Below are 10 Financial areas that businesses should focus on in order to improve and focus their performance.

Performance Measurements – Focuses primarily on information generated from the income statement.  Examines the revenue of your business and how you are generating it.

Liquidity Measurements – Focuses on your organisation's ability to finance its debts.  Fundamental to this is a business’s Cash Conversion Cycle.

Cash Flow Measurements – Most businesses operate on an accruals rather than a cash basis.  Business operators should be aware not only of their profitability but also their cash flow.

Return on Investment – Measures the amount returned to investors. 

Growth Measurements – Measures the sales and profits of the business and how they are increasing or decreasing.

Customer Service Measurements – Looks at customer satisfaction.  Greater satisfaction will lead to greater customer retention and potential referrals.

Finance Measurements – Considers the amount of debt that a business has and can afford.

Inventory Measurement – Considers the way a business manages its inventory.  How quickly it moves it is inventory etc.

Payables Measurements – How well does a business manage its suppliers / creditors?

Sales and Marketing Measurements – The ability for a business to generate sales / get new clients / customers.  Also, to get increased sales form current clients / customers.

If you would like to discuss further please contact us:
McNamara and Co - Chartered Accountants, located minutes from the Melbourne CBD
www.mcnamaraandcompany.com.au/contact-us
Phone +61 3 9428 1062
Email admin@mcnamaraandco.com