Why Financial Dashboards Matter for Your Trade Business

When making valuable decisions, trade business owners need to stay informed about absolutely EVERYTHING that is happening within the business.

 

Each piece of information you have about your business, can be thought of as pieces of a puzzle. All the pieces together = a complete picture = a thorough understanding of your business = smarter business decisions.

 

This is where financial dashboards come in handy… they provide you with multiple pieces of the ‘business’ puzzle, particularly those associated with your finances.
Here’s another analogy for you to explain just how important your financial dashboard is to the puzzle…

 

Think of your business as a car. Your car dashboard provides a quick idea of the engines performance so you as the driver, can ensure your ride is going smoothly. Important metrics such as petrol levels, oil, speed, kilometres, temperature and more is shown.

 

Like this, your financial dashboard provides the same information. It shows all of the important metrics of your business performance at a glance which allows you to make accurate business analysis.

 

If you still aren’t convinced of why financial dashboards are one of the most important things for your trade business, here are four more reasons that will definitely change your mind:

 

  1. Save More Time

Generating financial reports is a tedious task. Not to mention, the amount of time required to fully understand the figures. With a financial dashboard, reports are generated automatically once you have provided the required data. This saves yourself & staff a lot of time and increases overall productivity.

 

  1. Visualise Your Data

Financial dashboards illustrate key pieces of financial information in a graphical format making it easier to understand. It’s an easy way to get a large overview of the business. As a result, you are able to visualise large amounts of financial data that will help determine appropriate actions for your business.

 

  1. Improved Visibility

With a dashboard, you will know exactly what’s going on with your trade business. You can monitor all of the important metrics including the number of invoices sent, the sales targets and the gross profits. More importantly, all of these metrics can be shared to anyone with permission to view the dashboard for easier collaboration.

 

  1. Increased Profits

No one couldn’t have expressed it better than GoDaddy founder Bob Parsons when he said, “Measure everything of significance. Anything that is measured and watched, improves.” When you know which areas in your business need improvement, you will naturally work harder and focus more of your time to improve those areas which in turn, will result in increased profits in those areas.

 

Whether your financial dashboard is manually built through a spreadsheet program or through a dashboard software, it becomes easy to visualise the essential metrics that every trade business owner should know.

 

Interested in learning more about your trade business financials? Check out our NEW (and free) Live Event, ‘The Next Level Tradie’. We will be going in depth on how you can inspire your staff to achieve greatness. CLICK HERE to claim your free ticket.