What does a virtual CFO do? The simple answer is that a good VCFO will help…
Fathom Review: Powerful & Simple Business Dashboard Reporting
Business data insights are essential to any business strategy. How does Fathom work with Xero to streamline management reporting and create dashboard financial analysis?
Can Fathom software give you the insights you need to run your business more effectively?
Software such as Xero generates a massive amount of data — cash flow, profit tracking, and many other factors can be identified and tracked by powerful cloud accounting tool sets. Leveraging this data to create actionable insights, however, can be more complex.
Understanding the data your accounting software generates helps you to assess profitability and risk, as well as make informed decisions that will affect the financial future of your business.
Fathom is a powerful management reporting and financial analysis tool that works in tandem to provide business owners with the information they need to create effective business strategies. We’ll proceed to break down the benefits and features of Fathom to help you decide whether it can help you identify improvement opportunities in your business.
What is Fathom?
Fathom is a flexible method of generating easy-to-understand management and financial reports that deliver timely business insights. By integrating directly with Xero, Fathom is able to help users analyze performance, identity key trends, and gain a deeper insight into the key performance indicators of their business.
Fathom provides functionality aimed at both business owners and financial advisors, but it’s not necessary to be a finance expert in order to understand the reports that it creates. The tool set is able to create understandable and actionable business reports without the need for manual data exports, pivots, or manual formatting.
As virtual CFO to a number of high speed businesses, we appreciate that there is not a lot of heavy customisation required before valuable dashboards can be obtained around key financial indicators.
Fathom Plans & Pricing
Fathom, like most tools that integrate with Xero, allows users to take a 14-day free trial before committing to a specific pricing plan. The pricing structure of Fathom depends on the way you want to use it — for single companies seeking a reporting solution, Fathom is priced at $39 per month, with unlimited users, via the “Single” plan.
Fathom’s Single plan includes all of the features of the platform, as well as email and phone support, and operates on a month-to-month basis with no contract. Other plans range in price from $14 to $29 per company, per month, but are aimed primarily at users that need to create reports for a minimum of five companies or clients.
Analysis Tools & Metrics
The analysis tools and metrics offered by Fathom help businesses assess profitability, cash flow, growth, and a range of other key performance indicators. The analysis tool set available via Fathom includes more than 50 default KPIs, which can be used to track performance against budgets or targets.
Users are also able to add their own KPIs and define specific formulae for calculation, or customize non-financial metrics that affect business performance.
Reports & Benchmarks
Fathom’s presentation-ready report creation function streamlines the report creation process, allowing users to create customized reports that focus on specific KPIs. Fathom reports are rebranded with company logos and branding, and can pull data from a variety of analysis tools that include KPI, profitability, cash flow, trend, and Goalseek analysis.
In addition to composing reports, Fathom provides a range of unique tools, such as Sensitivity Analysis. The Fathom app allows users to perform “what if” analyses that provide insights based on specific predictions, such as; “If sales grow by X%, how is net income affected?
Fathom’s benchmarking feature allows users to create their own benchmarks, presenting the opportunity to quickly identity over and under performers, benchmark financial and non-financial KPIs, and identity the specific strengths and weaknesses of a company.
Fathom & Xero
Fathom integrates directly with Xero in order to streamline the reporting process, eliminating the need for manual data conversion or entry. A major feature offered by Xero integration is the ability to convert Xero data into visual performance reports in a few seconds.
Capturing actionable insights via Fathom can provide your business with a powerful edge and significantly reduce the amount of time spent on report compilation. If you’re interested in getting Fathom or Xero set up with your business, reach out to Fullstack today.
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Stuart Reynolds is the founder of Fullstack Advisory, an award-winning accounting firm for businesses leading the future. He is a 3rd generation accountant who specialises in tech companies, agencies and entrepreneurs.