What does benchmarking mean for your business?

A benchmark is a reference point used to compare performance results and establish company goals and benchmarking is the method of comparing performance results and business practices among competitors in order to constantly improve your business.  

The ATO has provided a benchmarking tool for businesses to use as a comparison for their performance. Identifying which industry you belong to is the first step, as each industry has a different benchmark. The government has provided access to benchmarking to encourage businesses to conduct annual health checkups of their operations, assess any discrepancies that may cause the business to be audited, and also notify the ATO about businesses that fall far outside the benchmark. 

What are the Types of Benchmarks for Small Businesses?

 1. Performance benchmark range

In conducting a performance benchmark, you may be able to compare your operation’s performance to that of others by using various financial ranges that the ATO has provided for your industry. The following are some good ones to start with: 

2. Key benchmark range

The key benchmark range differs for each industry, and according to the government, if your results fall outside your industry range, there might be some areas that need improvement. Visit this link to see what your industry’s key benchmark range is.  

You can book a Star Business Consultation to get a detailed explanation of your benchmarking results and personalised solution in line with your business vision.