SESSION E4
21ST ANNUAL MNCPA
MANAGEMENT & BUSINESS
ADVISERS CONFERENCE
June 22-23, 2015
Minneapolis Convention Center
Excel Charts:
Going from Stale to Stunning
ONLINE RESOURCES
Session Handouts
Most session handouts are available on
the MNCPA website. To access:
 Go to www.mncpa.org/materials
 Log in with your MNCPA username
and password
Thomas G. Stephens Jr., CPA, CITP, CGMA
K2 Enterprises
Hammond, LA
Note: Your conference registration fee
must be paid in full to access session
handouts online.
CPE Transcript (Certificate of Attendance)
Your official transcript will be available
on the MNCPA website. To access:
Thomas G. "Tommy" Stephens Jr., CPA, CITP, CGMA, is a partner in
K2 Enterprises. He lectures nationally on subjects such as internal
controls for small businesses, technology strategies, computer hardware
and software applications, tax strategies and compliance, and financial
accounting standards and applications. Stephens began his career with
BellSouth Corporation as an internal auditor, eventually starting his
own public accounting practice and then joining K2.
 Go to www.mncpa.org/transcript
 Log in with your MNCPA username
and password
Note: MBAC15 transcripts will be
available Friday, June 26.
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should be sought.
MNCPA CPE
MORE CPE FROM TOMMY STEPHENS
Aug. 17-18 NEW! Technology Conference (ZDMCC)
8 a.m. - 4:30 p.m. | Duluth Entertainment Convention Center
Technology tools, tactics and best practices seem to move at light speed. At this all-new event,
bridge your knowledge gap and keep up with the fast-paced changes so you can take advantage of
timesaving, productivity-enhancing tools and trends. Choose from a variety of breakout sessions
and come away with practical tips that will make your job easier, keep your organization more
secure, employ the right tools to meet your business objectives, and work more productively.
Sept. 23
Excel Tips, Tricks and Techniques for Accountants (EXCEL)
8:30 a.m. - 4:30 p.m. | MNCPA, Bloomington
Excel is likely your tool of choice to analyze and report financial data, but have you ever received
formal training? Stop wasting time and making spreadsheet errors. Get hundreds of tips, tricks
and techniques to improve your Excel productivity and make your workday more efficient. Delve
into six major topics tailored to the needs of CPAs like you: productivity tips, formatting
necessities, customizing Excel, formula-building tricks, three-dimensional workbooks, and
printing essentials.
Sept. 24
Excel PivotTables for Accountants (EPT)
8:30 a.m. - 4:30 p.m. | MNCPA, Bloomington
PivotTables are Excel's most powerful feature, yet few accountants use them in their day-to-day
activities. Discover how to use PivotTables to accomplish routine data analysis and reporting,
work more productively, and save time. Take a look at demonstrations of PivotTables' powerful
tools, including grouping data, creating calculated items and fields, sorting and filtering data,
linking PivotTables to external databases, formatting and reporting, working with PivotCharts,
and much more. Come away with sample data files and helpful how-to reference videos.
Visit www.mncpa.org/cpe for detailed information and registration.
Excel Charts
Going From Stale To Stunning
Basic charts in Excel are so easy that "a cave man can do them," but can you build advanced
charts that allow users to filter the data displayed interactively? Or build charts that change
dynamically as the volume of data changes? Or combination charts on two axes? Or Pivot Charts?
Can you build charts commonly used in dashboards, such as gauge charts or thermometer charts?
In this session, you will learn how to build amazing charts in Excel to communicate your message
much more effectively.
Copyright © 2015, K2 Enterprises, LLC. Reproduction or reuse for purposes other than a K2 Enterprises’ training event is prohibited.
Introduction
Many business professionals quit using charts to communicate financial and operational information
years ago because charting was too time consuming and too cumbersome, but the charting engine
introduced with the release of Microsoft Office 2007 overcomes both of those issues, yet most remain
unaware of how to take full advantage of this resource. With this tool, you can quickly and easily build
advanced charts that allow users to filter data interactively, and create charts that change dynamically as
the volume of data changes. Plus, users can easily produce combination charts on two axes, generate
advanced Pivot Charts, and build charts commonly used in dashboards, such as gauge charts or
thermometer charts. In this session, you will learn how to build amazing charts to communicate your
information and analyses more effectively.
Learning Objectives
Upon completing this session, participants should be able to:
•
List six major types of charts produced by Microsoft Office;
•
Create and modify standard Excel charts;
•
Describe the process for creating dynamic headings in Office charts; and
•
Explain the general process for creating custom charts such as gauge or thermometer charts
Overview of Charting in Microsoft Office
Microsoft Office 2013 includes fifty-three predefined chart types in ten broad categories. The following
table summarizes the types and number of charts available in Excel.
•
•
•
•
•
•
•
•
•
•
Column – 7
Line – 7
Pie – 5
Bar – 6
Area – 6
XY – 7
Stock – 4
Surface – 4
Radar – 3
Combo – 4
Column charts, the most common of all chart types, display data points in vertical columns. Column charts
are typically used to compare discrete values and do not necessarily imply the passage of time. A bar
chart is very similar to a column chart, except that a bar chart has a horizontal orientation while a column
chart has a vertical orientation. Bar charts are useful when comparing a large number of values or when
category labels are long. Cylinder, cone, and pyramid charts are variants of column and bar charts and
you should use them in the same fashion as you would use column and bar charts.
Many users create line charts to plot continuous data over time. Line charts are exceptionally useful at
helping to identify trends in data. A line chart assumes that all of the data points plotted are spaced evenly
in time. If they are not, a line chart can provide misleading information and you should avoid using that
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chart type or modify the underlying data set to prevent the chart from displaying misleading information.
An area chart is essentially a line chart where the area below the line has been filled. Like line charts, area
charts are useful for displaying values over time.
You can use XY charts, also known as scatter plots, to show the relationships between variables plotted
on the X (horizontal) and Y (vertical) axes. The values plotted on the X-axis are independent of the values
plotted on the Y-axis. In other words, the values plotted on the X-axis drive or cause the values plotted
on the Y-axis. Importantly, there is no category axis in an XY chart. Both axes display values. Bubble charts
are like XY charts but with an additional data series represented by the size of the bubbles. All data series
are values – there are no category axes.
You can use pie charts to display the relative makeup of data. They are useful for identifying proportional
values or contributions to a total. For pie charts to be effective, use no more than five or six data points.
When you have a greater number of data points, consider using a bar chart, pie of pie chart, or bar of pie
chart instead. A doughnut chart is similar to a pie chart except that it can display more than one series of
data. However, because each successive series of data resides in concentric rings, it can be relatively easy
to misinterpret the meaning of the chart. Given this issue, consider constricting the number of data series
for a doughnut chart to just one. If multiple series of data are required, consider using a stacked column
chart instead.
Radar charts have separate axes for each category of data. These axes extend outward from the center
of the chart. Radar charts are useful for identifying relationships among data series and making
comparisons of data values. With a surface chart, colors distinguish values, not series. Surface charts can
display two or more data series on a surface and are often used to find optimum combinations between
two sets of data.
Stock charts are very useful for displaying information regarding security prices, such as high, low, or
closing stock prices. In addition, you can choose to display opening values and volumes on a stock chart.
You can also display scientific data on stock charts. For example, stock charts may be useful in charting
rainfall or temperatures.
Combo charts, new in Microsoft Office 2013, provide a direct means of creating combination charts. For
example, an accounting or business professional may want to plot sales dollars in columns and gross
margin percentage as a line on the same chart. Combo charts also allow a user to plot one or more data
series on a secondary axis. This is useful when the values plotted in the chart vary widely from data series
to data series or when you have mixed data types, such as plotting gross profit percentage as one data
series and total revenue as another data series.
Choosing a Chart Type
With all of the choices available, sometimes the most difficult part of creating a chart is choosing which
type is best for a given situation. A few guidelines may be helpful.
•
When comparing items to other items, column charts, bar charts, and cylinder, cone, and pyramid
charts are the best choice.
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When comparing data over time, line charts and area charts are usually superior to other options.
•
To make relative comparisons of one data point to another, pie and doughnut charts are useful.
Stacked bar charts, stacked column charts, 100% stacked bar charts, and 100% stacked column
charts are also good choices.
•
Use XY charts to depict causal relationships in data. If you need to plot three data values instead
of two, use a bubble chart instead of an XY chart.
•
If the data values vary widely among data series or you have mixed data types, a combo chart on
multiple axes may be the best choice.
Elements of a Chart
A chart in Microsoft Office is not a single unitary object, but is a collection of elements. Each chart contains
some or all of the elements listed in the following table. More importantly, each and every element can
be formatted independently of every other element. If an element needs modification or adjustment for
proper display, simply click on the element to activate it and then act on the element through the Ribbon
or context-sensitive menu.
Adjust the formatting, scaling, appearance, etc., as required and then move on to the next element that
requires adjustment. While Office does a good job of automating the entire charting process, advanced
users can still fine-tune charts by modifying individual elements. The flexibility provided by Microsoft
Office in the chart creation process allows users to create nearly any chart required.
•
Data Series – broad categories of data
plotted in a chart
•
Data Points – individual data elements
plotted in a chart
•
Category Axis – horizontal axis
•
Category Axis Label – labels along the
category axis
•
Value Axis – vertical axis
•
Legend – identifies data series
•
Data Labels – identifies data points
•
Gridlines – used to visually extend
labels from an axis
•
Chart Title – identifies the chart
•
Plot Area – section of a chart
containing the actual plot, including
the plotted data, the axes, and the axis
labels
•
Chart Area – background area of a
chart
•
Walls – used for formatting the
vertical axis in 3-D charts
•
Floor – used for formatting the
horizontal axis in 3-D charts
•
Trendlines – can be plotted against
data in a chart; can also be used to
display a linear regression formula
•
Error Bars – display potential error
amounts relative to each data marker
in a data series
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Creating a Chart
Creating a chart in Excel requires four basics steps:
1. Arranging the data in a way that makes it easy to chart.
2. Selecting an appropriate chart type.
3. Selecting a chart layout and style from the Chart Tools tab.
4. Fine-tuning the chart's look and feel on the Chart Tools Design or Format tabs by using the
context-sensitive menu, or by using the Chart Buttons or Formatting Task Pane in Office 2013.
Generally, arranging the data so that the X-axis categories are in columns, and the data series are on rows,
produces the best charts using the default process. While most users instinctively highlight their data
before creating a chart, that step is unnecessary unless you want to chart two or more noncontiguous
data ranges. To select noncontiguous data ranges, use CTRL + Click and Drag to highlight the ranges.
To create the first example chart, position the cursor within the data. Press ALT + F1 to create a chart as
an object on the worksheet that contains the data and then re-position and resize the chart as desired. To
resize a chart, first select the chart and then click on one or more of the eight resizing handles on its
border, indicated by the rectangles in Figure 1, and then drag them to resize the chart.
Figure 1 - Using the Chart Border to Resize and Reposition a Chart
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To reposition a chart, first select the chart and then click on its border, making sure to avoid the resizing
handles. The cursor will change to a compass rose, as shown in the circle in Figure 1, at which point you
may drag the chart to its desired position. After repositioning the chart, the worksheet should resemble
the one in Figure 2.

To create a chart on a separate Chart Sheet, position the cursor within the data to be charted
and press F11. Both one-click methods create a chart using the default chart type. To change
the default chart type, click on a chart to display the Chart Tools tab. Select the Chart Tools,
Design tab and then click Change Chart Type. In the Change Chart Type dialog box, select the
desired default chart type, click Set as Default Chart, and click OK.
Figure 2 - Simple Column Chart Created with a Single Keystroke
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Now that we have a chart, select Change Chart Type from the Chart Tools, Design contextual tab and
review the various chart types available. In our example, a simple column chart is appropriate for our
needs, but a chart's type can be changed at any stage of creation or use. Our chart needs a title and the Yaxis formatted so that it displays dollar signs and zero decimal places. To choose a layout that includes a
chart title, select the Chart Tools, Design tab. Expand the Quick Layout gallery and select a layout that
contains a chart title and a legend on the right hand side, as shown in Figure 3. Note that the chart layout
gallery will change, depending on the type of chart selected.
Figure 3 - Selecting a Chart Layout
In the chart, click and highlight the text of the placeholder label Chart Title and type in DNM Marketing
LLC. Press ENTER to continue on another line. Change the font to 12pt and then enter Sales by Division.
Click anywhere on the chart to end the edit process.
Now, let us change the number format of the quarterly sales amounts. Click anywhere on the numbers in
the Y-axis area to activate the axis. A gray box will surround the area. Select the Charts Tools, Format
contextual tab. Click Format Selection to open the Format Axis task pane. Click on Number in the task
pane. Then, select Currency in the Category box, enter 0 decimals, and select $ as the symbol.
In the current version of Office, users can no longer double-click on a chart element to format an element.
However, you can shortcut the formatting process by using the context-sensitive menu. For example, to
format the vertical axis of any chart, just right-click in the vertical axis area and select Format Axis. You
can format any chart element using this shortcut process.
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Now, let us make the chart more appealing by adding some visual effects. Click on the chart and select the
Chart Tools, Design contextual tab. Expand the Chart Styles gallery and select one of the styles, Style 6.
Select the Chart Tools, Format contextual tab, expand the Shape Styles gallery, and click Colored Outline
– Olive Green, Accent 3. Next, we will change the color palette. Select Change Colors from the Chart Tools,
Design tab and then click on Color 7 to complete the chart. Figure 4 shows the completed chart.
Figure 4- Adding Advanced Visual Effects to a Simple Chart with a Few Clicks
Now suppose that a quarter has passed, and the CFO of DNM Marketing would like to change the chart to
include the latest quarter while removing the oldest quarter. First, type in the new heading (Q1) and data
in the column immediately to the right and adjacent to the current data. Enter 112.2, 148.4, and 139.7 for
the North, South, and East divisions, respectively. Now, click on the chart. In the source data, the legends
are surrounded by a red box, the X-axis labels are surrounded by a magenta box, and the data series are
surrounded by a blue box. Click and drag the blue box in the lower right-hand corner of the data series
area one cell to the right so that the new quarter is now inside the box. Similarly, click and drag the blue
box in the lower left-hand corner of the data series area one cell to the right so that the original first
quarter data is not included in the data series box, as shown in Figure 5. Notice how the chart immediately
changes to reflect the new data range.
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Figure 5- Adding Data and Adjusting the Data Range of an Existing Chart
If at some point, you want to switch the orientation of the chart so that the data groups by region on the
horizontal axes, click on the chart and select the Chart Tools, Design contextual tab. Then, click on Switch
Row/Column in the Data group. The chart now displays quarters as the X-axis elements.
Combination Chart on Two Axes
The next example uses a combination line and column chart on two axes to display quarterly sales dollars
and gross margin percentage. Position the cursor in the data and press ALT + F1 to create the initial chart.
Select the Chart Tools, Design tab and choose Change Chart Type. Select a simple line chart – Line – and
click OK.
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Figure 6- Partially Completed Line and Area Chart on Two Axes
Immediately, you can see that the gross Margin Rate is hugging the X-axis because of the scale difference
with sales dollars. The gross Margin Rate needs to reside on a Y-axis of its own. Click on the line to activate
the data series and then right-click and choose Format Data Series. Select Series Options in the Navigation
Pane on the left and then click Secondary Axis in the Series Options pane on the right. Click Close. The
new axis formatted as percentages appears on the right.
For better impact, you might choose to plot sales dollars as a column chart. Click on the Sales chart line.
From the Chart Tools, Design tab, choose Change Chart Type. Select a simple two-dimensional Clustered
Column chart and click OK. Immediately, the sales distribution displays as columns. Figure 6 presents the
partially completed chart. In Excel 2013, users can create a Combo Chart on two axes directly from the
Ribbon.
Choose a combination of chart layouts, chart styles, and themes to add the visual effects necessary to
communicate your message effectively.

All of our charting examples have started by creating charts on the face of the worksheet where
the chart data resided. To create a chart on a new Chart Sheet, position the cursor in the data
and press F11. To move an existing chart from a worksheet to a chart sheet or from a chart sheet
to an existing worksheet, right-click on the chart and choose Move Chart from the context
sensitive menu.
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Adding Analytic Elements
Excel offers four chart elements for analysis – trend lines, error bars, drop lines, and up/down bars. These
elements are briefly defined as follows.
•
Trend lines – Statistical trends fitted to data using least squares regression
•
Error bars – Used to show the standard error of an estimate
•
Drop lines – Vertical lines from data points to the X-axis so that users can ascertain the exact
location of the data point on the X-axis
•
Up/down bars – Boxes drawn between two data series at each X-axis interval on a line chart to
highlight differences
In the next example, company managers are trying to evaluate whether a large special order will be
completed on time given current production levels. The data consists of three columns – production week,
planned production, and actual production. A trend line will be used to better evaluate the viability of the
production plan. Position the cursor in the data and press ALT + F1 to create the initial chart. Select the
Chart Tools, Design tab and choose Change Chart Type. Select a simple line chart without markers and
click OK.
Our chart needs a title and a Y-axis label. Select the Chart Tools, Design tab. Expand the Chart Layout
gallery and select a layout that contains a chart title, Y-axis label, and a legend on the right hand side, such
as Layout 1. Select and type in the chart title, Special Order 12-934A projected shortfall over current
production schedule and the Y-axis label, Total Metric Tons Produced. An easy way to enter titles and
labels is to click on the appropriate placeholder and then click and type the text in the Formula Bar. Press
ENTER to see the results. Next, add an X-axis label. From the Chart Tools, Layout tab, select Axis Titles,
Primary Horizontal Axis Title, Title Below Axis and then enter the X-axis label, Production Week. In Office
2013, click the Add Chart Elements button to add the axis title. T
Now, let us fine-tune the formatting of the X-axis, add markers to the actual production line, and add a
trend line that projects current production levels over the twenty-six week production schedule. First,
click in the X-axis area and then right-click and select Format Axis. In the Navigation Pane, choose Axis
Options. In the pane on the right, select Interval between labels Specify interval unit and enter 2. Then,
select Position Axis On tick marks and click Close to complete the modification of the X-axis. Now, click on
the Actual production line. Right-click and select Format Data Series. In the Navigation Pane, choose
Marker Options. In the pane on the right, select Marker Type Built-in, Type Square, and Size 4 and click
Close to complete the modification of the actual production line. Next, add a trend line to project actual
production. Click on the actual production line and then right-click and select Add Trendline. In the
Navigation Pane, choose Trendline Options. In the pane on the right, select Custom in the Trendline Name
section and enter Projected. In the Navigation Pane, choose Line Style. In the pane on the right, select
Width 2 pt and then Dash type Square Dots. Click Close to complete the chart, as shown in Figure 7.
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Figure 7 - Completed Line Chart with Projection Trend Line
With the projected production trend line in place, it is easy to see that production will fall short about 30
metric tons over the current production schedule. The chart not only provides the analysis required for
understanding the production problem facing the company but also effectively communicates the need
for action.
Communicating More Effectively with Charts
Communicating effectively with charts requires a strategy. Before creating a chart, take time to determine
what is to be communicated by the chart and what type of chart will be most effective at communicating
the message. If possible, include the message in the title of the chart. For example, compare the two charts
in Figure 8. Note how the top chart is much more effective at communicating the message than the
bottom chart because the message is in the title.
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Figure 8 - Putting the Message in the Title of the Chart
Alternatively, annotate the chart with text boxes and arrows so that the message is clearly communicated,
as shown in Figure 9. When charts communicate intended messages clearly and effectively, productivity
and decision quality improve. Productivity improves because staff time is not wasted in preparing or
delivering explanations of charts. Decision quality is improved because the intended message is
communicated effectively, thereby reducing user misunderstanding and poor decisions that could result
from that misunderstanding.
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Figure 9 - Using Text Boxes and Arrows to Create Self-Explaining Charts
Another technique for communicating information effectively with charts is to highlight points of interest
by using contrasting colors. For example, net income may have dipped precipitously in the third quarter
when fuel costs had risen for several months. To draw attention to this anomaly, use a contrasting color
for presentation of third quarter net income results, as shown in Figure 10.
Figure 10 - Using Contrasting Colors to Highlight Data of Interest
Dynamic Text Boxes in Charts
While the concept of adding a text box to a chart to enhance a reader’s understanding of the chart sounds
appealing, this could prove to be problematic from a practical standpoint because of the constantly
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changing nature of the data. What users really need is the ability to create text boxes that alter based on
changes in the underlying data. In other words, we need dynamic text boxes that provide analytical insight
based on predefined criteria. Fortunately, creating dynamic text boxes in Excel charts is rather easy, as
described below.
1. Create a chart based on the data in columns B and C below; a simple column chart similar to the
one shown in Figure 11 will suffice.
Figure 11 - Column Chart Displaying Sales Data by Product
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2. Next, create appropriate text strings providing the desired analytical messages. Excel’s TEXT,
CONCATENATE, DOLLAR, and & functions are catalysts for such text strings. For example, consider
the data pictured in Figure 12.
Figure 12 - Data Used to Create Dynamic Text Boxes
•
In cell A15, a formula was entered to create a text string displaying the average of all sales for
the period; that formula, which contains a TEXT function, is shown in Figure 13.
Figure 13 - Formula for Displaying Average Sales
•
In cell A16, a formula has been entered to create a text string displaying the bestselling item
for the period; that formula, which uses two VLOOKUP functions, is shown in Figure 14.
Figure 14 - Formula for Displaying Best Selling Item
•
In cell A17, a formula has been entered to create a text string displaying the slowest selling
item for the period; like the formula above, this formula also uses two VLOOKUP functions and
is shown in Figure 15.
Figure 15 - Formula for Displaying Slowest Selling Item
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3. In the chart created in step 1, insert a blank text box. With the text box selected, click in the
formula bar and type the equals sign (=). Then, click in cell A15 so that the formula shown in Figure
16 is entered in the formula bar.
Figure 16 - Formula for Entering Dynamic Text into Text Boxes
Note that you must enter the formula directly into the formula bar and not into the text box. Also
note that you must build the formula by clicking on the appropriate cells as described above; if
you type the formula into the formula bar, it will not work correctly. Repeat this process for the
other two formulas created above and align the text boxes as desired so that the chart resembles
the one shown in Figure 17.
Figure 17 - Chart with Dynamic Text Boxes
Conditional Formatting in Excel Charts
Using dynamic text boxes as described above provides for automatic entry of predefined text into charts.
However, what about automatic formatting of the data in charts-based data values? In other words, can
we apply conditional formatting to charts? The short answer is “No, conditional formatting does not work
on chart data.” The longer answer is “With a little creativity, we can trick Excel into applying what appears
to be conditional formatting.”
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Consider the data presented in Figure 18; sales data is presented for each of thirteen salespersons. You
have been charged with the responsibility of creating a chart containing this data and also having the topperforming salesperson’s data as well as the bottom-performing salesperson’s data formatted differently
than the rest of the data on the chart.
Figure 18 - Raw Data for Conditional Formatting on a Chart
To accomplish this task, you will need to create three additional columns of data and plot those three
columns of data – and not the original column of sales data – in a stacked column chart.
•
In cell C3 (and the remainder of the cells in the range extending through cell C15), the formula
shown below is used to identify the maximum value in the range and to populate that value into
the appropriate cell in Column C.
=IF(B3=MAX(B$3:B$15),B3,0)
The formula populates all other cells in Column C with zero.
•
In column D (and the remainder of the cells in the range extending through cell D15), the
formula below was used to identify the minimum value in the range and to populate that value
into the appropriate cell in Column D.
=IF(B3=MIN(B$3:B$15),B3,0)
The formula populates all other cells in Column D with zero.
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•
Finally, in cell E3 (and the remainder of the cells extending through cell E15), the formula given
below was used to enter all values other than minimum and maximum values.
=(B3-C3-D3)
The formula populates the cells in column E corresponding to the rows that contain minimum
and maximum values with zero.
The revised data should resemble that shown in Figure 19.
Figure 19 - Revised Data for Conditional Formatting on a Chart
Once you arrange the data, as shown in Figure 19, you can create a simple stacked column chart similar to
the one shown in Figure 20. This chart consists of three data series: 1) one for column C, 2) one for column
D, and 3) one for column E. Each of these series is formatted differently than the others; column C is
formatted in blue, column D is formatted in red, and column E is formatted in light yellow. Notice,
however, that the zero values are effectively hidden from the chart because they are, in fact, zero values;
thus, the chart gives the impression of applying conditional formatting to maximum and minimum values
in column B.
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Figure 20 - Chart with Conditional Formatting Applied
Gauge Charts
Gauge charts are popular for showing one number as a percentage of a total and are used increasingly in
digital dashboards. Gauge charts are not a standard chart type in PowerPoint, but they can be constructed
relatively easily from a standard pie chart. The trick is to plot the data in 50% of the chart space. To create
a gauge chart like the one shown in Figure 21, perform the following steps.
1. Plot exactly three data points in a standard pie chart.
a. The first data point in the series must be set to 50% (or to one-half of the total of the
three points if the points are not expressed as percentages).
b. The second data point should be set to one-half of the desired plot value. In other words,
if you want the gauge chart to appear to plot 80% as the second data point, set the value
of the second point equal to one-half of that amount or 40%.
c. The third data point should be a plug value such that the sum of the three data points is
100%.
2. Hide the 50% data point. To do this, double-click on the 50% section of the chart and then right
click and choose Format Data Point. On the Fill tab, select No Fill and on the Border Color tab,
select No line.
3. On the Series Options tab, set the Angle of the first slice to 90 degrees.
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Figure 21 - Gauge and Tachometer Charts
Tachometer Charts
Tachometer charts, such as the one displayed in Figure 21, are similar to gauge charts because they show
a relative measurement of one value to the total. Tachometer charts frequently include some qualitative
measurements such as poor, average, or excellent.
To build a tachometer chart using PowerPoint, plot two data series on one doughnut chart. Both data
series must contain a value of 50%, and the section of both doughnuts related to this value will be hidden,
just as in the gauge chart. The inner doughnut will be used to display a needle that points against the
qualitative measurements shown in the outer doughnut. The needle is nothing more than the border
between two data points that are formatted with the same color. The qualitative measurements are
simply the category names plotted using the Label Options tab of the Format Data Labels dialog box.
Waterfall Charts
Waterfall charts are useful because they help explain how we get from point A to point B. For example,
the waterfall chart shown below explains how an organization's gross revenue of $50,000 was consumed
when arriving at net income of $4,000 for the period.
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Figure 22 - Revenue to Net Income Waterfall Chart
A waterfall chart is not a standard chart in Microsoft Office, but you can easily construct one by building a
stacked column chart with two data series and then hiding one of the data series. To build a waterfall
chart, arrange the data to include "Visible" and "Invisible" columns. In the column labeled Invisible, enter
"0" for Gross Revenue and Net Income. On the Labor row, in the column labeled Invisible, enter a formula
that subtracts the amount in the Visible column for Labor from the amount in the Visible column for Gross
Revenue, as shown in Figure 23. Then create a formula in the Invisible column for the Discounts row that
subtracts the amount in the Visible column from the amount in the Invisible column one row above. Copy
the formula down the range so that your data appears, as shown in Figure 23.
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Figure 23 - Arranging Data to Produce a Waterfall Chart
Create a stacked column chart from the rearranged data, then right-click on the data series in the chart
that displays the Invisible data and format that series so that Fill is set to No Fill and Border Color is set to
No Line. Complete the waterfall chart by applying formatting as desired. The chart should resemble the
one shown previously in Figure 22.
Improved Charting in Excel 2013
Excel 2013 improves and extends charting functionality. The Chart Tools contextual tab has been
consolidated from three tabs to two to make it less confusing and easier to work with. Formatting and
customization of chart elements are now performed in a sidebar named the Formatting Task Pane that is
opened from the context-sensitive menu. Chart elements can be selected, chart styles applied, and chart
data filtered from three chart buttons that appear to the right of a selected chart, and Recommended
Charts, covered earlier, makes it easier for users to select a chart that best presents their data.
Recommended Charts
Among the most useful of the automated analysis functionality in Excel 2013 is Recommended Charts. This
feature produces a gallery of pre-configured charts from data selected by a user. A user simply scrolls
through the gallery to select the chart that best presents the data given their reporting objectives.
Recommended charts can be further customized to meet a user's needs and are available from the Quick
Analysis Lens or the Insert tab on the Ribbon, as shown in Figure 24.
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Figure 24 - Accessing Recommended Charts from the Ribbon
Figure 25 displays a gallery of recommended charts produced by Excel 2013. As a user scrolls through the
gallery of pre-configured charts on the left, the pane on the right displays a full-sized preview of each
selected chart. To complete the charting process, simply select a chart, click OK, and then add a title and
any other customizations desired.
Scroll through and select one of the
pre-configured charts from the list
and click OK.
Figure 25 - Selecting a Pre-Configured Chart
Combination Charts
Users have been able to create combination charts in all versions of Excel back to Excel 97, but many users
were unaware of this capability. In order to create a combination chart in older versions, users would first
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create a base chart, such as a line chart, with multiple data series. Then, they would right-click on a single
data series and select Change Series Chart Type from the context-sensitive menu. This would allow a user
to select a different chart type, such as a column chart, for that series, thereby creating a combination line
and column chart.
This method for creating a combination chart is no longer functional as described in Excel 2013. Excel now
has an explicit Combo chart type from which users can create combination charts. The Combo chart type
makes it easier and more intuitive for users to create combination charts, but more importantly, it exposes
this functionality to users who may not be aware that combination charts can be created in Excel.
Depending on the data, combination charts may be displayed in the Recommended Chart gallery, which
gives users one-click access to this advanced functionality.
Figure 26 displays the process for creating a combination column and line chart on two axes. Simply select
the Chart Type for each data series and check whether the series should be displayed on a Secondary
Axis. Note that this identical chart could have been selected with a single click from the Recommended
Charts gallery.
Figure 26 - Creating a Combo Chart in Excel 2013
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Chart Buttons and the Formatting Task Pane
Whenever a chart is selected, three chart buttons appear immediately to the right of the chart, as shown
in Figure 27. The top button allows users to add or remove chart elements; the center button allows users
to select a pre-formatted style within the selected chart type; and the bottom button allows users to filter
out unwanted data.
Figure 27 - Chart Buttons Allow Quick Customization
Right-clicking on a chart element (chart title, vertical axis, horizontal axis, data series, etc.) displays the
context-sensitive menu from which the selected element can be customized on the Formatting Task Pane,
as shown in Figure 28.
Figure 28 - Formatting Task Pane Displayed from the Context-Sensitive Menu
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Charts with Dynamic Data Labels
Creating effective charts can be challenging and, all too often, Excel-based charts are too vague to
communicate the intended message clearly. For this reason, adding interactive text that evaluates the
data plotted on a chart and returns an appropriate text string to the chart can be an effective means of
enhancing the effectiveness of your charts. In prior versions of Excel, you could do this by manually
inserting text boxes that contained the results of formulas; beginning with Excel 2013, the process of
adding interactive text to a chart became much easier, as you are about to learn.
Consider the case of a company that has set a target for increasing second quarter net income in each of
its five divisions by at least 10% relative to first quarter net income. Lindsey, the company’s CFO, would
like to create a simple column chart that plots net income for all five of the divisions for both quarters and
indicate on the chart which divisions met the objective. To do so, Lindsey arranges the data for the chart,
as shown in Figure 29. In particular, notice that Lindsey entered a formula in cell D3 and copied that
formula through cell D7. This formula evaluates quarter-over-quarter results to see which divisions met
the objective of increasing net income by at least 10%. For those divisions that met the objective, the
formula displays “Target Reached;” for those that did not meet the objective, the formula returns nothing.
Figure 29 - Data for Chart, Including Interactive Text
With the evaluation formula in place, all that is left to do is to create the chart. In this case, Lindsey selects
cells A2 through C7 and chooses to insert a column chart. Once the basic chart is in place, she chooses to
add data labels to the data series for the second quarter. When doing so, in Label Options, Lindsey
indicates that the value for the label should originate from cells in the worksheet and that the worksheet
range is D3 through D7, as shown in Figure 30.
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Figure 30 - Adding Interactive Text to a Chart
Once Lindsey completes the process of adding the data labels, she tunes-up any remaining formatting
issues on her chart so that it resembles the chart pictured in Figure 31. Notice that because of the
evaluation formulas Lindsey created, and because she uses the results of those formulas as data labels on
her chart, all readers of the chart can clearly see that the North and Mountain regions of the company
were the only two regions to meet the net income objective.
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Figure 31 - Completed Chart with Interactive Text Boxes
Filtering Out Unwanted Data
One of the problems faced by accounting and business professionals when creating charts is having data
that does not support the reporting objective. For example, a report exported from an accounting system
may display monthly detail, quarterly totals, and an annual total, but the user wants to prepare a chart
that presents only quarterly comparisons. That is where the Chart Filter button comes into play. It allows
users to filter the underlying data so that a chart displays just what is desired quickly and easily without
modifying the report, as shown in Figure 32.
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Filtering turns the unusable chart
shown above into the informative
chart shown below.
Figure 32 - Using the Filter Button to Filter Unwanted Data
Tables as Data Sources for Charts
Excel Tables are well suited as data sources for charts. Tables are dynamic in size, expanding or contracting
to hold all contiguous columns and rows of data. When a table is used as a data source for a chart, the
chart is updated automatically whenever the underlying data changes or when the table is filtered. In
other words, a chart reflects all visible data in a table. If you build a chart based on a table and later add
more data to the table, the chart will automatically include the new data, as shown in Figure 33. If you
delete data from the table, the data will be removed from the chart. Likewise, if you filter the data in the
table, the chart will update to reflect the filtering. In Excel 2013, applying filters to tables can be achieved
quickly and easily with Slicers.
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Figure 33 - Adding Data to a Table Updates a Chart Automatically
The prospect of building a chart that uses a table as its data source becomes even more intriguing when
you consider the potential impact of adding Slicer filters to your table. Slicers (added to Excel PivotTables
in the 2010 release and to Tables in the 2013 release) provide Excel users with the ability of applying visual
filters. If we use Slicers to filter a table, then any chart built from that table will immediately filter also.
Further, because the table does not need to reside on the same worksheet as the chart, nor does it need
to reside on the same worksheet as the Slicer, we can place the Slicer and the chart on the same worksheet
and place the table on a different worksheet.
To add a Slicer to a table, click in the table and then click Insert Slicer from the Table Tools Design tab of
the Ribbon. In the resulting dialog box, place a check next to each of the fields you want to use to “slice”
the data and click OK to insert the Slicer(s). Once you complete this process, you will be able to click on
any of the Slicer buttons to filter your data. To apply multiple filters within the same slicer, hold down the
CTRL key as you click. Figure 34 provides an illustration of using a Slicer to filter a table and, therefore,
indirectly filter the chart that uses the table as its data source. In this case, the Slicer is filtering the table
and related chart so that only data from the Mountain, North, and West regions display. Notice that the
table that serves as the data source for the chart resides on a separate worksheet.
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Figure 34 - Using a Slicer to Filter a Chart Indirectly
Introducing Pivot Charts
Quite often, business professionals are faced with the prospect of summarizing large quantities of data in
preparation for producing a chart. Excel can automate the process of summarizing and charting the data
using a PivotChart. Not only that, but if the source data is a table, a chart can be automatically updated
when new records are added to the table. Tables can serve as dynamic data ranges for other objects,
including PivotTables, PivotCharts, and charts.
In this example, the Sales by Item Detail report exported from QuickBooks will serve as the data for the
PivotChart. First, convert the data to a table. Position the cursor in the data and choose Format as Table
from the Home tab of the Ribbon. Select a table style to convert the data to a table.
To create a PivotChart, follow the instructions below.
•
Position the cursor in the data and select PivotChart, PivotChart & PivotTable from the Insert tab
of the Ribbon. Click OK to accept the defaults in the Create PivotTable with PivotChart dialog box.
•
A new worksheet is inserted into the workbook, along with a blank chart. A task pane also opens
on the right that includes the PivotTable Field List at the top and the four PivotChart Layout
quadrants at the bottom.
•
To create the initial PivotChart, drag each of the fields from the list in turn to the appropriate drop
areas. Drag Date to Axis Fields, Category to Legend Fields, and Amount to Values. The label for
Amount will change to Sum of Amount to indicate that the field is being summed. There are other
summarizing functions such as Average, Count, Min, and Max available.
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•
In the Field List, select Date and then click the drop-down arrow on the right. Choose Date Filter,
This Year, so that the PivotChart only presents 2014 results.
•
Next, group the dates by quarters. Right-click on any date in the Row Labels area of the PivotTable
and choose Group. In the By box, select Quarters and unselect Months. The PivotChart now
displays four quarterly columns.
•
Choose a combination of chart layouts, chart styles, and themes to format the PivotChart using
the same processes as with a normal chart. Make sure to format the Y-axis as thousands and move
the chart to a chart sheet. Follow along with your instructor as he completes the chart. When
complete, the chart should resemble the one in Figure 35.
Chart Filtering Options
Figure 35 - 3-D PivotChart Created from Detail Data
As shown in Figure 35, Pivot Charts provide the ability for users to filter the chart on-screen. By clicking
either the Category filter or the Date filter, users can select the data the PivotChart displays. Further,
because a PivotChart is inextricably linked to the underlying PivotTable, filtering data on the chart will
cause the PivotTable to receive the same set of filters. From a practical perspective, these on-screen filters
facilitate interactive charting, a feature that otherwise requires significant developmental efforts, often
involving the creation of dynamic defined names and linking them to form controls. One potential
disadvantage of the on-screen filters is that they are visible on printed output. If this is problematic, disable
the filters by right-clicking on any on-screen filter and selecting Hide All Field Buttons on Chart from the
context-sensitive menu.
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Standalone PivotCharts in Excel 2013
In Excel 2013, PivotCharts can be built without an accompanying PivotTable. Simply select PivotChart,
PivotChart from the Insert menu and make sure to check Add this data to the Data Model in the Create
PivotChart dialog box, as shown in Figure 36. Click OK to display the PivotChart placeholder and the Field
List.
Figure 36 - Creating a Standalone PivotChart in Excel 2013
Create the PivotChart by dragging fields to the appropriate drop areas in the PivotChart Field List. Re-size,
filter, and format the chart as required to complete the chart. A "hidden" PivotTable summarizes the data
for this PivotChart just as for any other, but the PivotTable is contained in Excel's in-memory Data Model.
Furthermore, the PivotChart can be copied or moved to another workbook without affecting a user's
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ability to modify the chart. This allows end users to use the chart for analysis without the obtrusive
PivotTable that normally accompanies a PivotChart.
Linking or Embedding Excel Charts in Slideshows or Documents
When most users think of charts, Excel is the first tool that comes to mind. However, users can create and
modify charts in Word and PowerPoint in the same manner as they would in Excel. In fact, all three
applications use the same charting engine. To create a chart in Word, click Insert, Chart on the Ribbon,
and then select the desired chart type and click OK. Word will create an initial chart and insert an Excel
data sheet to hold the chart data. You can add, edit, or delete the data as required. When you save the
document, the data sheet is embedded in the document so that the data will be included with the
document wherever it goes. Because of the common charting tool, the process for creating a chart in
PowerPoint is virtually identical to the process of building a chart in Word. Choose Insert, Chart on the
Ribbon, select the desired Chart Type, and click OK. As with Word, the chart data is stored in an Excel
worksheet embedded in the slideshow.
In situations where you have already created charts in Excel, you can copy and paste these charts into
Word or PowerPoint quickly and easily. Whenever you paste an Excel chart into Word or PowerPoint, the
Paste Options box appears at the bottom right-hand corner of the pasted chart, as shown in Figure 37.
Select whether to link or embed the chart and whether to keep the source formatting or use the
destination theme. Note that pasting a chart as a picture is the least desirable option available because a
picture is a static image that cannot be edited in any way for presentation. Users will not be able to adjust
font sizes or colors, or add animation to the chart for more effective presentation.
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Figure 37 - Copying and Pasting an Excel Chart into PowerPoint
Animating Charts in PowerPoint
When displaying a chart during a presentation, the attention of the audience is likely to focus on the
meaning of the chart as a whole, while ignoring the explanation delivered by the presenter. PowerPoint
allows you to control the animation of the data elements so that instead of displaying the entire chart at
once, data elements can be presented in the order desired by the presenter, thereby holding the
audience's attention, more effectively, while the chart is being displayed and explained.
To control animation of a chart, add the desired Entrance effect to the chart. Then, right-click on the
Entrance effect and select Effect Options followed by the Chart Animation tab. As shown in Figure 38, in
the Group Chart box, select the desired animation effect. Now when the chart displays in a presentation,
the data elements will be animated and will appear as specified by the presenter.
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Figure 38 - Adding Animation to a Chart
Summary
Charts can be a very effective medium for communicating; however, all too often, many chart readers
misinterpret the message communicated by the chart. By taking advantage of the techniques discussed in
this session, you will be well on your way to turning your formerly stale Excel charts into stunning
visualizations that help you to communicate your message much more effectively.
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21ST ANNUAL MNCPA
MANAGEMENT & BUSINESS ADVISERS CONFERENCE
June 22-23, 2015  Minneapolis Convention Center, Minneapolis, MN
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E4. Excel Charts: Going from Stale to Stunning
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Thomas G. Stephens Jr., CPA, CITP, CGMA
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