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3 Benefits of Measuring the Right Key Performance Indicators

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Key performance indicators (KPIs) are measurable metrics that show your company’s performance, help you manage your targets, and make sure that you reach your key business goals. With this information, you can make more informed business decisions, gain a competitive advantage, and deliver better results.

While KPIs are important to any business, many business people are still uncertain about what they should be using and how they can take advantage of these powerful tools. If you are one of them, here are some benefits of measuring the right KPIs:

1. It lets you measure your company’s progress over time

Progress is essential to your growth and success. To measure your improvement accurately, it’s best to track key results indicators, such as your revenue, number of employees, number of locations, gross margin, and more.

Before the year or the quarter starts, make sure to set targets and establish weekly goals to track your progress. Using the right KPIs lets you witness how you and your team move forward towards your long-term goals and business strategy while keeping you motivated to work hard.

2. It helps you better solve problems

Hitting a sales slump means you are not making enough revenue. Fortunately, financial downturns don’t have to last forever. Using the right combination of KPIs on your dashboard can gain help you access important information to overcome the downturn and get back to making growing.

One way to get out of a revenue slump is to measure the right KPIs, such as your number of appointments kept, trade shows attended, outbound calls, and more. Put them on your dashboard and monitor them weekly until you figure out how to generate more predictable sales.

Meanwhile, you can also reach out to our expert accountants for assistance. We understand that KPIs are powerful tools, and using them can help you manage and grow your startup company effectively.

Our team created a checklist of the top KPIs that can help startup founders like you to assess your company’s performance, identify areas for improvement where you are underperforming, and create an action plan. With our checklist, you can determine if your product is profitable and identify ways to improve your profitability, increase your monthly revenue, and enhance your cash flows.

LEARN THE 7 TOP KPIS YOU NEED TO MEASURE

Checklist of the top 7 KPIs that every business owner needs to always stay aware of.

3. It allows you to monitor your company’s vital signs

KPIs let you monitor your company’s financial health and long-term sustainability. To get your desired results, examine the main areas of your financial health and choose the right KPIs for your business, then only measure what you want to change. You may consider including your employees, processes, customers, and revenue.

Afterward, tap those who are accountable for those business aspects, such as human resources, business processes, business strategy, and customer service and satisfaction. This will help you evaluate your overall financial performance and see your company’s likelihood of continuing as a viable business.

Conclusion

KPIs are more than just numbers in your reports—they are crucial to your company’s health and success. They help you make critical adjustments so you can achieve your strategic business goals. Successful businesses are built on effective financial performance systems. Consulting with a trusted accounting firm can get you there.

FiBrick is a people-centric accounting company that offers tailored financial solutions for startups and scale-ups. Schedule a consultation with us now.

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