The company followed the steps below to develop the dashboard.
Objectives
The primary purpose of a cost monitoring dashboard is to effectively manage cashflow.
This means:
- Evaluating a company’s financial status in one glance;
- Quickly identifying potential anomalies by highlighting significant variances from the planned budget and estimated revenue,
- Identifying trends in a preventive rather than reactive way;
- etc.
The cost monitoring dashboard should enable the company to answer the following questions:
- Do the budgetary trends match expectations with regard to the schedule?
- Which departments are spending more than planned?
- Should we adjust our estimates up or down?
- What is the forecasted return on investment?
- etc.
The dashboard serves to help the company meet and exceed its financial objectives by optimizing costs and expenses.
KPIs
- Gross profit margin percentage;
- Operating margin percentage;
- Operating expenses ratio;
- Net profit margin percentage;
- Cost variances;
- Revenue variances.
Data aggregation and processing
All useful data for the project is stored in a database, which was created previously by the team using data modelling from the different data warehouses.
Which information will be presented
The dashboard has two main sections:
The first sums up the company’s profits and losses
- KPIs: the quantitative results related to the company’s finances;
- Changes to and details of operating costs over the last 12 months;
- Changes to profits over the last 12 months;
- A table summarizing the income statement.
The second covers the variances between costs and the company’s objectives
- Some graphs show the variance between estimates and reality;
- Others provide a summary of the estimated costs and revenue compared to reality.
Formatting and viewing
For easier reading and navigation, the cost dashboard is separated into two sections over two pages. The important KPIs appear in a prominent location at the top of the page, and then tables and graphs are presented, pictured below.
Choosing the tool
The company chose to invest in a custom program to make sure the software really fit their needs. They also chose to hire an external team to manage their IT infrastructure, which allows them to focus 100% on their primary concerns.