Modifying your accounting system dashboards, KPIs and reports with the help of business intelligence

Introduction

Today accounting teams require well-defined numbers and comprehensive insights to make decisions swiftly. And with business intelligence, it makes sense of the accounting entries you have entered and advice on possible trends or actions. By defining custom KPIs, teams align reports with business goals and noise is avoided. An example of how to create custom dashboards and automated reports directly inside an accounting system.

Defining custom KPI strategy

The first step is to connect KPIs with the business results that matter to leaders. For a KPI to be a good one, it has to be measurable, timely and in the control of the accounting team. Pick KPIs that point toward cash flow, cost containment and revenue trends, while giving a rationale on why each one matters. Provide a definition and data set for each KPI to minimize confusion and mis-reporting.

Key KPI selection checklist

• Focus on metrics connected to cash and profit
• Select indicators that have frequent updates
• Each KPI must be backed by a single source of data
• Use the metrics that align with owners responsibilities

Designing dashboards for clarity

Keep the story behind the numbers in mind, and show it with as little clutter as possible on a dashboard. Surface the most urgent metrics at the top with a clear visual hierarchy. Visuals should be designed basic and charts should come with some additional captions that explains the insight.

• Keep layout with users
• Remove dead views
• Make navigation better

Visual choices and layout tips

• Line charts: Trends over time
• Employ bar charts for categorical comparisons
• Long rows for review of line items
• Alert closest to the youngest visualization

Mapping user roles to views

Dashboards should have required level of detail and context, which may vary for different roles. For executives, high-level trends and forecasts; for accountants: lists of transactions and reconciliations. Build role-based views that filter content and help eliminate noise for your nontechnical users. An easy way to find answers, without the need for training, is to use clear labels and simple filters.

Data source discover and data cleaning

You require data, well mapped to source systems and proper interfaces to create good KPI dashboards. First off, you need to reconcile chart of accounts, cost centres and project codes into a common schema.

Automate data imports and auto-validation rules for mismatches detection as early as possible in order to reduce manual fixes actions. Track data quality problems and fix recurring ones at the source.

Data governance essentials

• Establish the ambiguity of a single source of truth per metric
• Track data transformations and business rules
• Assign ownership for data quality problems
• Conduct regular audits of data mappings and reconciliations

Reduce the manual work automate reports

By automating recurring reports and KPIs, we save time while bringing consistency to our reporting. You should be trained to schedule exports and reports so that stakeholders receive timely insights without any manual efforts. Conditional logic can make it possible to alter chapters of a report based on threshold or exception and to automate alerts for anomalies that drive fast action from the team.

Report automation best practices

• Schedule reports for consistent delivery
• These will cover relevant info for context and a summary and action items
• Construct exception reports on an outlier activity
• Version tracking for historical change

Balancing automation and oversight

There will still be important decisions and reconciliations that should not be lost under automation. You keep up with some process of periodic manual checks and reconciliations to catch the outliers. Leverage automation to expose cases where a human decision is needed, not replace judgement. Retain some clarity to avoid owners second-guessing your input.

Data visualization and interpreting metrics

First of all, if there is a chart or table then it should be followed by some sort of action or decision whenever applicable. Add context with the previous periods, targets, and variance percentage to give a panoramic view. Do not include overly complex visuals that require an expert to read. Draw a short interpretation line below key visuals to explain the main takeaways for time-poor readers.

Creating consistent visual rules

• Base color schemes and labels
• Always provide comparison periods for context
• Spot variance above thresholds
• Regularize the number of visual types you use in each of your dashboards

Measuring success and iterating

Define success criteria for dashboards and KPIs before launch, measure adoption rates and impact of decisions. Gather user feedback on usefulness and ease of use, iterate on content. Monitor if KPIs drive the anticipated actions, and adjust metrics otherwise. Dashboards need to stay relevant and trusted over time through continuous improvement.

Implementation roadmap

• Launch a pilot KPIs and a simple dashboard
• After verifying that the data quality is correct, add metrics
• Training users on how to interpret and act upon reports
• Quarterly: Evaluate and refine based on feedback

Security, access, and compliance considerations

This information, which is usually sensitive, will need to be closely regulated on who gets access to it and who is allowed or enabled to work on it through accounting dashboards and reports. View and export privileges should be limited by role and need to know. Maintain audit trails to track report access and changes of important measures. Regulatory compliance: make sure that your data retention policies, deletion practices and other practices comply with regulations of a particular organization.

Conclusion

Custom KPIs, dashboards and automated reporting allow accounting teams to shift their focus from bookkeeping to business insight. To gain trust in the data focus on simplicity, have easy to measure metrics and maintain clean data sources with simple visual rules. Begin with low hanging fruit; measure the impact, then iterate and develop if users are keenly participating or there is a business opportunity. When done correctly, business intelligence serves as an enabler for accounting to make better-informed decisions on behalf of the organization.