Power BI: Transforming how credit pros communicate data

Remember sitting in grade school, staring at a math problem that made absolutely no sense until your teacher turned it into a word problem? Suddenly, numbers that once seemed abstract had context, and everything clicked. Similarly, for people outside the credit department, data can be equally confusing—until it is not.

Why it matters: When data points are difficult to interpret, important insights can be overlooked, misunderstood or dismissed altogether. With data dashboards, like Microsoft Power BI, credit teams can present data in a way that is easier to understand.

Almost every major credit decision, at one point or another, needed data to support it. For example, an increase in payment delays and electronic payment requests may have raised the need for an online payment portal. Or a significantly higher days sales outstanding (DSO) may have prompted reassessment of payment terms and adjusted collection practices. Whatever the reason, data is what ultimately drives credit decisions.

Communicating this data, however, proves difficult when audiences can’t understand it. “People outside of the credit department may not be familiar with certain metrics or realize that we can spot problems outside of credit,” said Rebekyah Brewer, CBF, accounts receivable manager at Southland Industries (Dallas, TX). “The departments we report to—billing, operations and sales—may not immediately see how collection percentages are linked to purchase order or item approval issues.”

These misunderstandings arise not only from a lack of knowledge but also from the manner in which the metrics are presented. “They want to know how the data you’re presenting is relevant to them,” said Brewer.

Management, for instance, is often not interested in the minute details—they just want to take a quick glance and move on to the next issue. “If you’re sharing all kinds of metrics or snapshots of data, rather than the full picture, the meaning can get lost and cause even more confusion to where you can’t make an affirmative judgment call,” said Brewer.

Power BI: Where Credit Stories Unfold

Sometimes, the best way to improve comprehension is to tell a story. Where did it all begin? What happened to bring it to this point? What is the resolution? “Payment disputes, for instance, could be an anomaly or a recurring pattern for a customer,” said Brewer. “Based on past and current data trends, you can discern payment behavior and uncover underlying issues. From there, you can conclude what is truly happening with the account and what to do about it.”

Through data visualization, credit managers can transform raw figures into a clear, visual narrative, bridging the gap between complicated data and meaningful decision-making. With the help of Power BI, for example, Brewer can illustrate monthly AR performance to upper management, focusing on key indicators that highlight improvement or deterioration over a defined period.

“I use line charts to visualize metrics, such as DSO and total AR balance, allowing leadership to quickly see whether performance is stabilizing, improving or trending in the wrong direction,” said Brewer. “These visuals answer the question of where we are headed and show how much we’ve improved.”

Waterfall charts help her depict how an initial value is affected, leading to a final net value. “I use them to walk through movement from the prior period, showing the impact of billing, collections, credits and write-offs,” said Brewer. “These help bridge the gap between static balances and operational activity.”

Tables effectively showcase divisional comparisons if simple visual indicators are used. “Positive and negative icons can quickly show month-over-month movement without having to study each number,” said Brewer. “It makes it easier to scan and pick out which regions or teams are improving, and which ones may need attention.”

For these visuals to truly make an impact, there needs to be a clear explanation of the data and its relevance. “Top level summaries are helpful, but they’re often followed by additional questions,” said Brewer. “When I show people how to look behind the data, however, I notice that they’re more excited and take more from the information.”

With Power BI’s drill-down feature, credit professionals can explore data of a single visual in greater depth, providing them with the ability to answer potential questions and tell the story behind the metric.

“You can start at the high-level portfolio view and quickly move into customer-level or invoice-level detail without leaving the report and even drill down into another report if the model allows it,” said Brewer. “For example, we start with the AR portfolio and drill down into customer insights to see that particular customer’s profile and details.”

Best Practices for Presenting Data

While it’s useful to explore these during development, effective reporting requires a focused approach. “Each report should be built around a clear objective, and every visual on the page should contribute to answering that objective,” said Brewer. “When working in Power BI, I’ve found that the value isn’t in the number of visuals available, but in selecting the right visuals to communicate a specific story.”

Before presenting the information, it’s important to make sure your findings are specific to your audience. What are they looking for? How does the data reflect that? What can you include that is important for them to know?

Conditional formatting is important in simplifying data and highlighting key components of your presentation. For example, using color to highlight higher risk balances or unfavorable trends can make the table easier to read. “Adding light data bars in the background can also give a sense of scale across values without overcomplicating the visual,” said Brewer. “It turns what would normally be a basic table into something you can actually use to spot issues quickly.”

Bottom line: The ability to present data clearly and compellingly is one of the most valuable skills a credit professional can develop. Just like that grade school word problem that made everything click, Power BI can help reframe complex data points into clear, actionable insights.

You can discover more about Power BI from Allison Gonzalez, a senior trainer from Pragmatic Works Training, Inc. (Green Cove Springs, FL), who will conduct four related sessions at NACM’s Credit Congress & Expo on June 10th.