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!
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