Strategic KPI’s for Manufacturing Growth - Financials
There are thousands of facets of your manufacturing business that can be monitored and adjusted to drive improvement and grow success. It can be overwhelming to keep track of every metric - work smarter by focusing on the crucial components that will grow your business strategically.
In this 4 part series of blog posts we will be highlighting the Key Performance Indicators that successful manufacturers use to grow their business strategically. First up, financials.
Financial KPI’s for Manufacturers
Revenue:
Revenue is your total income from the sales of your products and services. It can fluctuate seasonally and new revenue can be hard to predict. It is important to see how your revenue measures up to your sales targets and predictions. New and recurring revenue should be measured separately.
Expense:
Expenses should be categorized and monitored separately as direct variable costs such as materials and labor impact cost of goods sold and fluctuate with sales. Conversely, overhead costs like rent and equipment are indirect fixed costs independent of sales or production volume. You may also want to breakout non-manufacturing costs such as marketing, sales, consulting, and other expenses
Cash Flow:
Cash flow is vital for manufacturers who often purchase materials months before actual customer demand. Operating Cash Flow metrics are dependent on accurate net income calculations, non-cash expenses, and working capital analysis.
Acumatica ERP’s Manufacturing Solution is fully integrated with distribution, accounting and CRM putting all your KPI’s at your fingertips with anywhere anytime access.
Take a deeper dive…
Dive into Acumatica’s eBook Manufacturing Metrics That Really Matter for more information about strategic manufacturing KPI’s and metrics.
Implement Acumatica ERP with Hudson River Computing to optimize your business operations and grow your success.
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