Every firm owner has a general vision of what they want their practice to look like next year or maybe even in five years. Maybe you want to work less or have more high-end clients.
Regardless of where you want to go, you have to track the data now to make progress.
Tracking these five KPIs every quarter for a year will show you where you are excelling and where you need to improve.
- Top Line Revenue
- Cash Flow to Owner
- Percent of Gross Margin
- Number of Days Off
- Number of Employees
Just the act of tracking alone will improve these numbers. When you’re monitoring these high-level KPIs every quarter, you intuitively start to adjust the way you approach decisions.
That mindfulness is going to help you build the practice you want to work in.
You will start to make tweaks here and there to take more days off or craft ideas about ways to increase your bottom line. Seeing the data repeated generates action.
If you want a tool to track these, feel free to download our KPI Progress Tracker that we use in Accounting Practice Academy. It has everything you need.
PS – Whenever you’re ready, here are 4 other ways we can help:
- Seller FAQ: Answers to the questions sellers are asking. From practice value, to timing, we’ve got you covered.
- Strategic Guide to Selling your CPA Practice Video: The how-to of selling a CPA firm.
- Accounting Practice Academy: If you’re looking for benchmarks, our 8-week workshop has a community of established firm owners that will help you get perspective, reduce your owner hours, and raise your bottom line. email firstname.lastname@example.org with “APA” and we will fill you in on the details.
- If you want to chat about your exit strategy, email email@example.com with “strategy call” or request a call here.