A Good KPI Report Enables Business Organisations To Reach Business Goals, Identify Strengths, Weaknesses And Trends: Whiz Consulting 

Gordon, Australia, 2022-Jul-19 — /EPR Network/ — Whiz consulting is a reputed name in the field of accounting and bookkeeping. Their team of experts possess extensive accounting and bookkeeping knowledge and vast experience. In addition, they are well updated about the recent developments in the field of accounting and bookkeeping. It gives them an upper hand over other accounting professionals. In a recent interview, the senior officials at Whiz discussed the importance of the key performance indicators and KPI reporting for businesses. 

Key performance indicators or KPIs are quantifiable, measurable values that help measure the performance of a business. KPIs enable business owners to analyse the current performance compared to the past ones. Businesses can use both high-level and low-level KPIs to gauge overall progress. The high-level KPIs provide insights regarding the overall business performance, whereas low-level KPIs are used for individual departments like accounting, sales and marketing, human resources, etc. Business owners can choose to improve every area of the organisation and move forward. However, businesses often get confused between KPIs and metrics. The senior executives at Whiz clarified, “Key performance indicators impact the strategic business outcomes whereas metrics are responsible for measures used to support the KPIs”. 

The senior officials at Whiz also discussed certain points to highlight the importance of KPIs. The biggest reasons to understand the need for key performance indicators are stated below: 

 

• Health analysis– The KPIs allow businesses to gain a realistic look at the organisation’s health. From identifying potential risks to analysing methods to overcome such risks, the KPIs serve the best. 

 

• Make adjustments– With the right KPIs, businesses can monitor and analyse the things that are having a positive impact and things that are not working in favour of the company. 

 

• Ensures transparency– KPIs allow everyone to see what they are doing and also what others are doing. It creates a sense of transparency and simplifies the flow of communication. 

 

• Increased morale– The employees can monitor their performance and respond immediately, allowing them to correct their mistakes. It helps boost the employees’ morale and builds personal growth. 

 

The KPIs track the performance of an organisation against the overall objectives. A business might need more than one KPI to identify strengths and weaknesses and figure out ways to overcome them. A KPI report serves as a tool to track all the KPIs of a particular organisation. KPI reports are generally a mixture of charts, graphs and tabular information which provides powerful insights about a business. The senior officials at Whiz added, “KPI reporting is a system or tool that helps track and analyse the evolution of the key performance indicators on a monthly, quarterly, or yearly basis.” 

In order to meet the organisation’s objectives, a KPI report is a great way to start. However, businesses often confuse KPI reports with KPI dashboards. Though they both are similar, their application in the business scenario is different. A KPI report helps businesses to interpret the underlying metrics via tables and graphs and ease the process of decision making. On the other hand, a KPI dashboard is a visual display of all the overall progress of the organisation in one quick look. However, both serve the same purpose: making data-driven decisions and showing progress and performance. 

KPI reporting enables businesses to view the company from an outsider’s perspective. In addition, it helps identify ways to attract new customers, retain old ones and enhance customer satisfaction over time. However, businesses can follow certain practices to ensure better KPI reporting. The senior officials at Whiz highlighted some practices to be followed while setting up KPIs. The points are mentioned below: 

• Knowing the business- The business owners should have a solid understanding of their business to know what is currently needed and where the business is going in the future. 

• Appropriate measures– A business should be clear about the metrics and what it needs from the KPIs. Business owners should have a list of objectives, and KPIs will help accomplish them. 

• Setting a baseline– Businesses need to establish a starting point with data from previous measurements or assessments. It facilitates performance comparisons over a period of time and analyses whether or not the KPIs are working. 

 

Conclusion 

Apart from the points mentioned above, businesses can adopt other practices to better the process of reporting KPIs. KPIs are integral to running a successful business because they help identify strengths and overcome weaknesses. The senior officials at Whiz concluded, “If mastered correctly, the key performance indicators can help take a business to the next level”.