Business Benchmarks and how they can help you
Have you ever asked yourself the questions, I wonder how my business is doing compared to other in my industry?
Now there is somewhere that you can go to find out the answers to this very question.
The Australian Taxation office releases information highlighting performance benchmarks for hundreds of different industries. These records are complied from tax returns and activity statements that are lodged with the ATO and released free of charge to the public. The records are also updated regularly so you can look at the data with confidence knowing it is current and in line with others.
The number of industries covered really does need to be seen to be believed and they are broken down to such incredible detail so there is every chance that you will be able to find just what your looking for.
Most reports are broken down by turnover size- Small, medium and Large sized businesses in that industry. From here ratio’s are given about a business costs of goods, or rental expences etc.
Below are the benchmark’s taken from the pest control industry. One could assume that costs of sales fell outside the range given, either you are paying too much for your goods or you are not charging enough and take the appropriate actions.
|
Benchmark ratio |
Annual turnover range |
||
|
Income tax return |
$50,000 - $150,000 |
$150,000 - $400,000 |
More than $400,000 |
|
Cost of sales/turnover |
9% - 15% |
10% - 16% |
11% - 19% |
|
Labour/turnover |
8% - 30% |
15% - 28% |
25% - 37% |
|
Motor vehicle expense/turnover |
8% - 11% |
6% - 8% |
4% - 6% |
With many businesses compiling their financial information for the end of the financial year, it could be the ideal time to see how your performing compared to others.
For more information, or to see how you compare to other in your industry go to https://www.ato.gov.au/Business/Small-business-benchmarks/In-detail/
