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 tools like the Profit & Loss with Interactive Analysis Report shown below enables them and users from the FP&A teams and managers to experience graphical revenue and expense reviews that help drive faster and better decisions.

Who uses Profit & Loss Reports with Interactive Analysis 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 tools that helps drive in-depth graphical analysis of any P&L item they are interested in:

  • The user can choose any P&L row (accounts and totals) from the drop down box on the top of the report and instantly visualize that data in the charts
  • Easy view of monthly, year-to-date (YTD) and full year estimates
  • Current period and trend analysis of the chosen financial data

The Profit & Loss with Interactive Analysis template can be used as a key element of the Monthly Reporting process:

Example of a Profit & Loss Analysis Report with Interactive Analysis to Streamline the Monthly Reporting Process

Example of a Profit & Loss Report with Interactive Analysis to Streamline the Monthly Reporting Process

(screenshot picture name for Google) ->  The Profit & Loss Analysis Report with Interactive Analysis is a ready-to-use template from the Solver Marketplace.

A Brief Description of the Profit & Loss with Interactive Analysis Template

Profitability Analysis Reports like the one seen in the image above are interactive and parameter driven and typically contain sections with a dashboard on the top and a formatted P&L report below it. One of the important features that aid the user in the analysis process is the ability to replace cluttered dashboards with dozens of charts with this simple report where the user only sees charts for the chosen row. Profit & Loss Analysis Reports with interactive charts are often used in conjunction with balance sheets, 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