Do you have an effective dashboard for running your San Diego business? How does the structure and design of your accounting system support business profitability and success.
There are critical metrics that every business owner, officer and manager in San Diego should know at any moment about their businesses. These metrics help them to maintain contact with the day-to-day ebb and flow of the company, and identify developing challenges and opportunities earlier in the process. These metrics also form the basis for taking informed business decisions, instead of working from more of a “gut feeling.”
Where do most of these metrics come from? Most should come directly from a well crafted accounting system. The data collected at each step of a business process provides the information necessary to inform an effective dashboard for running your San Diego business.
Each corporate officer or manager has differing areas of responsibility, so the metrics and associated dashboard should be tailored for each decision maker. Some of the critical metrics to follow include:
- How many new sales/quotes/orders did our company make today?
- How does that number compare to our average and business plan?
- What is the volume of those orders? What is the associated cost?
- What individual elements, pieces, products or components go into each item manufactured? What is the present stock of each widget compared to actual and projected orders and supply chain timing?
- What portion of our assembled product generates a tax deduction instead of a taxable event?
The metrics inform the business. The metrics identify opportunities and raise awareness of risk and challenges. Sound business decisions are informed decisions. That information comes from the internal metrics of your company, and having the systems and informational structure in place to provide them to you each day.
At it’s core, the way to ensure the success and growth of your business is quite simple: Keep the black line above the red line. This is why you need an effective dashboard for running your San Diego business. We invite you to learn more about the integrated tax, legal, accounting and business consulting services of Allen Barron and contact us or call today to schedule a free consultation at 866-631-3470.