Cash Flow Dashboard Example For Analysis And Tracking

According to a study by Deloitte, companies that use data-driven decision-making are 17% more likely to outperform their competitors. A cash flow dashboard provides the data you need to make informed decisions and drive your business forward. Explore cash flow dashboard examples with the most important metrics to track for your business KPIs.

This article will give a detailed example of a cash flow dashboard. We’ll explore the key metrics included, how to interpret the data and the benefits of using such a tool. By the end, you’ll have a solid understanding of how to create a powerful cash flow dashboard.

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What is cash flow dashboard?

A cash flow dashboard is a visual tool that provides a real-time overview of a business’s cash inflows and outflows. It typically includes key metrics such as:

• Cash balance: The current amount of cash available.
• Cash inflows: Sources of income, such as sales, investments, and loans.
• Cash outflows: Expenses, such as payroll, rent, and purchases.
• Forecasted cash flow: Projections of future cash inflows and outflows.

Cash flow dashboards can be customized to meet the specific needs of a business, but they generally aim to help businesses:

• Identify potential cash flow problems early.
• Make informed decisions about spending and investment.
• Improve cash flow management.
• Track progress towards financial goals.

By providing a clear and concise view of a business’s financial health, cash flow dashboards can be a valuable tool for improving overall performance. Utilizing tools that streamline payroll processes, such as generating paystubs, further enhances cash flow management by ensuring precise tracking of payroll expenses.

Key Metrics for a Cash Flow Dashboard

Cash balance

The current amount of cash available. This is the most fundamental metric, representing the amount of cash readily available in the business’s bank accounts.

Cash inflows

Sources of income, such as sales, investments, and loans. Cash Inflows are the sources of income that contribute to the business’s cash balance. They can include:

• Loan proceeds
• Sales revenue
• Interest income
• Investment income  

Cash outflows

Expenses, such as payroll, rent, and purchases. Cash Outflows are the expenses that reduce the business’s cash balance. They can include:

• Loan repayments
• Payroll
• Rent
• Utilities
• Purchases

Net Cash Flow

This is the difference between cash inflows and cash outflows.A positive net cash flow indicates that the business is generating more cash than it is spending, while a negative net cash flow suggests that the business is spending more than it is earning.

Days Sales Outstanding (DSO)

This metric measures the average number of days it takes for a business to collect payment from customers.

Formula: DSO = (Accounts Receivable / Net Credit Sales) * 365

Days Inventory Outstanding (DIO)

This metric measures the average number of days it takes for a business to sell its inventory.

Formula: DIO = (Average Inventory / Cost of Goods Sold) * 365  

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Days Payable Outstanding (DPO)

This metric measures the average number of days it takes for a business to pay its suppliers.

Formula: DPO = (Accounts Payable / Cost of Goods Sold) * 365

Accounts receivable vs payable

A comparison of the amount owed to the business by customers (accounts receivable) versus the amount owed by the business to suppliers (accounts payable).

Cash Flow Ratio

This ratio measures a business’s ability to meet its short-term obligations.

Formula: Cash Flow Ratio = Cash Flow from Operating Activities / Current Liabilities

Burn Rate

This metric is particularly relevant for startups and businesses that are not yet profitable. It measures the rate at which a business is spending cash, often calculated on a monthly basis. A high burn rate can indicate that a business is at risk of running out of cash if it does not generate sufficient revenue or reduce its expenses.

Formula: Burn Rate = Total Monthly Expenses – Total Monthly Revenue