ISO 9001:2015 for Improving Business Financial Performance

As we know that the ultimate objectives of a business brand, firm, or company are to implement all essential as well as Quality Management System set by ISO 9001:2015. Also, it is achievable only and only if the improvement in internal management, customer relationships, standards, and processes are in the right place. In this article, we will discuss How to Achieve Improvement with ISO 9001:2015.

How to Achieve Improvement with ISO 9001:2015?

If ISO 9001:2015 implemented properly then and only then, all businesses can expect improvement. Business improvement is achieve-able through:

• Sales Increment due to Customer Relationship as well as Productivity Improvement.
• With improved internal management and process clarity, reduction in processing costs.
• Improvement in processes results in more consistency of service and product outcomes.
• Business growth is possible after opening new opportunities as well as new markets in existing markets.

Financial Performance: Key Requirement of ISO 9001:2015

While meeting the on-going requirements of the ISO 9001:2015, the regular monitoring and evaluation of all business processes as well as effectiveness become significant to maintain effective implementation, and this includes the financial processes.

As this includes financial processes, it targets financial performance. And, the financial performance of the business has two major reliable components:

1. Revenue

A business owner can generate their revenue from two means, the first one is the usual course of business which is sales. And the other one is non-usual means which are gained in sales of fixed assets.

2. Expenses

Unlike Revenues, expenses of a business expanded into several categories. It is because they monitor and evaluate more effectively.

Different Types of Expenses While Assessing Financial Performance

Fixed Expenses

Those expenses which don’t change with the changes in production levels and volumes are generally referred to as Fixed Expenses. The common, as well as basic examples, are salary, rent, and others, all these don’t depend on the productivity, profit, and sales volume.

Variable Expenses

While those expenses that depend on the fluctuation of your sales and production levels are Variable Expenses. Sales and good cost, these two costs are obvious expenses among many of the variable expenses. Apart from these, there are many hidden variable expenses like bank surcharges.

Opportunity Cost

Other than the quantitative components of the business’s financial performance, not included in both profit as well as loss, ignored by management is Opportunity Cost.

How to Control & Monitor Business Financial Performance?

As you have known all the financial components that could affect financial performance while applying the ISO 9001: 2015 for Improving Business Financial Performance.

Now, it is possible by creating a budget spreadsheet that reflects actual financial performance. When you have a budget spreadsheet then, estimation of sales figure in comparison with historical performance is possible. It can also make the actual forecast based on possible sales figures.

However, there is some limitation which adds no insertion of potential clients/business as it can lead to biased results and misinterpretation.

Although, controlling and monitoring is possible and much easier for cash outflow from the business.

ISO Certification for aerospace and Defense Companies