I often get this question from various IT people: "Why do business analysts like fancy dashboards?"
KPI Partners Blog
Financial managers in all industries need to be aware of the health of their organization as well as the health of the processes that enable sound financial management. In this article, I will outline some basic metrics that can be used to identify and evaluate the health and efficiency of the accounting and finance function as well as the financial health of the organization.
While it is true that specific metrics can vary across industries, in this article we will address metrics and concepts that can be applied across most industries.
The metrics to be discussed will be broken up into the following categories:
The health of a business' finances is the strongest determinant of whether the company is thriving or in dire straits. It is for this reason that paying close attention to key finance metrics is an absolute necessity. If business leaders are consistently implementing these metrics and they discover that their business' finances are off track, then they can make adjustments before it is too late do do anything.