By Guest blogger, Dominique Molina

As you know, the success of your tax business depends on taking readings and pulse points throughout the life cycle of your business. This can be much like a doctor takes your vital stats every time you go to a visit; “What’s your heart rate? What’s your blood pressure?” They do it every single time because they’re trying to get some basic statistics. Whether you’re in the growth phase or the reinvention phase of your business you need to create a tax business health checklist to routinely check the vital stats of your business.

One way to easily accomplish this is by creating a business dashboard. The benefits of implementing a dashboard in your business is that it gives you visibility. You can see where you are going. And if you can create this in a systematized, leveraged way, you can have this information at a moment’s notice, still meet your deadlines and tight client commitments; yet still take an active role in navigating your business. This is especially important during tax season when you just don’t have the time to spend on your own financial analysis.

Here are my recommendations for a few key financial indicators to keep track of on your business dashboard:

  • New Revenues from New Business – This is instrumental for tracking your own rate of growth. Are you on target within your business plan?
  • Client Retention Rate – Tracking the number of retained clients might be important enough to you to make your short list on your business dashboard. Your client attrition rate is a way to measure the effectiveness of your business plan. And once you know, you can adjust your strategies for improvement.
  • Profit Margin: Does your actual performance stack up to your business plan? Measuring this is the only way to know.

When this information is on your dashboard available at your fingertips you have what you need to make quick decisions to drive your business into the future.

Dominique Molina is President of the CertifiedTaxCoach.org, a professional organization that helps tax professionals deliver thousands in tax savings to their clients. Dominique has compiled many resources for members including a tax-specific engagement letter, multiple accounting templates that help expedite routine tasks, and powerful accounting marketing guides.

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