Using KPI’s For Your Pasadena, TX Business

by | Jun 30, 2020 | Blog

Scattershotting around the world of SBA loans and taxes here before the huge deadlines looming on July 15th.

(As a reminder: 2019 personal tax returns and payments, first AND second quarter 2020 estimated tax payments are ALL due on Wednesday, July 15th.)

We’re working with all of our Pasadena, TX business owner clients to dot every i and cross every t to make sure we are utilizing every opportunity for relief, deduction, and credit possible for their businesses, and for their personal taxes.

But on that front, some interesting PPP things to note:

* The SBA is expected to release business and nonprofit NAMES, addresses, North American Industry Classification System (NAICS) codes, ZIP codes, business type, demographic data, not-for-profit information, jobs supported, and loan amount ranges of every business that received a PPP loan over $150K. Be prepared for this, as it is expected to come this week.

* There is a bill proposed that would allow smaller businesses to apply for a SECOND PPP loan (but only if you ran out of funds with the first, plus some other conditions). This is not expected to make it to signature, but anything is possible.

* The SBA also clarified some conditions in which a business can apply EARLY for PPP forgiveness.

If you need help wading through any of this, that’s what we’re here for. (832) 672-7530

And speaking further about what we’re here for, being able to reasonably forecast upcoming problems has become an essential skill for Pasadena, TX business owners in 2020 — but too many are flying blind, or doing “bank balance accounting”.

Can we help you fix this?

Using KPI’s For Your Pasadena, TX Business
“It is common sense to take a method and try it. If it fails, admit it frankly and try another. But above all, try something.” – Franklin D Roosevelt

If you measure your key metrics you can manage the performance of your Pasadena, TX business, AND you can see problems well in advance of when they might show up in revenue or profit figures.

Each and every business has key performance metrics (KPI’s), some of which are common to other businesses, some are industry-specific, and some companies create their own KPI’s.

These sort of things are our bread and butter, when working with Pasadena, TX small businesses.

Can we help?

Financial metrics are often common to all businesses. Some examples include:
* Average transaction value.
* Gross profit margin.
* A measurement of a company’s efficiency during the production process.
* How much is left over after COGS.
* Gross Profit divided by Total Revenue.
* Net profit percentage.
* The amount of profit for every $1 of revenue generated.
* Net Profit divided by Total Revenue multiplied by 100.
* Debtor days or receivable turn days.
* How long your customers take to pay you. (The sooner your customers pay, the sooner you can get that cash working for you.)
* 365 (days in the year) divided by (Sales on credit or invoice divided by Average Accounts Receivable).

More industry-specific KPI’s might include:
* Table turns per night.
The number of times a restaurant is able to sit customers at a table.
* Utilization.
The number of hours a machine in the production line can run.
* Rejection rate.
The number of defects rejected in an assembly line.

Non-industry-specific KPI’s might include:
* Customers won/lost.
* Customer complaints/product returns.
* Staff sick days.

You must absolutely integrate the RIGHT measurements to get proper insight on your business’ performance.

I hope this gets your juices flowing. Many of these financial indicators are things that WE can help you to implement … if you let us.

And I’m grateful for our partnership, and for your referrals.

Warmly,

Brandon Jordan

(832) 672-7530

Sandra Tapia, CPA, PLLC

 

Feel free to forward this article to a business associate or client you know who could benefit from our assistance. While these particular articles usually relate to business strategy, as you know, we specialize in tax preparation and planning for families and business owners.

Let Us Help:

NEW STRATEGY FOR YOUR FINANCES

Ending Customer Relationships for Growth in Your Pasadena Business

Ending Customer Relationships for Growth in Your Pasadena Business

With the way that the economy is going, inflation, the market gyrations, etc ... ANY business seems like good business.Until it isn't.Consider ...Have you ever been in a Pasadena store when a customer starts yelling at the employee behind the counter for something...

Why Your Pasadena Business Needs Cyber Insurance

Why Your Pasadena Business Needs Cyber Insurance

In today’s online-driven world, it’s no surprise that securing sensitive information is essential. Just like you cover your Pasadena business for other possible risks (property damage, theft, injury, etc.) so should you also be thinking of how to keep your business...

The Hiring Tips Your Pasadena Business Needs

The Hiring Tips Your Pasadena Business Needs

It seems like everywhere SMBs and retailers are short-staffed (and hiring). At the same time, with high inflation plaguing the country, other businesses are in the middle of layoffs.It seems as if these two realities would meet together, and establish an economic...

All About the SSBCI for Pasadena Business Owners

All About the SSBCI for Pasadena Business Owners

Fill in the blank: It takes a village to ______.While you’re probably thinking of child-rearing right now, I’d like to suggest that it applies to your Pasadena small business as well. And particularly during inflationary times. The 2020 world made it painfully obvious...