As business professionals, we’re constantly seeking ways to streamline our workflows, enhance productivity, and uncover insights that drive informed decisions. Excel charts and graphs can be very helpful to improve our reporting, presentations and give us the business insight we need to make smart decisions. With the ever-increasing amount of data, it’s essential to leverage the right tools and techniques to stay ahead of the curve and this is where business dashboards and charts are critical for success.
In this article, we’ll explore the world of business charts and graphs, and discuss how they can be used to simplify complex data, reveal trends, and ultimately, drive business growth. We’ll also touch on the latest advancements in Excel technology, including AI-powered automation, and how these innovations can revolutionize the way you work with data.
Business Charts Tips: What charts should you use?
Charts are used for creating visual explanation of data and presenting business information in a simple and easy to understand way. When preparing business reports or business presentations the first step is deciding on the format of the charts you are going to use.
You should work with those charts which can communicate the message in the most effective way. When deciding on the charts you are going to use you need to take into consideration the business information you need to deliver, the audience for the presentation or the business report users.
Charts are tools used to simplify reporting and they should be appropriate to clearly communicate the message. Try to avoid using complex charts which would be difficult to understand by the user. For most business reports and charts when the users see the chart they should be able to understand the message in a few seconds.
If you are creating a chart and your chart is getting complex for the user you might want to consider using another chart, more than one chart or maybe using a table instead of a chart to communicate your message.
Frequently Used Charts in Business:
Line Chart
Line Chart is frequently used in business reporting to show trends over some period of time. For example, you can use line chart to show the trend in revenue for your business. Line Charts are also used for more than one variable and are good tools for comparing two or more trends over the same period of time.
For example, you can use Line Chart to show and compare revenue for three products (Product A, Product B and Product C) over same period of time or you can compare the Advertising Cost and Product Revenue over the same period of time.
Tip: While line charts are excellent for showcasing trends, imagine being able to automate the process of creating these charts, freeing up more time for strategic decision-making. With the latest advancements in Excel automation, you can now easily create dynamic, interactive dashboards that update in real-time, allowing you to focus on high-level analysis and insight generation.
Column Chart
Column Chart is frequently used in business reporting to show trends over some period of time however not for large ranges. Column Chart is especially effective when you want to show trend or make a comparison over small ranges for example few months, quarters or years. In these cases Column Chart in many cases is more effective than the Line Chart.
You can use the Column Chart to how one variable or show and compare more than one variable. For example, you can use Column Chart to show the revenue over the last five years or compare revenue and profit for the last five years. Histogram Chart is a special type of Column Chart. Pareto Chart is combination chart of Column Chart and Line Chart.
Column charts are perfect for comparing data across different categories, but what if you could take it a step further? By leveraging custom Excel tools and templates, you can create tailored solutions that meet your specific business needs, enabling you to drill down into the details and uncover hidden patterns. Plus, with the integration of AI-powered analytics, you can now uncover correlations and trends that might have gone unnoticed before.
Bar Chart
Bar Chart is similar to Column Chart (“horizontal column chart”). Bar Charts are very useful for making comparisons and in some cases they have advantage over the Column Chart because Bar Charts can visually show the variables and titles in more effective way.
Bar Charts can be used to show trends over time in a similar way the Column Charts are used but also Bar Charts can be used to make a comparison between variables at one point in time (similar application to Pie Chart).
Bar charts are great for making comparisons, but have you considered how AI-driven automation can help you optimize your data visualization workflow? By automating repetitive tasks, such as data cleaning and formatting, you can focus on higher-level tasks, like analyzing and interpreting the data. This not only saves time but also reduces the risk of human error, ensuring that your insights are accurate and reliable
Area Chart
Area Chart has a similar application to the Line Chart and in most cases you can use either Area Chart or the Line Chart to show trends.
The advantage of the Area Chart compared to the Line Chart is that sometimes users can recognize trends faster and Area Charts can be visually more effective. However when you want to compare many variables Area Charts can be difficult to read so you might consider using Line Charts instead of Area Charts.
Area charts are excellent for showing cumulative totals, but what if you could create interactive, web-based dashboards that allow stakeholders to explore the data in real-time? With custom Excel development services, you can create bespoke solutions that integrate seamlessly with your existing workflows, enabling you to share insights and collaborate more effectively with your team.
XY Chart
XY Chart or Scatter Chart is used for showing relationships between variables. The X and Y axes use set of variables and the XY Chart visually shows if there is a relationship and how strong is the relationship between the variables.
For example, the Scatter Chart can show the relationship between number of operators in a call center and customer waiting time. Another example is using the Scatter Chart to show the relationship between advertising expenditures and number of new customers.
XY charts are perfect for analyzing relationships between variables, but have you considered how machine learning algorithms can help you uncover deeper insights? By integrating AI-powered analytics into your workflow, you can identify complex patterns and correlations that might have gone undetected before, giving you a competitive edge in the market.
Radar Chart
Radar Chart is used for making comparison of different categories on the same scale. Another application of the Radar Chart is for performing a gap analysis (comparing actual and desired / target values).
Radar charts are great for comparing multiple categories, but what if you could create dynamic, self-updating dashboards that reflect the latest data? With Excel automation services, you can create customized solutions that integrate with your existing systems, ensuring that your insights are always up-to-date and relevant
Combination Chart
Combination Charts use more than one chart type. For example, the Pareto Chart uses both the line chart type and the column chart type together. Combinations Charts can be very effective when you want to show two different variables or two different measures for the same variable.
Combination charts are perfect for showing multiple data series, but have you considered how custom Excel tools and templates can help you standardize your reporting processes? By creating tailored solutions that meet your specific needs, you can ensure consistency across your organization, making it easier to compare and analyze data
Pie Chart
Pie Chart is used for making comparisons and showing proportions. For example, Pie Chart is used for showing market share of different businesses or products. Pie Charts are very effective when you visually compare a few categories but Pie Charts are not used for comparing many categories. When you have many categories you might consider using a Bar Chart instead of Pie Chart.
Pie charts are great for showing proportions, but what if you could create interactive, drill-down dashboards that allow stakeholders to explore the data in detail? With custom Excel development services, you can create bespoke solutions that integrate seamlessly with your existing workflows, enabling you to share insights and collaborate more effectively with your team
Histogram Chart
Histogram Chart is used for summarizing information from a data which was collected over some period of time and visually showing the frequency distribution. The advantage of the Histogram Chart is the ability to visually display large data in a simple to understand way. The Histogram Chart shows the variation and shape of the frequency distribution foe some period of time.
Pareto Chart
Pareto Chart is based on the Pareto Principle and it is used for making comparison / ranking different categories. Pareto Chart is similar to the Histogram Chart but Pareto Chart is a Combination Chart and has additional Line Chart showing the cumulative percentages.
The Pareto Chart is used for identifying major problems and opportunities and helps business users to focus their efforts on the greatest potential for improving the business.
From Raw Data to Actionable Dashboards
Transforming raw data into clear, actionable insights is the cornerstone of effective management reporting. Business dashboards, powered by well-chosen Excel charts and graphs, provide the visual clarity needed for strategic decision-making. Custom Excel development services can further optimize this process by automating data analysis and creating interactive, insightful dashboards. Learn more about our intelligent and affordable Excel Automation and AI Integration Solutions for businesses and how they help businesses like yours save time and money and improve their business.