Financial Dashboards to Track Success

In the bustling world of small businesses, it’s essential to stay on top of your financial health. But who says keeping an eye on finances can’t be an invigorating and interesting task? Ditch those dusty old ledgers and complicated spreadsheets for a sleeker, more insightful approach. Enter the era of financial dashboards – your next secret weapon for business success. Let’s dive into three simple yet powerful dashboards that will not only keep you financially informed but also motivated on your journey to success.

Cash Flow Dashboard

What it is

The lifeblood of any business, big or small, is its cash flow. This dashboard provides a real-time snapshot of money flowing in and out of your business. It helps you track your operating, investing, and financing activities at a glance.

Why it’s essential

A U.S. Bank study noted that 82% of businesses fail due to poor cash flow management. With a cash flow dashboard, you can avoid being part of this statistic by ensuring you have enough cash to cover your expenses and make informed financial decisions.

What to track

Keep an eye on your opening balance, cash inflows (from sales, accounts receivable, etc.), cash outflows (expenses, accounts payable, etc.), and your closing balance. Watching these metrics can help you identify patterns, plan for lean periods, and make adjustments as necessary to steer your business toward success.

Profit and Loss Dashboard (P&L Dashboard)

What it is

This dashboard summarizes your revenues, costs, and expenses over a specific period, typically a month, quarter, or year. It gives you a quick overview of your business’s financial health and profitability.

Why it’s essential

By understanding where your money is coming from and going, you can make strategic decisions to increase profitability. For instance, according to a Small Business Administration report, small businesses that regularly review their P&L can increase their profitability by an average of 21%.

What to track

The P&L dashboard should include your total revenue, cost of goods sold (COGS), gross profit, operating expenses, and net profit. A well-kept P&L dashboard can help you spot trends, manage expenses more efficiently, and invest in areas with high return on investment (ROI).

Sales and Revenue Dashboard

What it is

This dashboard focuses on generating insights into your sales and revenue figures. It highlights how well your business is doing in terms of meeting sales targets and generating income.

Why it’s essential

Tracking sales and revenue helps you understand customer behavior, market trends, and the overall performance of your products or services. For small businesses, knowing these metrics can mean the difference between staying afloat and sinking. In fact, a recent survey by Score revealed that businesses with a sales plan achieve 28% higher revenue than those without one.

What to track

Monitor your total sales, average purchase value, conversion rate, and new versus returning customers. This dashboard can aid in identifying your best-selling products or services, optimize pricing strategies, and focus on your most profitable customer segments.

Bonus Tips for Dashboard Success

• Customization is key

Tailor your dashboards to meet the specific needs of your business. Focus on the metrics that matter most to achieving your goals.

• Keep it visual

Use charts, graphs, and color coding to make data easy to digest at a glance. Visuals can help you spot trends and anomalies faster.

• Regular review

Make it a habit to review your dashboards regularly – daily, weekly, or monthly, depending on the specific dashboard and your business needs.

• Take action

Data is only as good as the actions it leads to. Use insights from your dashboards to make informed decisions and implement strategies to drive your business forward.

Conclusion

Embracing financial dashboards can transform how you manage and understand your business finances. With these three powerful dashboards – Cash Flow, Profit and Loss, and Sales and Revenue – you’re not just tracking numbers; you’re unlocking the story behind your business’s success.

So, here’s to making informed decisions, embracing strategic growth, and steering your small business toward the prosperous future it deserves. Remember, every successful business starts with a clear understanding of its finances. Let your financial dashboards be the compass that guides you to success. Cheers to your business’s financial health and beyond! About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.