KPI’s for Your Business

Key Performance Indicators

If you are involved in making decisions for your business' growth, then you know: it's a numbers game and KPI's (Key Performance Indicators) are one great place to start!  KPI's are performance metrics that measure specific goals for businesses across all sectors.

Common things that Key Performance Indicators might track are:

  • Revenue (profits, total revenue, and new customers)
  • Employment statistics (employee turnover, performance, and vacancies)
  • Customer service (average call time, efficiency and customer satisfaction)
  • Marketing (sales generation and overall effectiveness)
  • Efficiency (overall efficiency, departmental processes and individual efficiency)

We help most businesses identify the KPI's for your industry and then determine which ones are most critical to your success.  Many businesses believe there is inherent value in creating sales and marketing goals, and there's also value in measuring those goals on a week-to-week basis. At quarter's end, sales and marketing results will indicate if quantitative data was left out of your organization's process. In other words, if you fail to track numbers at the beginning of the quarter, you won't be happy with your numbers at the end of the quarter.

I want to discuss how your team can begin measuring numbers with consistency, because the reality is that numbers are too important to ignore.

One of the hardest things about tracking your numbers (read: growth or decline) is transparency. It's hard to let others in on the reality of your business' sales and marketing efforts, especially if there's underperformance. But that's exactly why you should press for such transparency.

The more your team knows the numbers and what to strive for, the greater sense of urgency and ownership your employees will possess.

Of course, calculating any amount of numbers, goals and metrics takes time. But it's worth carving out a few minutes each week in the long run. I want to encourage you to conduct a meeting with necessary team members, once a week, to go over a weekly scorecard.

Don't get complacent with lazy systems in your office. If tracking numbers is lacking numbers, it's time to step up and change the status quo.

This stuff is science. Quite literally (testing and solving and testing again until you get it right). But you don't need to make it ... say it with me ... rocket science.

Here are the sorts of things you can track in a weekly scorecard...

  • Price, term, refund and premium tests for profit
  • Customer acquisition and retention
  • Advertising response rates (digital and print)
  • How many in the new prospect pipeline (and their collective cost benefit)
  • New and qualified leads
  • New sales meetings
  • Revenue streams in concordance with your team's budget
  • Other such items specific to your business -- only you know what should go in this scorecard column

The biggest component here is that you actually do it. If you already keep a scorecard, that's great! How consistently do you go over the numbers yourself or with your team?  Don't let the method or "prettiness" factor prevent you from taking action and implementing a weekly scorecard at the beginning, middle and end of your process. You'll like the final result.

We work with businesses of all sizes, to help identify KPI's, areas for growth, and ways to increase profitability.  Contact Emerald Financial Partners today and let's get started!

What You Need to Know About Government Contract Accounting

In Maryland, we are fortunate to have the geographic location that provides many government contractors with direct access to our Federal government and associated contracts. But, to be a successful government contractor, you will likely need to engage a knowledgeable accounting partner to assist you with Defense Contract Audit Agency (DCAA) compliance services, and help you follow specific guidelines, particularly as it relates to government contract accounting. Here are just a few items that your business needs to consider, when it comes to government contract accounting:

  • Quickbooks
    • Ensure that QuickBooks is set up and compliant with the Federal Acquisition Regulations (FAR)
    • Ongoing compliance checks and troubleshooting
  • A pre-award accounting system survey and post-award system audits
  • Staff training to maintain and resolve ongoing compliance issues
  • Compilation of financial statements for GAAP and DCAA compliance
  • Proper classification of direct and indirect costs
  • Audits and reviews of financial statements to meet government contract or outside party requirements
  • Government contract cost analysis
  • Preparation of DCAA audits
  • Ongoing consulting support to ensure competitively priced proposals and government contract accounting compliance

These are just a few of the items you need to consider.  The guidelines change and there is a lot of information and compliance issues your company will be responsible for.  Most of our clients find that these tasks are much easier to outsource and generally provide better compliance for audits.

Emerald Financial Partners has nearly 40 years of accounting experience and a large portion of our client base is government contractors, with a large portion of those clients focused on IT (Information Technology) contracts.

Contact Emerald Financial Partners today for a free business consultation!

3 Reasons Your Business Needs a Strong Financial Partner

Whether you are a new business start-up or a business with years of history, the most important aspect of your business is the financials. Many business owners burn out because they try to wear too many hats or just don’t have the time or expertise to properly manage their finances. In this article, we’ll discuss the value of having a strong financial partner to handle the small business accounting, tax, and financial needs of your business.

Rule #1: Engage a Financial Partner Early in Your Business

When you start your business, a strong financial partner, like Emerald Financial Partners, can help ensure that you don’t make common mistakes. Setting up your Quickbooks properly, reconciling bank statements, tracking expenses, and creating a balance sheet are critical elements. If you decide to get a loan, you’ll need to have all of these items in order, and the better organized you are, the higher the likelihood that you’ll get your loan!

Rule #2: Outsource Accounting

As your business grows, you may need additional small business accounting services to manage the financial aspects of your company. Rather than investing in a full-time employee, outsourcing your accounting functions can often provide you with a higher quality of services, redundancy, and access to additional services, as you need them.

Rule #3: Remote CFO

Once your business achieves a certain level of success, you will need the financial expertise that will foster growth and help you strategically plan for the future. The remote CFO platform of small business accounting services that we offer at Emerald Financial Partners is a perfect choice. Our team works with you to oversee:

  • Accounting
  • Payroll and bookkeeping
  • Business financial strategies
  • Track and monitor expenses
  • Increase profitability
  • Streamline accounting systems
  • Provide you with accurate financial statements
  • Full-service accounting and compliance
  • DCAA compliance
  • Unlimited access to financial experts

To learn more about everything that Emerald Financial Partners has to offer you and your business give us a call to schedule a meeting today!

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