Accounting and finance, 20 metrics & KPI
Before dashboard creation, it’s important to define metrics and key performance indicators (KPI). Which of them will you use into your dashboard? This choice depends on your function, your strategy and your market. Difference between metric and KPI is objective. A KPI is a metric with an objective, a status and one or more trend(s).
You can use these metrics and KPI for strategical, tactical or operational dashboard. Context and filter will define the level. Be sure to develop your dashboard according on your organizational strategy and with business team, accounting analysts and accounting managers.
There are others metrics and KPIs for accounting and finance department. I’m listing some KPIs that I often implement for my clients.
Accounting and finance Metrics and KPI list
I propose to present 20 metrics and KPI for the accounting and finance department:
Accounts payable turnover
Accounts receivable turnover
Cash flow return on investments (CFROI)
Cost of goods sold (COGS)
Cumulative annual growth rate (CAGR)
Cycle time to process payroll
Cycle time to resolve an invoice problem
Cycle time to resolve a payroll problem
Earnings before interest and taxes (EBIT)
Earnings before interest, taxes, depreciation (EBITDA)
Employee available time
Employee scheduled time
Invoice processing costs
Internal rate of return (IRR)
Net present value (NPV)
Percentage of bad debts against invoiced revenue
Percentage of payable invoices without purchase order
Return on capital employed (ROCE)
Warning: when you calculate an average, you need to analyze it with standard deviation.
To calculate these metrics and KPI you need to have access to your data: accounting system and operational systems.
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