Preset GAAP KPIs

Explanation

Preset Generally Accepted Accounting Practice (GAAP) KPIs are preconfigured KPIs that will track your company's GAAP Performance using your monthly data and your budget. Preset GAAP Performance KPIs give you the ability to do a deep-dive review of your performance in Sales, Cost of Goods, Cost of Goods Efficiency, Gross Margin, Total Expenses, Total Expenses Efficiency, Net Profit, Quick Ratio, and Payroll Efficiency.

Each of Sales, Cost of Goods, Gross Margin, Total Expenses, and Net Profit track your performance in these categories against your configured budget.

For Quick Ratio and Payroll Efficiency default targets are set, but you are able to change your goal targets by modifying the Relational Percent Change.

Cost of Goods Efficiency tracks the ratio of Cost of Goods to Sales using your budgeted Sales and Cost of Goods ratio and Total Expenses Efficiency tracks the ratio of Total Expenses to Sales.

Your Quick Ratio tracks the ratio of Cash + Accounts Receivable against your Accounts Payable + One Payroll Cycle. You want to have a high Quick Ratio percentage. By default, this ratio uses a goal of a 5% Increase from the prior year, but you can adjust your goal as you see fit.

Payroll Efficiency tracks the ratio of Monthly Payroll Costs against Sales. You want to have a low payroll to sales ratio. By default this is set to a -3% Reducing Goal but you can adjust your goal as desired.

Instructions

Preset KPIs are mostly view only. there are several options for modifying each to suit your needs. In KPI #8 and #9, you can set the goal relational percentage change by clicking in the corresponding yellow box.

For Advanced Learners

Preset GAAP KPIs are driven using your current year's budget and populated using your monthly financial data. Be sure to keep your Monthly Data up to date and have your budget configured properly.

Report Documents

For details on Printing Reports see the section on Preset and Custom KPI Printing