During the economic crisis caused by the COVID19, companies felt the full benefit of instant access to real-time data. Finance professionals will take many lasting lessons from the tumult of 2020, and the absolute necessity of having instant access to their real-time cash flow and profit & loss.
Businesses had to react accordingly, and those who had immediate visibility over their current and projected cash and liquidity positions were better placed to do so. It is during these charged situations that the true value of a cash flow dashboard becomes abundantly clear.
Cash and liquidity dashboards display live data, generated by cash reporting and forecasting systems and processes, that is most important to businesses and their stakeholders. What’s more, they focus all eyes on a single version of the truth that can be easily understood and digested. With the touch of a button, dashboards can also be rolled into reports and delivered to senior management, who have the option to take a headline view or drill down to the most granular level of detail.
A cash flow dashboard, however, is only worthwhile when fulfilling a specific purpose. Companies must first identify what KPIs best reflect their financial performance, and are therefore worthy of a spot on the dashboard. The importance of profitability indicators lies in the fact that they are the most reliable when measuring the behavior of a company. Because they are based on quantitative data, an investor is much more confident in his decisions. After all, an entrepreneur may be charismatic, but it is the return on investment that will prove management competence.
The basic KPIs to measure profitability are: Gross Profit, EBITDA and Net Profit. Having real time information on Profit and Loss and Cash Flow is the first basic step to ensure a proper steering of a company.
Keeping track of your profitability KPIs doesn’t have to be a headache. There are tools and solutions available that can help you to manage all of your finances and make smarter and more informed business decisions.
Get in touch with Wibiway team and we will be glad to support you. We are specialists in profitability, project management, business strategy and digital transformation. Our dedicated application will lead your way to track your KPIs and provide you the means to steer your business to success.
For details please visit: https://wibiway.com
You can test it for free at: https://register.wibiway.com