Data analytics, KPI dashboards and CPAs
By John Higgins, CPA.CITP, CPA Crossings, LLC
March 23, 2023
I have been a member of the CPA profession for more than 40 years, and I can count on one hand the number of transformative technology innovations that have provided CPAs with the opportunity to offer an innovative new service. Data analytics and KPI (key performance indicators) dashboard reporting is one of the most exciting and valuable innovations to come along in our profession.
Let us look at how you can harness the potential of this new technology tool set.
The big data era
We have entered the era of “big data,” which means we can access extensive databases of information to analyze them for patterns and trends in order to understand the past and help project the future. Whether you are in corporate finance or public accounting serving a client base, data analytics and KPI dashboard reporting is a must-have skill to enhance your value in the marketplace — and leveraging this technology is likely easier than you think.
The essence of this innovative technology is to allow you to rapidly generate a variety of KPIs or “measures” that can tell you just about anything you want to know about the data. Take sales order history for example. You can easily calculate average sales per salesperson, sales per capita across a geographic region (via connection to the census bureau database), sales performance by any number of attributes; size, color, price, promotions, etc. These KPIs can then be presented visually on a “dashboard” report that is real time, visual, interactive and mobile. We all know how prevalent these attributes are in all the other modern-day apps we use.
The chart that follows provides a succinct illustration of the key steps in the process. A couple of foundation steps that need to be taken before executing this process are to determine the software tool you will use and develop the necessary skills to complete the steps in the process through appropriate education.
Regarding the software, there are many options to choose from. Two of the most popular are Microsoft’s Power BI and Tableau. The benefit these tools provide is that they are agnostic as to which financial/ERP you connect to. This is particularly important for those of you who will be providing this service to a client base that will have a variety of systems deployed.
If you work in the corporate world, there is a possibility that your financial/ERP software has a built-in data analytics and dashboard reporting module. This provides a real advantage in that your dataset connections are already established and likely will have a set of prebuilt measures to draw from. This can be a substantial time saver and simplifies the dashboard setup process.
The KPI dashboard reporting process
Of the nine steps identified, the last step is perhaps the most important. The first eight steps are all about understanding and applying the technology involved, the last step is where you apply your financial and business acumen as a CPA professional and demonstrate your value to your client or organization on an ongoing basis.
As you ponder whether you want to venture down the path of developing this skill set, realize that the world of information has changed substantially in recent years. People of all backgrounds want and frankly expect real-time information in highly visible, interactive and mobile format. Think TikTok, YouTube, etc.
The possibilities are limitless
Keep in mind that offering this type of service can extend well beyond financial dashboard reporting to include analyzing HR, operations, marketing campaigns — virtually any activity within an organization. This is a classic case of improving your skills to move up the value chain.
For those of you serving a client base, this is one of the fastest growing and lucrative service offerings in the category of CAS (client advisory services being offered by firms of all sizes, as well as independent “fractional CFOs”). Now dig in!
John Higgins, CPA.CITP is the cofounder and a strategic technology adviser at CPA Crossings, LLC. He has been in the profession more than 40 years, with an emphasis on helping CPAs to understand and embrace emerging technologies. You may reach him at jhiggins@cpacrossings.com or 248-390-9754.
