Importance of Dashboard in Managing Accounts

To manage your business, you need relevant financial data that's delivered in real time.

So today we will be highlighting the importance of DASHBOARD. It's important to obtain the right financial reports in order to continually make adjustments and better decisions for the future health of your business. There are two levels of reporting in the world of accounting and bookkeeping. The first level is the financial statements themselves. These are detailed reports consisting of rows and columns of numbers like balance sheet and income statements. Often these reports are difficult for the average layperson to understand, interpret, and use in everyday business management. The second level of reporting is what’s known as Dashboards. These graphical reports represent what are called “Key Performance Indicators”. These reports are used by owners and management to track key metrics on a regular basis. When a key metric suddenly changes, these reports reflect those changes so that management can react quickly and decisively to make course corrections. Without the availability of these reports, serious business problems can remain undetected for long periods of time and often well after it’s too late.

The informed companies – SME or big,  are the most successful companies as they are very clear about their short-term and long-term goals, and also about their business current status, the financial health of organization.  They take decision quickly based on the facts always available at their fingertips. They are always ready to take wise at crucial phases of the growth.  In order to make effective business decisions, one need to have access to valuable, real-time data and information in the form of Dashboard. These tools can also help you create business goals and identify metrics and key performance indicators to help you measure the success of your agreed-upon goals and objectives.

Accurate and thorough information is the foundation of all successful business ventures because it provides a wealth of information about prospective and existing customers, the competition, and the industry. For any venture, be it small or big businesses, it is very important to have information at fingertips Because you probably have more expenses for your business than you dared imagine. This can make it hard to guarantee you have the cash reserves to call on when needed. And when in the infancy of relationships with suppliers, non-payment of bills will not be received favorably. By using a dashboard tool, you can keep track of what has historically been paid, when and to whom, and use this to better forecast the finances you will need for the future.  

Sachin Lohade is a Chartered Accountant and works with Accounting Firms to improve practice and reduce costs. He can be reached out at sachin@corientbs.com or you can visit www.corientbs.co.uk