Financial Monitoring: Your Performance Metrics

07/28/2016 04:20 to watch
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Get in the habit of producing good financial reports every single month. But you need more than just standard financial reports. You need a Management Dashboard that monitors critical metrics that may not pop out of your accounting reports. These monthly reports are a learning opportunity: What did we think would happen? What actually happened? Why was there a difference? Are we on track to hit our key milestones?

Suggested Readings

Founders School || The Art of Startup Finance || Financial Monitoring: Your Performance Metrics || Impact Guide (PDF).

Berman, Karen and Joe Knight. 2008. Financial Intelligence for Entrepreneurs: What You Really Need to Know About the Numbers. Harvard Business Press.

Questions for You

What did we think would happen last month? What actually happened? Why was there a difference?

Can we tell if we are on track to hit our critical milestones?

Is the team set up to succeed?

Are we measuring and monitoring the right things?

What adjustments do we need to make to get on track?

Questions for Your Team

What did we think would happen last month? What actually happened? Why was there a difference?

Are we on track to hit our critical milestones?

How do we make sure we get on track?

Does each group within the company have its own dashboard of critical performance indicators?

Tools and Exercises

Put together a Management Dashboard with 12 to 15 key performance indicators that tell you whether or not you are on track.

Create a monthly financial report. Every month.

Have each group in the company identify five to ten key performance indicators for their activities and milestones.

Review your Dashboard each quarter to make sure you are measuring and monitoring the right things.

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