KPI's Part 1
I'm often surprised that more SME's don't use KPI's (key performance indicators) to their benefit. Certainly in larger companies they are used widely. I think the reason for this has to do with resources. In a large company they have a team of accounting professionals focused on producing the monthly management pack with relevant KPI’s.
Contrast with the SME. It’s not unusual for the accountant to be head of human resources, car fleet manager, treasury, legal department (sales contracts), insurance and, “oh while you’re at it can you organise the Christmas party”. It’s a challenging role and just producing timely accounts can be difficult, let alone producing KPI’s. But KPI’s are very useful as I hope to demonstrate over a series of articles in the coming weeks. They can help you see the wood from the trees.
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