Financial Performance Summary
Days Sales Outstanding
38.2 -1.8
Target: 40 days
Month-End Close
4.5 +0.5
Target: 4 days
Reporting Error Rate
0.8% -0.2%
Target: ≤ 1%
Cost Efficiency
$0.85 -$0.05
Target: $0.90 per $100 revenue
Financial Core Metrics
| Metric | Measurement | Target | Actual | Owner | Status |
|---|---|---|---|---|---|
|
Days Sales Outstanding (DSO)
Average collection period for receivables
|
Days | ≤ 40 | 38.2 | Credit Manager | Green |
|
Month-End Close Time
Days to close monthly financials
|
Days | ≤ 4 | 4.5 | Accounting Manager | Yellow |
|
Reporting Error Rate
% of financial reports requiring correction
|
Percentage | ≤ 1% | 0.8% | Financial Controller | Green |
|
Cost Efficiency
Finance cost per $100 revenue
|
USD | ≤ $0.90 | $0.85 | Finance Director | Green |
|
Budget Variance
Actual vs. budgeted expenses variance
|
Percentage | ≤ 2% | 1.5% | Budget Manager | Green |
|
Invoice Processing Time
Avg. days to process vendor invoices
|
Days | ≤ 5 | 4.2 | AP Manager | Green |
|
Compliance Adherence
% of regulatory deadlines met
|
Percentage | 100% | 100% | Compliance Officer | Green |
|
Cash Flow Forecast Accuracy
Variance between forecast and actual cash
|
Percentage | ≥ 95% | 96.3% | Treasury Manager | Green |
Financial Action Plan
! Month-End Close Improvement (Current: 4.5 days | Target: 4 days)
- Implement automated reconciliation for high-volume accounts
- Streamline inter-departmental data collection process
- Establish pre-close review checklist for all departments
- Train staff on new financial software features
✓ DSO Reduction Strategy
- Implement early payment discount program for key customers
- Automate invoice reminders for overdue accounts
- Review credit terms for high-risk customers
→ Process Automation Initiative
- Implement AI-powered invoice processing system
- Automate expense report approvals
- Roll out predictive cash flow forecasting tool
EOS Implementation Guidelines
Monthly Cadence
Update by the 5th business day each month. Review in Finance L10 Meeting.
Accountability
Each metric has a clear owner responsible for reporting and improvement.
Targets
Set quarterly targets aligned with company Rocks (e.g., "Reduce DSO to 35 days").
Visual Management
Display financial KPIs on department dashboard and leadership portal.
Financial Focus Areas
Financial Control
Accuracy and timeliness of financial reporting
Cash Management
Optimization of working capital and cash flow
Cost Efficiency
Reducing cost of finance operations
Compliance
Regulatory adherence and risk management
Financial Highlights
Receivables Performance
DSO reduced to 38.2 days, the lowest in 12 months, through improved collection processes.
Current DSO
Automation Success
New AP automation reduced processing time by 25% and decreased errors by 40%.
Invoice processing
Closing Process
Month-end close extended to 4.5 days due to new system implementation and training.
Month-end close
Finance Department Priorities
Close Process Optimization
Implement checklist and automation to reduce close time to 4 days
Cash Flow Management
Improve forecasting accuracy and working capital efficiency
Automation Expansion
Roll out next phase of automation to AR and expense management