Yes! Financial Dashboards Can Make an Impact!

Just about every nonprofit can benefit from a financial dashboard.

If you’re serious about including all of your leaders in financial decision-making, then you’ll be sure to have one.

What is a financial dashboard?

Just like your car’s dashboard provides you critical information on the car’s performance and safety, a financial dashboard will make this information quick and easy to access.

Don’t the balance sheet and profit & loss report do that?

Not for most people. 

13 out of 14 American adults have some level of math anxiety.   This is part of the reason why so many people’s eyes glaze over when it comes time to review those reports.

A dashboard supplements basic financial reports, so that your key stakeholders have the information they need to make strategic decisions.

Does a financial dashboard really make a difference?

Absolutely!

Even for “numbers people,” a graphic representation of the data can make it much easier to absorb and understand key information.  It also becomes more likely that you’ll see patterns, breaks in patterns, and other things that can initiate good questions.

But don’t just take my word for it.  Check out the quick video below:

• First you’ll see a balance sheet:  How quickly can you pick out four things that might be worrisome for the sample organization?

• Next you’ll see a dashboard:  How quickly can you identify those four things?

Want to see the full sample dashboard and the financial reports that go with it? Download the PDF here.

Some good news

More and more small and medium-sized nonprofits have begun including a financial dashboard as a standard part of their package of financial reports. What used to take a significant investment of time and/or money has become a very inexpensive way to get all key stakeholders’ input on critical financial decisions, not just the very small group that happens to have a gift for working with numbers.