Accounting System, Financial Statements and KPI Reports

Accounting Reporting System Overview

An accounting system is the information backbone that captures, processes, and delivers the financial data needed by managers to steer the business. It moves data through six essential stages:

• Collection of raw financial information
• Classification into accounts and cost centers
• Processing – calculations, consolidations, and adjustments
• Storage of processed results in a secure repository
• Generation of key performance indicator (KPI) reports
• Creation of formal financial statements and regulatory filings

Core Financial Elements Required for KPI Reporting

According to the Financial Accounting Standards Board (FASB), the following elements form the foundation of any performance‑measurement framework:

Assets

Long‑term resources owned or controlled by the company, such as property, equipment, patents, and goodwill.

Liabilities

Obligations owed to external parties – loans, accounts payable, accrued expenses, and deferred tax.

Equity

The residual interest after liabilities are settled – common stock, retained earnings, and other comprehensive income.

Revenue

Inflows generated from core business activities: product sales, service contracts, subscription fees, etc.

Expenses

Outflows required to earn revenue – cost of goods sold, payroll, rent, depreciation, and taxes.

Financial Statements that Feed KPI Dashboards

Financial statements are the primary data sources for any KPI dashboard. They provide the context managers need to interpret trends and make decisions.

• Balance Sheet – snapshots assets, liabilities, and equity at a point in time.
• Income Statement (Profit & Loss) – shows revenue, expenses, and net profit over a period.
• Cash Flow Statement – tracks cash inflows and outflows from operating, investing, and financing activities.
• Statement of Changes in Equity – details movements in owners’ equity.

Industry‑Specific KPI Examples

Manufacturing

• Cost of Goods Sold (COGS) as % of sales
• Inventory turnover days
• Overall equipment effectiveness (OEE)

Professional Services

• Billable utilization rate
• Average project margin
• Days sales outstanding (DSO)

Retail & E‑commerce

• Gross margin return on investment (GMROI)
• Average order value (AOV)
• Customer acquisition cost (CAC) vs. lifetime value (LTV)

Step‑by‑Step Guide to Build an Accounting‑Driven KPI Dashboard

1. Map the data flow. List every source (ERP, bookkeeping software, bank feeds) and how it feeds into the accounting system.
2. Standardize the chart of accounts. Use consistent account numbers and naming conventions across departments.
3. Define KPI calculations. Write the exact formula (e.g., (Revenue – COGS) / Revenue for gross margin).
4. Choose a reporting tool. Excel, Power BI, or a dedicated dashboard platform.
5. Connect the data. Pull the trial balance, income statement, and cash flow data into the reporting tool.
6. Design visualizations. Use bar charts for trends, gauges for targets, and tables for drill‑down details.
7. Validate. Cross‑check KPI numbers against the source financial statements.
8. Publish and automate. Schedule daily or monthly refreshes and distribute to stakeholders.

Tools and Templates to Accelerate Your Implementation

Take advantage of ready‑made resources that integrate with most accounting platforms:

• Financial Statements Templates – pre‑formatted Excel workbooks for balance sheets, income statements, and cash flow reports.
• Automated Excel Financials – a macro‑enabled solution that pulls data from your accounting system and updates statements with a single click.
• Financial Dashboard Excel – a KPI dashboard template with slicers, sparklines, and conditional formatting.

Implementation Checklist

Task	Completed	Owner
Document data sources and integration methods	○	Finance Manager
Standardize chart of accounts	○	Controller
Select KPI set for each business unit	○	Business Ops Lead
Build dashboard prototype	○	BI Analyst
Validate against source statements	○	Controller
Schedule automated refreshes	○	IT Specialist

Next Steps

Start by downloading the Financial Statements Templates to map your current reporting structure. Then, use the Automated Excel Financials add‑in to populate those templates directly from your accounting system. Finally, bring everything together in the Financial Dashboard Excel to visualise KPI trends in real time.

Implementing a robust accounting system with integrated KPI reporting not only improves data accuracy but also empowers faster, data‑driven decisions across the organization.