How CPA firms can use Real-Time Performance Dashboards to add value for their practice and clients
A growing business needs to be adaptable to futuristic business technologies that aid in handling business operations exceptionally. With an increasing firm comes a greater demand for extending and implementing new technology. According to 89% of executives, the benefits of digital transformation are operational efficiency, time to market, and customer experience. Hence, adopting digital ways will only help a business to grow.
The use of conventional systems supports business growth up to some extent thereafter, making it stagnant and, in some cases, difficult to operate with a growing business. CPA firms in the USA have seen comparable stagnation while utilizing tabular reporting tools like with Quickbooks and Xero. Quickbooks and Xero help small finance organizations get started, but they present many barriers and slack in delivering efficient reporting for enterprises.
Quickbooks and Xero bottlenecks
Quickbooks and Xero provide a tabular reporting system that arranges the data in descriptive statistics using the multirow and multicolumn format. Such systems do not provide real-time data access that aids in making quick, proactive decisions. Additionally, the manual inputs and report updates place excessive reliance on the staff and raise the risks of human mistakes, compounding existing issues. Quickbooks and Xero lack the feature that enables CPA firms to conduct financial ratio analysis by looking at ROI, ROA, and debt-to-equity.
Another significant disadvantage of Quickbooks and Xero is that you must wait until the end of the month to utilize potentially useful data. Even more challenging is the data analysis and presentation. It does not allow for the rapid conversion of data into useful metrics that can be utilized for further data analysis. It requires a committed staff and a lot of time to accomplish so, which is essentially a waste of a company's tangible and intangible resources.
The advent of Data Analytics and Real-time performance dashboards
The following hurdles are pretty substantial when looking at the overall growth of the company. Accounting requires obtaining records, organizing and storing data, and spending a significant amount of time on bookkeeping. It creates difficulties at various points, thereby interrupting a streamlined workflow. All of these activities are well-supported with real-time performance dashboards. A Real-time performance dashboard greatly impacts work efficiency and quality by providing apt data analysis. For instance, the Account payable dashboard keeps a check on the necessary information regarding all the aspects like the payable amount, overdue and total payable. An advanced real-time dashboard will even link other function KPIs for better decision-making instead of just showing data and numbers.
Real-time performance dashboards reduce the need for lengthy documentation and provide instant answers to any client questions. It makes data input and data acquisition incredibly simple and rapid. The staff may keep track of the clients' deadlines, papers, and other pertinent information. As a result, prompt communication can prevent the majority of lapses. It improves the efficiency of your organization as well as adds value to your clients by saving time and eliminating mistakes.
Generate additional revenue and save costs
Sometimes there is a lot of deliberating and thinking involved while answering a client query. Reviewing documents and checking data may take over a week's time. But with real-time performance dashboards, tasks can be performed swiftly. Your company can charge upfront to the client for prompt business advisory and, hence, create new revenue opportunities. Additionally, data assets are one of the most valuable assets for a company. With real-time performance dashboards, you can upkeep this data, save costs, and create new revenues altogether. Data Analytics and strategic partnerships will boost CPA Firm's growth exponentially. Performance dashboards and the data analysis of various metrics like keeping track of the employees ’ performance in relation to their peers. It checks whether or not the sales team surpassed the daily, monthly, and quarterly targets. The revenue dashboard analyzes key financial sales metrics to track the progress in terms of revenue. With Data Analysis, every decision can be looked after and the actions can be altered accordingly to the results. This reinforces every decision with data-driven evidence that adds value to the firm.
Data management and organization become easy with real-time performance dashboards. Large companies tend to store a lot of data that is futile and unnecessary. According to estimates, around 60% to 70% of corporate data is wasted. With dashboard technology, unused data can be abandoned.
It also improves operational efficiency by determining important information and making proactive use of existing data. It makes use of existing data to its full potential to reap all the benefits that will help with business growth.
Understand and analyze KPIs to ensure growth
CPA firms can adopt a proactive business approach to understand Key Performance Indicators and make use of the same to provide substantial financial advice to clients. Financial KPIs provide great insight into the business. Profitability ratios give information regarding management's performance in managing the small business's resources. MIS reporting that assesses the performance of the organization can also be examined. These financial KPIs can be assessed through real-time performance dashboards.
Financial KPIs help in achieving goals and objectives, backed up with solid data-driven decisions. Each decision is examined by the entire team within various departments which helps the company remain unanimous and support a cumulative goal.
Strategic KPIs represent the company's success and follow the company's future goals as they are implemented day by day. These metrics and indicators are obtained from the real-time performance dashboards. While on the other hand, Operational KPIs focus on core company activities that help in making swift day-to-day decisions.
The firm guarantees a full-proof route to success by combining operational marketing with strategic KPI analysis.
Strategic partnership with NSKT Global
Business partnership with NSKT Global will transform client business with the help of real-time performance dashboards and visual reports. Set free of the shackles that are imposed by conventional tabular reporting. NSKT Global delivers critical data analytics and business solutions that will improve the operational efficiency and profitability of your company. It not only assists you in reintegrating into new technologies, but it also helps you realize your full potential in order to achieve remarkable outcomes.
NSKT Global helps CPA firms adopt newer ways of business that assure business growth. With real-time visual reports and dashboards, CPA firms can enhance business operations and generate new revenue streams. This offers several advantages for an accounting company, especially in the highly competitive market where data-driven choices may be required, and clients must be satisfied quickly. Proactive decision-making and data-driven solutions will enhance client relations eventually helping with client retention.
Real-time Dashboards allow CPAs and clients to obtain the most accurate and up-to-date financial and key operational information they want at the very moment they require it.
Still any ambiguities? We are happy to provide a free 20-minute business consultation. We aim to clear any doubts and lead you toward a path of success. The consultation will focus on giving you clear solutions that help your business grow.
Strive for success with NSKT Global. Click on this link to book your free consultation today!