The Perfect A/R Dashboard: 5 Reporting Dashboards Fundamental for Every Credit and A/R Leader


E-book on the Collections Operations Maturity Model: Lower DSO by Enabling People, Process, Data, Collaboration and Technology

Contents

Chapter 01

Need of The Hour- A Perfect Dashboard

Chapter 02

Key Considerations for a Perfect Dashboard

Chapter 03

Executive Dashboard

Chapter 04

Process Specific Dashboard

Chapter 05

Additional Metrics to Track

Chapter 06

Summary

Chapter 07

HighRadius Receivables Analytics

Chapter 08

About HighRadius
Chapter 01

Need of The Hour- A Perfect Dashboard


Importance of a Reporting Dashboard

How would you feel about driving a gorgeous Lamborghini that has no dashboard?

Just to help you imagine, while driving you would have no idea:

  • If your fuel is about to finish (ride’s over)
  • If your car has over-heated
  • The exact speed of your car i.e. would you be able to slow down before you crash into another car

Would you feel safe in this adventurous/treacherous ride?

The answer is no.

The same applies to Accounts Receivable. Even if your A/R is running as smooth and fast as a Lamborghini (congrats!), you still need an insightful dashboard to keep you up-to-date with all the crucial metrics that will help to make accurate decisions for times ahead as well as to change course promptly if need be.

It is imperative for finance and A/R leaders to opt for a dashboard that ensures key working capital metrics are always your fingertips.

The following chapter explains the major challenges of not using a dashboard. It also elucidates the major drawbacks of working off a data-heavy, spreadsheets-based dashboard.

A/R Management Without Dashboards

1. Lack of visibility into performance and productivity

The inability to track the progress or regress of the credit and collections teams’ performance and productivity which inevitably affects the bottom-line as well as the top-line revenue of the company is a major concern for finance executives. For instance, they would not be able to track:

  • If the credit team is setting the right credit terms
  • The amount that turns into bad-debt
  • If the collections team is collecting on time
  • The volume of invalid deductions vs write-offs

Elementary metrics do not give full insight into the performance and productivity of team members. Hence, by ignoring these critical data points, executives might end up making inaccurate decisions.

2. Lack of access to real-time insights

Reporting is a time-consuming process. While making timely accurate decisions is imperative for finance leaders, opting solutions based on weeks/months old metrics and data can be catastrophic for the company. Therefore, it is extremely essential for finance executives to have real-time data and crucial metrics on their fingertips that can be easily accessed through a customizable dashboard.

3. Time-consuming traditional reporting

Traditional reporting tools may permit users to publish reports that contain KPIs and data visualizations, but they often require power user skillsets or assistance from IT. These visualization-based reports lack true analytic depth and don’t allow users to provide descriptive text that contextualizes the analysis. Plus, they don’t fill the need for published reports demanded by decision-makers, executives, and board members.

4. Data Overload

On average, 1000-10,000 payments are made in a B2B company. In order to crawl through these huge payment volumes which might include payment by a client paying for its open invoice or the result of a dunning process or payment along with a deduction. Manually collecting, segregating and analyzing these large volumes of data takes a huge amount of time and makes the reports data-heavy. Hence, inevitably it delays the reporting process.

Therefore, it can be safely concluded that the slow and non-responsive machinery that is usually used by businesses for reporting lacks the agility to respond to strategic business needs and take timely course corrective actions to avoid any future ordeals.

 

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