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Key Performance Indicators, or KPIs, may not be the most exciting business topic in the world – but the results they can give you most certainly are. When chosen wisely and used well they are one of the most powerful tools you’ve got to assess your business’s performance and steer it to new successes.

Or as we like to put it, KPIs show you whether your hard work is working.

The trick to choosing successful KPIs is to ask yourself what success actually looks like. Is it more clients? Larger profits? Greater margins? Or other goals specific to your business?

Once you’ve analysed this question, you’ll be able to choose goals that cover all key aspects of your business. One KPI on its own tells you nothing – your sales might be increasing, but that won’t help you if your margins are getting smaller or your customers aren’t paying.

So my advice is always to talk to your account manager at THP before you start measuring anything. They can take an objective view of your business and help you choose the right KPIs. They might, for example, suggest measuring like for like turnover, debtor and creditor days or gross profit by department, product or service. Whatever they suggest will be tailored to your business.

When you are clear about what you need to achieve, KPIs give you clear, concise and indisputable measures of the progress you are making. So if you haven’t got them in place now, why not mark the beginning of the New Year by adopting them? We’re happy to help you do it – just give us a call!

Avatar for Andy Green
About Andy Green

As Client Director Andy Green works primarily in delivering audit and assurance services, particularly in the Retail and Technology Sectors, as well as being the firm’s Compliance Director. These roles both bring great responsibility in ensuring that the outstanding quality and reputation of the firm is maintained.

After training and qualifying with a mid-tier firm of Chartered Accountants in the City, Andy spent some time in investment banking before joining THP in 2008, a move driven by his desire to get back into the profession. “The beauty of working for an accountancy practice is that every day is different – and you’re constantly achieving successes for your clients.” With Andy’s natural ability in interaction, THP is the ideal place.

With his positive drive and sense of humour Andy works with an array of clients, giving each the ultimate attention no matter what the size of their company.

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