There are three main benefits to using no-code analytics with clients rather than report tools or traditional financial statements:
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Provide clients with financial updates in a language they understand
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No-code analytics is interactive and customizable
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It incorporates operational data to tie financial data back to day-to-day initiatives
Let’s take a look at each.
Providing financial updates in a language they understand
In nearly every scenario viewing time-series data is better than in a tabular format. This is because time series data makes it easy to spot trends, and acting from identified trends is how business owners succeed.
Monthly financial reports aren’t typically the best format to identify trends. No-code analytics helps you to build trendlines from key data points that the business owner is concerned about.
Speaking an operational language
Balance sheet line items don’t speak to an executive, but debt ratios do. That’s because ratios and KPIs are a much more succinct way to communicate what’s happening in the business.
Our operating expense went up, but how does that compare to revenue? Should I care? An OPEX ratio would be much more fitting here.
How is our ability to pay down our debt changing over time? Let’s monitor our liquidity ratios.
Are COGS increasing with revenues? Why not look at Gross Profit Margin?
We spent twice as much on ads this month – how did our acquisition cost fare?
It’s not hard to see how much more information you can convey using KPIs and basic ratios instead of financial statements. View those ratios and KPIs over a time-series and you’re cooking with gas.
Not familiar with financial KPIs? We put together an exhaustive list here of 156 financial KPIs for every accountant or bookkeeper:
