Manage my business Finance Dashboard

Manage my business | Finance Dashboard

Finance Dashboard: Income statement, Cash flow, Working capital, Operational plan variances, CapEx, Strategic investments, BalanceSheet, Treasury

CONTEXT & CHALLENGES

Profit and loss account, cash flow, working capital, operational project deviations, capital expenditure, strategic investment, balance sheet, human capital costs and revenue… These are some of the functions performed by financial companies or that depend on the expertise of the Chief Financial Officer within an organization. Keeping an eye on all of these things at once is no easy task. However, this is what is required in order for a company to take appropriate decisions and ensure its financial security.

Achieving equilibrium in all areas (financial, strategic and human) involves a huge amount of work that can be a source of stress. This is why continuous monitoring with a specially designed financial dashboard, which challenges all areas of the company’s finances, is essential for sound business operations and healthy staff. Work performed steadily and calmly, instead of rushed to meet deadlines, always ensures better quality output and working relations.

Furthermore, in the current economic climate, the pressure of competition is even greater. It is therefore essential to control and manage your company’s finances more stringently, with a sharp focus on each detail, in each area of the organization.

FINANCE GOALS AND OBJECTIVES

Treasury

  • Efficiently manage cash and liquidity requirements
  • Optimize cash resources
  • Establish and maintain access to short, mid and long-term financing
  • Decide on the specific operational, investment
    and strategic treasury activities needed to support
    financial objectives
  • Reduce errors within treasury operations

CapEx and Strategic investment

  • Define & justify investment priorities

Budgeting / Forecasting / Business Planning

  • Assist in formulating the organization’s future direction
    Develop performance measures that support the organization’s strategic direction
  • Monitor and direct the implementation of strategic business plans
  • Develop financial and tax strategies
    Manage the capital request and budgeting processes

Cash flow and Working capital

  • Manage working capital
  • Collect accounts receivables
  • Monitor cash use effectively

Balance sheet

  • Balance and structure the financials funding options, resources, and risks of the business

Financial Consolidation

  • Consolidate financial figures of organization subsidiaries
    Adjust for any intra-group activities
  • Perform eliminations
  • Ensure compliance to regulatory requirements

Statutory & Regulatory Reporting

  • Ensure the submission of financial and non-financial information to a government agency
  • SOX Compliance / IFRS Compliance
  • Report financial results to the board of directors
  • Oversee the issuance of financial information

Accounting

  • Record, summarize and report the organization’s financial transactions
  • Provide an accurate picture of its financial position and performance
  • Prepare financial statements: balance sheet, income statement, cash flow statement

SOLUTIONS

In a difficult economic climate, the aim is to optimize and plan ahead, as far as possible, for all expected and unexpected costs, and to monitor all data in real time, division by division, and department by department. The fully customizable financial dashboard can help you to:

  • Provide a concise, but accurate view of how well a division or individual department is performing

  • Deliver a picture of your trends, predictions, and performance using your current accounting data

  • Improve decision-making by providing organizations with better visibility into the factors that drive revenues, costs

  • Monitor performance across the entire business starting with a general overview of expenses and revenues, and allowing drill-down to transactional detail, trend analysis

  • Improve financial performance by tracking operational and financial data by business driver and proactively take corrective action and ensure budget compliance

  • Optimize cash flow through detailed accounts receivable, accounts payable, and inventory analysis

  • Allow other functional units to understand product or customer profitability and how staffing costs and employee or supplier performance correlate with increased revenue and customer satisfaction

FINANCE KPIS

Key Performance Indicators are used to measure the realized progress towards a strategic objective.
For a Finance dashboard, here is a sample list of KPIs Lintao recommends (non exhaustive list):

  • Assets (€/%)

  • Liabilities (€/%)

  • Equity (€/%)

  • Inventory (€)

  • Inventory Days

  • A/R Balance (€/%)

  • A/R Days

  • Investments (€/%)

  • Loan Balance

  • Revenue Growth Rate (%)

  • Return on Asset (%)

  • Net Cash Flow (€/%)

  • Actual vs Plan Variance (€/%)

  • Net Sales (€)

  • Fixed Costs (€/%)

  • Variable Costs (€/%)

  • Distibution Costs (€/%)

  • Capex (€/%)

  • Opex (€/%)

  • Sales per Head

  • Operating Profit / EBIT (€/%)

  • Contribution Margin

  • Gross Profit (€/%)

  • Net profit (€/%)

  • Tax (€/%)

  • … or your own Finance KPIs

FINANCE ANALYTICAL AXES

The axes of analysis represent the elements by which you want to segment your observable information (such a KPIs) to understand the rationales behind a given performance. Also called ‘dimensions’.
For a Finance dashboard, Lintao identifies the following axes of analysis (non exhaustive list):

  • Time

  • Organization

  • Division

  • Cost Center

  • Account

  • Scenario

  • Strategic Initiatives

  • … or your own Finance analysis axes

EXAMPLE OF A KEY DATA VISUALIZATION FOR FINANCE

Financial data visualization presenting how the accounting balances have been evolving across time.

FINANCE

More details on this data visualization here.

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