Financial visibility and transparency are important aspects of maintaining profitability in business. Profitability losses threaten the very existence of businesses. Therefore, it is crucial to make better financial decisions, and what better way to achieve this than to ensure your financials are closely monitored. Having great control of your finances will help you reach resilience in business and prepare for the unexpected crisis.
Have a look at our previous article on Resilience in Business and the Test of COVID-19
With real-time dashboards, financial visibility and transparency become more attainable. Furthermore, analyzing financial reports become more exciting and less time-consuming. Despite that, it gets easier to pinpoint where your business is performing badly and devise ways to improve.
How to increase financial visibility and transparency with real-time dashboards
Identify company metrics and performance indicators.
One cannot further emphasize the importance of real-time dashboards on financial reporting. A financial dashboard, for instance, can help business owners get an overview of company expenditures. It also reveals the complete picture of all profits and losses. Thus, it makes it easier for financial analysts to visualize and understand the breakdown of revenues, operating expenses, operating profit, fixed costs, taxes on profits, etc.
Rather than rummaging through spreadsheets, financial analysts can simply examine graphs and presentations to determine performance results. This will, in turn, allow business owners to also act on appropriate measures and strategies to keep, improve, or change based on certain indicators.
Access all financial data in real-time.
Since the work team can access financial data easily through real-time dashboards, more time will be allotted for other high-value tasks. Financial analysis can begin instantly since all financial data are laid out clean and organized in one single view.
Having financial dashboards that run in a company software such as Kwikdroid will also allow easy access for those who are permitted to log onto the account. On the other hand, access to online data will save time from going through a couple of spreadsheet files involving financial reports.
Monitor sales performance.
About monitoring profitability metrics, real-time financial dashboards also present net profit and sales in any chosen period of time. It can further show sales performance by category (line of services, products, location, etc.) and break-even point of sales revenue. For example, from the dashboards, analysts can predict how much sales are needed for the company to start being profitable.
Increase profitability.
It is no secret that financial visibility allows someone to make decisions based on different measures of success. Creating a financial dashboard offers these measures and guarantees that decision-makers are always aware of the company’s present needs, failures, and successes.
Furthermore, as companies can opt to share access to financial dashboards with the team, more people will realize some areas of productivity enhancement on certain aspects of their work.
Thus, a more productive workforce leads to a more profitable company.
The challenge of financial visibility and transparency in China
In the context of the Chinese business environment, it is important for whatever available information to be as transparent and visible as possible. The use of dashboards can help many businesses in handling a huge flow of information and putting them into one single software. However, China’s strict control of accessibility of information may need software that is fully compliant with the regulations. Hence, it is a good opportunity to seize what S.J. Grand’s digital accounting and management software have to offer. With our Kwikdroid, businesses can take advantage of financial advisory and efficiency at the same time. We can help you create your own financial dashboard. You can avail of our various services ranging from tax, accounting, HR and payroll management, project monitoring, sales and revenue analysis, and other multi-functions – all in one online platform.
From its experience in China, our firm understands, on one hand, the need for financial reporting for bosses and CFOs and on another hand, we understand the frustration of the lack of information and details in certain financial reporting formats due to China regulations. For example, it is common to find some operating expenses booked in General and Administrative Expenses. The operating profit is consequently wrong due to different standards or methods of bookkeeping. Facing this common phenomenon in China, S.J. Grand’s accountants are trained to fit the international financial reporting standards using bilingual entries and appropriate bookkeeping. Our financial dashboards not only show the breakdown of each account and enhance visibility but also spot such bookkeeping mistakes.
Conclusion
The core purpose of real-time dashboards (e.g. financial dashboard) is to provide visualization for decision-makers including employees. With the dashboard, employees can easily track the necessary information. Moreover, financial visibility and transparency require that there is the availability of accurate information to prevent managers from making mistakes. Advanced technologies such as accounting software can ensure that information is accurate and accessible anytime.
Contact us
S.J. Grand specializes in helping foreign businesses build efficient management systems and navigate through a complex tax and regulatory environment through our professional experts in the field. Contact us to avail of our special services.
If you are interested to learn more about our latest Cloud-based company solution, go to our Kwikdroid page to check the prices and packages we offer, no matter the size or type of company.
