Quickbooks Online has released a new feature available to all users called the performance center. It tracks the company’s performance and has two unique graphs that compare your firm to your peers using industry benchmarks. The performance center can be found in Reports > Performance Center. After you set your industry in the performance center, QuickBooks will aggregate data from at least 30 similar businesses in a similar location and revenue range to use as an industry benchmark. The benchmark is updated every month and the graphs are called the:
- Net Profit vs Industry Benchmarks
- Gross Profit Margin vs Industry Benchmarks
The performance center also tracks the current progress of your company with several easy to access and easy to display charts. It houses eight additional reports that cover various aspects of your business’ performance including an Accounts Receivable and an Accounts Payable by Aging graphs as well as reports that compare the current year versus the last year over the specified period for:
- Expenses
- Revenue
- Gross Profit
- Net Profit
- Current Ratio
- Quick Ratio
If you would like to customize or create your own graphs, you can add up to 25 by adding a new chart and customizing it to your liking. Hover over the graph bars or lines to display more detailed information.
Why should this matter to your business?
Business owners make sound decisions based on the data and financial reports produced by their accounting software. They compare the current period to another, this year to a prior year, or a company’s performance over a period of several years. With the performance center, now you can compare your business to a similar group of companies in the same industry and of similar size. With only a couple of clicks, these reports are automatically generated in one location and summarize your data by displaying various financial metrics of your organization with easy to read charts. Access to the Quickbooks Online performance center is one more valuable tool to help you review your company’s financial position and plan for a successful future.
Should you have any questions or want additional information, give Felsing LLC a call at 407-412-9299 or by email at info@felsingcpa.com.
