how to measure business performance

How to Measure Key Performance Indicators for your Business?

People who are self-employed or work as independent contractors should familiarise themselves with how to measure business performance or business key performance indicators (KPIs). This helps people with their financial duties.


KPIs are indicators used to measure the overall performance of your country. Once you’ve got all the insights and you’re good enough to work on them,  make sure all the changes are implemented. This helps you minimize losses so that you work on your target areas.


A well-managed business that offers sustainable solutions increases your business value and helps you with a long-term investment to attract potential partners and clients. Find out ways how to measure business performance.


Pay Close Attention to Your Cash Flow


As an entrepreneur, it’s necessary to distinguish how your cash flow operates. Figure out ways to deal with transactions and day-to-day costs. Your business’ cash flow is a KPI that’s usually compared to the total capital, thus it tells you how your business is doing. Talk about the right money generation strategies. Let our experts work on your long term investments.


Make sure you’ve got a startup accountant on board to help you out with cash flow. They’ll also help you relate with your total capital. Talk about an excellent explanation of your business’ present situation! When it comes to significant decision-making, your revenue isn’t the only thing to focus on. There’s a lot more.


Keep a Track of Your Working Capital


A working capital stands for the cash you have on-hand. You can come up with it through a simple equation involving the subtraction of your company’s liabilities from your assets. They come in the form of money, accounts receivable and payable, present investments, recorded expenditures and financial loans.


Let an accountant help you out with working capital. It helps you get a good grasp of how your funds are operating. It helps you settle your dues and applying your assets to solve any liabilities as part of your KPI.

how to measure business performance

Learn How to Manage Your Current Ratio


A current ratio is somewhat similar to your working capital. The only difference is instead of subtracting your liabilities from your assets, you’ll have to divide your total assets by your liabilities.


Doing so will give you a better outlook of how you pay off your debts and taxes on time and learn how to grow your business exponentially. Hiring a tax consultant is necessary if one of your goals is to keep your business’ credit rating on the right level.


Check on Your Debt-to-Equity Ratio


The debt-to-equity ratio is a KPI that is used to measure your total liabilities and net worth. It would be best if you took the time to observe. They tell you about the growth of your business. Talk about the right funding received through your shareholders’ investments.


Take on the assistance of an accountant for startups. They’ll help you show results so you get to prove the value of your company. They’ll also provide solutions on accruing your expenses that lead to better profit for your business!

measure business performance



Using KPIs can help you identify the strengths and weaknesses of your company. They present you with insights to help you manage your financial obligations and identify the necessary changes. They’ll also help you improve your business policies and accounting procedures.


As long as you remember the tips above,  utilise KPIs to your advantage. Also consider hiring a professional accountant for your business so you won’t have a hard time figuring out how to operate your assets, manage your liabilities, and pay off your debts on your own. For more such tips you can visit blog.


Are you looking for an accountant in London to help you with your startup business? Accotax provides tax consultation solutions for self-employed individuals, limited companies, and contractors. Get in touch with us today to receive an instant quote!

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