a dashboard that provides a more comprehensive picture of the company’s financial health with KPI metrics.
Dimensional Reporting Capabilities
Sage Intacct’s Multi-Dimensional General Ledger is an extended financial reporting capability tool that allows businesses to track financial data across multiple dimensions, such as departments, locations, projects, and even by time, to compare data over certain periods as well as by budgets. With this tool, businesses can gain a deeper insight into their financial performance, identify trends, and make informed decisions based on real-time data. From dimensions, users can create visuals to show trends in performance.
Extensive Visualization Tools
Sage Intacct Interactive Visual Explorer is a powerful financial reporting tool that provides real-time data visualization storytelling for businesses, equipping their stakeholders to make informed decisions. With this tool, users can create insightful dashboards, generate interactive reports, and view financial data in a visually appealing way. Its more than 25+ data visualization types, including a multitude of charts, graphs, and tables, allow users to quickly create meaningful reports without the need for complex coding or IT assistance.
How Cherry Bekaert Can Help
As a certified Sage Partner, our team at Cherry Bekaert is authorized to sell, implement, and provide ongoing support and consulting for Sage Intacct. Our professionals have extensive industry-specific knowledge and experience working within the Sage Intacct solution, allowing us to take a personalized approach to address each client’s unique needs.
We offer tailored configurations and customizations that align with the company’s financial processes and seamlessly integrate with other business systems. We aim to help clients optimize business performance and track metrics with enhanced insights, enabling them to create memorable stories for their teams and stakeholders.
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