We all know that good bookkeeping practices and organized financial records are an asset come tax time, but in general, bookkeeping serves an even more important purpose… benchmarking.
What is Benchmarking?
Benchmarking is the evaluation of something by comparison to a standard. When evaluating business processes and performance, one would likely use industry standards or a competitor’s practices as a point of comparison.
What is the Bookkeeping/Benchmarking Connection?
You likely have certain production or performance goals for your company. Analyzing how you "measure up" to those those goals (benchmarking) starts with data (from your own books). This can be compared to competitors or an industry standard. Over the years (as you accumulate more data) you will be better able to track progress and milestones that are crucial to goal achievement.
Reach your small business goals with benchmarking! Email David@DEKEbookkeeping.com to learn more.