Setting goals and key performance indicators is an essential part of running a business, but how well are you keeping track of them?
While you may have aspirations for your business, you cannot effectively reach them unless you understand how your actions and activities affect your performance.
Simply, by failing to keep track of your progress you will not know what is making your business successful, leading to wasted time and resources.
How do you record your performance?
The most essential element of tracking your financial performance is your balance sheet and accounts. These should be reviewed regularly and, ideally, with the help of an accountant so you cannot only understand the raw data but prepare strategies based on your analysis and any trends that emerge.
If you are still relying on manual processes to achieve this, such as multiple spreadsheets or documents you are just creating more work and missing out on the opportunities that come from the cloud and automation.
If you are VAT registered, you should already be using cloud accounting software, in line with Making Tax Digital regulations.
However, beyond this compliance function, the software and associated apps have so much more to offer.
Do more with the data
Think about the data that you need to keep track of. Integrating the relevant apps into your app stack allows you to have all your data in one place and can automate processes like bank reconciliation, receipt collection and invoice chasing.
Depending on your goals, the data you can utilise within this software ranges from revenue, profits, or costs per unit, to the number of services or products you supply.
With the right apps and add-ons, you can even spot upsell and cross-sell opportunities that you may have previously missed or new cost-saving opportunities – both of which could help you achieve your ambitions sooner.
Figures are meaningless if you do nothing with them. So, when you have the relevant data, you need to compare your current position to different points in time.
You should also think about taking out any data that isn’t relevant to the goal you are measuring, to avoid confusion.
Why is this important?
Getting an insight into your business’s progress will inform you of whether you need to take action. Your business is constantly evolving, and your goals need to keep up.
You might find that you reach one of your goals quicker than expected, so you can either decide to aim higher or shift resources elsewhere.
Tracking your progress can also identify any areas of concern that need to be addressed. If you would like help integrating the latest accounting technology in your business, please contact our specialist accounting team at firstname.lastname@example.org or 01494552100 or your usual Seymour Taylor representative today for assistance.
This blog is for guidance only, professional advice should be obtained before acting on any information contained herein. The information was correct at the time of publishing 6th December 2022.