Profits and losses (P&L) are two of your most telling KPIs and a central component of your broader business strategy. Tracking P&L carefully is essential for making informed decisions while fortifying your competitive position and engineering growth. The only problem is that effective P&L reporting is notoriously difficult.
Traditionally, P&L reporting requires extensive manual entry, making the process time-consuming and prone to error. Too often, reports are outdated, inconsistent, and opaque. Rather than providing performance insights and strategic suggestions, they create confusion and distortion.
More and more companies are turning to spcialized software to simplify financial management. Gartner has reguarly lists companies in the finance corporate performance management (FCPM) space in their famous Magic Quadrant. Any solution on this list must be capable of at least reporting, analytics, or planning, but if you take financial performance management seriously, you should look for a solution that does all three.
Accolades aside, if you are eager to transform P&L reporting from an ongoing obstacle into an anytime asset, here are just a few examples of how you can simplify and streamline the process if you have the right tools in place.
Automatically Integrate Data
The most laborious part of P&L reporting is finding the applicable data, integrating it, and organizing the results. Get yourself a tool that automates each step while giving the users powerful financial reporting capabilities for slicing and dicing data. That makes preparing reports nearly effortless, so decision makers can spend less time searching for insights and more time applying them.
Drill Down to Data
P&L statements are great at providing a big-picture perspective, but not as great at going in-depth. The more sophisticated tools out there solve this problem by making it easy to drill down into yourdata. Users can instantly see the facts and figures that make up profits and losses, thereby understanding financial performance on a granular level.
Empower All Users
Users across the enterprise need to follow profits and losses. Without the right technical or financial expertise, however, the process can be intimidating. With the right software in place, you can easily maximize accessibility in several ways. Interfaces are designed to be user-friendly and instantly intuitive so that users can begin engaging with the tools with minimal training. Plus, it most likely integrates P&L reporting with other metrics, KPIs, and visualizations to provide valuable performance insights.
Some P&L tools out there offer a one-size-fits-all functionality that limits how users can engage with data. Others do just the opposite by permitting an extensive range of customized calculations. Users can than adapt it to their existing workflows and evolve the tool as priorities change. Instead of requiring users to adapt to the solution’s set up, the solution accommodates the user’s needs.
Speed up Reporting
Slow P&L reporting leads to delayed decision making and uncertain actions. Your software should handle the bulk of the heavy lifting so that you can run reports at any time and get results in seconds. By integrating P&L with a broad suite of financial reporting tools, you will finally be able to provides the top-down, 360-perspective you need to make impactful financial decisions.
Why let P&L reporting continue to drain resources and fall short of potential? Click here to find out what solutions are available and select the one that is right for you!