AT Accountants & Advisors

Business Performance Tool

By Anthony Trochilas | February 27, 2015

The key performance indicators (KPIs) for one company will invariably be different from the KPIs of another firm.  What both hypothetical companies share however, is the challenge of selecting which KPIs are best suited for measuring the goals and progress of their particular business model.

What Are Key Performance Indicators?

Key performance indicators are the tools business organizations use to define their goals, and establish quantitative measurements designed to determine whether any progress is being made towards those goals.  They provide data that can be used to spotlight performance characteristics across a variety of matrixes such as financial performance.

Financial Performance 

At the end of the day, the bottom line is why we are all in business and understanding how well your financials are doing is the equivalent of knowing what is going on in the centre of your car’s engine when it’s rolling down the road.

For instance, if you are losing sleep at night over whether or not your latest marketing plan was worth the check you signed at the bank on Monday, you will want to explore your Return-on-Investments (ROI) with a detailed ROI KPI.

Conversely, a KPI can highlight underperforming net profit margins, or lacklustre revenue growth rates, and the information obtained can present valuable information to ensure the meeting of the company’s original financial goals.

Are you measuring the financial performance of your business? Accounting data from your online accounting software Xero will seamlessly integrate with your management reporting and financial analysis tool . For a demonstration feel free to contact us on info@ataccountants.com.au.