Preparing financial graphics: principles to make your presentations more effective

Graphics are especially helpful for the preparation and interpretation of summary financial data. Prepared properly, they serve to highlight trends and focus the reader on important information. While some graphics-specific software packages exist, any spreadsheet package will enable a firm to produce cost-effective graphics. Basic guidelines for preparation of financial graphics, constructed by the Canadian Institute of Chartered Accountants, are presented. In brief, they are: 1. Choose a graph type. 2. Prepare the graph. 3. Make sure the graph is not deceptive. Several examples of poor graphics that have been redone to more effective communicate the data are presented.