Set up relevant dashboards

A  dashboard is a management tool that aims to synthesize the results of operations of the company in the form of indicators. For best accountancy training Best school of accountancy In Lahore. There are different kinds of dashboards  but the most "in phase" with the accounts is the management dashboard . Indeed, he usually draws the information he needs directly into the company's accounts.

Certain financial indicators require restatements or interim calculations ( margin rate , EBITDA , or the payment period for customers and suppliers), while others can be obtained immediately ( turnover , net cash , Etc.). It is interesting to set up a dashboard to:

Compare the variations of the indicators over time,

Set targets to improve key indicators,

Identify gaps between projections and accomplishments,

Analyze the reasons for the failure to achieve the set objectives.

Make forecasts as realistic as possible

Accounting answers the question "Where am I? "But it is also important to answer the question" Where am I going? " ". And concretely, it is the financial forecast that makes it possible to answer them. Composed of a set of tables ( forecast income statement , forecast balance sheet, cash budget, etc.), it is more or less elaborate and complex depending on the size of the companies. In the smallest of them, it may include only a balance sheet and an income statement (see also a profit and loss account only).

Accounting plays a fundamental role here, because it is difficult to see where one goes without knowing where one comes from. It will therefore provide the necessary information for the preparation of the business plan, including the amount of receivables and payables to be allocated in cash, the amount of projected amortization  smoothed over several years ...

Conclusion : accounting is a quality support to optimize the management of its business. In particular, it can control its working capital requirements, set up monitoring and management tools for the company and anticipate the future with as much objectivity as possible.