Blog & Resources

New year’s resolutions. Improve my business.


Most businesses would like to improve in the following areas:

  • Revenue Growth
  • Profit Improvement
  • Cash flow Improvement

It is then a matter of identifying Key Performance Indicators (KPI) that measure these areas.

Revenue Growth:  This is a measurement of how well an organisation grows its fee / sales base. 

It is calculated by taking the difference between the current sales amount to the previous sales amount and dividing by the previous sales amount.
Revenue Growth

 

Profit Improvement: Effectively what is left over after paying all your expenses. 

What is available for the owners / shareholders of the business.
Profit

 

Cash Flow Improvement: A healthy cash flow is vital to the viability of a business. 

The Cash Conversion Cycle (CCC) measures how long it takes for a business to convert its resources to cash.
Cash Flow

 

If you would like to discuss further please contact us:
McNamara and Co - Chartered Accountants, located minutes from the Melbourne CBD
www.mcnamaraandcompany.com.au/contact-us
Phone +61 3 9428 1062
Email admin@mcnamaraandco.com

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