Making reports is challenging, and sometimes, it becomes challenging for financial teams. Most financial reports are difficult to conclude, and that is why they become hard to understand. If you opt for financial reporting dashboard software, there will be ease all the way. With reporting dashboard software solutions, you can master the making of financial statements.
The absence of a financial reporting dashboard software results in time consumption. It takes a significant amount of time to organize and collect financial data. Such challenges can result in loss of management in cash flows, balance sheets, and net profit, which can also affect the company’s financial health.
Financial ups and downs are a part of any company’s journey, but what matters is how these issues are managed. You can align your business affairs by opting for the best financial reporting dashboard software.
What is a Financial Reporting Dashboard Software?
A financial reporting dashboard software has customized or selected finance merits that display a company’s financial status in different ways. It shows different data points in the form of maps, graphs, and charts that show a company’s financial performance.
People usually get confused between static reports and spreadsheets, whereas financial reporting dashboards show sales charts, supply chain performance, operations, etc. With a financial reporting dashboard software, you can make better informed decisions.
22 Things to Consider in a Financial Reporting Dashboard
Reporting dashboards are informative, but you may occur on some that are filled with too much unnecessary information. This is why you need to look for a financial reporting dashboard software that serves the purpose in the most pre-eminent way. Here, you will learn about important things to look for in a financial reporting dashboard software.
1. Operating Profit Margin
This financial merit measures the overhead cost, which is the final profit after deducting administrative expenses, nonproduction costs, and general expenses. The operating profit margin also includes the recruitment of advertising and sales staff. A financial reporting dashboard software should be able to generate an automated report.
2. Gross Profit Margin
It is grinding to keep an eye on business performance and production efficiency simultaneously. This is why all levels of companies should go for a financial reporting dashboard software that measures gross profit margin.
GPM is the merit that shows how well the company has been managing production supplies and labor. Moreover, with an advanced reporting dashboard, you can handle falling gross profit margins.
3. Total Asset Turnover
Assets are the foundation of any company, and monitoring their utilization should be practiced. Keeping track of resources and asset usage requires more than one person. Thanks to financial reporting dashboard software, you can monitor total asset turnover.
This includes reporting intangible and tangible assets like computer systems, cash, property, etc. If the graph shows high asset turnover, know that your company is on the progressing track.
4. Accounts Receivable Turnover
A company either sells a product or a service. If you are looking for a good financial reporting dashboard software, then opt for the one then find the one that provides the feature of financial data planning and measuring accounts receivable turnover.
This measures how much revenue your products or services are generating that are sold on credit. This shows profound information about your potential customers and with whom you have to settle credit accounts.
5. Operating Cash Flow
If you want to see how much profit your business is bringing in at the end of the day, then you have to see operating cash flow data points. To reduce the effort of tracking these points, you need an automated financial reporting dashboard software that gives you an exclusive report of operating cash flow every day.
6. Expense and Revenue Trend
With the help of avant-garde financial reporting dashboard software, you can anatomize revenue and expenses. This merit shows a chart about how much your business makes, considering the monthly expenses.
If your company is selling more than one service or product, this feature will show which is bringing in more revenue. Plus, you can also make different comparisons of the products and services with defined budgets.
7. Working Capital
A person’s net worth is calculated by the number of assets they hold, and a business’s net worth is estimated by seeing the number of resources that can be converted into cash. As difficult as it sounds, this calculation takes a lot of time. Also, you have to divide the final number by a single financial year – making it more grueling.
A fully featured financial reporting dashboard software will empower you to list assets and resources that can help you clear unforeseen debts. This also helps in making plans for fluctuating financial years.
8. Reputation Among Customers
Customers make the company go around. With a detailed list of customers’ know-how, your company can progress by leaps and bounds. A customized financial reporting dashboard software can provide you with a list of customers breaking down their information about age, gender, city, the product/service they use, profession, and much more.
This will allow you to dive deeper into seeing who your customers are and which product or service is bringing in more clients. This chart will help you improve your business and regain lost customers.
9. Reliable
Large businesses have lost trust in regular financial reporting systems because the results are usually uncertain when cross-checked by human aid. While small companies also need extra accuracy since it is their start to turn their static financial charts into booming ones.
The only solution is to opt for a financial reporting dashboard software that is reliable to the core. Cross-checking must not be required at all. A financial reporting dashboard software should produce precise results based on financial processes and be according to company standards.
10. Connect All Data Points
Every department of the company holds some data. Your financial reporting dashboard software should integrate all sorts of data in the most presentable and readable way. We are talking about the number of hired people, salaries, bonuses, rewards, worked hours, website visits, logistics expenses, etc.
This way, your team can skip compiling data and submit it. They just have to put the data in the right categorized folder, and the financial reporting dashboard software will confer an organized report.
11. Customization
Understanding financial statements is a challenging thing. So wouldn’t it be easy to break down the data points the way you want? An AI financial reporting dashboard software, will allow you to see customized financial data reports from different templates.
You don’t need a developer or a skilled person to do this; a few clicks are required to see tailored reports. Companies need financial reporting dashboard software that does not glitch when data increases – customization helps with adaptability and flexibility.
12. Up-to-Date Trends
Your financial reporting dashboard software should be updated automatically with upcoming market trends. This will prepare you to plan beforehand and never see a downing year. An advanced financial reporting dashboard software will foresee trends depending on stats, charts, customer behavior, and regarding merits.
An intelligent financial dashboard will forecast trends based on historical data and notify you about opportunities a month prior. This can definitely help you increase your yearly profits and margins by providing actionable insights.
13. Data Visualization
Looking at multiple colored charts and graphs can boggle your head. This can make you hazy, and you can accidentally mix reports. The main reason for implementing financial reporting dashboard software is to have excellent data visualization. This means go for the reporting dashboard that allows you to make accurate decisions by just taking a quick gander.
The data should be presented in a way that it speaks to you. Though you could select from an easy financial dashboard template sometimes, you don’t even have the time for that. A financial dashboard should allow you to understand all reports and data points within minutes.
14. Easy Integration
Every company uses some accounting software, and connecting it with a new financial dashboard software may be a little complex to do so. If you are going to administer a financial reporting dashboard software, make sure that it is compatible with existing software. Opt for the one that has the maximum number of built-in integrations.
The new financial reporting dashboard software will work when you feed it data. You will have to import data from different sources, so go for the one that imports data from Google Sheets, MS-Excel, and other types of spreadsheets. It would be a plus point if doing this does not take hours.
15. Access and Security
Companies’ financial data is sensitive, and that is why they should not allow every employee to have access to it. You should get a financial reporting dashboard software that allows you to limit access to financial reports and data.
Financial dashboard software should allow admins and super admins to give authorization to whoever they want and limit their activities as well. This improves security and keeps integrity intact on all corporate levels. Your financial data will be leak proof at all times.
16. Break-Even Analysis
Every organization makes some kind of investment for a secure future. Financial reporting dashboard software lets the user create scenarios of investments and see if they are any good in the coming years.
The user has to enter the variable cost per unit, fixed cost unit, and prices of sold units. This will make a mapped relationship between total sales and total profits which will let you know if the investment plan is worth the shot.
17. Cash Reimbursements
If you are giving out more cash reimbursements than collecting profits or revenues, there could be a substantial financial backfooting. Financial reporting dashboard software enables you to track cash flows and get genuine employee satisfaction. Doing this will empower financial teams and managers to monitor ever-growing operating expenses.
18. Multiple Billing Options
Due billing can lead to a financial backlog and display signs of carelessness in audits. A financial reporting dashboard software will send alerts to the payers and notify you to send bills to the customers.
You can also view past bills that come in handy when maintaining accounts and ledgers. Seeing past and future bills, you can make a complete and detailed analysis of the company’s cash flows.
19. Track Payables and Receivables
Businesses have the potential to do a lot of work and generate a lot of profit – sometimes, it cannot be measured accurately. The best way to do this is by tracking payables and receivables. Financial dashboards can aid with this, and finance managers can spot cost trends.
Viewing payables and receivables helps finance teams see a business’s growth when they get a clear picture of the ins and outs of cash flows.
20. Cash Balance
This mainly benefits the companies that do business on pay-as-you-go terms. Tallying cash flows on a daily basis is challenging, and a single error can ruin your company’s financial health in the long run.
Financial dashboards can assist accountants and managers in calculating cash balance sheets from multiple sources. This will result in fast and precise calculations. You will also see all account details on the financial dashboards.
21. Transaction Details
Large organizations do lots of financial transactions daily, and manually charting them down can burn daylight. Financial dashboards provide details and convenient transaction reports that are super easy to read and understand.
Financial leaders can identify different origins of transactions that will help them do quick and precise audits. They can also see more details of transactions that will allow them to search for specific clients and payments.
22. Predict Revenue
This feature is a bonus in financial dashboards because it literally directs you and your teams to take specific actions that expand your business. This is done by adding different merits and data in the dashboards, and based on historical data; the software will predict future revenues.
It can also show future earnings, profits, margins, and expenses. This will also give you an idea about managing cash flows in different ways that make your business prominent and successful.
The TakeAway
Financial reporting dashboard software is more than just charts, graphs, and visualizations. It should be a helping hand of financial managers and business owners to see future trends. An automated financial dashboard should also predict business opportunities that are time ahead.
If you plan to maintain your company’s financial health, you most definitely want to go with Financli. The company has several affordable features which helps in the best financial calculations and planning. In addition, the company has financial reporting dashboard software for types and sizes of businesses.
