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25 Examples of Finance Key Performance Indicators (KPIs) for the Small Business

Key Performance Indicators (KPIs) to help companies of all sizes from a small business or SME to a much larger company or organization define and measure progress toward business goals.

KPIs are quantifiable measurements, agreed at the outset that the critical success factors of a company or organization. They will differ from business to business.

KPIs are an essential tool in helping to ensure a company is focused on achieving the desired goals.

There are many examples of KPIs, but it is important to recognize that they will vary from business to business and will depend on the specific objectives of a company at a given point.

Finance related examples of KPI’s can be any of the following 25 examples of KPIs include is not an exhaustive list:

  • Receivable Collection Period
  • Cash Flow Return on Investment (CFROI)
  • Cost Income Ratio
  • Cost per payslip issued
  • creditor days
  • Cycle time processing payroll
  • Cycle time for a bill to fix error
  • debtor days
  • Direct costs
  • EBIT
  • Fixed costs
  • Gearing
  • invoicing processing
  • Number of outstanding invoices
  • Number of overdue invoices
  • Percentage of bad debts against billings
  • Percentage of financial reports issued on time
  • Percentage of invoices disputed
  • Percentage of invoices under query
  • Earnings per customer
  • Earnings per employee (FTE)
  • Earnings per product
  • Earnings per project
  • The return on capital employed (ROCE)
  • Return on Equity (ROE)

There are literally hundreds of KPIs which may or may not apply to your business. The key is to identify those crucial to the success of your business.

KPIs are a very valuable performance management tool for sole traders and SMEs to large corporations and international organizations. Unfortunately, the need for the use of KPI’s will not be understood as if it should be in the MKB so therefore are not used as often as they should be.

Small businesses and SMEs should not be afraid to embrace use of Key Performance Indicators as there are a number of business-to-business consultant resources there are to help develop SMEs and identify a dashboard most relevant KPIs for their activities so that there is an understanding of what drives the underlying profit performance, which increases the probability that an owner successful in meeting the goals and objectives for the company will be. Knowledge is power as they say and monitoring KPIs provides that essential knowledge.

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