At the outset. we’d like to clarify that this article is about Fathomhq, the reporting software and not Fathom.fi (XDC).
Fathomq is a financial reporting and analysis tool that can be valuable for crypto companies looking to streamline their monthly reporting processes and gain deeper insights into their financial performance.
How Fathomhq helps our clients draw value from interactional management accounting?
As we have progressed as a business, we realized our clients needed more than what their cloud software could provide. For providing strategic advice to business owners, we needed an appropriate tool that would paint the picture without overwhelming the reader.
Our clients come from a wide range of backgrounds, some have deep financial knowledge whereas others prefer a more macro approach. Commonly though, they don't have the time to read through complex management reports, compare them to prior period results and draw conclusions for business decisions. This is where we’ve leveraged the power of Fathomhq for month-end reporting.
An integrated eco-system
Fathomhq connects to our clients' Xero entity and pulls reports with a level of built-in financial narrative. We customise this further by adding business specific KPIs, notes and explanations which drives results based decision making. It allows our clients to access the reports anytime they need and add questions/comments via their custom login, thereby allowing meaningful conversations to happen around their financial strategy – at their own pace and time.
Internally it enables collaboration among team members, making it easier for finance teams and the Management to work together on analysing financial data and making informed decisions.
Fathomhq facilities group level reporting if all of your entities are on the same accounting package such as on Xero. Our clients benefit from this as they get to see group-level financial data in a clear and engaging manner. Reports can also be sent to external investors if you choose to do so.
It’s also possible to create automated reports from Fathomhq direct to your inbox on a consistent basis, such as weekly or at the end of the month. Reports that are critical are often summarised and emailed across based on client requirements for quick access.
Apart from the financial metrics that are in-built on the platform, we can add custom metrics that help clients with their decision making. For example, if you'd like to see the split between FIAT and crypto on a monthly basis for treasury management purposes, that can be customised as a report on Fathom. We further demarcated this as crypto and stable for a detailed view. With time, these metrics do tend to change to reflect changing business needs.
Forecasting and scenario planning
Fathomhq's forecasting features helps to plan cash flows effectively. This is especially important in the volatile crypto market, where accurate cash flow projections can help you make informed financial decisions faster.
It also allows to model different scenarios for your crypto business. This could involve testing the impact of different market conditions, regulatory changes, or investment strategies and how numbers would look under each different scenario.
A case for reporting consistency
Incorporating BI tools into your crypto company's reporting process can enhance your ability to monitor performance, analyse trends, and make informed financial decisions. However, it's important to ensure that your crypto accounting practices are accurate and up-to-date, as the accuracy of Fathomhq's insights depends on the quality of the data you input.
Our team can be reached via our Contact Page if you need help establishing FathomHq for your company.
Notes and references
All pictures used in the article are custom generated or are from pexels. The pictures used from Pexels are creative commons licensed and allowed for commercial use
Fathomhq details can be found at this link