Being in business is all about helping people with your talents, but in so doing, you should be making money and spending it wisely.
Doctors use Key Performance Indicators (KPIs) to measure and monitor our health. Our blood pressure and cholesterol level are both KPIs that have specific medical meaning. In the same way, KPIs have specific meanings in a business context.
Looking at a set of business KPIs or metrics helps you understand your business from top to bottom so that you can use that knowledge to make better informed decisions. Focusing on relevant and actionable information gives you early confirmation of success or alerts to potential problems.
GET A BETTER VIEW OF YOUR BUSINESS
KPIs come from the data in your accounting system, but when you analyze your numbers you also must consider your unique circumstances that will include the following:
- Your business size and location
- Your industry or the field that you'r in
- What your short and long-term goals are
- Where you're at in your business-life cycle
KPIs will help you get a clear view of where your business is now and where it's going. So it's important to understand what your KPIs are telling you before you make growth decisions or try to solve a problem. Used properly, KPIs help you take the pulse of the financial health of your business.
CASH-FLOW DETERMINES THE LIFE OF YOUR BUSINESS
Cash-flow is one of the most important aspects of your business, which is more than just money in and money out. Many entrepreneurs who become frustrated or stressed out because of their numbers do so because of financial mismanagement and a lack of cash-flow visibility.
It's not a new idea that a business needs to stay in the black to operate successfully, but recording sales revenue and tracking your expenses takes a lot of time. Unfortunately, these tasks get pushed back repeatedly and cause gaps your data. Because of this, you're not able to see how the business is performing day-to-day and make decisions without knowing your cash-flow position.
UNDERSTAND WHAT YOUR NUMBERS ARE TELLING YOU
Cash-flow is more than just the basics of making money or losing it. If you understand your numbers, you're able to spot opportunities or trouble shoot problems before they become too big. Cloud based accounting gives you access to your business intelligence and KPIs by allowing us to provide financial analysis to generate the following:
- Cash-Flow Projections
- Ratio and Liquidity Analysis
- Real-time Industry Benchmarks
- Narrative Easy-to-Understand Reports
Through the FFC program, we're able to import data straight from your bank so that your numbers are accurate, consistent and timely. With better access to your numbers, we have the ability to bring you incredibly detailed reporting and forecasting on the financial health of your business.