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Almost 30% of businesses already using cloud applications for tasks like bookkeeping. You may use those SaaS applications for traditional tasks like invoicing, expenses, managing VAT, filling financial statements, forecasting cash flow, managing payments and many others.
It’s no wonder why cloud solutions like Xero are so popular with currently more than 600,000 subscribers. SaaS applications like Xero transform the way that SMBs are doing business and affects the way that accountants and bookkeepers do their work and deliver value to their clients.
Here is what we are going to see today:
Why to you need Xero business analytics?
The key to going from bookkeeping to true business analytics is to harness the power of
data—the faster you keep in pace, the faster you will deliver even more value to your
customers through data.
Although applications like Xero have some vanilla dashboards, it is difficult to provide something that will maximize the value for everyone. So people are ending up using other ways to get their Xero data and “transform” them to business analytics.
When you combine your Xero data with stats from other connectors you start tracking better your sales, costs and your business in general.
Tracking key metrics allows you and your accounting team to make better decisions fast.
Xero analytics dashboard – The easy way
There are many Business Intelligence and Dashboard solutions today. If you are like me and you do not want to be messing with infrastructure and database maintenance, simple and powerful tools like Databox will give you insights from the get-go.
You will need to connect Xero with Databox and start getting your data into a comprehensive dashboard with preconfigured Xero KPIs.
How to connect Xero with Databox
Connecting Xero to Databox is an easy process that involves clicking a few buttons and authorizing Xero and Databox to work together. Yeah… that simple.
Ready to use data analytics for Xero
Databox offers a large amount of KPIs that you can start using of the bat. That alone saves you huge amount of time.
Xero Accounting KPIs
Lets see some of the essential Xero KPIs for your business and how you can surface them with Databox.
Revenue or Income
Total Revenue reflects the total sales of your product or service. It is the total income of your business generated at a given period of time.
Tracking your revenue can give you an idea on what you generate and help you grow by highlighting the best performing revenue streams.
Track your expenses of your Xero account. Keeping them high or low can
be a success indicator.
Net Profit is calculated by the difference between the Revenues and Expenses. It shows how much revenue is left after all expenses have been paid.
Net Profit is one of the best ways to determine your profitability. You may also hear this as Net Income. The expenses you usually remove are Cost of Goods Sold (COGS), operating expenses, tax and interest costs.
Net Profit Margin
Net Profit Margin shows how effective your business is at generating profit from revenue. It measures the percentage of revenue that is considered to be profit. You can calculate Net Profit Margin by dividing the difference between the Revenues and the Expenses with Revenue.
Gross Profit Margin
Gross Profit Margin can help you understand whether you are pricing your goods or
services appropriately. You may calculate it as the difference between Revenue and Cost
Of Goods or Services Sold, divided by the Revenue. Gross Profit Margin or Markup is typically expressed as a percentage.
It is a good accounting practice to look Gross Profit Margin along with other profitability metrics, and Gross Profit.
Performance of Service or Product
Performance of Service or Product can help determine where sales growth happens. It
can provide insights on what Services or Products in relation to their profitability.
This way you can perform a comparison between how different products or services perform over time and reveal seasonality patterns.
Cash includes cash on hand and any deposits made. Cash is a key indicator of your business (of course) and can help you understand your cashflow. With Databox you can see KPIs on Cash Summaries like Cash Received, Cash Spent, Cash Surplus (Deficit) and Closing Bank Balance.
More Xero KPIs
You can find even more Xero KPIs and ready made Xero analytics templates that will help you calculate:
- Overdue Payments
- Recent Expenses by Contact
- Recent Payments by Contact
- Profit and Loss by Type
- EBITDA %
- Current Assets to Liabilities
KPIs Give you Actionable Insights
There you are. Get the above Xero KPIs straight and you are in a great start! Using KPIs
can give you actionable insights on your financial data in Xero .
If you are a Xero customer and you need a dashboard for your most important Xero KPIs, then Databox will transform your data into meaningful insights and delivered to your mobile, Apple Watch, TV display, or Slack channels. In minutes!