Profitability Analysis and Performance Measurement
In an effort to continually provide our clients with more valuable services, we offer a narrative, plain-language GMS Surgent Profitability Analysis and Performance Measurement. The purpose of this report is to help our clients better assess the meaning behind their own financial numbers, and to serve as a guide in setting and working toward meaningful financial performance goals.
It is critically important to long term business success to monitor the pulse of your business through benchmarks. This starts with getting answers to important questions you find yourself asking, such as:
It is critically important to long term business success to monitor the pulse of your business through benchmarks. This starts with getting answers to important questions you find yourself asking, such as:
- What is my gross margin and how does it compare to my industry peers?
- What are my fixed costs per month?
- Will adding additional fixed costs improve my operating effectiveness?
- Should I have a more formalized process for new customer credit approval?
- How can I track customer satisfaction to determine if I am meeting or exceeding my customer’s expectations?
- Do I know how to describe my ideal customer? If not, then how will I strategize my marketing campaign and in what areas should I spend more advertising dollars?
- Do I need to establish annual sales goals?
- Does my employee compensation system effectively encourage increased productivity, revenues and gross profit?
- Am I doing what I should to effectively manage my accounts payable disbursement practices to maintain good vendor relationships, vendor pricing, and my credit rating, while at the same time still delaying cash outlays as long as possible?
- Would I benefit by preparing an annual budget and monitoring my actual financial results against it?
- Do I currently have the resources to grow my business without experiencing cash shortages?
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