Financial Scoreboard

Chuck Kremer, CPA, on the Challenges of Using Financial Statements to Make More Money. 

Many non-financial business people do not really use financial information because it is generally presented in financial fragments. The dots are not connected and so the cause-and-effect relationships are not obvious. There is no clarity between profit and cash flow. There is no one-page executive summary. Frequently trends are missing; instead they often see one-column balance sheets. Frequently ratios are missing. There is no obvious bottom line for either the cash-flow statement or for the balance sheet. There is no distinction between what's most important.

The Financial Scoreboard is his solution to the broad market disconnects he describes above. His contribution can change them for any business. Chuck continues at the bottom.

Request your free demo copy of Financial Scoreboard here.

4 Financial Scoreboard versions are below – they all:

  • Transform 1 P&L/Income Statement, and 2 Balance Sheets into 3 Bottom Lines, 3 Cash Statements, and 12 Key Financial Drivers as a unified business model. 
  • Present 'big picture' financials all together in the Small Office Home Office case study (SOHO case study from Managing by the Numbers, INC/Perseus, 2000). 
  • Provide a Three Bottom Line Performance® view of a Public Company - Microsoft 
  • Have valuable insights on money from Chuck Kremer, CPA – the creator of FSB. 
  • Give all the 3 key numbers showing the whole picture of Return on Total Resources using DuPont Formula.
  • Link to an open source Return on Assets (ROx) plotter of the classic DuPont Formula as an at-a-glance graphic

When I printed out the monthly Dollar Trends Graph from the Financial Scoreboard – our ‘tachometer’ (upper right) - for our 6th huddle, I was amazed to see that the impacts of our operations finance practices were already significant. 

         Ken Thengval, CFO, NAPA Auto Parts, 2007

If you want your accounting to move from pure cost / overhead line item to an asset that generates more assets, become pro-actively self-assessing of your financial statements by using the Financial Scoreboard.

FSB 0 – available by clicking here.

FSB v.1 – Pro Forma Magic 

  • Create 5 year, or 5 quarter, reconciled pro formas
  • Develop an at-a-glance visual view of Bottom Line Dollar Trends
  • See 12 Key Financial Driver trending for that year, those 5 quarters or months  (in less than an hour)
  • Use 5 months for doing short-term operating cash flow what-ifs
  • All FSB 0 features

FSB v.2  – Kremer's 3 Bottom Performance ® Analysis

  • 13 periods allow 1 year analysis of monthly actuals and/or pro formas
  • 3 years of quarterly trending
  • Visualize Dollar Trends and Returns
  • All FSB 0 & 1 features

Plugging our numbers into the Financial Scoreboard (FSB2), right off the bat you could see a Cash Statement with Collections on it, and we could look across and see, we had Sales of x, but only collected y. It immediately answers the question for anybody about what’s going on with cash. In the past, everybody would be focused on Sales, and “Yeah!” we hit our target! But, wait a minute, we fell six figures short on Cash. Then following it on down through, we have really come to grips with the fact that there is a lot more to this whole operation than making a sale. We’ve got to get the money in. We’ve got to watch what we’re putting on the shelf, so we don’t over-replace our inventory.

         Ken Thengval, CFO, NAPA Auto Parts, 2007

FSB 3.0 - Enterprise Version

  • 16 periods of 3 Bottom Line and Key Driver data graphed and trended for 4 years of quarters or 16 months of rolling projections
  • Anchor the accounting side of Accounting 3.0 for all the value impact teams
  • Automatic data importing capability
  • Graphics prepped for visual ease-of-use with groups in projected meetings
  • Input screen can be understood and implemented immediately by any financial professional
  • All FSB 0 & 1 features

In his book Managing by the Numbers, with John Case and Ron Rizzuto, Chuck provides the basic foundation for using accounting information to focus rigorously and comprehensively on making money at business. When coupled with the Ballard Method of Behavioral Accounting, both halves of the coin for making accounting a science of collaboration, practical accountability and teambuilding are present. Financial Scoreboard gives you an Excel ®-based tool for using the book’s core material to see all the numbers of your, or any, business as an integrated whole. 

Learn more about Financial Scoreboard's history and background at

Chuck Kremer, CPA, on the Challenges of Using Financial Statements to Make More Money continued from top: 

There is no ‘sacred’ (shared) financial glossary; think about the word "capital" and the 10 ways it can be used with financial-statement information (including the term "capital punishment"). There is no story to go with the numbers, which makes the numbers dry, dull and boring. There is no regular group action planning (huddling) around the numbers. The information is generally presented in a detailed left-brain format, and without summarization. Many people are given the information without the training needed for using the information. 

So why is this such a big deal, if lots of business people manage business without paying much attention to their financial statements? Because that is like running the Grand Canyon (or Indy 500) with only one arm or one eye. They may do okay in good economic times because they are very strong in a particular function of their business. But it is difficult to survive and thrive in good times and bad if you are handicapped in financial literacy. It is difficult to make money over the long term in business if making money is not a focus. 

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