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The ultimate purpose of any business is to make money, right? Even if you’re a non-profit, you need to know you’re spending every penny that comes your way in the best, most efficient and productive way you can. This means your financial KPIs are the fundamental driving force of your organization. You need visibility over all aspects of cash flow, profit and loss and other financial considerations, you need them fast, and presented in a clear, easy-to-digest format.
That’s why it’s essential to:
Put simply, you need to know how much money is coming into the company compared to how much is flowing out of it, as well as how much it’s costing you to make each sale or onboard each new customer. There are various ways to answer these questions, all of which give you a different, nuanced viewpoint. To get you started, we’ll guide you through the following example financial KPIs, explaining why each one is so important, when you would use it and which calculations you would use.