Looking at the trends of previous and current financial performances is important for a company, so that the executives will be able to monitor the overall progress of the organization. If there is a downward trend for a reasonable amount of time, it should set off some sort of warning. Downward trends would mean that the performance of employees is not good, or the current business strategies are not effective.
An information dashboard is used to manage business data that are related to the KPIs (key performance indicators) of the company. KPIs are formulated to serve as targets that should be achieved. When these targets are achieved, the objectives that are subjected to the KPIs are also met. The KPIs are indicators that are used in monitoring the progress of the business team towards achieving their goals.
There are many kinds of dashboards that are used to manage and organize data that could support a business in achieving its KPIs. One of the common kinds of dashboards is the financial dashboard. From the name itself, you can reason that this dashboard is specifically for the financial aspects of the company.
The financial aspects of a company are so broad and it can be difficult to understand how your company is doing. Because finance involves all the money issues within your company, organizing data in an easily understandable financial dashboard is crucial. Although a dashboard is just a brief presentation of the KPI results, it is still hard to create and manage, because proper illustrations must be included in a dashboard. These illustrations should be clear and common to public, and can be able to present data in a brief and concise manner.
The KPI results that are presented in these reports must be organized with their corresponding time periods, so that it would not be difficult for the users to track down previous results. The previous time periods must show trends; this means that a good illustration, such as graphs can be used in trending. Bar graph is great in showing trends, because you can easily identify progress by just merely looking the illustrations.
It is really helpful to use a financial dashboard to track financial trends. When the business team is aware of their progress, they can gauge their effort and time that should be invested in the company in order to attain goals that contribute to business success. Also, by just looking in the financial trends on the brief report, the business team will be able to determine if there are any time periods that the number of customers and amounts of sales are consistently high. By knowing these things, that business will be able to determine what strategies they used in those time periods, because these strategies seem to be effective.