--- title: How to Use Visual Aids in Financial Reporting description: Machen McChesney provides business clients with new trending information for financial reporting. image: https://info.machen.cpa/hubfs/Graphs-477799640-1.png --- [Family of Services](http://machenmcchesney.com/about-us/family-of-companies/)  |  [CPA & Business Advisory](http://machenmcchesney.com)  |  [Payroll, HR & Benefits](http://focuspaysolutions.com/)  |  [Wealth Management](http://machenmcchesney.com/services/financial-planning-and-wealth-mangement-services/) Auburn-Opelika (334) 887-7022 | Montgomery (334) 244-8900 [![Machen McChesney](https://info.machen.cpa/hs-fs/hub/471263/file-2521950511.png?width=279&name=file-2521950511.png "Machen McChesney")](http://machenmcchesney.com) Search this site on Google Search Google Search this site on Google Search Google - [Client Portal](https://machenmcchesney.sharefile.com/Authentication/Login) - [1040 Electronic Organizer](https://www.my1040data.com/account/login/HT7902990) - [LinkedIn](https://www.linkedin.com/company/675439?trk=tyah&trkInfo=idx%3A1-1-1%2CtarId%3A1424436970395%2Ctas%3Amachen+mcchesney) - [Facebook](https://www.facebook.com/machenmcchesney) - [Google](https://plus.google.com/101356546927388458481) - [Twitter](https://twitter.com/machenmcchesney) - About Us - [Welcome](http://machenmcchesney.com/about-us/welcome/) - [Affiliations and Associations](http://machenmcchesney.com/about-us/affiliations-and-associations/) - [Community Events](http://machenmcchesney.com/about-us/community-events/) - [Family of Companies](http://machenmcchesney.com/about-us/family-of-companies/) - [History](http://machenmcchesney.com/about-us/firm-profile-history/) - [Mission and Values](http://machenmcchesney.com/about-us/mission-and-values/) - [Team Directory](http://machenmcchesney.com/about-us/team-directory/) - Services - [Accounting & Outsourcing](http://machenmcchesney.com/services/accounting-outsourcing/) - [Audit and Assurance Services](http://machenmcchesney.com/services/audit-assurance/) - [Business Advisory Services](http://machenmcchesney.com/services/business-advisory/) - [Business Valuation Services](http://machenmcchesney.com/services/business-valuation-services/) - [Family Office Services](http://machenmcchesney.com/services/family-care/) - [Financial Planning & Wealth Mangement Services](http://machenmcchesney.com/services/financial-planning-and-wealth-mangement-services/) - [Individual Services](http://machenmcchesney.com/services/individuals/) - [Taxation](http://machenmcchesney.com/services/taxation/) - Who We Serve - [Construction & Real Estate](http://machenmcchesney.com/industries/construction-real-estate/) - [Credit Unions](http://machenmcchesney.com/industries/credit-unions/) - [Government & Not-For-Profits](http://machenmcchesney.com/industries/governmental-not-for-profit/) - [Healthcare & Professional Services](http://machenmcchesney.com/industries/healthcare-and-professional-services/) - [Hospitality, Restaurant & Retail](http://machenmcchesney.com/industries/hospitality-restaurant-retail/) - [Manufacturing, Distribution & Automotive](http://machenmcchesney.com/industries/manufacturing-distribution-automotive/) - [Success Stories](http://machenmcchesney.com/success-stories) - Resources - [Blog](https://info.machenmcchesney.com/blog) - [E-Newsletter Archive](http://machenmcchesney.com/resources/e-newsletter-archive/) - [Financial Calculators](http://machenmcchesney.com/resources/financial-calculators/) - [Financial Terms Glossary](http://machenmcchesney.com/resources/financial-terms-glossary/) - [Helpful Articles](http://machenmcchesney.com/resources/newsletter/) - [Tax Calendar](http://machenmcchesney.com/resources/tax-calendar/) - [Tax Links](http://machenmcchesney.com/resources/tax-links/) - [Track Your Refund](http://machenmcchesney.com/resources/track-your-refund/) - [Sign Up for Our E-Newsletter](http://machenmcchesney.com/resources/e-newsletter/) - [Subscribe to Our Blog](http://machenmcchesney.com/resources/subscribe-to-the-machen-mcchesney-blog/) - News & Events - [Press Releases](http://machenmcchesney.com/news-events/press-releases/) - [Upcoming Events](http://machenmcchesney.com/news-events/upcoming-events/) - Careers - [Our Culture](http://machenmcchesney.com/careers/culture/) - [Benefits](http://machenmcchesney.com/careers/benefits/) - [Our Stories](http://machenmcchesney.com/careers/our-stories/) - [Current Openings](http://machenmcchesney.com/careers/current-openings-send-resume/) - [Accounting Internship Opportunities](http://machenmcchesney.com/careers/students/) - Contact Us - [Auburn-Opelika Office](http://machenmcchesney.com/contact-us/contact-us-auburn-office/) - [Montgomery Office](http://machenmcchesney.com/contact-us/contact-us-montgomery-office/) # Returning Value Blog ## [How to Use Visual Aids in Financial Reporting](https://info.machen.cpa/blog/how-to-use-visual-aids-in-financial-reporting) Posted by [Aaron K. Waller, CPA](https://info.machen.cpa/blog/author/aaron-k-waller-cpa) on Apr 1, 2020 8:21:48 AM - [Tweet](https://twitter.com/share) ![Graphs-477799640-1](https://info.machen.cpa/hs-fs/hubfs/Graphs-477799640-1.png?width=1024&name=Graphs-477799640-1.png)Thanks to the Internet and social media, we’re bombarded daily with all kinds of information. As a result, most people prefer clear, concise snippets of data over lengthy text. Have your financial statements kept up with today’s data-consumption trends? **Show and tell ** Humans are visual learners. In business, the use of so-called “infographics” started with product marketing. Combining images with written text, these data visualizations can draw readers in and evoke emotion. They can breathe life into content that could otherwise be considered boring or dry. Annual reports are traditionally lengthy and text-heavy. So, businesses are now using visual aids to present critical *financial* information to investors and other stakeholders. In this context, infographics help stakeholders digest complex information and retain key points. **In financial reporting** Examples of data visualizations that might be appropriate in financial reporting include: **Time-series line graphs.** These visual aids can be used to show financial metrics, such as revenue and cost of sales, over time. They can help stakeholders identify trends, like seasonality and rates of growth (or decline), that can be used to interrupt historical performance and project it into the future. **Bar graphs.** Here, data is grouped into rectangular bars in lengths proportionate to the values they represent so data can be compared and contrasted. A company might use this type of infographic to show revenue by product line or geographic region to determine what (or who) is selling the most. **Pie charts.** These circular models show parts of a whole, dividing data into slices like a pizza. They might be used in financial reporting to show the composition of a company’s operating expenses to use in budgeting or cost-cutting projects. Effective visualizations avoid “chart junk.” That is, unnecessary elements — such as excessive use of color, icons or text — that detract from the value of the data presentation. Ideally, each infographic should present one or two ideas, simply and concisely. The information also should be timely and relevant. Too many infographics can become just as overwhelming to a reader as too much text. **Beyond annual reports** In addition to using infographics in financial statements, management may decide to create data visualizations for other financial purposes, such as: - Obtaining bank loans or equity financing from private investors, - Identifying value-drivers and risk factors in mergers and acquisitions, - Presenting data to the management team for strategic decision-making, and - Creating demonstrative exhibits for mediation or court. Nonprofits can also use infographics to create an emotional connection with donors. If effective, this outreach may encourage additional contributions for the nonprofit’s cause. **Let’s get visual** Infographics can’t completely replace text in financial statements, but they can be used to *supplement* the financials by highlighting key issues and accomplishments. Certain entities, such as nonprofits and private businesses, generally have more flexibility in how they present their financial data than public ones do.  **For more information on [audit & assurance services](http://machenmcchesney.com/services/audit-assurance/), contact Aaron K. 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