Presenting Financial Management Information With Graphs
While tables and raw numbers are the most accurate forms of financial data, they are rarely used to present this information to management or public. Instead, this data is put in a form of a graph or a chart, which makes it much easier to understand, and helps to direct reader’s attention. There are several types of chart and graphs, and each one is used to represent different categories of data.
Histogram is mostly used to illustrate the difference in numeric values that do not correlate with each other. A histogram would be used to show how many patients are accommodated in different hospital units. Another example is using histogram to show how many patients come to the hospital each day of the week.
A bar chart is often used to compare two or more values throughout a period of time. A bar chart would be a perfect tool to show how salaries of different types of medical personal change every year. It can also be used to illustrate how much money the hospital spends on different departments yearly or quarterly.
A pie chart is a tool to illustrate the numeric or percentile relations between two or more values of the same kind. A pie chart can be used to show what percent of all medical supplies is produced by different companies. Another example is a pie chart where each section represents the number of medical equipment manufactured by corresponding company.
Finally, a line graph is mostly used to illustrate progress or changes in values throughout time. For example, a line graph would be used to show how many patients come to the hospital each year, or how much money does the hospital make monthly or quarterly.
In conclusion, proper use of graphical tools can significantly increase the quality of the presentation and make it comprehensible to people who are not familiar with financial management data.
References
Huggett, R. (1990). Graphs and Charts. London: Macmillan education LTD
Lockwood, A. (1969). Diagrams: A Visual Survey of Graphs, Maps, Charts and Diagrams for the Graphic Designer. New York: …
