How Prophix Helps to Streamline Corporate Performance Management

Roger Knocker • November 29, 2023

How Prophix Helps to Streamline Corporate Performance Management

Companies in the competitive modern business environment cannot afford to use outdated performance management systems. We provide enterprises with cutting-edge solutions, such as the Prophix corporate performance management software solution, which enables enterprises to increase their management insight, improve on budgeting and analytical capabilities, and streamline planning and reporting processes.


Prophix includes everything a business needs to manage performance efficiently, including budgeting and forecasting, reporting, strategic planning, workforce planning, financial consolidation and optimal management of profitability.


What Makes the Solution So Effective? 


It is easy to install, configure and get fully implemented with our expert guidance. Once implemented, it enables faster planning, improvement in accuracy of forecasts, and the automation of planning and reporting. The latter benefit makes it possible to save time and human resources regarding the analysis of business performance and creating the reports thereof.


With planning and reporting standardised, the analysis becomes consistent and insightful. The users are empowered to create their own reports, without assistance from their IT division. This saves time and frees up the IT personnel for other important tasks. With better planning, budgeting and reporting, the enterprise can be steered in the right direction for maximum profitability.


Using the performance management system enables the company to significantly reduce business risks because of accuracy in analyses and reporting, enabling faster and more accurate decision making on all levels of management. The data can be used throughout the enterprise, also leading to an improvement in operational proficiency.


Save Money 


Companies benefit from the low maintenance and low cost of ownership. With the complete suite available, the enterprise can choose to only install the functions required. It is a scalable solution made for modern business management to grow with the business. The administration of the system can be done without consistent reliance on the IT division. Because the solution is relevant to just about any type of business, the need for excessive customisation is eliminated. This means faster deployment of the system throughout the enterprise.


How It Helps with Functions Such as Budgeting 


With budgeting forming an integral part of business management, having such functionality as part of the corporate performance management system helps the company to improve the efficiency, accuracy and ease of annual budgeting processes. Instead of relying on outdated methods, such as spreadsheets, which are tedious and inaccurate, the enterprise has a relevant tool that improves accuracy and reduces the time needed for budgeting through:


  • Automation of the submission and review steps.
  • Reducing the risk of inaccuracy because data is collected from the G/L.
  • Increasing employee support, because they have direct access to the data they need and the ability to enter data as required.


How It Helps with Reporting 


When it comes to reporting, having a single report version eliminates inconsistencies. Without having to work with multiple data sources, employees have consistency in data used and because of advance features, the data can be consolidated into a standard and easy to use format. As such, the validity contained in the reports is improved.


Where companies still rely on spreadsheets and outdated performance management systems, executives often struggle to make sense from all the data. The employees spend unnecessary time trying to consolidate data into readable formats. Using Prophix helps to reduce the time spent on reporting, and ensures compliance with various accounting and financial reporting standards.


Since the solution includes a user-friendly interface, the reliance on the IT department is significantly reduced and with the automation of report distribution to the relevant stakeholders according to specific security protocols, reporting can be done faster. The solution is available where and when needed, because it includes a web browser, whether the user needs the information offline or online.


How It Improves Analysis Capabilities 


The built-in functions that include pre-defined calculations help to reduce time and errors involved in analyses. The system includes ad-hoc analysis functionality for quick segmentation of data across accounts, products, and customers.


With very little training needed, the users can move from spreadsheets to Prophix with ease. Self-service is made possible with user-friendly dashboards.


Don’t fall behind with outdated performance management tools. Give your company the competitive edge it needs. Call on us for more information about the Prophix performance management system and let us help your company get the best value from using the software suite.

The Power of Finance: Visualising Data for Impact

By Clerissa Holm • March 18, 2025
In the world of finance, numbers tell a story. However, that story is often buried beneath layers of spreadsheets and complex datasets. For financial professionals, the challenge is not just about understanding these numbers but also presenting them in a way that drives decision-making and inspires action. Enter data visualisation – the art of transforming data into clear, compelling visuals. Among the tools that have proven especially powerful are the line graph and the waterfall chart. These visuals help finance teams translate dry statistics into impactful narratives. In this article, we explore how these graphs can transform financial storytelling. The Importance of Data Visualisation in Finance Finance professionals are accustomed to handling vast amounts of data, from profit margins and revenue growth to expense tracking and risk assessments. Yet, presenting these figures effectively to stakeholders is a different ballgame. Visualisation simplifies this process, turning complex data sets into accessible insights. When done correctly, data visualisation: Enhances comprehension: Humans process visuals 60,000 times faster than text, making it easier for stakeholders to grasp key information quickly. Drives decision-making: Clear and compelling visuals help executives make informed decisions without wading through dense reports. Highlights trends and outliers: Visual tools can bring hidden trends and anomalies to light, prompting timely actions. Improves understanding and communication with business - Business doesn't always get what Finance is trying to communicate and good visualisations go a long way to bridging the gap. Better communication improves alignment to strategic financial goals. The line Graph: Unravelling Trends Over Time The line graph, also known as a stream graph or a stacked area graph, is a powerful tool for visualising changes in data over time. It is especially effective in showing how multiple categories contribute to an overall trend. In finance, line graphs can illustrate revenue streams, expense categories, or investment performance in a visually engaging manner. Use Case: Revenue Streams Analysis Imagine a financial report for a company with diverse revenue streams, such as product sales, services, and subscriptions. A line graph can display how each stream has evolved, highlighting peaks and troughs. The thickness of each ‘line’ represents the contribution of that revenue stream to the total, making it easy to spot which areas drive growth. Benefits of line Graphs: Trends Made Simple: Displays how multiple components evolve over time. Visual Impact: The fluid, organic design makes it easier to follow changes. Comparative Insight: Helps compare different categories intuitively. The Waterfall Chart: Bridging the Gap Between Figures Waterfall charts excel at breaking down the cumulative effect of sequential data points, making them ideal for financial analysis. They help bridge the gap between figures by showing how individual elements contribute to a total. Commonly used in profit and loss statements, budget analysis, and variance reports, these charts provide clarity in understanding how specific actions impact the bottom line. Use Case: Profit and Loss Analysis A financial analyst preparing a quarterly report might use a waterfall chart to demonstrate how various factors—like increased sales, higher marketing spend, and cost savings—impacted net profit. The chart’s structure, with its clear progression from starting figures to the final result, makes it easy for stakeholders to follow the financial narrative. Benefits of Waterfall Charts: Clarity: Simplifies complex financial data by showing individual contributions to total figures. Transparency: Clearly distinguishes between positive and negative impacts. Decision Support: Helps executives understand the key drivers of financial performance. Choosing the Right Visual for the Right Data Selecting the appropriate visual tool depends on the story you want to tell: Use line graphs for illustrating trends across multiple categories over time. Opt for waterfall charts when you need to detail the step-by-step impact of specific factors on an overall financial figure. By mastering these tools, finance professionals can enhance their storytelling, transforming raw data into insights that drive strategic decisions. Conclusion: From Data to Decisions The ability to visualise data effectively is a powerful advantage. The line graph and waterfall chart are more than just visual aids—they are essential tools for financial professionals looking to make data-driven decisions that resonate with stakeholders. By adopting these techniques, finance teams can turn numbers into narratives that not only inform but also inspire action. In the end, the power of finance lies not just in analysing data but in presenting it with impact.
Financial KPIs Every CFO Should Track in 2025

Financial KPIs Every CFO Should Track in 2025

By Clerissa Holm • February 17, 2025
In the ever-evolving financial landscape of 2025, CFOs are tasked with navigating complexities ranging from global economic shifts to technological advancements. The ability to track and analyse the right financial Key Performance Indicators (KPIs) is no longer a luxury but a necessity. These metrics not only provide insight into an organisation’s financial health but also support strategic decision-making. Here are the top financial KPIs every CFO should prioritise in 2025: 1. Revenue Growth Rate Revenue growth is a clear indicator of a company’s ability to generate sales over time. This KPI allows CFOs to evaluate the success of business strategies and identify trends in market demand. Formula: Revenue Growth Rate = [(Current Period Revenue - Previous Period Revenue) / Previous Period Revenue] x 100 Why It Matters: Monitoring revenue growth helps CFOs assess performance against strategic goals and anticipate future cash flow needs. 2. Gross Profit Margin Gross profit margin measures the profitability of core business operations, excluding indirect costs like administrative expenses. Formula: Gross Profit Margin = [(Revenue - Cost of Goods Sold) / Revenue] x 100 Why It Matters: It reveals the efficiency of production processes and pricing strategies, enabling CFOs to identify areas for improvement. 3. Net Profit Margin While gross profit focuses on operational profitability, net profit margin considers all expenses, including taxes and interest. Formula: Net Profit Margin = (Net Income / Revenue) x 100 Why It Matters: A high net profit margin indicates strong financial health and the ability to manage expenses effectively. 4. Cash Conversion Cycle (CCC) The CCC measures how quickly a company can convert its investments in inventory and receivables into cash flow. Formula: CCC = Days Inventory Outstanding + Days Sales Outstanding - Days Payables Outstanding Why It Matters: In 2025, with supply chain disruptions and rising interest rates, efficient cash flow management is critical. The CCC helps CFOs identify bottlenecks and optimise working capital. 5. Operating Expense Ratio (OER) This KPI compares operating expenses to revenue, offering insights into cost management. Formula: OER = (Operating Expenses / Revenue) x 100 Why It Matters: Keeping operating expenses in check is vital for maintaining profitability, especially in uncertain economic climates. 6. Debt-to-Equity Ratio This KPI highlights the financial leverage of the company by comparing total liabilities to shareholder equity. Formula: Debt-to-Equity Ratio = Total Liabilities / Shareholder Equity Why It Matters: With interest rates fluctuating in 2025, maintaining a healthy balance between debt and equity is crucial to avoid over-leveraging. 7. Return on Equity (ROE) ROE measures the efficiency of a company in generating profits from shareholders' investments. Formula: ROE = (Net Income / Shareholder Equity) x 100 Why It Matters: A strong ROE signals to investors that the company is effectively using their capital, which is vital for securing future funding. 8. Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) EBITDA provides a clear picture of operational profitability without the influence of financing and accounting decisions. F ormula: EBITDA = Net Income + Interest + Taxes + Depreciation + Amortisation Why It Matters: CFOs use EBITDA to benchmark performance against competitors and industry standards, making it a key metric for strategic planning. 9. Customer Acquisition Cost (CAC) As businesses invest in growth strategies, understanding the cost of acquiring new customers becomes crucial. Formula: CAC = Total Sales and Marketing Expenses / Number of New Customers Acquired Why It Matters: Tracking CAC helps CFOs ensure marketing spend aligns with long-term profitability goals. 10. Economic Value Added (EVA) EVA measures the value a company generates beyond the required return of its shareholders. Formula: EVA = Net Operating Profit After Taxes (NOPAT) - (Capital Employed x Cost of Capital) Why It Matters: EVA provides a holistic view of financial performance, emphasising value creation over short-term profits. Final Thoughts In 2025, CFOs must adopt a forward-thinking approach, leveraging advanced analytics and real-time reporting tools to stay ahead. By focusing on these essential financial KPIs, CFOs can drive strategic growth, ensure resilience, and foster long-term success in an increasingly competitive landscape. Tracking these metrics isn’t just about numbers; it’s about enabling informed decisions that align with the company’s vision and goals.