iTWire – Harnessing data reporting to drive business growth

GUEST OPINION: Data-driven decision-making has emerged as a necessity for a competitive advantage for small to medium-sized businesses (SMBs). Simply collecting data is not enough. Effective data utilisation has become essential, especially in an increasingly digital and data-intensive environment. One of the most compelling ways to use data effectively is through reporting that can be drilled down into and filtered in multiple ways to give leaders the ability to make informed business decisions.

Josh McHugh-Cullen, regional sales executive, ECI Solutions, said, “When implemented well, reporting can transform raw data into a meaningful story, offering actionable insights to decision-makers in a visually intuitive format. This isn’t only about generating reports; it’s about empowering businesses with the ability to drill down into companywide data quickly and effectively.” 

The key to accurate reporting lies in enterprise resource planning (ERP) systems. Modern ERP solutions cater to SMBs and offer sophisticated, industry-specific insights embedded within the software. Unlike in the past, obtaining real-time data no longer requires a multi-million-dollar investment. 

Reports should offer management teams information in an easily accessible and digestible way so that leaders get the insights into their businesses that they need. However, reporting is not one size fits all. At times, a business requires data at a high level, sometimes more granular. And sometimes, a holistic view of the entire business from all systems is necessary.

Leveraging built-in reporting

For business leaders who want to take a deep dive into their data, a built-in reporting functionality is important, as it lets decision-makers create reports directly in the system and see their data in real-time.

This reporting option means taking advantage of pre-built templates that are ready to consume or creating custom reports and financial statements that offer a more granular view.

Josh McHugh-Cullen said, “The insights executive teams derive from reports can guide budgeting, resource distribution, and decision-making across all business facets. Beyond live performance data visualisations, reporting might just be the most vital feature of any ERP platform.”

Four essential reports accessible from an ERP platform

What reports should decision-makers consistently run, aside from the standard general inventory report, balance sheet, and profit and loss (P&L) statements? Here are four, spanning multiple business domains, that are indispensable for SMBs regardless of sector:

1. Accounts receivable aging report: this report empowers the accounts receivable team to keep abreast of collections. Cash flow issues, often stemming from lax or uneven monitoring of accounts receivables, plague many SMBs. Leaders should do a weekly run of this report. Alongside reporting and segmenting based on overdue days, an organisation should adopt a tiered communication strategy aligned with the overdue duration.
2. Inventory ranking report: this ranks inventories from highest to lowest based on gross margin. This report is pivotal in discerning the link between profitability and storage costs, assisting in evaluating whether the overhead validates the continued sale of each item. If cash flow is challenging, it’s important to execute this report at a minimum on a monthly basis.
3. Sales pipeline report: this report grants a comprehensive view of ongoing, imminent, and prospective sales, facilitating precise forecasting and the setting of projected closure dates. A weekly run will show specific sales transitions throughout the sales process, showcasing when a team typically succeeds in converting a lead into a sale or upselling to existing clients. Does the conversion happen post-sales meetings, following digital inquiries, or after subsequent interactions? The sales pipeline report pinpoints pivotal stages in the sales trajectory and areas requiring enhancement. It also offers an avenue to assess individual sales members and intervene at crucial points.
4. Customer churn report: through this report, customer attrition rates, patterns, and numbers are monitored over a designated timeframe. A weekly check helps intervene when customer contracts lapse without renewal or if purchasing behaviours decelerate. Many businesses focus too much on new client acquisition, neglecting existing customer retention. High churn can hamper profitability and expansion, mirroring the perceived value of offerings. Elevated customer and employee turnover rates often interlink, as low product or service reception can dampen team spirit.

Josh McHugh-Cullen said, “By using ERP reporting and insights, businesses can do regular operational check-ins across the board. It can help executives to identify areas that may need more attention early on, or, on the flipside, highlight what areas are doing well. These reports harness the business data in ways that will help SMBs drive growth.”

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