3 examples of Financial Efficiency metrics and KPIs
What are Financial Efficiency metrics?
Identifying the optimal Financial Efficiency metrics can be challenging, especially when everyday tasks consume your time. To help you, we've assembled a list of examples to ignite your creativity.
Copy these examples into your preferred app, or you can also use Tability to keep yourself accountable.
Find Financial Efficiency metrics with AI
While we have some examples available, it's likely that you'll have specific scenarios that aren't covered here. You can use our free AI metrics generator below to generate your own strategies.
Operating profit margin is calculated as the percentage of earnings before interest and taxes (EBIT) over total revenue. It measures the efficiency of the clinic in managing its operations and costs relative to its revenue.
What good looks like for this metric: Typical benchmark values range from 10% to 15%
Ideas to improve this metric
Increase service efficiency to reduce costs
Negotiate better terms with suppliers
Optimise staff scheduling to avoid overtime
Enhance service pricing based on value provided
Minimise administrative expenses
2. Revenue Growth Rate
The rate at which the clinic's revenue is increasing over a specific period. This shows how well the clinic is performing in expanding its client base and/or increasing service fees.
What good looks like for this metric: Healthy growth rates are typically between 5% to 10% annually
Ideas to improve this metric
Enhance marketing strategies to attract more clients
Extend service offerings to meet client demand
Improve client retention through excellent service
Pursue partnerships with schools or local health services
Offer promotions or discounts for referrals
3. Financial Close Accuracy
Measures the precision of financial statements in reflecting the clinic's financial status, essential for decision making and regulatory compliance.
What good looks like for this metric: Strive for at least 99% accuracy
Ideas to improve this metric
Implement robust accounting software
Regularly train staff on accounting standards
Conduct periodic audits
Maintain updated documentation for all transactions
Streamline processes for financial data collection
4. Time to Close Financials
The duration needed to finalise the clinic's financial statements each month or quarter. Efficient close time helps in timely management decisions.
What good looks like for this metric: Best-in-class companies aim for 5 days or less
Ideas to improve this metric
Standardise closing processes
Automate data entry and reconciliation tasks
Allocate clear responsibilities to the finance team
Prepare preliminary reports before closing period
Conduct regular process review meetings
5. Resource Utilisation
Assesses the degree to which the clinic's resources, including staff and materials, are effectively used to reach financial goals.
What good looks like for this metric: Target above 85% resource utilisation
Ideas to improve this metric
Regularly assess and adjust resource allocations
Cross-train staff to manage workload fluctuations
Monitor resource usage through management software
Set clear KPIs for each department
Implement a lean management approach to minimise waste
Having a plan is one thing, sticking to it is another.
Don't fall into the set-and-forget trap. It is important to adopt a weekly check-in process to keep your strategy agile – otherwise this is nothing more than a reporting exercise.
A tool like Tability can also help you by combining AI and goal-setting to keep you on track.
Tability's check-ins will save you hours and increase transparency
The best metrics for ABA Therapy Clinic KPIs