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Financial KPI

Financial KPIs samples


With the development of new information technology and in todays finance world, the
information you need exists in various formats and different systems. Youre dealing with next
quarters 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
depreciation
charge.
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