What are Finance metrics? Identifying the optimal Finance metrics can be challenging, especially when everyday tasks consume your time. To help you, we've assembled a list of examples to ignite your creativity.
Copy these examples into your preferred app, or you can also use Tability to keep yourself accountable.
Find Finance metrics with AI While we have some examples available, it's likely that you'll have specific scenarios that aren't covered here. You can use our free AI metrics generator below to generate your own strategies.
Examples of Finance metrics and KPIs 1. Data Entry Error Rate Percentage of financial entries that contain errors, calculated by dividing the number of inaccurate entries by the total number of entries
What good looks like for this metric: Less than 1%
Ideas to improve this metric Implement data validation rules Provide regular training for staff Utilise automated data entry tools Conduct regular audits Create a feedback loop for continuous improvement 2. Reporting Cycle Time Time taken to complete the financial reporting cycle, measured from the end of the reporting period to when the report is finalised
What good looks like for this metric: 15 days or less
Ideas to improve this metric Automate data collection processes Implement efficient workflow software Streamline approvals and reviews Set clear deadlines for each stage Regularly review and refine processes 3. Report Revision Rate Number of times a financial report needs to be revised after initial completion, divided by the total number of reports
What good looks like for this metric: Less than 5%
Ideas to improve this metric Standardise report templates Enhance internal review processes Use predictive analytics for forecasting Incorporate real-time financial dashboards Foster better inter-departmental communication 4. On-Time Financial Close Rate Percentage of times financial reports are completed within the designated reporting period
What good looks like for this metric: 95% or higher
Ideas to improve this metric Set clear and realistic closing deadlines Ensure adequate staffing during close periods Implement parallel closing processes Monitor and address bottlenecks promptly Use performance incentives to motivate staff 5. Cost Of Financial Reporting Total expenses incurred to complete financial reporting activities, including personnel, software, and other resources
What good looks like for this metric: 2-5% of total finance budget
Ideas to improve this metric Adopt cost-effective software solutions Optimise resource allocation Decrease manual interventions Leverage cloud-based reporting tools Regularly assess and adjust the budget
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1. Reporting Error Rate Percentage of financial reports containing inaccuracies or inconsistencies
What good looks like for this metric: Less than 1%
Ideas to improve this metric Implement automated validation checks Provide regular training to staff Use standardized reporting templates Conduct regular audits Improve data integration processes 2. Report Submission Time The average time taken to complete and submit financial reports
What good looks like for this metric: Less than 5 days post-period close
Ideas to improve this metric Streamline data collection processes Automate data consolidation tasks Set clear timelines and reminders Use a centralised reporting system Allocate dedicated reporting personnel 3. Data Reconciliation Time The average time taken to reconcile financial data from various sources
What good looks like for this metric: Less than 2 days
Ideas to improve this metric Integrate financial data systems Automate reconciliation tasks Regularly update and maintain data sources Conduct frequent interim reconciliations Use reconciliation software 4. Internal Control Effectiveness Measure of how well internal controls prevent inaccuracies and ensure data integrity
What good looks like for this metric: 95% compliance rate
Ideas to improve this metric Regularly review and update control processes Provide comprehensive training on internal controls Utilise internal control software Perform periodic control testing Establish a clear segregation of duties 5. Stakeholder Satisfaction Feedback from stakeholders regarding the accuracy and timeliness of financial reports
What good looks like for this metric: 90% satisfaction rate
Ideas to improve this metric Regularly solicit feedback from stakeholders Act on feedback to improve processes Engage stakeholders in reporting process improvements Use clear and concise reporting formats Provide timely updates and reports
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Tracking your Finance metrics Having a plan is one thing, sticking to it is another.
Don't fall into the set-and-forget trap. It is important to adopt a weekly check-in process to keep your strategy agile – otherwise this is nothing more than a reporting exercise.
A tool like Tability can also help you by combining AI and goal-setting to keep you on track.
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Tability's check-ins will save you hours and increase transparency
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