The road to top performance involves adopting best practices that combine business intelligence, business coaching and business system process. VITAL MGMT has identified 20 elements to achieve world-class performance. The first five of these are achievable just with the bi4ci service. Items 6-9 provide a basis for comparing companies on an apple-to-apple basis like never before. Follow this prescription and get to 20% normalized op profit, increased bandwidth and true wealth in your business.
Adopt the Bi4Ci Chart of Accounts (literal use)
Keep posting and updates fresh within a week minimum; work toward daily updating
Keep accurate payroll census records
Use Bi4Ci dashboards to help set priorities and take action in the business.
Close each month within 5 business day of calendar close
Treat inventory as an asset; track delivery to projects
Treat client deposits as a liability; keep cash separate from project billing
Do project billing based on delivery of Equipment, parts and Labor
Recognize revenue on a production (delivery) basis
Use our standard reports to run weekly meetings and assess the business’s performance
Track what you owe (work pre-paid) and what they owe (money due to you)
Track project type at inceptions (A, B, C, D)
Conform to Brand and Model scheme in QB
Adopt VITAL’s standard categories for reporting purposes
Conduct regular post-mortem team meetings on each project over 16 hours in Labor; learn, document, make changes
Develop an annual financial plan to test monthly results against and make corrections
Treat non-operating revenue and expenses extra-ordinary adjustments in special accounts
Accrue when possible for significant within the year expenses (bonuses, tax liabilities, etc.)
Adopt GAAP and get your numbers audited annually (After $2M in Revenue)
Accumulate cash and keep adequate equity in the business to preserve the health of the business
Share on Facebook
Share on Twitter
I'm busy working on my blog posts. Watch this space!