What numbers do we need to monitor at work?
Loss of profits
It is undoubtedly the best indicator if a company is creating enough value or… justifies its existence. The loss can be justified, but it is not sustainable in the long run.
how often? monthly.
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Revenues -dka m (() nav. rar
- The amount a person receives for his work in a certain period of property: His income was increasing every year; low-income annual returns; entered the earth
- econ. The value of sales of products sold, services rendered, which affects the financial result of the labor organization: Revenue and Expenditure Calculation / Total Revenue The sum of all income in the labor organization; Total revenue Total revenue generated by several organizations as a result of joint production and joint operations
It’s important to know revenue by months so you can anticipate worse months when there will be less revenue – and prepare accordingly.
How much is the recurring monthly revenue (such as membership fees, subscriptions, regular deliveries, etc.), and how much is the result of one-time transactions?
how often? monthly.
Costs
It can be fixed or variable. They tell you where the money goes. Proper cost monitoring can tell you which categories you spend the most money on, improving your performance and allowing you to improve your business. What are the costs of labor, rent, various materials, etc.?
how often? At least monthly, maybe weekly.
Pending claims
Unpaid bills are a reason for businesses to find themselves in a crisis. Poor payment discipline is known to all. So – what percentage of the planned revenue represents overdue billing? How many days each account is opened on average? How fast are bills paid?
Fortunately, there are some methods and tools that allow you to pay your bills faster.
how often? weekly.
biggest debtors
It’s not a number, but the list of companies is important. By knowing the biggest debtors, you’ll avoid (frequent) mistakes – and forgo new deals with customers who don’t honor their commitments.
how often? weekly.
Revenue by customers/products or services
This way, you will know which clients and which areas of business to focus on the most. The so-called Paret 80/20 principle is usually confirmed in this field as well, which means that 20% of customers (or products) bring you 80% of revenue. Conversely, 80% of customers (bids) bring in only 20% of revenue. So don’t waste too much time focusing on those parts of the job that don’t end up contributing significantly to your success.
how often? monthly.
On the accbox.net website, you can find 5 additional pointers that you need to know.
Not just a review of previous work
So, if the data is used properly and converted into information, it is not just a rearview mirror. They can be much more and play a major role in the process of making the right business decisions. It enables company progress tracking, early identification of problems and setting the stage for resilience and rapid response to the entire organization. This, however, is essential to success today.