Are you ready to take your business further? Once proper bookkeeping systems and processes are in place, the next step is to introduce KPI’s (Key Performance Indicators) into your business.
The primary role of KPI’s is to alert business owners to trends in the business that they may not have otherwise been aware of, so they can act and quickly take corrective action. There are hundreds (possibly thousands) of KPI’s, however just implementing a few of the more basic ones into any business can make a large impact, on both business profit and decision making process.
It just doesn’t make sense to waiting until 9 months after year end for your accountant to identify issues in your business. KPI’s can be set up monthly and quarterly, so that problems and trends can be identified up to 12 months earlier and corrective action taken. Problems are identified and dealt with in a timely manner
Simple but highly effective KPI’s commonly requested include:
• Comparing monthly sales or profit to budget or previous year
• Trends in sales and profit
• Analysis of WIP, accounts receivable and lock-up
If you are wanting to take your business to the next level, please give us a call on 07-3829-0973 to discuss how we can be proactive in assisting your business.