Discover how cloud accounting could make a big difference in the setup of your company’s financial dashboard.
Three Benefits of a Financial Dashboard Housed in the Cloud
Most companies have monthly or quarterly bookkeeping, which output retrospective financial statements (Profit and Loss, Balance Sheet, Cash Flow). While these reports are crucial, it doesn’t always give business owners what they need to know to run their business and grow. An important part of understanding and managing your financial strategy should involve dashboarding metrics that matter to your business.
Encourages Interaction with the Numbers
A thoughtful analysis of your company’s earnings, expenses and projections for the future is easier to understand when it’s not in the typical accountant’s format. After all, people communicate with words, not numbers. Dashboards with visual representations and commentary, which can be provided through robust outsourced CFO services, allow your organization to take a look at the story behind the numbers.
Ensures Shared Financial Comprehension of the Company’s Status
Many companies have a “numbers guy” or “numbers gal.” While financial expertise is of critical importance to a company’s success, it is necessary that everybody have a comprehension of the organization’s financial picture. With a good dashboard, people with a variety of specialties and backgrounds will be able to have a basic understanding of the company’s financial situation. The dashboard promotes a basic required level of comprehension about the organization’s financial status and plans for the future.
Allow the Development of a Dashboard to Act as a Measure of Success
Developing a dashboard is an important group project for an organization’s leaders. The completed dashboard should have a simple and concise display of the most significant drivers of the business. This allows organizational leaders to act swiftly in response to an urgent situation or make a sound decision without having to wait for monthly financials. The shared experience of developing the dashboard creates a teamwork approach that will serve your organization well.
Using a cloud accounting system allows your organization to have real-time data which is needed to make dashboards accurate and meaningful.