Keeping an eye on key performance indicators (KPIs) is a must for every small business. But finding time to closely track KPIs in these busy and challenging times is difficult—unless you have custom dashboards that can help you slice and dice the details you need in no time at all.
Let’s look more closely at a few KPIs you should be tracking and how custom dashboards in cloud-based ERP solutions like Sage Intacct can help.
Must-know KPIs
These are just a handful of the most important KPIs that small businesses need to track, analyze, and incorporate into important decisions. They also happen to be KPIs that you can easily monitor and analyze using custom dashboards:
- Cash flow: Compare operating cash flow to total capital to gain insight into your overall financial health and ability to undertake capital investments.
- Debt-to-equity ratio: This ratio contrasts total liabilities with net worth to indicate the profitability of the business and your debt concerns.
- Working capital: This is the total of your cash on hand, accounts payable, loans, and other assets, minus your liabilities.
- Recurring revenue overview: Especially if you run a subscription-based business, monitoring this KPI is essential.
- Current ratio: Divide total assets by liabilities to better understand your ability to meet future financial obligations.
- Finance KPIs: To stay on top of finances, you’ll want to track more obscure operational KPIs related to billing, collections, and other core financial processes.
How custom dashboards can help
That’s a long list of essential KPIs—and there are many more. You can outsource or co-source for help tracking all of them. You can also move to an accounting solution that offers the custom dashboards you need.
Custom dashboards enable you to select whichever KPIs you want to monitor. Then you can examine your data across different dimensions to get different views without having to produce individual reports. And you can tailor the dashboards for different stakeholders, controlling who sees what.
Sage Intacct offers predefined financial dashboards out of the box, and you can add more as needed to reflect your unique business drivers. You can share real-time views on the dashboards and securely archive copies. It even keeps tabs on the historic workflow and audit trail, so you don’t have to.
Get the support you need
Insero & Co. is a public accounting firm with decades of experience working with businesses and nonprofits of all sizes. We can help you weigh the benefits of automating your accounting processes and help you make the transition to best-in-class software. We also provide affordable direct-hire solutions, as well as outsourcing and co-sourcing solutions on a temporary or long-term basis. Whatever type of help you’re looking for, we’re here to help you find the right solution in these trying times.
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About the Author: Kimberly Gangi
