KPI Action Plan

Dear Accountant,

In my last post you had graduated as your client’s Financial Management Advisor through designing and interpreting their first management accounts v budget to start uncovering the business drivers of financial performance.

Now to install KPI (Key Performance Indicator) reporting which predicts  financial results by months, enabling adverse trends to be corrected before the event. Here are the classic measures and their data sources, more than enough to keep any business on track.

As you monitor these and see their effects  on the results that follow, you start to build Business Management Advisory experience and that of your client, by seeing and understanding together the activities that drive financial performance.

By implementing ‘before and after’ management reporting you’ve now placed your client in a position of power to build a great business and yourself in a lifelong ‘trusted advisor’ relationship. That opens the door to you becoming a Business Management Advisor, which I’ll look at in my next post. Meanwhile, you can take a closer look at this and all the tech here.

With kind regards from

Duncan

This is one of a major series that reveals all the processes to use. But if you wish to jump ahead to see what’s coming, ask us here or to see what’s already been posted click here.

Duncan Collins founded Runagood® to make practical solutions affordable for owner managers via accountancy practices, profitably, by pioneering AI. He has automated the 000’s of consultancy techniques he learned the hard way during 60 years of running, helping, buying, selling businesses large and small. Ask him anything, anytime for free at duncan@runagood.com

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