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4 More Payroll Tips to Keep in Mind
Managing payroll is painstaking and time consuming. More than the effort, the time and the complications can make your job difficult. To make payroll management a cakewalk you need the right tools. You don’t need to hire an HR firm or a full-time HR manager. You don’t need to race against time either. All you need is the ideal solution.
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Porte Brown Recognized as One of the Fastest-Growing US Firms by Accounting Today
Porte Brown is pleased to announce it has been recognized as one of the Fastest-Growing US Firms in the 2016 issue of Accounting Today’s Top 100 Firms and Regional Leaders. With a significant revenue growth rate of 23.30%, Porte Brown ranked 14th overall in the recently published fastest-growing list. More than 400 firms participate in the annual survey process, which ranks U.S.-based firms by their net revenue (Y/E 2015).
Read More »What Small Businesses Need To Know About Payroll Taxes
For all types of small businesses, payroll tax is a subject worth taking seriously. It is entirely possible that letting these taxes pile up can cause you to lose your business. In certain cases, it can actually cause you to lose your freedom as well. Severe penalties for those who don’t pay their taxes has now become the norm.
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Porte Brown Names New Partners: Adamczyk & Thompson
Porte Brown LLC announces that Derek Adamczyk, CPA and Gerry Thompson, CPA have been admitted as Partner. Adamczyk is part of Porte Brown’s accounting and consulting services team. He has more than 13 years of experience providing tax consulting and accounting services for individuals and closely held businesses and is also one of the leaders of Porte Brown’s Manufacturing Practice Group. Thompson is part of Porte Brown’s accounting and consulting services team. He has more than 25 years of experience specializing in business tax and consulting services in the following industries: Manufacturing, Food & Grocery, Wholesale, Retail and Professional Services.
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KPI of the Week: Quote to Close Ratio
Quote to close is a KPI used to determine what percentage of customers a business has contact with and actually make a purchase. It is measured by dividing the actual customers or clients who made a purchase by the number of prospects contacted or to the number of potential customers who visited the business. If the business talked to 100 prospects in a month and 12 of those prospects made a purchase, then the quote to close ratio would be 12%.
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KPI of the Week: Customer Profitability
Customer profitability is a KPI used to determine the profitability each customer or customer group provides to the company over a specified period of time. It is calculated using the same method as determining overall profit. It is the difference between the revenues earned from the customer or customer group and the costs for that customer or customer group. While revenues by customer are usually easy to obtain, calculating the total cost incurred for those revenues are usually more complex. It is important to select methods that best represent the complete costs and fairly divide shared costs between all customers the cost is attributed.
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KPI of the Week: Cash Flow Coverage Ratio
Cash Flow Coverage Ratio is a KPI used to measure the number of times the financial obligations of a company are covered by its earnings. It is calculated by dividing operating cash flows by total current debt. Operating cash flows can be found in the statement of cash flows. Using the direct method, the operating cash flows can be ascertained by taking into account cash inflows and outflows that are directly related to the operations of the company. This includes cash receipts from customers, cash paid to suppliers and employees, interest paid, and income taxes paid as related to operations.
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KPI of the Week: Inventory Shrinkage Rate
Inventory Shrinkage Rate is a KPI used to measure the rate at which the value of inventory has been reduced due to loss, theft, or inaccurate record keeping. It is calculated by subtracting the value of the inventory from the expected value of the inventory and then dividing this difference by the expected value of the inventory. The value of the inventory is the value of the inventory after a physical count was obtained. The expected value of the inventory is the amount the inventory was recorded prior to any adjustments due to the physical inventory count.
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Key Performance Indicator: Capacity Utilization Rate
Capacity utilization rate is a KPI used to measure the rate at which potential output levels are being met or used. It is also known as the operating rate. It is calculated by dividing the actual output by the potential output and then multiplying by 100 to get a percentage. The potential output could be the number of units the company can actually produce in a given amount of time, or it could be the number of units at which the cost per unit increases. It is best used by companies that produce physical goods, which can be easily quantified and outputs can be expressed in units.
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KPI of the Week: Customer Churn Rate
Customer Churn Rate is a KPI used to measure customer attrition. It is calculated by dividing the number of customers who discontinue a service during a specified time period by the average total number of customers over that same time period. It provides feedback on customers’ responses to service, pricing, and competition. Plus, it provides a basis for the average length of time an individual remains a customer.
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Key Performance Indicator: Revenue Growth
Revenue Growth is a KPI used to measure how sales are increasing or decreasing over time. It is calculated by dividing revenue generated during one time period by the revenue generated during a subsequent time period, subtracting 1, and then multiplying by 100 to obtain a percentage. Generally companies calculate revenue growth year to year. Some companies track revenue growth from one month to the next, but this is only meaningful if the business is unaffected by seasonal factors. For companies that have revenue affected by seasonality, it makes sense to measure the growth rate in revenue for the month (or season) on the same month (or season) as last year.
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KPI of the Week: Perfect Order Rate
The perfect order rate is a KPI used by companies to measure how well orders are being fulfilled and shipped. It is calculated by dividing the number of orders shipped without incident divided by the number of total orders shipped during the same time period. The company must first define what constitutes an incident. Most companies include as incidents: damaged goods, inaccurate orders, and late shipments. An order containing any of these incidents would not be counted toward the orders shipped without incident.
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KPI of the Week: Utilization Percentage
A KPI for Service Organizations — The utilization percentage is a KPI used by service industry organizations to measure how many hours each person is spending of available work time on client time. It is calculated by dividing the number of billable time by the number of hours available to be worked. As a standard, the number of hours available to be worked will be number of days times 8 hours. Thus, a standard denominator for a year is 2,080 (52 weeks X 5 days X 8 hours).
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The Importance of Cash Flow
Cash Flow is the lifeblood of every business. You can have all the ‘Profit’ in the world but if you don’t have any Cash Flow it can be as inhibitive to your business as having no profit. Lack of Cash Flow can prevent you from purchasing items for sale at discounts, prevent you from purchasing needed Plant, Delivery or Office Equipment that is necessary for running your business. It can also prohibit you from seeking opportunities to grow your business. Throughout your software are tools to assist you with keeping up with your Cash Flow.
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KPI of the Week: Program Efficiency Ratio
A KPI for Not-for-Profit Organizations — The program efficiency ratio is a KPI used by not-for-profit organizations to measure how much an organization is spending on its primary mission rather than administrative costs. It is calculated by dividing an organization’s program service expenses by its total expenses. The organization’s program service expenses would be money directly spent to further the not-for-profit organization’s mission.
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