Financial KPI

Financial KPIs samples

With the development of new information technology and in today’s finance world, the information you need exists in various formats and different systems. You’re dealing with next quarter’s numbers, profitability analysis and the financial tasks of counting revenue, collecting on accounts receivables, and paying your vendors. Current methods can be error prone, labor intensive, and not always aligned to your corporate goals and objectives.

Financial KPIs include key performance indicators as follows:

I/ Payroll KPI

These KPIs include ones about payroll management.

Payroll KPI

Payroll KPIs in key performance indicators of financial management

1. Cycle time to process payroll

2. Cycle time to resolve payroll errors

3. % of payroll disbursements that include retroactive pay adjustments

4. Average overall cost of producing a payslip per pay run.

5. % of untimely payroll payments: Number of payments that are not made or made to late to employees as % of total payments to employees.

6. Timeliness in submission of statutory returns: Instances wherein statutory returns are submitted within the prescribed time

7. Payment errors as % of total payroll disbursement

8. % of manual payroll payments

9. Instances of filing of accurate statutory returns: No of instances where statutory returns filed with the authorities are accurate

10. Systems cost of payroll process as % of total payroll cost

II/ Asset management KPI

These KPIs include ones about asset management.

Asset management KPI

Asset management KPIs in key performance indicators of financial management

1. Age of assets: The age is calculated by dividing the cumulative depreciation by the annual depreciationcharge.

2. Total Current Assets: Total Current Assets equals Cash and Equivalents + Receivables + Inventories + Other Current Assets.

3. Other Current Assets: Other Current Assets includes prepayments, deferred charges, and amounts (other than trade accounts) due from parents and subsidiaries.

4. Net Fixed Assets: Net Fixed Assets are the assets of a company that are of a relatively permanent nature and are not intended for resale, such as plans, equipments….

5. Total Assets: Total Assets are everything of value that is owned by a company.

6. Other Non-current Assets: Assets that are not assigned to Net Fixed Assets or intangibles.

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III/ Budget KPI

These KPIs include ones about budget management.

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Budget KPI

Budget KPIs in key performance indicators of financial management.

1. Forecast accuracy of budget

Actual budget (costs) relative to the established budget.

2. Deviation of planned budget

The deviation of the planned budget (cost) is the difference in costs between the planned baseline against the actual budget.

3. Actual vs. budgeted costs

The actual costs relative to the budgeted costs of an activity.

4. Time by which Budget closed before the year end

The earlier it is closed & made available, the more time you get to discuss it out in detail & work out next year strategies sufficiently in advance before the year begins.

5. Days taken to close the budget

To benchmark against the previous budget as well as against the industry standard.

6. % of budget cuts achieved

Percentage of budget cuts achieved (measured in money) versus budget cuts planned (measured in money).

7. Number of years with a balanced budget

Number of years with a balanced budget.

8.Number of budget deviations

Number of budget deviations

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IV/ General Financial KPIs

1. Weighted Average Days Paid

Weighted Average Days Paid in Receivables Management

2. Weighted Average Days Past Due

Average days past due for open AP invoices weighted by open amount

3. Weighted Days Delinquent Sales Outstanding

Weighted Days Delinquent Sales Outstanding in Receivables Status dashboard

4. Weighted Terms Outstanding

Weighted Terms Outstanding in Receivables Status dashboard

5. Receipts Amount

Receipts Amount in Receivables Management

6. Revenue (P&L)

Revenue KPI in Profit and Loss Analysis Dashboard

7. T&E per Head

Travel and entertainment expenses / Headcount

8. Total Receipts

Total Receipts (Rolling 30 Days) in Receivables Status dashboard

9. Unapplied Receipts

Unapplied Receipts Amount

10. Weighted Average Days Due

Sum of days until due weighted by invoice amount for open AP invoices