Introduction to Benchmarking

An easy way to get the upper hand in accounting is to arm yourself with tools that facilitate benchmarking. For context, benchmarking is centred around comparing the health of your clients’ financials against industry standards and peers.

So that’s the purpose of this article; we’ll explore how advanced financial software can help advisors effectively benchmark their clients, and how Pulse’s services can assist in this process.

How Pulse Assists in the Benchmarking Process

Our dashboards are designed to provide a comprehensive overview of your clients’ financial performance. This is done with the help of Open Banking and Open Accounting facilities, where users can link their bank accounts and accounting packages, respectively, to enable seamless financial tracking from external sources.

Linking these features offers many benefits. First, manual data entry onto a separate platform is completely eliminated, as information from your active connections is updated in real-time. What’s more, having everything in a single hub reduces the likelihood of errors.

Real-Time Insights

To analyse this in greater detail, Pulse allows decision-makers and business advisors to review key financial metrics. With all your data laid out clearly, you can instantly make comparisons with figures from other sources, whether that is from another client on the dashboard or comparing it against other statistics you’ve found online.

What’s more, having real-time insights can enable timely decisions and adjustments to be made. For instance, should a client suddenly experience a spike in expenses, Pulse will ping you an alert right when it happens so you can create an action plan long before it becomes a problem.

Detailed Performance Metrics

Pulse can track a range of metrics that can help you measure vital aspects like return on investment, efficiency and profitability. These metrics will help you compare key aspects of performance against industry averages, helping advisors to identify areas where they can improve or make use of their strengths.

Customisable Reports

Every report you create can be personalised to suit the needs of each client with the help of our “Top 3” feature. When emphasising certain metrics you want your client to focus on, select them from our dashboard. Want gross margin to be at the forefront? Consider it done. If you want the turnover trend to be the core focus next month, simply swap it out with a few clicks.

Tips for Effective Benchmarking with Pulse

Align Benchmarks with Company Goals

To complete this step, you want to set realistic benchmarks based on the company’s long-term vision. Some figures you can use include retirement savings objectives and revenue growth targets. This is where the goal tracking feature comes into play; simply input the numbers you want to aim towards, and Pulse will show your real-time progress using easy-to-understand graphics.

Communicate Benchmarking Results Clearly

Present benchmarking data using Pulse’s client-facing dashboards, which provide a visual summary of financial performance. For example, use charts and graphs to illustrate how a client’s investment returns stack up against industry standards, making the data easier to understand and act upon.

Adopt Continuous Improvements

Regularly review and update benchmarks to reflect changes in market conditions and client goals. Pulse’s automated reporting features make it simple to schedule periodic reviews and ensure that your clients’ benchmarks remain relevant and actionable.

Summing Up

Pulse offers a comprehensive solution to help with financial benchmarking, with features like seamless data integration, real-time insights, customisable reports, and detailed performance metrics. These tools make it easier for you to provide valuable benchmarking insights to your clients.

Getting Started with Pulse

Getting Pulse up and running is easy. Head over here to create an account and get access to the dashboard. Begin populating the dashboard by connecting the business for which you want to get metrics (this will also require a verification process) with the use of open banking and open accounting facilities. Once everything is approved, you will be able to access all your banking and accounting data with ease. At this point, you’re in total control, and you get to customise your dashboard to focus on key areas.

Take advantage of Pulse now to be eligible for a 3-month free trial; you’ll have a friendly team on hand to guide you through the setup process, helping you get the most out of Pulse for benchmarking and integrate it smoothly into your advisory practice.