Benefits of Embedded Balance Sheet Dashboard for Finance | Bold BI

How Financial Analysts Can Benefit from an Embedded Balance Sheet Dashboard

Introduction

A company’s financial metrics show its stability and performance, so the role of the finance department is vital. How a company’s money flow is registered and managed determines its growth and credibility. Balance sheets are used to register all monetary activities of a company. They show analysts the spending and revenue trends over time.

Embedded analytics helps you to extract financial insights from a company’s historical data, letting you make better-informed decisions about the company’s future. Finance leaders can use embedded analytics to collect data from internal and external sources, perform analysis, and track key performance indicators (KPIs) in your own business applications. In this blog post, I am going to give you an overview of how embedded analytics helps financial analysts to achieve their business goals using the following topics:

What is embedded analytics?

Integrating analytical solutions and data visualization capabilities in any software application’s user interface to improve data comprehension and usability is known as embedded analytics. Bold BI helps you easily embed an analytics solution into your everyday work applications using a JavaScript SDK and server application. This helps you to reduce your dependency on IT teams and glean all the insights you need to improve administrative and workforce outcomes.

Benefits of embedded balance sheets for finance departments

A balance sheet is a key accounting instrument for a company’s financial management that gives an overview to administrators of how well their organization is performing and what areas they need to improve. It shows the gradual growth of a company by incorporating every record since its beginning. It can help evaluate the company’s assets, liabilities, and equity.

A proper balance sheet enables financial analysts to monitor their key metrics and KPIs and helps them answer the following questions:

  • Does the business have a positive net worth?
  • Does the company have the ability to meet its obligations with cash and short-term assets?
  • Is the company more heavily indebted than its competitors?

Embedded analytics helps improve financial health of your company through:

Effective risk management

Effective Risk Management

Closely monitoring your company’s balance sheet provides you insights into its financial health. It helps you identify the risks and mitigate them with proper decisions.

Embedded analytics reduces time spent flipping among a company’s financial software and other applications simultaneously, correlating information manually. Managers can track financial performance in their own business application, tracking key metrics such as current ratio, quick ratio, cash balance, and liquidity ratio. By monitoring a comprehensive view of the organization’s credit and market risk, they can devise strategies that help them to weather the market’s slowdowns in the long term.

Efficient revenue and balance sheet management

Efficient Revenue and Balance Sheet Management

Managing financial account data and analyzing it can be a tedious process for many accounting teams. Deploying embedded analytics in your software application helps you analyze contextual data such as the debt-to-asset ratio, debt-to-equity ratio, and working capital. It can provide visual analytics within operations, financial, and accounting systems. Managers now have access to detailed variance reporting as well as the capacity to deconstruct and analyze the data that underlies the balance sheet. The insights gained from those metrics assist the key decision-makers in compiling risk assessments as investment opportunities arise.

Better workforce and inventory management

Embedded analytics in your work environment collects all day-to-day data such as shipment departure time, shipment arrival time, and employee workflow management into one place. You can track other metrics such as the inventory-to-sales ratio, inventory turnover, days sales in inventory, and days inventory outstanding, which can help shed light on the company’s inventory management. Using these insights, the managers can study the market trends, restock the bestselling products, and set competitive prices that help the company grow.

Managing cashflow and operational efficiency

Managing Cashflow and Operational Efficiency

Embedding analytics enables managers to use the predictive analytics feature to forecast future AR and AP, cash balance, and the cash-to-cash cycle, which help you monitor cash flow. You can also analyze the company’s financial ability to pay back its liabilities and gain insights into the company’s operational efficiency, liquidity, profitability, and solvency. Monitoring these metrics helps managers to improve the growth of the company in the upcoming quarters and strategize their moves according to market fluctuations.

Bold BI’s Balance Sheet dashboard

Bold BI’s Balance Sheet dashboard shows the financial state of a company’s accounts through the key financial metrics provided. It can track the financial performance for a particular period of the year.

Balance Sheet Dashboard in Bold BI
Balance Sheet Dashboard in Bold BI

With this dashboard, you can learn about these metrics and KPIs that enhance your company’s balance sheet:

Working capital

Working capital is the amount of assets available to a company minus its liabilities.

Working Capital in Balance Sheet Dashboard
Working Capital in Balance Sheet Dashboard

Formula:

Working capital = Current Assets – Current Liabilities

Current ratio

Comparison between the company’s current assets and current liabilities is known as the current ratio. It can be calculated by dividing the current assets by current liabilities.

Current Ratio in Balance Sheet Dashboard
Current Ratio in Balance Sheet Dashboard

Formula:

Current Ratio = Current Assets/Current Liabilities

Liquidity ratio

A liquidity ratio is a financial measure used to assess a company’s ability to meet its short-term loan obligations. The metric is used to determine if a company’s current assets, or liquid assets, can cover its current liabilities.

Liquidity Ratio in Balance Sheet Dashboard
Liquidity Ratio in Balance Sheet Dashboard

Formula:

Current Liabilities/Current Assets

Quick ratio

The calculation of a company’s liquid assets versus its current liabilities is known as the quick ratio. The greater the quick ratio, the better the company’s position.

Quick Ratio in Balance Sheet Dashboard
Quick Ratio in Balance Sheet Dashboard

Formula:

Quick Ratio = (Current Assets – Inventory)/Current Liabilities

Debt-to-asset ratio (DAR)

The debt-to-asset ratio, also known as the debt ratio, is a leverage ratio that shows how much of an asset’s value is financed with debt. The larger the ratio, the more leverage and financial risk there is.

Debt-to-Asset Ratio (DAR) in Balance Sheet Dashboard
Debt-to-Asset Ratio (DAR) in Balance Sheet Dashboard

Formula:

Debt-to-Asset Ratio = Total Debt/Total Assets

Debt-to-equity ratio (DER)

The debt-to-equity ratio calculates the value of total liabilities to total equity.

Debt-to-Equity Ratio (DER) in Balance Sheet Dashboard
Debt-to-Equity Ratio (DER) in Balance Sheet Dashboard

Formula:

Total Liabilities/Shareholders’ Equity

Inventory to sales

The inventory to sales number measures the amount of inventory you possess against the number of sales you’re fulfilling.

Inventory to Sales in Balance Sheet Dashboard
Inventory to Sales in Balance Sheet Dashboard

Formula:

Average Inventory/Net Sales

Inventory turnover

Inventory turnover shows the cost of goods sold against the average inventory within the same time period.

Inventory Turnover in Balance sheet dashboard
Inventory Turnover in Balance sheet dashboard

Formula:

Inventory Turnover = COGS/Average of Inventory

Days sales in inventory (DSI)

The average time taken by a company to turn their inventory into sales is known as days sales in inventory.

Days Sales in Inventory (DSI) in Balance Sheet Dashboard
Days Sales in Inventory (DSI) in Balance Sheet Dashboard

Formula:

Days Sales in Inventory = Inventory/COGS x 365

Cash balance

Cash balance shows the difference in the value of total assets and current assets.

Cash Balance in Balance Sheet Dashboard
Cash Balance in Balance Sheet Dashboard

Days sales outstanding (DSO)

Days sales outstanding shows the number of days a company takes to collect its accounts receivables.

Days Sales Outstanding (DSO) in Balance Sheet Dashboard
Days Sales Outstanding (DSO) in Balance Sheet Dashboard

Formula:

(Receivables/Revenue) x 365

Days inventory outstanding (DIO)

Days inventory outstanding (or days sales of inventory) indicates the average number of days a company can keep its inventory before selling.

Days Inventory Outstanding (DIO) in Balance Sheet Dashboard
Days Inventory Outstanding (DIO) in Balance Sheet Dashboard

Formula:

(Inventory/COGS) x 365

Days payable outstanding (DPO)

Days payable outstanding is an efficiency ratio that shows how many days a company takes to pay its suppliers.

Days Payable Outstanding (DPO) in Balance Sheet Dashboard
Days Payable Outstanding (DPO) in Balance Sheet Dashboard

Formula:

(Accounts Payable/COGS) x 365

Cash-to-cash cycle (CCC)

The cash-to-cash cycle shows the amount of time it takes a company to convert its investments in inventory to cash.

Cash-to-Cash Cycle (CCC) in Balance Sheet Dashboard
Cash-to-Cash Cycle (CCC) in Balance Sheet Dashboard

Formula:

CCC = DIO+DSO-DPO

AR Turnover vs. AP turnover

This column chart shows the difference between AR turnover and AP turnover where AR turnover shows the ratio of total purchases to average accounts receivable and AP turnover shows the ratio of total supplier purchases to average accounts payable.

AR Turnover vs. AP Turnover in Balance Sheet Dashboard
AR Turnover vs. AP Turnover in Balance Sheet Dashboard

Overall financial statement

This grid shows the financial statement of assets, liabilities, equity, etc. of a company over a period of time.

Overall Financial Statement in Balance Sheet Dashboard
Overall Financial Statement in Balance Sheet Dashboard

To learn more about the metrics and KPIs used in this dashboard example, refer to the Balance Sheet Dashboard demo.

How to embed analytics tools into financial apps

Let’s see how analytics can be embedded into your finance web applications. Bold BI helps you embed your dashboards in more than 10 web platforms, including ASP.NET CoreASP.NET MVCAngularASP.NET, and Ruby on Rails. In this blog, I am going to explain how to embed dashboards in your ASP.NET MVC applications. Consider a scenario in which your finance department has a website like the one shown in the following image.

Sample Website of a Finance Dept.

Sample Website of a Finance Dept.

You can embed dashboards easily using Bold BI Embedded and avoid building an analytics or BI solution yourself. Follow these steps to embed your dashboard successfully.

Prerequisites

Download and install the Bold BI server on your local machine and create an enterprise-grade dashboard. You can find the installation and deployment instructions here.

Step 1: Creating an ASP.NET MVC application.

To successfully embed a dashboard in your application, first you need to create an ASP.NET MVC application. Open Microsoft Visual Studio and click New Project. Then choose ASP.NET MVC Web Application, enter the project name, and click OK.

Step 2: Configure embed properties.

After the ASP.NET MVC web application is created, you need to create a Model class called EmbedProperties under Models and provide the dashboard RootURL, SiteIdentifier, Environment, UserEmail, and EmbedSecret.

Properties

Property Value Descriptions

RootUrl

Dashboard server BI URL. For example: http://localhost:5000/bi, http://dashboard.syncfusion.com/bi.

SiteIdentifier

For Bold BI Enterprise edition, it should be something like “site/site1”.

For Bold BI Cloud edition, it should be an empty string.

Environment

Bold BI application environment.

For cloud BI, you can use “cloud”.

For enterprise BI, you should use “enterprise”.

UserEmail

Bold BI server will use an email to authorize the authorization server.

Step 3: Generate embed secret.

You have to set the EmbedSecret for authentication. You can get the embed secret from the Bold BI server. Then, navigate to the Settings icon in the left navigation bar and click the Embed tab. Click Enable embed authentication and then click the Generate Secret button to generate the embed secret. On clicking the button, a secret key will be generated, and you can paste it into the application. To learn how to do this in more detail, you can refer to this documentation link.

Note: Save the secret key, as it cannot be retrieved again. If you do not save it, you will have to generate a new one using the Reset Secret option.

Step 4: Create authorization server.

You need to implement an authorization server in the ASP.NET MVC application to get authenticated before embedding the dashboard from the Bold BI server. You can also configure the single sign-on (SSO)-based authorization server, which is an authentication endpoint that enables users to securely authenticate multiple applications using unique embed secrets. This prevents the need for the user to log into different applications separately.

Step 5: Create Bold BI instance.

Finally, create a Bold BI instance to load the dashboard using a JavaScript file. Reference required script files and CSS files in the HTML pages.

Step 6: Run the application to embed the dashboard.

After successfully creating the ASP.NET MVC application, you need to run it. It will be launched successfully with the dashboard details. Finally, you can that see the dashboard created in the Bold BI server is embedded in your web application.

Dashboard Embedded into an ASP.NET MVC Application
Dashboard Embedded into an ASP.NET MVC Application

By following the previous steps, you can successfully embed your dashboards into your ASP.MVC application.

Balance Sheet Dashboard Embedded into an ASP.NET MVC Application
Balance Sheet Dashboard Embedded into an ASP.NET MVC Application

To learn more about embedding dashboards into your applications, please refer to this blog. You can also download the sample codes mentioned in all these steps from our documentation.

Conclusion

Bold BI Embedded helps you to integrate dashboards in your applications written in React with ASP.NET CoreReact with GoWinForms, Node.js, Vue with Go, Vue with Core, and more, seamlessly. It will help you save time and prevent you from doing redundant work. Click this link to explore its features. To learn more about embedding dashboards into your application, refer to this blog and our help documentation.

I hope you now have a better understanding of Bold BI Embedded and how it will help the finance domain to be more successful. You can create a dashboard as you like with Bold BI Embedded’s 35 widgets and 130 data sources.

To get started with Bold BI, schedule a free 30-minute demo with our experts about creating dashboards and any other features you would like to learn more about. You can contact us by submitting questions through the Bold BI website or, if you already have an account, you can log in to submit your support question.

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October 21, 2021 10 min read

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