Creating a useful financial dashboard for a small business is critical to success. A dashboard should provide insight into the company's current financial health, as well as predict the outlook for the future. It should not only be able to detect any irregularities or discrepancies in data but also present actionable items or questions that need further investigation.
The key components of the dashboard should include the following:
Current Cash Flow: A window into the funds available right now, which should be tracked on a daily basis. This helps you understand how much money is coming in and going out, as well as give insight into any potential cash flow issues. It should also include projections for future months based on current trends.
Revenue & Expenses: A comprehensive overview of all income and expenses throughout the year. This will let you know your exact financial standing with regard to revenue and expenses, giving you an idea of where you are making or losing money. You can also compare this information with industry standards to identify best practices or areas for improvement.
Outstanding Debt: A report of any accounts payable or receivable, as well as any loans taken out or repaid over time. This will help keep track of payments made to vendors and creditors, ensuring that bills are paid in full and on time. It is also helpful when trying to get a loan since lenders look at a company’s outstanding debt-to-income ratio when deciding whether to approve an application.
Key Performance Indicators (KPIs): These give you an indication of how well your company is performing compared to projections, allowing you to make quick adjustments if necessary. Typical KPIs include sales volume, customer satisfaction ratings, employee engagement scores, and more. Tracking these metrics over time will give you a better understanding of what is working and what needs improvement within your organization.
Forecasting & Analysis: Looking ahead several months will help you plan for upcoming challenges or take advantage of new opportunities before they arise. By forecasting cash flow, revenue & expense estimates, outstanding debt levels, and KPIs in detail, you can develop strategies that position your company favorably in the long run.
When it comes to design elements of the dashboard itself; its layout should be simple yet intuitive enough so that users can easily switch between different datasets with minimal confusion. Charts should convey relevant information quickly while remaining aesthetically pleasing. The option for customization can also prove beneficial when creating personalized views of data that deliver greater insight into individual user needs or interests.
Overall having an effective financial dashboard provides crucial insight into a company’s current fiscal standing while giving decision-makers powerful tools to guide their strategies going forward; enabling them to make informed choices while steering away from costly mistakes or risky investments.