What Are Your Key Drivers & Performance Indicators?

We all want a successful business don't we? The thing is though a lot of us sweat the small stuff and don't focus on the big picture; nevertheless wouldn't you like to understand what your key drivers and performance indicators are? And what they mean? 

Your key performance indicators are sets of quantifiable measures that you will use to gauge you company's performance against a benchmark for your industry or your industry's localized market. I am presenting the following acronyms that will be used quite often as they are tools that help bring focus and shed light to important factors that need to be tended to.

Note: The following acronyms are going to be used quite regularly

Key Performance Indicators - (KPI)

* Performance indicators are sets of quantifiable measures that you will use to gauge you company's performance against a benchmark

Time Value of Money (TVM)

* The idea that money available at the present time is worth more than the same amount in the future due to its potential earning capacity.

Discounted Cash Flows (DCF)

* A method of assessing earned cash flows taking into account the expected accumulation of interest.

Tax Shield Cash Flow Recovery (TSCFR) 

* A tax shield is the reduction in income taxes that results from taking an allowable phantom expense from taxable income.

p.s. Stay tuned as well because I will be offering free excel templates where you can plug  and play to see what different outcomes mean for your business!

The number one KPI that should be measured from the inception of your business, is how much current sales and future sales do you have coming down the pipe? Keeping your sales pipe line flowing is essential to your businesses' longevity. 

The life line of your business this is how you earn profits not to mention build equity in the long run! In future blog posts I will be discussing sales order management techniques, sales forecasts, and receivables turnover. I will show you how it all ties in with you expected return on equity. Forecasting your projects using the time value of money principles can give you a realistic picture to head towards. Until next time.. 

Cheers,

S.G.

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The Accounting & Finance Dilemma

"All men can see these tactics whereby I conquer, but what none can see is the strategy out of which victory is evolved". All strategy comes with the diligence and knowledge of many years of experience. "The key to victory is to know your own capabilities and the enemy's - Sun Tzu".

The art of knowledge of the finance and business setting comes easy only to those study it, live and breathe it. I hope that you find the literature on this blog insightful, a great read and seldom humorous at times.

In my 10+ years of studying and practicing accounting and finance, I've gained a lot of knowledge in the fields of taxation, financial reporting, financial analysis and business practices. This is all blended in with IT systems which is virtually impossible not to integrate systems and analysis anymore,  given the large sets of data and different data formats used. I hope to be be able to share some of my knowledge and be of assistance along the way.

If you have any questions please feel free to contact me at go2acctg@gmail.com or hit me up on twitter.

Cheers,

S.G.

Twitter

Linkedin

Go2accounting.ca