Financial Dashboard

Knowing how much you’re earning and spending can help you make informed decisions and plan for the future. One helpful tool that lets you stay on top of your enterprise’s financial performance is a financial dashboard. 

Let’s explore what this type of dashboard does, why you should use it, and how you can leverage it.

What is a financial dashboard?

A financial dashboard is a tool that provides a clear overview of your company's financial health. It brings together data from various sources into a single visual interface, making it easier to understand complex financial information quickly.

You can use a financial dashboard to monitor revenue, expenses, profits, and other important financial data. These tools are important for efficient financial management. They reduce the time spent on manual data analysis, allowing you to focus on strategic planning. 

Why use financial dashboards?

A financial dashboard can help you gain real-time insights, streamline reporting, and enhance performance tracking. 

Here are six key reasons to use financial dashboards in your organization:

Get real-time financial insights

A financial dashboard lets you monitor metrics such as revenue, expenses, and profits instantly. This helps you make informed decisions quickly and stay updated with your company’s financial health.

For example, real-time financial insights are particularly useful when tracking cash flow. 

By allowing you to keep a close eye on the inflow and outflow of funds, you can make timely decisions to optimize your financial services and operations.

Boost financial performance tracking

Aside from being able to see your current financial situation, a dashboard lets you see the big picture of your overall business performance. For example, you may be seeing an increase in profits month-over-month but a decrease in overall revenue. 

This way, you can respond promptly and appropriately to any changes.

Streamline financial reporting

Financial dashboards consolidate data from various sources into one visual interface and simplify the reporting process. They simplify the reporting process by automatically gathering and displaying data from multiple systems, such as accounting software, sales records, and bank statements. 

As such, you don’t have to compile reports or sift through spreadsheets manually. Instead, you get a clear, comprehensive view of your financial health at a glance. With tools like Klipfolio PowerMetrics, it’s now become easier to generate comprehensive reports, saving you time and reducing the effort needed for manual data collection.

Reduce errors and increase data accuracy

Because financial dashboards do the legwork of consolidating and cleaning data for you and your team, they help reduce errors and, consequently, increase data accuracy. Using a financial dashboard lets you minimize the risk of manual entry mistakes to make sure the information you rely on is accurate and reliable.

Improve collaboration across teams

Financial dashboards improve collaboration across teams by providing a centralized source of financial information. Rather than opening different spreadsheets and files, team members can access a single tool for up-to-date data and insights.

Klipfolio PowerMetrics boosts communication and teamwork by keeping everyone on the same page. As a result, your team can work toward common goals using real-time data and insights. 

Enjoy cost and time savings with automation

Automating the process of collecting, cleansing, and displaying data through financial dashboards reduces the time spent on manual data entry and analysis. 

This way, your team can focus on strategic tasks, ultimately saving your company money and increasing productivity.

Finance dashboard examples

This type of dashboard encompasses different facets of finance, so you should choose the right financial dashboard for your business goals. Here are eight examples of finance dashboards that can help you manage your company's finances more effectively:

CFO dashboard

A CFO dashboard provides a high-level overview of a company's financial health. It includes key metrics like total revenue, net profit, and cash flow. This executive dashboard allows CFOs to compare actual performance against financial goals and make adjustments as needed.

Revenue dashboard

A revenue dashboard breaks down your company’s revenue sources. It helps you see which products or services are generating the most income. 

You can also track revenue growth over time to identify trends and opportunities.

Additionally, revenue dashboards can display detailed information on revenue by region, customer segment, or product line. By analyzing this data, you can identify high-performing areas and allocate resources more effectively.

Cash flow dashboard

A cash flow dashboard monitors the inflow and outflow of cash, including metrics like net cash flow and operating cash flow. 

As you analyze key financial reports from this dashboard, you can manage liquidity and make sure your company can meet its financial obligations. This way, you can avoid cash shortages and help you identify any potential cash flow problems early and take corrective actions.

Moreover, a cash flow dashboard helps you forecast future cash needs. It’s crucial for maintaining a healthy cash position and ensuring your company’s long-term viability.

Profit and loss dashboard

A profit and loss (P&L) dashboard shows P&L metrics like gross profit, net profit, and operating expenses. It helps you understand your profitability and control costs by displaying breakdowns of expenses by category, such as salaries, rent, and utilities. This information lets you identify cost-saving opportunities and optimize your budget.

Budget vs. actual dashboard

A budget vs. actual dashboard compares your budgeted figures to actual financial results, displaying metrics like budget variance and expense tracking. This dashboard helps you identify areas where spending is off track and make necessary adjustments.

As you compare budgeted and actual figures, you can make sure that your company stays within its financial limits.

Plus, the budget vs. actual dashboard can highlight specific areas where expenses exceed the budget. This allows you to investigate the causes and take corrective actions.

Subscription management dashboard

A subscription management dashboard is useful for businesses with recurring revenue models, like SaaS companies. It tracks metrics like monthly recurring revenue (MRR), churn rate, and customer lifetime value (CLV). 

By monitoring these key metrics, you can improve customer retention and increase recurring revenue.

Additionally, subscription management dashboards can provide insights into customer behavior and preferences. With a comprehensive view of your business, you can make data-driven decisions to enhance growth and profitability.

Sales and marketing financial dashboard

This financial dashboard tracks the financial impact of your sales and marketing efforts. It displays metrics like customer acquisition cost (CAC), marketing ROI, and sales revenue. Monitoring these metrics gives you ideas on how you can optimize your marketing spend and improve sales performance. 

The sales and marketing financial dashboard can also show you the most cost-effective channels and allocate your budget accordingly.

Expense tracking dashboard

This type of dashboard shows metrics like total operating expenses, expenditure by categories, and trends. This dashboard helps identify areas of overspending and implement cost-saving measures.

How to make an effective dashboard for finance?

Creating an effective financial dashboard involves knowing your data sources and choosing the right metrics to track.

Here are six steps to creating a finance dashboard that meets your organization’s needs:

Identify your data sources

Start by identifying all the data sources you will need for your financial dashboard, including accounting software, spreadsheets, and other financial systems. Make sure you can integrate these data sources to provide a comprehensive view of your company’s financial health. 

When you see all relevant financial information in one place, you can analyze and track data easily, helping you avoid missing important details. 

Choose the right financial metrics

Select the most important financial metrics to include in your dashboard. If you want to check whether your company has been earning enough, include metrics like revenue growth, profit margins, and cash flow.

Remember to set a dashboard for a specific goal or purpose. Don’t overload your financial dashboard by displaying all financial data since this can make it overwhelming for users. It's important to strike a balance between providing key insights and maintaining clarity.

Follow the best design principles

Stick to designing your financial dashboard with clarity and simplicity. Use clear headings, consistent colors, and easy-to-read fonts. 

Additionally, avoid clutter by only including the most important information. A well-designed dashboard should make it easier for users to find and understand the data they need.

Use interactive elements

Incorporate interactive elements like filters, drill-downs, and clickable charts in your financial dashboard. These features allow users to explore the data in more detail and gain deeper insights.

Customize your dashboard for users

Customize your financial dashboard to meet the needs of different users. For example, executives may need a high-level overview, while accountants might require detailed financial data. Tailor the dashboard’s layout and metrics to suit the specific needs of each user group.

Maintain data accuracy and consistency

Keep your data accurate and consistent by auditing data sources and cleaning up discrepancies regularly. Remember, the effectiveness of your dashboard relies on the accuracy and consistency of the data it presents, so keep a close eye on your financial data’s quality. 

Best KPIs and metrics to track on a financial performance dashboard

Tracking the right KPIs and metrics on your financial dashboard is crucial for monitoring your company's financial health. Here are some of the most important metrics to include:

Revenue

Revenue is the total income generated from your company's operations. It’s often referred to as the "top line" because it is the first item on an income statement. Tracking revenue on your financial dashboard helps you understand how well your company is generating sales.

You can also use this metric to compare performance across different periods, products, or services. It helps you analyze seasonal patterns and market demand so you can find growth opportunities.

Net profit

Net profit is the amount of money left after all expenses are deducted from total revenue. This metric, also known as the "bottom line," shows your company’s profitability.

It can be broken down by product line, department, or project to provide detailed insights into profitability drivers. Tracking this metric helps you make informed decisions about cost-cutting, pricing strategies, and investment opportunities.

Gross margin

Gross margin represents the percentage of revenue that exceeds the cost of goods sold (COGS). This metric helps you understand how efficiently your company is producing its goods or services.

A higher gross margin indicates better financial health. Analyzing this metric can reveal the impact of cost fluctuations and pricing strategies on profitability letting you maintain competitive advantage and profitability.

Operating income

Operating income is the profit generated from your company's core business operations. It excludes any income from investments or other non-operational sources. 

Tracking operating income on your financial dashboard provides a clear picture of operational efficiency and profitability.

Cash flow metrics

Cash flow shows the movement of cash in and out of your company. They include operating cash flow, investing cash flow, and financing cash flow. Monitoring these metrics helps you ensure that your company has enough cash to meet its obligations.

A positive cash flow indicates healthy liquidity and financial stability. Cash flow analysis is also helpful for forecasting future cash needs and planning for investments or debt repayments.

Return on Investment (ROI)

ROI measures the profitability of an investment relative to its cost. You calculate it by dividing the net profit from the investment by the initial cost.

Including ROI in your financial dashboard helps you evaluate the effectiveness of your investments. It provides insights into which investments generate the highest returns and inform future investment decisions.

Moreover, ROI can be used to compare the performance of different projects or initiatives. As such, it helps you allocate resources more efficiently and prioritize high-return investments.

Debt-to-equity ratio

The debt-to-equity ratio compares your company's total liabilities to its shareholders' equity. It indicates how much debt your company is using to finance its operations.

A lower ratio is generally better, as it means your company is less reliant on debt. Monitoring this metric on your financial dashboard helps you manage financial risk and maintain a healthy balance sheet.

Additionally, the debt-to-equity ratio provides insights into your company’s financial leverage and capital structure. By keeping this ratio in check, you can maintain long-term financial stability and reduce the cost of capital.

Current ratio

The current ratio measures your company’s ability to pay its short-term liabilities with its short-term assets. A current ratio higher than 1 indicates that your company can cover its short-term obligations. This metric is useful for assessing liquidity and managing working capital effectively.

Customer Acquisition Cost (CAC)

CAC is the cost associated with acquiring a new customer. It includes both marketing and sales expenses. 

Moreover, comparing CAC with customer lifetime value (CLV) lets you assess the profitability of your customer acquisition strategies. This financial dashboard metric is valuable for improving marketing ROI and driving business growth.

Customer Lifetime Value (CLV)

CLV measures the total revenue a company can expect from a single customer over their entire relationship. This metric helps you determine the long-term value of your customers. A higher CLV indicates strong customer loyalty and recurring revenue. 

Including CLV in your financial dashboard provides insights into customer retention and profitability.

Monthly Recurring Revenue (MRR)

MRR is the amount of revenue your company expects to receive every month from subscription services. Tracking MRR helps you understand the stability and growth of your revenue streams. A higher MRR indicates a stable and predictable revenue base.

Financial performance dashboard mistakes to avoid

As you create your financial dashboard, you should be wary of common mistakes that even experienced professionals can make. Here’s what to avoid:

Bombarding the user with lots of data

When you overload your financial dashboard with too much data, it becomes overwhelming and hard to read. Users might miss critical insights because of the clutter.

To avoid this, focus on the most important financial metrics, such as revenue, net profit, cash flow, and operating expenses. that align with your company's goals. Prioritize clarity and simplicity so that users can quickly understand the information presented.

Creating the dashboard with no clear goal

Without a clear goal, your financial dashboard can become ineffective. You need to know what you want to achieve with the dashboard, whether it’s monitoring expenses, tracking revenue, or analyzing cash flow.

As such, you should define specific goals before you start creating the dashboard. This way, you can display relevant data and metrics that are useful for achieving those goals.

Adding unnecessary data visualizations

Too many charts and graphs can make your financial dashboard confusing and distract users from the key information they need. Remember to only include data visualizations that add value and help illustrate important points. 

Each chart or graph should have a clear purpose and contribute to a better understanding of the data. For example, a line graph can show revenue trends over time, or a bar chart can compare monthly expenses. 

Not grouping related metrics

If related metrics are scattered throughout the dashboard, it can be hard for users to see the connections between them. This makes it difficult to get a comprehensive display of the financial performance.

Group related metrics together to provide a clear, cohesive view. For example, place all cash flow metrics in one section and revenue metrics in another. This helps users quickly find the information they need.

Assuming the user’s knowledge

Assuming that all users have the same level of understanding can lead to misinterpretation of data. Different users might have varying levels of financial and technical literacy.

Avoid this by providing explanations and context for the metrics and data displayed. 

Use tooltips or brief descriptions as well to help users understand what they are looking at and how to interpret it. This makes the financial dashboard more user-friendly and accessible to everyone.

More data-driven financial insights for your company with Klipfolio

Financial dashboards are essential for streamlining your reporting processes and enhancing performance tracking. You can enjoy even more features with Klipfolio PowerMetrics, making data visualization simple and comprehensive.

PowerMetrics lets you customize your dashboards to meet your users’ specific needs, whether you need a high-level overview for executives or detailed financial data for accountants.

Start using Klipfolio for free today and gain more data-driven insights to help your company achieve its financial goals!