On-Demand Insights With A Financial Dashboard
In today’s financial climate, there is increasing pressure on businesses, and particularly CFO’s, to provide clear and concise information regarding the driving forces behind a company’s performance. The information is expected quickly, and it is expected that the individual or group in charge will be able to digest, understand and suggest a way forward in very little time.
Online business management software that includes a financial dashboard and a KPI dashboard element is the solution to this problem. It allows you to provide tailored information in easily understandable formats, which can be used to make informed decisions for the benefit of the company as a whole.
Create A KPI Dashboard For Your Needs
All financial information needs context to be of any practical use. As Timberline Financial will tell you, sales or cost figures mean very little if you do not have a baseline to measure them against or a goal to aim for. This is where your KPI dashboard comes into its own.
Key performance indicators will differ from business to business, depending on your sector, structure, and the amount of time you have been in business. The one thing they should have in common, however, is how they are formed. In this respect, your KPIs need to be manageable, time-sensitive, and achievable. There is little point in using client or customer base as an indicator of performance if you don’t define exactly what you consider to be a success. However, stipulating that you want a 40% growth in your customer base within three months covers the above criteria.
Once entered into your financial management dashboard, you can track the growth of your customer base, and by comparing it to other financial information, you can see where the potential for further growth is or where solutions to problems need to be found. A further benefit of having a finance KPI dashboard is that it can be accessed easily by other interested parties.
Your customer services department can work with these details, alongside information gathered on customer retention, to gain further insights into the course your business is currently taking. Your sales and purchasing departments can use the information relevant to them to streamline their departments before a problem occurs, rather than having to wait for it to be reported to them.
Financial understanding is not just for individuals within the company. It is also necessary for as diverse a group from your accountant to your investors and even your business bank manager. Each will be interested in the overall financial health of your business, but will also have their own specific concerns and interests. Financial reporting using an online financial dashboard makes it much easier to develop the reports each group requires and to work with them to reach your KPIs. Your options are as close to infinite as it is possible to be with this type of software, which means that so too is your ability to analyze different aspects of your financials. You can flag issues, spot trends, and highlight exceptions at any time.
You can also produce more in-depth reports at specific time frames to suit your needs. Having all the information in one place also means that you can compare month on month or even year on year data without having to sift through mountains of paperwork and finding lost invoices. Better reporting leads to better analyzing, and this, in turn, leads to a more productive and financially efficient business.