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Small and medium enterprise (SME) performance measuring is normally by looking at the bottom line (net profit). We can then use accounting ratios e.g. profitability, liquidity, debt, market and activity.
Assign the KPI for the Operational P& L
let us say the revenue , Gross Prfit & the Net profit and set the bech mark
Different accounting ratios like liquidity ratios (current and quick ratio), leverage or debt ratios (Debt ratio, Debt-to-equity Ratio, Interest coverage ratio), turnover or activity ratios (Inventory turnover, Average Collection Period, Average Payment Period, Total Asset Turnover, Fixed assets turn over, Working capital ratio), profitability ratios (return on asset and return on equity), market ratios (P/E ratio, market to book ratio) are usually employed to measure the financial performance of small and medium enterprise (SME). However, non-financial measures may be used.
As an accounting manager, you have to use your tacit knowledge to develop KPIs for performance rather than solely rely on traditional financial indicators.
The performance can be measured by calculating the the cash flow generated in one year and take a look about strategy and operations
Performance means Cash Flow, so by the evaluation the Cash Flow statement of the an company.
i measure the performance by calculating the ROE and the cash generated from operating activities
Financial performance, customers, strategy and operation
Performance measurement indicators
Growth & Increase Income
Cash Flow
There are specific ratios measure business results such as profitability ratios, liquidity ratios, by monitor that ratios monthly, quarterly, annually, we can get information,