Cash flow dashboard is a vital tool to simplify cash flow management of enterprises. It plays an integral role in determining the financial health of businesses.
Simply put, a cash flow dashboard provides an accurate picture of how organizational cash is performing. It shows key performance indicators related to a company’s cash flow. As a result, a cash flow dashboard reflects a company’s financial strengths, weaknesses and opportunities.
Who needs cash flow dashboard
Since a cash flow dashboard indicates trends in cash flow, it is of prime importance to financial departments. Financial managers can use it to identity and implement crucial changes when needed. In other words, it helps tackle a minor issue before it becomes a huge problem.
Cash flow dashboard offers benefits to all types of businesses, especially small enterprises. Small businesses tend to have unstable cash flows. At the same time, they don’t have the financial strength that large or established companies have to deal with these uncertainties. Hence, they need access to cash flow dashboard to make instant decisions daily.
Cash flow dashboard vs. financial statement
While some may argue that financial statements indicate cash flow problems, cash flow dashboards offer relevant information immediately.
Meanwhile, financial statements reveal year-end performance. Traditional financial statements are based on historical information. They do not offer much in terms of future cash flow trends.
On the other hand, a cash flow dashboard gives insight into potential future developments. Thus, it is a critical tool to support cash flow management.
Factors that make a good cash flow dashboard
A powerful cash flow dashboard should entail the following features:
- It should be practical and simple. In addition, it should be easy to use, read and understand.
- It should contain cash inflows and outflows in a clean, organized manner. In other words, it should not have cluttered data that will lead to confusion.
- It should comprise meaningful, relevant and useful data.
- It should display visual information clearly and coherently. The visual information should reflect the company’s cash flow situation at a glance.
An enterprise’s cash flow data is volatile. Thus, the cash flow dashboard needs to monitored on a daily basis. Equally important is to invest in high quality, customizable cash flow dashboard.
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ADNIA Solutions also provides easy-to-use and read cash flow dashboard templates for various clients.
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