Finding a silver bullet for business success is extremely rare. It often achieved after numerous attempts.
Giving your business the best chance to succeed financially is important. Having control over the following measurements will give you a greater chance of financial success:
• 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.
http://www.mcnamaraandcompany.com.au/blog/what-are-the-drivers-of-revenue
Profit Improvement: Effectively what is left over after paying all your expenses.
What is available for the owners / shareholders of the business?
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.
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
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