8 KPIs That Belong on Your Company’s Scorecard
Management expert Peter Drucker is widely credited with the phrase, “If you can’t measure it, you can’t improve it.” The statement holds true today, where organisations rely on key performance indicators (KPIs) to assess performance, refine strategy, and identify areas that need attention.
KPIs allow businesses to compare performance against goals, track trends in real time, and pivot quickly; rather than waiting for month-end or quarterly reporting to highlight an issue. They can be financial (profit margins, cash flow), customer-focused (retention, satisfaction), or operational (process efficiency, utilisation rates). Strategic KPIs measure organisation-wide progress, while functional KPIs focus on specific departments or teams.
ERP systems generate vast amounts of useful data, but not all platforms make it easy to interpret and act on that information. NetSuite stands out by offering powerful dashboards, built-in KPIs, and customised scorecards that support real-time decision-making across the business.
NetSuite Puts KPI Visibility in Your Hands
In today’s economic environment, organisations need to track performance more closely than ever – especially where cash flow, profitability, and efficiency are concerned. NetSuite provides business leaders with on-demand access to financial and operational metrics, from any device.
With NetSuite, leaders can:
- View real-time balance sheets, profit and loss (P&L) statements, and cash flow
- Monitor KPIs from mobile devices
- Track days sales outstanding (DSO)
- Review supplier payment timeliness
These insights are available out of the box, with no need for complex customisations or additional integrations.
8 KPIs for Your Balanced Scorecard
1. Debtors to Sales
This KPI shows how efficiently your organisation collects payments. Calculated by dividing total accounts receivable by total sales revenue, a high ratio may indicate delayed payments and cash-flow challenges.
2. Average Debtor Days
This measures how many days, on average, customers take to pay invoices. It is an early indicator of potential bad debt and helps businesses spot cash-flow risks.
3. Net Margin Percentage (Profitability)
This KPI shows gross margin after overheads: your pre-tax profit. It is a key indicator of overall financial health and long-term sustainability.
4. Capacity Utilisation (Operating Rate)
Capacity utilisation measures how effectively your organisation uses its available resources. Calculated as actual output divided by potential output, it is especially important in professional services, where CFOs keep a close eye on their organisations’ high-level utilisation rates.
5. Staff Turnover
Staff turnover reflects retention levels and workplace stability. It’s a critical KPI because it affects productivity, morale, recruitment costs, and overall business continuity. High turnover can disrupt workflows, increase onboarding expenses, and erode organisational knowledge. Turnover levels can reveal issues such as workload pressures, inadequate training, or cultural misalignment.
By monitoring turnover consistently, organisations can strengthen employee engagement, improve retention strategies, and support long-term operational stability.
6. Inventory Turnover Rate
This metric shows how often stock is sold and replaced. Low turnover may indicate overstocking or slow-moving products. You can calculate your inventory turnover rate by dividing your cost of goods sold by your average inventory.
7. Days on Hand (DOH).
Also known as days sales of inventory (DSI), this KPI measures how many days it takes to sell existing inventory. Lower DOH indicates efficient inventory management. You can determine your current DOH by taking the average inventory for period, dividing by the cost of sales for period and then multiplying that number by 365.
8. Customer Acquisition Cost (CAC).
CAC measures the total sales and marketing cost needed to acquire a new customer. It helps organisations assess the efficiency of their go-to-market strategy. Calculate this KPI by adding the cost of converting prospects into customers (e.g. all of the marketing, sales and advertising efforts that went into it) and dividing the sum by the total number of customers you acquired during a specific period of time.
Turning ERP Data into Decisions with NetSuite
In a fast-moving business environment, real-time insight is essential for confident decision-making. By tracking the right KPIs and leveraging NetSuite’s built-in dashboards and reporting tools, organisations can transform raw ERP data into meaningful intelligence that drives performance, efficiency, and growth.
If you’re looking to strengthen your scorecard, refine your reporting, or unlock more value from your NetSuite environment, SANSA can help. Our consultants work with organisations to optimise their systems, enhance visibility, and build data-driven processes that support long-term success.
Contact SANSA to discuss how we can support your goals, or explore our services and client work to see how we help businesses get more from NetSuite.