Financial management of your SME: dashboards, KPIs and forecasts in 2026

Updated March 2026 ”“ Running a business without reliable financial data is like leading without a dashboard. Financial management is the set of tools and processes that allow managers to monitor the economic health of their company and anticipate difficulties before they arise.

According to INSEE statistics, more than 50% of business failures occur within the first five years of existence, and one of the major causes is the lack of financial anticipation. A manager who does not manage his finances:

• ▸Find out its situation at the time of the annual accounting closing (3 to 9 months late);
• ▸Suffers from unforeseen cash flow crises;
• ▸Cannot negotiate effectively with its banks;
• ▸Missing out on investment opportunities due to lack of visibility.

Regular financial management makes it possible to transform accounting into decision-making leverage.

1. Turnover (CA) and its progression

Turnover is the first indicator of activity. It must be followed in comparison with:

• ▸The turnover of the previous month (monthly variation);
• ▸The turnover of the same period N-1 (annual variation);
• ▸The forecast budget established at the start of the year.

2. Gross margin and margin rate

The gross margin = Turnover ”“ Purchase cost of the goods or raw materials sold.

The gross margin rate = (Gross margin / turnover) × 100

An erosion of the gross margin rate often signals an unpassed increase in purchasing costs or an excessive trade discount policy.

3. Gross operating surplus (EBE)

EBITDA measures the pure operational performance of the company, before financial charges and exceptional items:

EBE = CA ”“ Purchases consumed ”“ External charges ”“ Taxes ”“ Personnel costs

A positive and growing EBITDA is the sign of a healthy economic model. A negative EBITDA means that the operation is consuming cash.

4. Net Cash and Cash Flow

Net cash flow = Availability (bank + cash) ”“ Short-term bank loans (overdrafts, Dailly)

A cash flow statement distinguishes:

• ▸Operational flows (generated by current activity);
• ▸Investment flows (purchases/disposals of fixed assets);
• ▸Financing flows (borrowings, repayments, capital contributions).

5. Working Capital Requirement (WCR)

The WCR represents the lag between receipts and disbursements linked to the operating cycle:

WCR = Inventories + Customer receivables ”“ Supplier debts

An increasing WCR means that your company is increasingly financing its operating cycle from its own funds or lines of credit. This is a warning signal regarding the management of receivables or stocks.

6. Customer (DSO) and supplier (DPO) payment deadline

A high DSO (eg: 90 days) means that your customers are paying late. A short DPO (eg: 15 days) means that you pay your suppliers very quickly. The two together create cash flow tension.

An effective monthly financial dashboard must be concise and actionable:

The annual budget is the reference financial plan for the year. It is developed at the start of the financial year and allows you to:

• ▸Set quantified objectives by department or product line;
• ▸Anticipate cash flow needs and size credit lines;
• ▸Prepare financing requests (investments, recruitment);
• ▸Measure the gaps between actual and budget (gap analysis).

The 4 stages of budget construction

1. ▸CA assumptions: in consultation with the sales teams, based on N-1 trends and the sales plan.
2. ▸Purchases budget and variable expenses: based on production or sales forecasts.
3. ▸Budget for fixed charges: rent, projected payroll, insurance, subscriptions.
4. ▸Investment budget (Capex): recruitment, equipment, software, works.

The accountant is no longer limited to drawing up annual accounts. In a modern firm like Hayot Expertise, we offer financial management missions:

• ▸Intermediate monthly or quarterly situations: production of accounts during the financial year to have a real-time vision.
• ▸Budget gap analysis: identification of items slipping compared to the budget.
• ▸Creasury advice: implementation of a forecast cash flow plan, negotiation of lines of credit.
• ▸Customized dashboards: construction of reporting adapted to your business and your contacts (banks, partners, investors).

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Contact us to set up your financial dashboard