Business Analytics: ScoreBoard Display Demonstration
The 12Faces ScoreBoard is a business analytics tool for small and medium business. It takes your annual, quarterly and monthly accounting data and displays it in a business analytics template using a graphical format for easy interpretation.
We show a few examples of our business analytics tools here for demonstration and discussion purposes.
One of the key goals of the 12Faces system is Sustainable Business Success.
This group shows your “success” measures;
- Revenue or Income
- Gross Profit
- Operating Profit or EBITDA
For your business to remain Sustainable, you need to monitor your business’s key efficiency measurements.
This graph help visualize your changes in efficiency;
- Gross Margin% helps understand the complex interaction between revenue and COGS when both are moving around in the Success graph (as in this case)
- Overhead/Revenue% illustrates any trends in your Overhead Cost compared to your revenue. This helps see if you’re increasing overhead costs (including labour) faster than your revenue is increasing
- Cashflow Management
Cashflow is the lifeblood of a business. This chart monitors your progress.
- AP is Accounts Payable or bills you owe
- AR is Accounts Receivable or money owed to you
- The Days Inventory Outstanding measures the money tied up in your inventory and
- Cash Conversion Cycle brings to all together and explains how well you are managing your cashflow; and consequently the lifeblood of your business
This monitors the ability of your business to keep trading should it encounter a “shock” like Covid. It monitors;
- the Sustainable Growth Rate show the rate you can grow using your own funds
- the Margin of Safety indicates how far revenue can drop before you start making a loss. It also indicates how sensitive you are to the loss of a major customer
- Interest Cover is your ability to pay interest on your debt and
- the Liquidity Ratio shows your ability to pay your immediate debts if there is a hiccup in your trading
A business needs Goals!
A common one is an increase in revenue.
This graph shows Quarterly progress towards the Annual revenue goal
12Faces uses the term “rewards” to describe the money the business owner takes home (before tax).
It is usually composed of;
- any retirement funds set aside like Superannuation in Australia
- any remaining pre-tax profit or trust disbursements the owner benefits from
This graph shows quarterly progress towards this year’s goal compared to last year.
Sustainable Business Success is our mission. This graph shows progress to whatever you consider is success.
It is currently a work in development towards providing you with a single place to see your SBS progress on the one graph.