What are KPIs and how to use them in accounting

There is a lot of knowledge that can be shared. By any entrepreneur, but every area faces its own obstacles . That doesn’t change when we’re talking about an accounting firm – which is also a business. As such, every accountant needs to know what KPIs are. KPIs (key performance indicators) are ways of analyzing the evolution and, as the name says, the performance of a business. For example, in a bakery, the number of loaves sold per day is an important KPI. The amount of flour use is another. There are a number of key performance indicators that an office can use, of course, as per individual need. However, below we will present the ones that every accountant should know. But we already warned you: don’t use them all, just choose the ones you find most relevant.

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Understand better below what KPIs (key performance indicators) are, many accountants have difficulty finding specific information for the reality of an accounting firm, hindering evolution plans; What are KPIs? KPI comes from English Key Performance  Argentina Phone Number List Indicators , which in Portuguese means Key Performance Indicators . In short, they are criteria, generally possible to be accounted for objectively, that the accountant or entrepreneur from another area uses to monitor the company’s situation. Each segment can have the most important indicators or those that don’t even make sense to use. For example, inventory turnover is not a KPI for an accounting firm. Now, capacity and competitiveness, two that are on the list below yes.

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The answer to what is a KPI is simple

However, one of the most important pieces of information about indicators is about their use. No company has infinite resources to allocate to management. Therefore, the ideal, even in order not to get “freaked out by the numbers”, is to choose one or two KPIs to monitor. Thus, you establish what are the most important objectives in the current phase  EL Leads of the company. They can be changed over time as needs change, and that’s not a problem. It is also possible for the accountant to use specific KPIs for different campaigns or situations. However, in recurring office administration, the objective is to reduce as much as possible how many KPIs are monitored . Thus, resources and efforts can be allocated to achieve the most important goals of the company.

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