Saturday, 23 April 2016

Good KPIs for accounting of web development startup?

 

I have been working on the KPIs for our accounting sheet of our web development startup. We are not doing products (LTV or CAC and other SaaS metrics are not really a fit I believe), we are selling services (development, consulting, etc.).

I am currently including a few basic monthly KPIs:

  • Operating Income
  • Net Profit
  • Net Income (Loss)
  • Cumulative Net Income (Loss)
  • Opening bank account
  • Closing bank account
  • Direct costs
  • Indirect costs
  • Overhead rate
  • Overhead cost
  • Net profit

I am also adding a few more KPIs in our global dashboard (mostly based on yearly values):

  • Sales targets
  • Average Monthly Gross burn
  • Average Monthly Net burn
  • Runway with current Bank account amount and Average Yearly Total Operating Expenses

A few questions on it:

  • Any other KPIs you would see being important to track?
  • I would like to define recruitment budget, any way to derive it from my numbers? I currently make an assumption on how I see the teams of the different departments grow, take our average salary and define my budget from there.
  • How could I define a budget for expansion?
  • How could I compare these to the industry? I would presume ratio would be a good thing to compare (like Overhead rate).
  • Any resources you could point me to for accounting of a IT service startup? Most of what I found for IT startups is geared towards product companies.

I am trying to get through things, it is however a bit overwhelming and I do not find so far compelling material for IT services startups. Thanks in advance for any help!

And if you would like to start making money online, we have a special system for you. Click here to access

No comments:
Write comments