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Tips on analysing your KPIs by small business accountants

KPIs are the backbone of your business. It measures your performance and giving you an indication of what your business is doing well, and where it can improve on. If you have any interest in growing your business, you should definitely be invested in learning about KPIs. Companies that use KPIs and analyse the data perform far better than their competitors, as it helps them look for opportunities; investigate the underlying data to look for efficiencies; and helps maintain KPI effectiveness. It is not only important to measure out your performance, but also analyse it. Here at M.A.S Partners, the leading small business accountants in Sydney, we are professionals in analysing KPIs. Helping hundreds of businesses analyse their KPIs, we understand the importance of proper KPI analysis and have provided some tips to help you analyse yours.

Setting goals

Before you analyse, you must need to define clear set goals that cover a wide range of areas in your business. This could include ones that target your marketing, finances, or even customer services. Useful KPIs for small businesses could be ones that measure efficiency, growth, health, and resilience. These goals will provide a framework of data that you will be able to look into later on.

Defining your measures

Not all KPIs will give numerical data. As such, it is important that you properly define the measurement. If you are measuring customer service, it may often come in qualitative data from surveys, which you need to learn how to decipher. It can be difficult to analyse qualitative data, which is why you should have systems in place that will analyse it for you, to give you points of improvement. Additionally, you want to be specific with your measures. Having only daily sales is not as effective as measuring a sales conversion rate.

Measure frequently

In order to keep your staff motivated, as well as keep them in the loop, it is important that you measure your KPIs frequently, have daily, weekly as well as monthly KPIs to remind them about the goals your staff should strive for.

Collect data

It is important to have a system in place so that your KPIs will be measured accurately and automatically. However, you should still check up on the accuracy of your data where necessary. Consider looking into certain applications that will help you measure your KPIs.

Analyse data

It is useful to look at your KPIs over a set time period so that you can see certain trends and points of improvement, consider analysing your data once every month, so that you can see a consistent trend.

Consider M.A.S Partners for small business accounting

Our small business accountants are experts in regard to KPI analysis Not only will they help you choose the right KPI for your business but will also provide you with exceptional analysis of your data. By keeping an accurate record of all your financials, you can be rest assured that your data is accurate. For more information on our small business accounting services, click here.