The difference between success and failure can be delicate. Many of PE Accounting’s customers succeed better than their competitors with the help of smarter monitoring and new technology. In this article we briefly go through six clear tricks for better growth follow-up.
1. Create the right foundation
With the right structures and a separate income statement per business area, it will be easier to understand where in the company values are being created and identify improvement potential. Business areas can be used as overall profit units and, for example, sub-categories can be the ones that directly affect growth. It is also crucial that the structure can be implemented digitally in the system you use.
2. Match budget to results
Post a budget in the same system as the income statement. This way you can easily follow up if things go according to plan and what is different from the original budget. It is then possible to act quickly in time instead of reacting when it is too late.
3. Use project monitoring
Set up a project structure that makes it possible to follow each project as a separate result unit. This makes it easier to quickly assess how different projects affect the business area’s results and to see patterns in profitability and growth.
4. Follow up at the individual level
Connect costs and income at the individual level if you have employees. This makes it easier to see how different efforts affect the business area’s earnings. Many of our customers’ employees find it motivating to better understand their own part and not just report time for what is expected.
Properly implemented automation minimizes the risk of errors and lets you focus on the analysis instead of manual reporting. Some systems can be integrated directly with each other via so-called API calls instead of a person handling the transfer. Consider taking help in building the integration itself, which is an investment that can often be calculated quickly in terms of costs and risk minimization.
6. Standardize dashboards
Select your most important KPIs and create standardized dashboards that are updated frequently. It saves lots of time and makes it easier to make fact-based decisions throughout the organization. Today, there are a number of different systems and services that solve it in different ways. No matter how nice your reports are, they will never be more up-to-date than the numbers being read.