Benchmarking in FreeAgent
FreeAgent recently launched the Performance Benchmarking report: a new tool to help you get more insight into how your business is performing.
They're also enhancing this by allowing you to compare your business performance with other similar businesses in your industry. Let’s see how it works.
If you’ve been using FreeAgent for at least six months, the Performance Benchmarking report will show your quarterly operating profit, broken down into income and costs. If you’ve been using FreeAgent for more than a year, you’ll see a year-on-year comparison here.
This can help you spot seasonal trends in your business and pinpoint when you might expect to have busier and quieter times, or just see how things are changing over time.
Find out more in this Knowledge Base article, or see it yourself in your FreeAgent account under Accounting > Reports.
Opt-in for benchmarking insights
From this week, you can opt-in to the report’s new functionality: similar businesses.
If you choose to anonymously share your business category and region, you’ll see how your business’s operating profit, income and costs compare with businesses in the same industry and region.
So if you run a pet shop in Bristol, for example, your similar businesses would be ‘Vet & Pet Care in South West England’, and you could compare how you were doing against this average.
A word on privacy and security
Your privacy and the security of your data is of the utmost importance to us. Opting in to similar business comparison is completely optional and any shared data will remain anonymous and unidentifiable.
If you opt in, you’ll start to see similar business insights as soon as enough similar businesses have also opted in.