Month: October 2017

All companies know the importance of customer service, employee satisfaction and office organization. One important aspect of businesses aiming for success is to identify and focus on key performance indicators (KPIs). KPI are used in business to measure, monitor, and manage performance across business areas. They can be used to focus on employers and employees on the details of what action to take to improve their business.

KPIs focus on the aspects of organizational performance that are the most critical for current and future success. KPIs represent an invaluable form of business intelligence and when determined by company, can educate everyone involved on a strong team approach to measurable targets.

The process of monitoring, managing, and analyzing KPIs can be time consuming. For this reason, it is important that selection of metrics address the specific needs of the company. The main characteristics that help create relevant KPI include:  the need for accurate measurability and an understanding of the actions taken to correct, maintain, or otherwise alter the outcomes predicted.

If a company relies on having a strong web presence to generate leads, an example of a relevant KPI would be the “bounce rate.”  A bounce rate represents the percentage of initial visitors to a site who “bounce” away to a different site rather than continuing to other pages within the same site.  The conventional wisdom is that visitors who bounce do so for lack of compelling reasons to explore on.  Typically, the target for bounce rate is 30 percent or lower and it needs to be updated daily.  If the bounce rate is higher than 30 percent, then the web content should be modified to help lower the rate.  This satisfies the characteristics of a KPI and it is apparent how valuable it is to continually monitor the bounce rate.

If a KPI has been correctly assigned to a company, it will have a”flow-on effect” which will in turn benefit the company. The entire office can monitor and fix problems associated with the success rate of the company’s KPIs.

In addition, KPIs can create a type of benchmarking within one’s business.  A person can see the present quality of their business and with the use of KPIs, they can envision the business they want to become; they help companies become what they deem the epitome of success through the process of managing, monitoring and analysis.

Performance dashboards are generally used to facilitate the easy monitoring of an organization’s KPIs.  The dashboard will check the rate at which the chosen KPI is succeeding (or failing).  If the results of the KPI are not improving, the dashboard will visually alert staff that changes must be made.  It will then be possible to analyze what could have caused the shortcoming and allow staff to quickly remedy the situation.

Performance dashboards facilitate getting the most important, actionable information to the needed users appropriately.  As performance dashboards have the data needed to measure a KPI in one place, it is easy to see if the KPIs are succeeding in their purpose or not.  Such dashboards allow employees at any level to monitor information which represents the outcome of a KPI.  Dashboards are a topic onto itself and beyond the scope of this article.

Every business person should strive to create exceptional KPIs, as they show the ways in which troubled companies can fix their problems and successful companies can proactively plan and mange continued success.  Companies will obviously benefit when employees can readily understand what needs to be done through the presentation of easy-to-read dashboards allowing them to make the most effective follow-up decisions.

Let us know how we can help identify and create great KPI reporting and dashboards to help increase your profitability and efficiency!

Benefits of Virtual Bookkeeping

The rise of the virtual community has greatly enhanced the way we do business. This is especially true for business owners when it comes to bookkeeping. It has become increasingly practical to outsource these services. The time saved by outsourcing can be better spent focused on growth and management of your company. Finding a great virtual bookkeeping partner can change your business for the better.

There are several reasons beyond the overhead reduction that outsourcing can make sense for your business. On site accountant or bookkeepers create a large amount of overhead. From managing software, to training and recruiting employees, the burdens of in house bookkeeping staff consumes valuable resources. There is a growing number of business that have adapted to the virtual, low-cost accounting marketplace. Research from Sage found that almost 75% of accountings predict that online services will become the largest aspect of their working practice sin the next several years. What some business owner’s fail to realize is that there are indirect cost savings that can be attributed to outsourcing your bookkeeping needs.

Using a virtual or outsourced bookkeeping service does not mean buying software and working the system yourself. The human factor and customer service provided is what creates a dynamic working relationship between your business and your bookkeeper. Bridging the gap between people and software is a great business model and something you should consider when selecting an outsourced service.

The largest concern for most business is the security and integrity of their business data. Servers and other areas that financial records are stored should be appropriately secured. When using an outsourced service, there is no concern for employee access to the important data and the information can be stored electronically. For electronic storage and transmission, it is good to know what encryption method is used. You should always ask your prospective virtual bookkeeper if they log into secured servers and there is good monitoring of the dissemination of data. If your bookkeeping service allows client access to data from a cloud storage, then you’ll want to know what security features are in place to protect access by third parties and limit access to yourself or key members of your business. The costs of managing software, server upgrades and maintenance, and important file storage are one of the many reasons that the outsourced bookkeeping service can help save your business money and mitigate areas of concern.

Research has shown, companies that use virtual bookkeepers have been more successful at growing their business, increasing revenue, and generating higher margins. A 2012 article by the ACCA cited the access to a professional increased the efficiency of completion and filing of returns, real-time review of their business, and mobile availability as the top reasons for choosing an outsourced bookkeeper. Outsourcing greatly increases the scalability options of your business. You have the option of expanding or cutting back quickly and effectively. Whether your business is in a growth or cost reduction state, the outsourced team can provide you with different plans and the best options to achieve your goals.

Other Benefits

Compliance and audit preparedness are other areas of potential cost savings directly affected by a capable bookkeeping service. In terms of accounting, this means that someone is making sure a company’s financial matters are handled in accordance with federal laws and regulations. Running a business is tough enough without the burdening aspect of regulations. Ignoring these factors can have huge financial consequences for your business. Whether it is payroll or payment processing, the details of mitigating financial penalties and comprehensive compliance can be daunting.

Outsourcing your bookkeeping duties to a reliable group can make a significant impact on your growth and profitability. From compliance to regulation updates, virtual bookkeepers have the tools and capabilities to better focus on the complexities of everyday financial reporting. Your outsourced bookkeeping team provides all the benefits of a financial controller, software specialist, and full-charge bookkeeper. They are available to explain and help analyze important data in your financial statements to help you make better decisions. Job costing processes improve profitability but are dependent on accurate bookkeeping records and financial statements. Your virtual accounting department allows you to leverage technology to increase mobility and scalability for your business.

The oversight of creating high-quality financial statements and accurate reporting are a key aspect of the fundamental management of any business. This allows for the efficient financial planning and strategic growth programs to be based on real-time accurate data from your organization. The partnership created allows for an increase in expertise and experience to help plan and implement the subsequent growth stages for your business. The cost reduction and insightful accessibility of an outsourced bookkeeping service can be instrumental in furthering your businesses growth and profitability. The new age of running your business is founded in virtual cooperation and teamwork. Don’t let the nuances of daily record keeping and financial reporting hold you back. Finding the right bookkeeper can be a game changer for your business.

Partner with a virtual bookkeeper today!

To find out how J.A. Simon & Company can assist with your outsourced bookkeeping needs contact us now!