5 steps to success with Futrli : Step 3 – Am I bank for my customers?
Are you on top of your customers? Find out by using our Report Cards
Written by Hannah Dawson
Am I a bank for my customers?
Keeping a positive cash flow is a huge part of the success of any business. Knowing how fast your customers pay you can be a huge part in keeping that under control.
Often, businesses that fail do so because of cash flow issues, but by adding our Monthly Debtor Days card to your board you can plan effectively to help you look stay cash flow positive, and minimise potential risk.
We can use the ‘Add Card’ function here and then scroll to the bottom section (Balance sheet), and select the Monthly Debtor Days
This is a “Report” card type, and one you’ll frequently in Futrli. While this particular template is set up with a formula, you’ll use this type of card for a lot of your insights simply due to the versatility it offers. Any account, category, account group, non-financial data, formula (KPI), historical and future periods for actual and/or forecast data over daily, weekly, fortnightly, monthly, etc. periods can be displayed here. It really is that flexible.
Before we proceed any further, let’s have a look at the basic make-up of this (and every Report card)
There are 3 tabs and each does something different. They are illustrated below.
Click through the tabs and make the changes as per the image (listed below – click it to see it larger). I’ve also changed the name of the card and given it a description.
1. Settings tab – no changes needed, but this is where you change organisations if you have more than one, choose from actuals, forecast or a combination of both – more on that one later! Choose actuals in this case.
2. Report tab – there is a formula there but this is also where you add accounts, account categories such as Income or Cost of Sales, non-financial data and custom groups you may have made.
Hit the edit pencil on the monthly debtor’s formula and you’ll get your first view of the formula builder (Don’t worry if this looks daunting at first, it is actually very easy to use and we will take you through how it works as we proceed onwards). Change the name of the formula to “How long it takes my customers to pay me” and click OK.
3. Charts and Tables – You can choose how you want to display your data on the graph by clicking on the chart icon. We want to show both a table and chart, so ensure you check Table and toggle Large Chart.
4. Columns tab – all things column formulas. We need the Average one for your this dashboard
Click ‘Done’ in the top right of the card, and watch it flip around to reveal your customer payment days.
We can make the card bigger clicking, and dragging the 6 dots on the right hand side, bottom right, and bottom of the card to resize it. Enlarging the card will make more data visible if you need a more granular, deep dive into this metric rather than looking at a glance. You can also reorder your cards by holding your mouse down on the title area of the card and dragging to a new position.
In this example, the most important number overall is the average.
You can change the time period on the Report tab to look at a different timeframe, perhaps the last 3 or 6 months. This is worth doing on a new board after this exercise as it may allow you to see any potential trends or patterns that the average over 12 months is masking.
This average number is important because it indicates whether you are running a tight ship or not. The majority of our customers stipulate 30-day credit terms for their customers as per the invoices they send out, but this is often not the case. This card will help you monitor and improve how quickly you get paid, preventing you form essentially becoming a bank for your customers.