An understanding of performance against targets, goals and objectives is key to running a successful business. Almost all businesses prepare an annual budget in some form but the majority of those businesses do not measure progress as the actual results unfold.
Carrying out business processes blindfolded can plunge an entity into pitfalls since it is not able to measure its key metrics. Performance reporting doesn't just have to mean analyzing your profit and loss each month. Non-financial data such as client satisfaction is equally as important when considering success. With all of this data at your fingertips I bet you are already wondering why you don't analyse it more frequently?
In challenging and evolving markets the need for timely performance reporting has never been so prominent and the following factors are reasons why it should be a priority for any business.
Learn and improve performance
Daily business management demands the need for continual learning, which equips employees with key information to make better and informed decisions. Performance reporting generates real time information about the business performance and this is used to inform management on key decisions. It is also used to challenge the strategic assumptions made during the budget/planning stage. This helps in setting realistic targets that are achievable and allows management to focus employee efforts in the right areas which leads to increased productivity and profitability.
Enabling an integrated mind-set
Each member of management or the board will almost always be interested in a different part of business performance, whether that be financial, non-financial or a mixture of both. An effective integrated monthly reporting process will satisfy the needs of even the most demanding board members. By combining the quantitative and qualitative results of a business it promotes an integrated approach to performance analysis, allowing for an informed and well-rounded decision making process.
Benchmark for enhanced performance
One of the immediate benefits of performance reporting in a business is that it sets out benchmarks from where the entity can base its performance results. Benchmarking enables a business to improve effectiveness and efficiency. With an improved reporting function, a company is able to gather essential data that facilitates thought-provoking discussions which will assist in identifying new opportunities. Benchmarking eliminates guess work and helps businesses to prioritise areas for improvement.
The ability to be proactive, not reactive
Performance reporting, on real-time information, allows you to make business decisions there and then. Too many business decisions are made based on historic information, such as the most recent financial statements, which is more than likely out of sync with current business operations. Understanding you financial and non-financial metrics in real-time equips management to stay ahead of the curve and iron out cracks as they arise.
How can BDODrive help?
We have a suite of performance reporting tools that can integrate directly with your accounting software to produce performance reports on whichever timescale best suits your business needs i.e. monthly, quarterly etc.
We believe that no report should ever be produced on a 'one size fits all' basis. All reporting produced by us is tailored to pin-point exactly what information is important to you, thus allowing you to analyse what you consider to be the key drivers of business success.
If you want to find out more about how our dedicated advisers can assist your business reporting needs then please get in touch for a no obligation consultation.