In today’s fast-paced business landscape, tracking the most important eCommerce KPIs via eCommerce Dashboards is essential for understanding your business’s health and driving growth. But with so many metrics to consider, how do you know which ones are worth your time? That’s where a well-designed eCommerce dashboard comes into play and why it is so important
\n\n\n\nIf you’re looking for a quick and effective way to keep your finger on the pulse of your online store, check out our latest YouTube video, “eCommerce Dashboard | Most Important eCommerce KPIs (in 5 minutes).” In this video, we break down the essential KPIs every eCommerce business owner should track to make informed decisions and boost profitability—all in just five minutes!
\n\n\n\nSales Metrics: Understand the importance of tracking total sales, average order value (AOV), and sales conversion rates. These KPIs are critical for measuring your store’s performance and identifying opportunities to increase revenue.
\n\n\n\nCustomer Metrics: Learn why customer acquisition cost (CAC) and customer lifetime value (CLV) are crucial for assessing your marketing efforts’ effectiveness and ensuring that you’re attracting profitable customers.
\n\n\n\nTraffic Metrics: Discover how tracking unique visitors, traffic sources, and bounce rates can provide insights into your website’s performance and help you optimize your marketing strategies.
\n\n\n\nInventory Metrics: Find out why keeping an eye on inventory turnover rate and stock levels can help you manage supply chain efficiency and avoid overstocking or stockouts.
\n\n\n\nOperational Metrics: Get to grips with cart abandonment rates and order fulfillment times to ensure a smooth customer experience and identify areas for improvement in your operations.
\n\n\n\nAn eCommerce dashboard is more than just a reporting tool; it’s a decision-making ally. By consolidating your data into an easy-to-understand visual format, you can quickly assess your business’s performance, identify trends, and make informed decisions without getting bogged down in spreadsheets.
\n\n\n\nWith the right KPIs on your eCommerce dashboard, you can:
\n\n\n\nReady to streamline your eCommerce analytics and focus on the metrics that matter? Watch our video now and learn how to set up an effective eCommerce dashboard in just 5 minutes: eCommerce Dashboard | Most Important eCommerce KPIs (in 5 minutes) or visit Modeliks to learn more about our financial planning tool.
\n","slug":"ecommerce-dashboard-most-important-ecommerce-kpis-in-5-minutes","date":"2024-08-30T10:04:15","categories":{"nodes":[{"id":"dGVybToxMw==","name":"Reports & Dashboards"}]},"mainCategory":{"mainCategory":["reports-and-dashboards"],"videoHeader":"https://www.youtube.com/watch?v=HJQo4LQaHvs"},"tags":{"nodes":[{"name":"business planning"},{"name":"Dasboards"},{"name":"eCommerce"},{"name":"financial forecasting"},{"name":"financial modeling"},{"name":"financial reporting"},{"name":"Forecasting Operating Expenses"},{"name":"investor report"},{"name":"KPIs"},{"name":"Operating Expenses"}]},"featuredImage":{"node":{"id":"cG9zdDoyNzg1","sourceUrl":"/images/cms/8b420bca9bd43d52.png","altText":"eCommerce Dashboard | Most Important eCommerce KPIs (in 5 minutes)"}},"seo":{"metaDesc":"eCommerce Dashboard | Most Important eCommerce KPIs (in 5 minutes). Learn How & Why Performance Tracking is Crucial for an eCommerce Business"},"modified":"2024-08-30T10:04:16","related":[{"id":"cG9zdDo0NjY4","title":"Step-By-Step Guide to the Month-End Close Process","content":"\nManaging a successful month-end close process is essential for any business aiming to maintain accurate financial records and make informed decisions. Month-end close involves a detailed review and reconciliation of financial activities from the previous month to ensure all data is accurate, compliant, and ready for reporting. In this guide, we’ll walk you through each step of the month-end close process, highlight best practices, and provide tips to streamline your operations.
\n\n\n\nThe month-end close is a systematic process where finance and accounting teams finalize financial transactions, generate reports, and reconcile accounts at the end of each month. The goal is to ensure that all income and expenses are accurately recorded, financial statements are complete, and the business has a clear picture of its financial health.
\n\n\n\nA well-executed month-end close process provides valuable insights into your company’s financial performance. It helps identify discrepancies, ensures compliance with regulatory requirements, and prepares the business for internal and external audits. Moreover, it enables leadership teams to make strategic decisions based on reliable financial data.
\n\n\n\nThe first step in the month-end close process is gathering all necessary financial data. This includes invoices, bank statements, and expense receipts. Ensure all credit and debit entries are accurately posted and cross-reference these entries with your internal records. Missing or incomplete data can cause delays and lead to inaccurate financial reporting.
\n\n\n\nBest Practice: Use a checklist to ensure all data is collected and accounted for. Designate a point of contact for each type of financial data, such as revenue, expenses, and payroll, to streamline communication and reduce bottlenecks.
\n\n\n\nNext, review and reconcile your accounts payable and accounts receivable ledgers. Match all vendor invoices to purchase orders and receipts. Verify customer payments against the corresponding ledger entries. If there are discrepancies, investigate and resolve them before moving forward. Proper reconciliation is critical to ensure the accuracy of your financial statements.
\n\n\n\nBest Practice: Communicate regularly with vendors and customers to promptly address outstanding issues. Set deadlines for receiving vendor invoices and resolving customer payment disputes before the month-end close starts.
\n\n\n\nReconcile all bank and credit card transactions with your general ledger. This process involves comparing the balances in your bank statements with the corresponding entries in your accounting system. Adjust for any discrepancies, such as unrecorded transactions or bank errors, by making the necessary journal entries.
\n\n\n\nBest Practice: Schedule weekly or bi-weekly reconciliation sessions during the month. This reduces the workload at month-end and ensures that discrepancies are identified and corrected early on.
\n\n\n\nEnsure all accrued expenses, such as payroll, interest, and taxes, are recorded correctly. Similarly, review prepaid expenses like insurance and rent, making adjustments for the portion of these expenses that apply to the current month. Accrual adjustments are essential to match revenues and expenses in the correct reporting period.
\n\n\n\nBest Practice: Set up a review system where senior accountants verify accrual entries to ensure they are accurate and aligned with the company’s financial strategy.
\n\n\n\nFor businesses with inventory, perform a physical count and reconcile the count with your financial records. Similarly, update the value of fixed assets, including any new purchases, disposals, or depreciation. Accurate inventory and asset tracking ensure your balance sheet reflects the true value of your company’s assets.
\n\n\n\nBest Practice: Implement cycle counting for inventory. This approach involves counting a portion of your inventory regularly rather than performing a full count at the end of each month, reducing discrepancies and improving accuracy.
\n\n\n\nEnsure that all payroll entries, including salaries, benefits, and taxes, are correctly posted. Reconcile payroll accounts with your payroll register and make adjustments as needed. Similarly, review operating expenses, such as utilities and office supplies, to ensure they are correctly allocated and posted to the appropriate accounts.
\n\n\n\nBest Practice: Reconcile payroll and operating expenses separately to avoid confusion. Set deadlines for each process and ensure the person responsible for each category knows these timelines.
\n\n\n\nConduct a variance analysis to compare actual results against budgeted figures. This analysis helps identify any anomalies that require further investigation. Make any necessary adjustments to correct errors or reflect new information that wasn’t previously available.
\n\n\n\nBest Practice: Hold monthly variance meetings with department heads to review significant deviations from the budget. This fosters accountability and enables proactive measures to address issues before they escalate.
\n\n\n\nAfter reconciling accounts and making adjustments, generate preliminary financial statements, including the balance sheet, income statement, and cash flow statement. Review these statements for accuracy and consistency. Cross-check all figures and ensure that all adjustments have been accounted for.
\n\n\n\nBest Practice: Create a standardized template for reviewing financial statements to ensure all aspects are covered and nothing is overlooked. This can include a list of common errors or a guide on how to validate the accuracy of entries.
\n\n\n\nOnce the financial statements have been reviewed and verified, finalize the month-end close by locking the accounting period in your financial system. Distribute the final reports to relevant stakeholders, such as department heads and senior management, for their review and analysis.
\n\n\n\nBest Practice: Implement a secure, cloud-based platform to distribute financial reports, ensuring that stakeholders can access up-to-date information from anywhere.
\n\n\n\nTo optimize your month-end close, consider leveraging technology solutions that automate routine tasks, such as bank reconciliations and variance analysis. Tools that provide real-time financial insights and automate data entry can significantly reduce the time spent on manual work, allowing your team to focus on strategic financial analysis and decision-making.
\n\n\n\nA streamlined month-end close process is crucial for maintaining accurate financial records, ensuring compliance, and supporting business growth. By following these step-by-step instructions and implementing best practices, you can transform your month-end close into an efficient and manageable task.
\n\n\n\nWant to improve your month-end close process? Contact us today to learn how Modeliks can help you streamline your financial operations and ensure accurate, timely reporting every month. Start your free trial today!
\n\n\n\n\n","slug":"month-end-close","date":"2024-10-10T06:59:10","categories":{"nodes":[{"id":"dGVybToxMw==","name":"Reports & Dashboards"}]},"mainCategory":{"mainCategory":["reports-and-dashboards"],"videoHeader":null},"tags":{"nodes":[{"name":"financial reporting"}]},"featuredImage":{"node":{"id":"cG9zdDo0Njcw","sourceUrl":"/images/cms/month-end.jpg","altText":"Overview of month-end close process, steps, and best practices for maintaining accurate financial records and ensuring compliance in business accounting."}},"seo":{"metaDesc":"Discover the steps and best practices for an efficient month-end close process. Learn how to streamline operations with Modeliks."},"modified":"2024-10-10T06:59:11","related":null},{"id":"cG9zdDoyNDI3","title":"COGS vs Operating Expenses: What is the Difference?","content":"\nUnderstanding the distinction between Cost of Goods Sold (COGS) and operating expenses (OPEX) is crucial for any business owner. While both are integral to business operations, these financial terms have distinct implications for the company’s financial health. This article will explore the COGS vs Operating Expenses differences, how to calculate them, and why they matter to your business.
\n\n\n\nCost of Goods Sold (COGS) represents the direct costs of producing goods or delivering services. These costs include raw materials, direct labor, and other expenses directly tied to the production process. For a retail business, COGS would include the purchase price of merchandise sold during the period.
\n\n\n\nFormula: COGS = Beginning Inventory + Purchases During the Period − Ending Inventory
\n\n\n\nFor example, if a company starts with $10,000 in inventory, makes $5,000 in purchases, and ends with $3,000 in inventory, the COGS would be $12,000.
\n\n\n\nOperating expenses (OPEX) are the costs incurred in daily operations. Unlike COGS, OPEX includes indirect costs that are not directly tied to producing goods or services. Operating expenses include rent, utilities, office supplies, and salaries for employees not involved in production.
\n\n\n\nFormula: OPEX = Total Expenses − COGS
\n\n\n\nFor instance, if a company’s total yearly expenses are $100,000 and the COGS is $40,000, the OPEX would be $60,000.
\n\n\n\nThe primary difference between COGS and OPEX lies in the costs. COGS includes direct costs that vary with production levels, while OPEX consists of indirect costs that are generally fixed and do not fluctuate with production volumes.
\n\n\n\nBoth COGS and OPEX are recorded on a company’s income statement but appear in different sections. COGS is subtracted from total revenue to determine gross profit, while OPEX is subtracted from gross profit to calculate operating profit.
\n\n\n\nUnderstanding COGS vs Operating Expenses is crucial for developing an effective pricing strategy. A business with low COGS can offer competitive pricing while maintaining healthy profit margins. Conversely, businesses with high OPEX may need to implement premium pricing strategies to cover their higher overhead costs. Discover how to determine the best pricing strategy for your products in our article “How to Calculate the Selling Price of a Product?”.
\n\n\n\nTracking COGS and OPEX is essential for several reasons:
\n\n\n\nAccurate COGS and OPEX tracking help determine the business’s true profitability. Gross profit is calculated by subtracting COGS from revenue while operating profit is calculated by subtracting OPEX from gross profit.
\n\n\n\nMonitoring these expenses allows businesses to identify areas of potential savings. For instance, a company might negotiate better deals with suppliers if COGS is high due to material costs.
\n\n\n\nIn financial analysis, both COGS and OPEX provide critical insights:
\n\n\n\nCOGS: Indicates how efficiently a company produces goods or services. Reduced COGS relative to revenue signifies higher production efficiency.
\n\n\n\nOPEX: Reflects a company’s operational efficiency. Lower OPEX as a percentage of revenue indicates effective management of operational costs.
\n\n\n\nDistinguishing between the Cost of Goods Sold (COGS) and operating expenses (OPEX) is fundamental for accurate financial reporting and analysis. While COGS relates to the direct costs of production, OPEX encompasses the indirect costs necessary for running a business. Understanding and effectively managing these expenses can significantly enhance a company’s profitability and operational efficiency.
\n\n\n\nEnhance your financial management skills and take control of your business’s profitability. Sign up for Modeliks today and start creating comprehensive business plans with our easy-to-use tools. Empower your business with accurate financial insights and drive success with confidence.
\n","slug":"cogs-vs-operating-expenses","date":"2024-07-02T10:35:47","categories":{"nodes":[{"id":"dGVybToxNA==","name":"Financial Forecast"},{"id":"dGVybToxMw==","name":"Reports & Dashboards"}]},"mainCategory":{"mainCategory":["business-plans"],"videoHeader":null},"tags":{"nodes":[{"name":"financial reporting"},{"name":"working capital"}]},"featuredImage":{"node":{"id":"cG9zdDoyNDI4","sourceUrl":"/images/cms/cogs-vs-operating-expenses.jpg","altText":"Modeliks comparative guide on COGS vs operating expenses, including calculation methods and impact on financial health."}},"seo":{"metaDesc":"COGS vs Operating Expenses: Discover the essential differences and how they should be calculated for optimal business performance."},"modified":"2024-07-02T10:35:48","related":null},{"id":"cG9zdDoyMzgy","title":"What is a Cash Burn Rate & How can it be Calculated?","content":"\nUnderstanding your cash burn rate is essential for managing the financial health of your business. This metric, especially critical for startups and growth-phase companies, measures how quickly you spend your cash reserves. In this article, we will delve into the details of this vital metric, its importance, and how to calculate it effectively.
\n\n\n\nIt is the rate at which a company uses up its cash reserves. It is a measure of negative cash flow, typically recorded as a monthly rate. Knowing your cash burn rate is crucial as it indicates how long your business can continue operating before needing additional funding. For example, if your monthly rate is $50,000, your business is spending $50,000 more than it earns each month.
\n\n\n\nMonitoring your cash burn rate helps assess your business’s financial sustainability. It provides insights into how quickly you are depleting your cash reserves and whether you are moving toward profitability or facing potential cash flow issues. A controlled rate ensures that your business can continue to operate and grow without the immediate risk of running out of cash.
\n\n\n\nFor startups, this is a critical metric as they often operate at a loss during the initial stages. Understanding and managing this rate is vital to ensure that the business can reach profitability before the cash reserves are exhausted. Investors also closely scrutinize this metric to gauge the startup’s financial health and longevity.
\n\n\n\nYou need to look at your cash flow statement to calculate your cash burn rate. There are two main types of burn rates: gross burn rate and net burn rate.
\n\n\n\nGross Burn Rate
\n\n\n\nThis is the total amount of operating expenses a business incurs in a month. It includes all monthly outflows such as salaries, rent, and utilities.
\n\n\n\nIt can be calculated with the following formula:
\n\n\n\nGross Burn Rate = Total Monthly Operating Expenses
\n\n\n\nNet Burn Rate
\n\n\n\nThis reflects the actual monthly loss by subtracting revenue from the gross burn rate.
\n\n\n\nHere is how to calculate it:
\n\n\n\nNet Burn Rate = (Revenue – Operating Expenses)
\n\n\n\nFor example, if your monthly operating expenses are $100,000 and your revenue is $70,000, your net burn rate would be $30,000.
\n\n\n\nSuppose your business starts the month with $200,000 in the bank and ends with $150,000. The difference, $50,000, is your cash burn rate for that month. If you want to calculate the monthly burn rate over a quarter, you would sum up the beginning and ending cash balances for each month, find the difference, and divide by the number of months.
\n\n\n\nMonthly Burn Rate
\n\n\n\n(Cash Balance at Beginning of Period – Cash Balance at End of Period) / Number of Months
\n\n\n\nFor example, if your starting cash balance in January is $300,000, and it decreases to $200,000 by the end of March, your quarterly burn rate is $100,000, and the monthly burn rate is approximately $33,333.
\n\n\n\nRegularly reviewing your cash burn rate and making necessary adjustments is essential for maintaining financial health. Use forecasting tools to predict future cash flows and plan for various scenarios. This proactive approach helps in making informed decisions and avoiding potential cash crises.
\n\n\n\nUnderstanding this vital metric and how to calculate it is crucial for any business, especially startups. By monitoring it, you can ensure that your business remains financially sustainable and is well-prepared to handle growth or downturns.
\n\n\n\nReady to take control of your business finances? Modeliks offers a suite of tools designed to help you monitor, and forecast future cash flows, and make informed financial decisions. Our intuitive platform lets you easily track your financial health and optimize your business strategy. Sign up for Modeliks today and gain the insights you need to drive your business forward. Start for Free and see the difference!
\n","slug":"what-is-cash-burn-rate","date":"2024-06-17T13:16:35","categories":{"nodes":[{"id":"dGVybToxNA==","name":"Financial Forecast"},{"id":"dGVybToxMw==","name":"Reports & Dashboards"}]},"mainCategory":{"mainCategory":["financial-forecast"],"videoHeader":null},"tags":{"nodes":[{"name":"financial reporting"}]},"featuredImage":{"node":{"id":"cG9zdDoyMzgz","sourceUrl":"/images/cms/What-is-Cash-Burn-Rate-and-How-to-Calculate-it.jpg","altText":"Modeliks Guide: What is Cash Burn Rate and its calculation for effective financial management."}},"seo":{"metaDesc":"Learn what cash burn rate means for your business and how to calculate it to maintain financial health. Essential for startups."},"modified":"2024-06-17T13:16:36","related":null}]}2:["$","$L7",null,{"post":"$8"}] 6:[["$","meta","0",{"name":"viewport","content":"width=device-width, initial-scale=1"}],["$","meta","1",{"charSet":"utf-8"}],["$","title","2",{"children":"Modeliks | eCommerce Dashboard & Most Important eCommerce KPIs (in 5 minutes)"}],["$","meta","3",{"name":"description","content":"eCommerce Dashboard | Most Important eCommerce KPIs (in 5 minutes). Learn How & Why Performance Tracking is Crucial for an eCommerce Business"}],["$","link","4",{"rel":"canonical","href":"https://www.modeliks.com/resources/reports-and-dashboards/ecommerce-dashboard-most-important-ecommerce-kpis-in-5-minutes"}],["$","meta","5",{"property":"og:title","content":"Modeliks | eCommerce Dashboard & Most Important eCommerce KPIs (in 5 minutes)"}],["$","meta","6",{"property":"og:description","content":"eCommerce Dashboard | Most Important eCommerce KPIs (in 5 minutes). Learn How & Why Performance Tracking is Crucial for an eCommerce Business"}],["$","meta","7",{"property":"og:url","content":"https://www.modeliks.com/resources/reports-and-dashboards/ecommerce-dashboard-most-important-ecommerce-kpis-in-5-minutes"}],["$","meta","8",{"property":"og:site_name","content":"Modeliks"}],["$","meta","9",{"property":"og:locale","content":"en_US"}],["$","meta","10",{"property":"og:type","content":"article"}],["$","meta","11",{"name":"twitter:card","content":"summary"}],["$","meta","12",{"name":"twitter:title","content":"Modeliks | eCommerce Dashboard & Most Important eCommerce KPIs (in 5 minutes)"}],["$","meta","13",{"name":"twitter:description","content":"eCommerce Dashboard | Most Important eCommerce KPIs (in 5 minutes). Learn How & Why Performance Tracking is Crucial for an eCommerce Business"}],["$","link","14",{"rel":"icon","href":"/favicon.ico","type":"image/x-icon","sizes":"16x16"}]] 1:null