KPIs and Benchmarking - what are they all about?

Paul Martin • April 8, 2015

Businesses often ask us about KPI's and benchmarking and want to know more about them. So what exactly do these terms mean and how can using them help your business?

Key Performance IndicatorsKPIs - Key Performance Indicators are pieces of measurable data that breakdown aspects of the operational side of your business in order to measure your progress. These include:

1. Data surrounding how many staff you have and how 'productive' they are in terms of selling goods or services

2. How many clients or customers you have and how much each of these spends with you

3. Data surrounding cashflow and the collection of bad debts or even debts you may have to 'write off'

4. Revenue generated by the different goods and services you offer

Benchmarking is vital when establishing the performance of your business. Benchmarking compares your important KPIs to those of businesses with similar operations. You can then ask yourself:

1. Are your operating costs as low as similar businesses?

2. Is your debtor management plan working as effectively as those of your competitors?

3. Is your staff productivity comparable?

Benchmarking can provide the not so obvious solutions to a number of small margins which in turn, when tweaked, may dramatically improve your bottom line.

Paul Martin Chartered Accountant Limited can assist you with setting KPIs and benchmarking your business.  Contact Us to find out more.

Renting out your bach? Beware of tax traps that could cost you.

By Paul Martin • November 24, 2025
As the summer holiday period approaches, many people with baches or holiday homes may be considering renting them out to generate an additional income stream. However, renting out a holiday home is not as straightforward as you may think. There are a number of tax rules which need to be carefully considered.

Are you heading away for a break from the business these holidays?

By Paul Martin • November 23, 2025
This time of year can be hard on small business, including sole traders. Your expenses continue and your cashflow can suffer when your debtors go on holiday.

Protecting you and your business: using trusts

By Paul Martin • November 11, 2025
Have you ever wondered about the best ways to protect you and your business? In this series, we’ll look at the keyways to use trusts, insurance and risk-management techniques to protect both your personal assets and the future of your business. In this article, we’ll look at how you can use a trust to shelter your assets.
More Posts