How can Profitability Analysis Drive Faster and Better Decisions?

As CFOs increasingly become key advisors in the Monthly Reporting Process, they must rely on modern self-service corporate performance management (CPM) and business intelligence (BI) tools. Using interactive Profitability Analysis tools like the Gross Margin Analysis Report shown below enables them and users from the FP&A teams and executives to experience near real time insight to profitability with drill down to the underlying revenue and costs of sales metrics that help drive faster and better decisions.

Who uses Gross Margin Analysis Reports with Monthly Variances and Trends and What are Some Key Analytical Features?

In today’s fast-paced business environment, CFOs are under high pressure to supply end users like executives and financial analysts with timely and concise Profitability Analysis. Companies use key features like the ones below to support their users with effective updates that helps drive better expense control and improved profitability:

  • Monthly, year-to-date and full year gross margin figures with traffic lights to highlight variances
  • Charts to easily compare current year to budget and last year financials
  • Report to analyze variances by drilling down to GL accounts and transaction detail

The Gross Margin Analysis with Monthly Variances and Trends template can be used as a key element of the Monthly Reporting process:

Example of a Gross Margin Analysis Report with Monthly Variances and Trends to Streamline the Monthly Reporting Process

Example of a Gross Margin Analysis Report with Monthly Variances and Trends to Streamline the Monthly Reporting Process

The Gross Margin Analysis with Monthly Variances and Trends Report is a ready-to-use Profitability Analysis template from the Solver Marketplace.

A Brief Description of the Gross Margin Analysis with Monthly Variances and Trends Template

Profitability Analysis templates like the one seen in the image above are interactive and parameter driven and typically contain sections with graphical charts and indicators as well as formatted report views. One of the important features that aid the user in the analysis process is the ability to get a powerful combination of summary Gross Margin metrics, traffic lights to highlight variances and charts to display trends. Gross Margin Analysis Reports are often used in conjunction with profit & loss reports, variance and trend reports, gross margin dashboards, KPI dashboards, budget and forecast input forms.

Data Integration to Transaction Systems

Most organizations these days want automated and streamlined planning, reporting and analysis. However, many of the benefits described earlier rely on best of breed Corporate Performance Management (CPM) tools and/or Business Intelligence (BI) capabilities as well as data marts or data warehouses that use pre-built integrations to the organization’s ERP system. Oftentimes, they also need integrations to other key data sources like CRM, subscription systems, payroll tools, etc.

Modern, cloud-based ERPs like Microsoft Dynamics 365 Finance (D365 Finance), Microsoft Dynamics 365 Business Central (D365 BC), Sage Intacct, Acumatica, Netsuite and SAP have robust APIs which allow for dynamic integrations to CPM and BI tools that are fully automated and flexible to run on a schedule or on-demand.

Additional Resources to Aid with Research of Templates, CPM and BI Tools