Power BI Financial Statement Model

If you are among the CFO who are facing the mentioned issues, then the Power BI financial statement Model is the best solution that makes work-life easier while allowing the team to focus on productive tasks.

1. The finance team spend so much time on manual work to finalize the financial statements.
2. During the manual work process, the chances of human errors and manual intervention are higher, which requires extra time for reconciliation.
3. Every time the reports are prepared the outcomes are different due to the manual errors.
4. There is always a time pressure to deliver the financial reports at month-end close time.
5. It is difficult to connect the financial data to real-time dashboards highlighting key indicators of interest.

Approaches to resolve the issues: I have used the skills that I have learned during the Business Intelligence & Data Analysis professional certification from Corporate Finance Institute to build this dashboard.

1. Use Azure Data Studio to extract data from the database.
2. Connect to the database using Power Query Editor in power BI. Navigate to the SQL view and load as a Staging Query.
3. Create the Fact and Dimension tables by referencing the Staging Query.
4. Load and relate the queries to create the data model.
5. Create a DAX measure to aggregate the GL Transaction Amount column.

This Power BI Financial Model is designed to solve problems and make work-life easier in the following ways while increasing productivity:

1. Automate the financial statement preparation task, which is a big-time saver.
2. It eliminates the manual reconciliation task for preparing financials, simultaneously improving the accuracy.
3. Reduces the manual intervention on data maintaining the data integrity.
4. High level summary is reflected in the real-time dashboard and that is customizable as per the need of executive leadership.
5. Trends in the financial data can be easily reflected in the dashboards through DAX measures and time intelligence.
6. Maintain a single source of truth and consistency in reporting.
7. The dashboard is interactive, so users can dive deeper into the analysis, focusing on certain key areas of interest. Users can use the analysis tool in Power BI to uncover insights hidden behind the numbers.

Key financial highlights of the report:

1. Gross profit margin falls down from 22.57% in December 2019 to 18.41% in February 2020 and we can see steady growth then after.
2. Gross margin and operating margin are 21% and 5% on average across three given years.
3. The lowest current ratio across three years is on Q4 of 2020.
4. Cumulative Amount for Current Assets trended up between January 2019 and October 2021 with a rise of 3.1M which is around 51% rise.
5. Current Ratio trended up between January 2019 and October 2021 with a rise of 0.02 from 2.25 to 2.26 with quarterly fluctuation over the three years.