Making sure incoming and outgoing funds are properly accounted for to ensure your cash flow is healthy and that you can identify potential issues before they become major problems. Keeping your books current should be a necessity and requires that all data is properly inputted and maintained on an ongoing basis.
Set Key Performance Indicators( KPIs) and Track Them
Setting KPIs might sound like an obvious thing to do, but many business owners get so busy with their growing to-do list that setting and tracking performance indicators continues to fall further down the list of priorities.
As you continue to grow, tracking these indicators can help you navigate decisions on spending and saving, and help you forecast for future growth. So, what should you start tracking?
First, start tracking your earnings before interest, taxes and amortization. This will help you measure your organization’ s efficiency, profitability and value.
The second thing you need to track are your margins. This number gives you a clearer financial picture and helps give you a better understanding of your financial health.
Finally, set additional KPIs according to your industry’ s best practices, your growth goals and big items that impact your bottom line.
Unlock the Full Scaling of Your Business Potential
Doeren Mayhew’ s outsourced accounting services enable businesses to leverage technology, build a financial cushion, maintain up-to-date financial data and set your KPIs. We help businesses optimize their operations and prepare for long-term success, while letting you focus on running your business
About the Author
LISA SHERMAN
PRINCIPAL, DOEREN MAYHEW ADVISORS, LLC lsherman @ doeren. com
With more than 25 years in both public and private accounting, Lisa helps lead the Outsourced Accounting Group to assist clients in the effective management and optimization of their back-office finance functions.
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