Leading Accountant And CPA Pauline Ho Explains Critical KPIs Every CFO Should Track – Orlando, FL

Top accountant Pauline Ho founder of Laus Consulting Services LLC in Orlando, FL, emphasizes the importance of tracking key performance indicators (KPIs) to assess a company’s financial health and operational efficiency. For more information please visit https://lausconsult.com

Orlando, Florida, United States, March 31, 2025 — Running a company is no small feat, but tracking the right key performance indicators (KPIs) can make a CFO’s job significantly easier, says Pauline Ho, senior corporate accountant and founder of Laus Consulting Services LLC in Orlando, FL.

For more information please visit https://lausconsult.com/

KPIs provide invaluable insights into business performance, helping organizations align their operations with strategic objectives. According to Ho, CFOs should monitor at least 20 essential KPIs to fully understand a company’s financial health, operational efficiency, and potential growth opportunities.

One key metric is the revenue growth rate, which is crucial for assessing the effectiveness of a company’s business strategies and market positioning. “Revenue growth rates highlight how a business is performing relative to its competition and indicate future profitability,” Ho explained.

Another vital KPI is the gross profit margin, which helps CFOs gauge the overall health of a business and make informed decisions on product pricing and operational efficiency.

Ho also emphasized the importance of metrics like net profit margin and EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). “EBITDA is a critical measure of a company’s profitability before considering external factors. It gives a clearer view of financial health,” she said.

Return on Investment (ROI) and operating profit margin are equally significant. ROI measures efficiency and profitability while operating profit margin demonstrates how effectively a company’s management is performing.

Additional KPIs highlighted by Ho include the contribution margin, customer acquisition cost, and customer lifetime value, which are essential for evaluating client relationships and overall customer experience.

“Budget variance and cash flow efficiency are also critical,” she noted. “These metrics help assess liquidity and the speed at which cash is converted to increase available funds.”

Ho underscored the importance of tracking operating cash flow, free cash flow, and accounts payable turnover, which measure how quickly a company pays its suppliers. Another essential KPI is accounts receivable turnover, which indicates how often a company collects its outstanding invoices.

Other key metrics include the working capital ratio, days-to-close (which measures the effectiveness of the financial closing process), and the debt-to-equity ratio. ‘’The latter is especially important for determining whether a business’s liabilities are manageable relative to its equity, helping avoid financial strain’’, said Ho. 

Ho concluded: “By monitoring these KPIs, CFOs gain a comprehensive understanding of their organization’s performance. These metrics are vital tools for strategic decision-making and long-term planning, offering insights that drive growth and stability.”

For CFOs looking to strengthen their company’s financial position, Ho’s advice is clear: keep a close eye on these essential metrics to navigate challenges and seize opportunities with confidence.

Source: http://RecommendedExperts.biz

Contact Info:
Name: Pauline Ho
Email: Send Email
Organization: Laus Consulting Services LLC
Address: 879 Outer Rd B, Orlando, FL 32814
Phone: 407-401-9768
Website: https://lausconsult.com

Release ID: 89156287

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