Starting a new business often seems a promising venture which is full of opportunities and actionable ideas. However, establishing this business, especially in competitive markets like that of the United Arab Emirates, is not easy. It requires not only extreme hard work and passion but also expert level skills in different niches of business.
Few tools lead to the progress of any business, and measuring them is important to realize the progress. These tools are often termed as key performance indicators as they help the business owners track and improve the progress of their business. So, it is quite important to explore them in detail.
This article aims to discuss the key performance indicators to boost your business growth.
Top 8 KPIs To Watch Out for your Business Progress
Every field and industry of the world has few key performance indicators that shed light on the progress and weak areas of that field. The KPIs serve as the guiding light to ensure continuous progress and growth in that particular field. The business field also has a few KPIs which play a significant role in its growth and development.
The following are the top key performance indicators that you need to watch out for your business progress.
Cashflow is the foundation unit of any business, as well as the primary key performance indicator. It highlights the business’s financial health and allows them to make their investment and business growth decisions wisely. Only expert accounts can ensure smooth cash flow for the business organizations. Therefore, most of the organizations acquire the service of the best accounting firms to track their cash flow smoothly.
2. Current Ratio
The current ratio is another essential element of any business unit. The current ratio highlights the solvency of any business. It is calculated by dividing the assets with liabilities. It helps the business organizations to know their expense power while meeting all other requirements without any delay. Skilled and professional accounts can help grow the business by improving the current ratio.
3. Working Capital
The working capital of any business is the cash available on hand. Most of the time, business organizations do not have enough cash on their hand. They just have the investments and meet their expense through receivables. This is one of the most important KPI, which informs the business organizations about their financial liability.
4. Payable Turnover
Payable turnover ai another crucial key performance indicator for any business organization. It highlights the rate at which the organizations pay the dues to their suppliers. Measuring the turnover over a long period sheds light on the reputation of the business. If the payable turnover time is lengthy, it means that the organization is taking longer to pay to the supplier, which is not a favorable condition.
5. Receivable Turnover
The business organizations make a profit by receiving dues from the clients. Receivable turnover, which is another important key performance indicator of any business, highlights the rate at which the company recovers its payments. If they receive payments late after due time, it will hurt their future operations.
6. Inventory Turnover
Inventory turnover highlights the rate of flowing in and flowing out of the supplies and production. In other words, it shed light on the production and supplying power of any business organization. This is another important key performance indicator that helps business organizations to review and increase their production level to boost inventory turnover.
7. Loyal Customers
Loyal customers are one of the biggest key performance indicators for any business organization. Loyal customers play an important role in boosting its progress. They do jot only provide referrals but also share constructive feedback, which helps the authorities in improving the service provision. Therefore, it is quite important to look after the needs of customers, so they become loyal to your operations.
8. Quick Ratio
A quick ratio is another crucial key performance indicator of any business. It highlights the current liquid assets of any organization which can be readily used to meet urgent financial expense requirements. Managing the accounting records efficiently is crucial to improve the quick ratio. You can hire the service of the best accounting firms in Dubai and ensure the support of skilled and expert accountants to improve the quick ratio of your business.
Manage your KPIs efficiently to ensure business growth!
Knowing the key performance indicators is one thing and making most of them is the other. In order to achieve the latter, you need to involve the experts in your organization. The most crucial out of them are accountants who will have a keen eye on all accounting activities. So, hire the best professionals to ensure business growth.