Most businesses would like to improve and therefore set goals in the following areas:
- Revenue Growth
- Profit Improvement
- Cash flow Improvement
It is then a matter of identifying Key Performance Indicators (KPI) that measure these areas.
Revenue Growth: This is a measurement of how well an organisation grows its fee / sales base.
It is calculated by taking the difference between the current sales amount to the previous sales amount and dividing by the previous sales amount.
Revenue Growth
Profit Improvement: Effectively what is left over after paying all your expenses.
What is available for the owners / shareholders of the business.
Profit
Cash Flow Improvement: A healthy cash flow is vital to the viability of a business.
The Cash Conversion Cycle (CCC) measures how long it takes for a business to convert its resources to cash.
Cash Flow
If you would like to discuss further please contact us:
McNamara & Company - Chartered Accountants, located minutes from the Melbourne CBD
www.mcnamaraandco.au/contact-us
Phone +61 3 9428 1062
Email admin@mcnamaraandco.au
Please refer to disclaimer at the bottom of the page.
