Guide to Dashboard Reporting: Benefits and Best Practices

As data leads the way in most modern business decisions, it is critical to have a sound reporting dashboard. Dashboards provide a snapshot of a company’s performance and help executives make better business decisions.

However, many business owners and executives pass over this data in favor of a business intelligence solution. With many forms of data now at their fingertips, deciding between a reporting dashboard and a business intelligence solution can be challenging.

When it’s time for a company to choose a reporting dashboard and business intelligence tool, it’s important to understand a few key considerations.

In this article, we will look at these key considerations and how a reporting dashboard can improve business intelligence success.

What is a reporting dashboard in business?

In the business world, a reporting dashboard is a visual interface that displays metrics from different data sources. These data sources may include sales reports, marketing analytics, customer service records, and more.

In the past, it was difficult to aggregate this information into one central location. It has also been historically difficult to consolidate all the data needed for an intelligent dashboard that will benefit the business.

A reporting dashboard will typically display the most important metrics for your business, but not necessarily in real-time. Dashboards can be built in Microsoft Excel or other tools, and offer insight into how performance is trending and identify when there are opportunities for improving results.

Data is presented either with text or in graph form, which allows you to easily identify trends over time.

How Dashboard Reporting Works

Dashboard reporting works by consolidating data from various sources into one visual platform. This platform pulls in key performance indicators (KPIs) and business metrics and displays them through charts, graphs, scorecards, and other visual elements. With real-time or near real-time updates, you get an always-on snapshot of your business's health.

Whether you're tracking revenue, monitoring campaign performance, or managing project milestones, dashboards make it easy to scan your most critical data quickly and take action when needed. Many tools also include interactive features—like filters or drill-down views—so users can explore data from different angles and uncover hidden trends.

Business intelligence solution and dashboard reporting

A business intelligence solution, on the other hand, is software that consolidates data into one cohesive platform. Although BI solutions may have dashboards, they are not the same thing. 

Business intelligence solutions are typically built with an end goal in mind, whether it’s increasing sales or identifying marketing opportunities. These solutions can automate tasks and provide one centralized location for all of your business data. Dashboard reporting gathers data and compares metrics over time; their purpose is to be informative. Then, a BI solution can take those dashboards and consolidate data in order to provide an “at a glance” view of your business and include more analytics and specific goal-related suggestions. BI includes dashboards and analytics; the best BI tools also provide real-time data delivered immediately to the dashboard.

The Essential Elements of a Reporting Dashboard

A reporting dashboard offers a few core features that are critical to your business intelligence success. Whether you’re monitoring KPIs or keeping tabs on performance trends, these elements help ensure your dashboard delivers real value.

A snapshot of how your company is performing

‍When designing your reporting dashboard, include the metrics that reflect the health of your company. These key performance indicators (KPIs) should be automatically updated so you can monitor progress in real time and make adjustments as needed.

An “at a glance” view of business performance

‍Rather than digging through multiple reports, a reporting dashboard presents metrics in a single, centralized location. You’ll be able to easily identify areas for improvement and drill down into the data as needed—adjusting your focus as your business evolves.

Instant access to company information

‍All relevant data should be consolidated on one platform for quick access and manipulation. Most dashboards let you filter, sort, and export data at any time depending on what questions you need answered.

Easy-to-monitor KPIs

‍You should be able to set and track KPIs specific to your business goals. Your reporting dashboard should also offer pre-built reports tailored to those metrics, helping you keep tabs on what matters most.

Interactivity and flexibility

‍Modern dashboards don’t stop at static visuals. They include interactive elements like filters, time-range selectors, and drill-down capabilities so you can explore your data from multiple angles. This makes it easier to spot anomalies, uncover patterns, and get to the “why” behind the numbers.

Multi-device accessibility

‍Performance tracking shouldn’t be limited to your desk. Most dashboards are now optimized for desktop, tablet, and mobile use—so you can access real-time updates whether you’re in a meeting, on the road, or working remotely.

Is a reporting dashboard right for your business? 

A reporting dashboard is a great solution for businesses that rely on real-time data. It’s also perfect for companies that want to centralize their information in one interface.

Here are some questions to ask yourself before deciding if a reporting dashboard is right for you:

Do I need to monitor key performance indicators in order to improve company operations?

A top reason to utilize reporting dashboards is to have ready-built access to KPI data. Depending on the users of your reporting dashboard, you can design specific data sets that reflect critical information that users need to monitor their performance and success.

Do I require instant access to my most important data?

One of the best reasons to invest in a reporting dashboard is that it can help you identify trends and make adjustments as needed. As a result, your business will run more efficiently and effectively.

Is it essential that all of my most relevant information is consolidated in one interface?

The reporting dashboard will consolidate all of your important data in one location. This is crucial for businesses that rely on data to drive their decision-making process.

Before committing to a reporting dashboard, however, it’s important to determine if the amount of data you need is manageable within one location. If not, it may be better to invest in a business intelligence solution that can provide more detailed information for your unique needs.

Are my reports limited without the assistance of business intelligence software?

A reporting dashboard is an intuitive software that allows you to monitor your company’s performance in real time. It is great for scenarios where immediate information is needed or where having all data centralized into one interface would be beneficial.

If the amount of data you require exceeds what is possible with this type of platform, it may be time to invest in business intelligence software that can provide you with deeper analytics.

Is it easy to see where my business is excelling and where areas for improvement are?

When designing your reporting dashboard, be sure to include metrics that will allow you to easily identify both areas for improvement as well as times when your company is performing well. If this information is not readily available, it will be difficult to adjust your company’s strategy when necessary.

A reporting dashboard is crucial for making business decisions in real time. It can help you monitor key performance indicators and allow you to access important data immediately when needed. A reporting dashboard also makes it easier to see overall progress when utilizing your information to drive decision-making throughout your organization.

When assessing whether or not a reporting dashboard is right for your business, consider how much data you need to access in one location and what metrics will be most valuable for your decision-making process.

Keep in mind that when it comes to developing reports with instant results, a dashboard can’t always compete with the insight provided by business intelligence software.

Benefits of Dashboard Reporting

Dashboard reporting offers a range of strategic and operational advantages that help teams work smarter and make more informed decisions. Here are some of the biggest benefits:

You get more value from your data.

Dashboards make it easier to surface the metrics that matter most. By centralizing essential KPIs and enabling visual comparisons across different data sets, dashboards help you identify trends, monitor performance, and put results into the right context.

Team members work more cohesively.

Because dashboards update in real time, everyone—from the C-suite to individual contributors—is working from the same set of insights. This shared visibility improves alignment, fosters better communication, and keeps everyone moving toward the same goals.

You get stakeholder buy-in faster and more often.

Dashboards are great for making your case. When you can show executive teams or stakeholders a clean, compelling visualization of your data, it’s easier to get approval, secure budget, or drive momentum behind a new initiative.

You catch problems earlier.

Dashboards can be configured to flag metrics that fall outside expected ranges, giving you a heads-up before small issues become big problems. This early detection can help you course-correct quickly and reduce risk.

You improve cross-functional collaboration.

Dashboards are built to be shared. Whether you're syncing with marketing, finance, or operations, having a unified data view ensures everyone is on the same page and making decisions based on the same information.

You stay on track toward long-term goals.

Dashboards aren’t just for reporting on what’s already happened—they’re powerful tools for continuous performance tracking. You can see, in real time, how you’re progressing against benchmarks and adjust strategy as needed.

Real-time vs. static reporting 

Dashboard reporting updates in real-time, so you’re always seeing the latest changes. How is this different from static reporting? Static reporting is a single, unchanging report that captures a snapshot in time. Static reports might look like a real-time dashboard—they both have numbers, graphs, charts, and other visualizations—but unlike dashboard reporting, static reports are not interactive. The report was generated once and is designed to stay that way. 

What’s the difference between a dashboard and a report?

The major difference between a dashboard and a report is that reports are usually sent out on a regular cadence (weekly, monthly, quarterly, etc.). These reports are typically sent out to a select group of users who access them manually. However, these reports are static, and by the time users open them, they may already be out of date. It’s useful historical data and it’s good to know for benchmarking purposes, but that’s where its possibilities stop. In contrast, real-time dashboards are interactive. You can see and modify the data whenever you want. People who have access to the real-time dashboard can access it anytime to see the latest information. 

Another difference is that dashboards are broader. All relevant information is visually displayed on the screen so you immediately get a high-level overview of trends. Reports tend to be more in-depth, but they require you to scroll through the longer, more detailed information. 

Four Main Types of Reporting Dashboards

Dashboards aren’t one-size-fits-all. Different types serve different goals—some are built for deep-dive analysis, while others are better for tracking performance at a glance. Depending on your role, your company, and the projects you're managing, you might rely on one or more of these four dashboard types:

1. Analytical Dashboards

‍These dashboards are designed to help users interpret large volumes of data. They gather information from multiple sources and compile it into simplified, visual formats that make trends easier to spot. Analytical dashboards lean heavily on historical data, making them ideal for uncovering patterns, correlations, and insights that can inform future strategy.

2. Strategic Dashboards

‍Built for the executive team and other senior leaders, strategic dashboards deliver a high-level view of how the business is tracking against its long-term goals. They consolidate company-wide metrics and help leadership stay focused on big-picture performance—think revenue growth, customer churn, or market share.

3. Operational Dashboards

‍Operational dashboards are all about the here and now. Often used by BI teams, these dashboards focus on short-term performance and are typically packed with real-time data. They’re great for running “what-if” scenarios, monitoring KPIs throughout the day, and reacting quickly to changes on the ground.

4. Tactical Dashboards

‍Somewhere between strategic and analytical, tactical dashboards are geared toward middle managers who need to execute plans and drive day-to-day results. They provide department-level insights—helpful for HR teams, IT managers, project leads, and marketers looking to stay aligned with company objectives while managing tactical tasks.

Best practices for creating a reporting dashboard

Dashboards can hold a lot of data. How do you know which metrics to include? Here are some best practices for creating a reporting dashboard so you actually know what to do with the data you see on your screen. 

The first recommendation is to know what you’re trying to accomplish. Think about the purpose of the dashboard, what you’re trying to measure, and who else will be seeing it. Once you have the data, what do you want to do with it? What do you want it to tell you? This will help guide you and give you purpose as you create your reporting dashboard. 

The second consideration for your reporting dashboard is to simplify. Only include metrics that are important to your purpose; don’t include anything extra. Visuals can get overwhelming quickly with lots of colors, a variety of different types of charts, and lots of comparisons. If you have too much information, consider separating the data into different dashboards. Remember, dashboards are designed to be high-level. Templates can be useful for helping you design a dashboard that’s clean, easy to understand, and only includes relevant KPIs. 

We also recommend being careful with comparisons. To make sure you’re truly comparing apples to apples, use the same type of charts and the same time frames for each data set. The data you include in your dashboard comparisons should include information from the same sources and categories too. 

Possible limitations of a reporting dashboard

Although there are many benefits to utilizing this type of solution, there are also some possible limitations.

Reporting dashboards are not well-suited to provide in-depth analysis across a variety of channels.

If you need a more detailed picture of your business, you should invest in a platform that offers intelligent analytics, such as the information provided by business intelligence software.

A reporting dashboard is very easy to use. However, if there are multiple people using the same interface it may be difficult for them to navigate their way through the software.

It may be necessary to invest in business intelligence software if you require more detailed metrics than what can be offered by a reporting dashboard.

Tips for utilizing this data to improve your organization’s operations

When using the information provided by both business intelligence solutions and reporting dashboards, consider these tips:

Create customized reports that are easily accessible

By streamlining your reporting processes, you will be able to incorporate data into your decision-making process more efficiently.

Identify the metrics that are most valuable for your unique needs

For example, if you are a fast-food chain, one of your key performance indicators may be employee turnover rate because this impacts your customer service.

Ensure that you are making the right decisions for your unique situation

Not every solution will work well for all types of businesses, so make sure to measure how these solutions impact your operations.

When deciding whether or not a reporting dashboard is a right choice for your business, consider how much data you need to monitor in one location and how quickly you need access to this information. If a reporting dashboard won’t be able to give you the insight necessary for your decision-making process, consider investing in business intelligence software instead.

Remember that these solutions work best when used together, so if one isn’t giving you the information you require it may be beneficial to combine them. This way, you will be able to access the information you need in one convenient location.

Conclusion

A reporting dashboard is one of the most effective tools for monitoring key performance indicators and keeping up with your business information.

It can give you real-time insight into how well your company is performing while also allowing you to utilize data more effectively when making business decisions.

When deciding whether or not a reporting dashboard is right for your business, consider the amount of data you need to access in one location and what metrics are most valuable for your needs.

Make sure to assess the limitations of this type of solution so you know how best to harness its benefits.

When you have access to your most critical business data in one convenient location, you will be able to make smarter business decisions and improve your organization’s operations.