Carmel, Ind. (August 24, 2016) − INSIDE Public Accounting’s (IPA’s) annual Best of the Best recognition honors 50 CPA firms across the country for their overall superior financial and operational performance on more than 70 IPA criteria. The right combination of planning, strategy and execution distinguish Best of the Best firms from among more than 540 firms that participated in IPA’s 26th Annual Survey and Analysis of Firms.
IPA considers a wide variety of metrics to evaluate who is a Best of the Best firm, including metrics that measure growth, profitability, income, productivity, accountability, turnover, professional development and governance.
IPA has also named 10 firms under $5 million in net revenue for the Best of the Best Under $5 Million. Unlike their large-firm counterparts, these firms earned this distinction with fewer resources to deliver top-notch client service, sought-after benefits and professional development across the firm – hallmarks of the Best of the Best.
New this year, IPA has named five Best of the Best firms from Canada. These firms, similar to U.S. accounting firms, have produced excellent financial results without compromising on training their professionals, planning far ahead and nurturing a culture where everyone – staff and clients alike – can succeed.
The IPA Best of the Best firms come in all sizes – from 26 employees to 2,400 – and are geographically dispersed across the U.S. and Canada.
“Best of the Best firms are financially successful, but that’s only part of what makes them exceptional,” says Michael Platt, principal of the Platt Group and publisher of the accounting trade publication, INSIDE Public Accounting. “Best of the Best firms are built on a strong foundation that consider the needs of staff, owners and clients as the three key constituencies of any successful business. They are not content to stand still. They plan ahead for the future of the firm and they anticipate the needs of their clients.”
Kelly Platt, publisher of INSIDE Public Accounting, says firm leaders who are looking to improve can look to the results produced by the Best of the Best. “Best of the Best firms show that discipline, planning and a systematic approach to improvement can result in measurable progress toward their goals. In a rapidly changing business environment, Best of the Best firms thrive.”
A full list of the 2016 IPA Best of the Best firms, including the Under $5 Million category and, new this year, Best of the Best in Canada can be found at: http://insidepublicaccounting.com/newsletters/ipa-best-of-the-best/
By Robert W. Parker (October 2015) Ingram's Magazine
KPIs aren’t just for big businesses; using them can improve profitability anywhere.
Key Performance Indicators are measurements that can help you monitor the financial health of your business. When tracked consistently, KPIs help you make important decisions that affect your daily operations, growth and profitability.
A quick Google search reveals hundreds of KPIs, so your first task is to determine which ones are “key” to your business. Start by looking at your business goals and choosing KPIs that measure those goals specifically. Next, determine a target (such as current industry ratios) for each KPI and track your results against that target. This will help you monitor your performance and assess which areas of your business need the most attention.
Here are a few KPIs that are applicable to most industries:
For companies having issues with cash flow or collections, tracking this ratio over time will show whether sales are quickly being turned into cash. If receivables are not collected in a reasonable amount of time, cash flow will suffer. Used in conjunction with a receivables-aging schedule, the receivables turnover ratio will draw attention to overdue accounts that should be a priority for collection.
Using the same idea as receivables turnover, this ratio measures how long inventory is sitting on shelves before being sold. Ideally, inven-tory sits for a short amount of time before customers buy it. This ratio varies significantly across different industries, so be sure to use your own industry’s statistics with this KPI. If the turnover rate is significantly lower than the industry average, you may have too much invested in inventory.
Net Profit Margin:
This simple metric, when tracked consistently, can indicate sales trends throughout the year. If you only track net profit margin yearly or quarterly, you might be overlooking shorter seasonality trends that could be helpful with future forecasting and budgeting. Tracking this metric on a monthly or weekly basis can more clearly illuminate important trends.
Click HERE to read about more Key Performance Indicator's for your business.