Written by Nils R. | Dec 19, 2020 8:00:00 AM
What is
a
Statement of Operations
? Statement of Operations reports with multi-year KPIs are considered powerful monthly management reports and are used by Boards, CFOs and other executives to see a current Profit & Loss overview along with a three year picture of key performance indicators (KPIs). Some of the main functionality in this type of innovative monthly report is that it uses parameters that provide on-demand choices of period and organizational units to include. Across the columns it dynamically lists each month of the year up to the current period. The far right shows the total year-to-date (YTD) figures as well as the average monthly performance. The top portion of the rows shows two metrics: Patient volume and Average patient charge. Following that you see a typical Profit & Loss layout with revenues, expenses and net income. At the bottom of the report there are KPI sections for the current year as well as the two prior years. You find an example of this type of innovative monthly report below.
Purpose of
Statement of Operations Reports Healthcare providers use Statement of Operations Reports to offer managers a single tool to make it easy to analyze monthly financial results along with multi-year KPI performance. When used as part of good business practices in a Financial Planning & Analysis (FP&A) department, an organization can improve its strategies and decision-making as well as reduce the chances that executives don't easily see the big, multi-year picture while analyzing current year and monthly results.
Statement of Operations Report
Example Here is an example of a Statement of Operations with financial results for current year periods as well as three years of monthly and YTD KPIs. [caption id="" align="alignnone" width="2560"]
Statement of Operations Report Example for a Healthcare Provider[/caption] You can find hundreds of additional examples
here
Who Uses This Type of
Monthly Report
? The typical users of this type of innovative monthly report are: Boards, CFOs, COOs, group controllers and analysts.
Other
Monthly Report
s Often Used in Conjunction with
Statement of Operations Reports Progressive Financial Planning & Analysis (FP&A) departments sometimes use several different Statement of Operations Reports, along with KPI and financial dashboards, variance reports, balance sheets, cash flow statements and other management and control tools.
Where Does the Data for Analysis Originate From? The Actual (historical transactions) data typically comes from management systems and enterprise resource planning (ERP) systems like: Microsoft Dynamics 365 (D365) Finance, Microsoft Dynamics 365 Business Central (D365 BC), Microsoft Dynamics AX, Microsoft Dynamics NAV, Microsoft Dynamics GP, Microsoft Dynamics SL, Sage Intacct, Sage 100, Sage 300, Sage 500, Sage X3, SAP Business One, SAP ByDesign, Acumatica, Netsuite and others. In analyses where budgets or forecasts are used, the planning data most often originates from in-house Excel spreadsheet models or from professional corporate performance management (CPM/EPM) solutions.
What Tools are Typically used for Reporting, Planning and Dashboards? Examples of business software used with the data and ERPs mentioned above are:
- Native ERP report writers and query tools
- Spreadsheets (for example Microsoft Excel)
- Corporate Performance Management (CPM) tools (for example Solver)
- Dashboards (for example Microsoft Power BI and Tableau)
Corporate Performance Management (CPM) Cloud Solutions and More Examples
