Most businesses would like to improve 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.
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.
http://www.mcnamaraandcompany.com.au/blog/what-is-the-difference-between-net-profit-operating-profit-and-gross-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.
http://www.mcnamaraandcompany.com.au/blog/why-is-a-healthy-cash-conversion-cycle-ccc-important-to-a-business
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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