Focus on quantitative data
Money acts as the language of accounting, allowing business transactions to be measured, compared and added together. This means that accounts focus on items that can be given a financial value. Yet a successful business depends a lot more than the price paid for property and equipment, or the size of its outstanding debt eg. a business having good customer service, a good culture and high ethical standards.
Using profit as a performance indicator
Profit is generally regarded as one of the most important indicators of performance. Yet the long-term success of a business may depend on a firm's willingness to sacrifice profits, in the short-term at least. It may be useful, therefore, to also consider other indicators, such as growth in revenue and market share or investment in research and development and new product success.
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