Our financial benchmarking services are one of our most valuable CFO offerings. We utilize internal information and respected industry resources to perform a complete financial analysis of your company to evaluate your current results against those of your competitors.

Using financial benchmarking, we are able to accurately measure your company’s overall efficiency and productivity, identify opportunities for improvement and accurately quantify performance targets.

Because we use proven results to evaluate each business, our findings and recommendations are completely objective. This insight provides the motivation and rationale for key management decisions.

Our primary client goals relating to Financial Benchmarking include:

• Identifying Key Performance Indicators (KPIs)
• Analyzing Internal KPIs Using Industry Averages
• Assessing Business Strategies

Identify Industry KPI Targets

We identify and select key financial variables related to income, expenses, production, etc. based on the individual industry and stage of each client.

Common indicators include:

• AP and AR – Average Time Aging
• Gross and Net Profit Margins vs. Industry
• Employee Billing Efficiency and Utilization
• Per Employee Costs vs. Industry Average
• Inventory Aging

Once we’ve established the proper key performance indicators to measure, our CFO consultants work with both internal metrics and respected financial reporting agencies to research and quantify results.

Compare Business vs. Industry KPIs

Once we’ve identified industry KPIs and targets, we develop internal reporting to support ongoing industry comparison and opportunities for measurable improvement.

Our approach generally includes:

• Developing and introducing internal reporting strategies to track identified KPIs
• Performing comparative analysis of internal financials vs. KPI targets
• Identifying leverage points
• Developing and introducing best practices

The key to the success of our financial benchmarking is the ongoing evaluation and adjustment of operational procedures based on the data.

Evaluate Business Performance

Because the targets you set ultimately set the trajectory for your business, financial benchmarking is key.

• Lower labor costs: evaluate compensation and productivity in a more realistic and effective manner
• Increase sales: identify realistic marketing targets
• Improve quality: study the competitive elements of products and services

Most small to medium businesses lack the experience and resources to identify and quantify ideal performance factors.