Measuring your revenue month-to-month can be misleading because of seasonal fluctuations. It can be difficult to know if your revenue is growing and by how much. In this KPI (key performance indicator) video, we use a 12-month moving average to show how you can get a clearer picture of how your company is doing.
FAQs
A: Moving average is a management measure that helps a residential cleaning company understand performance, compare periods, and make better operating decisions.
A: Use consistent data from the same reporting period, apply the formula described in the article, and document which revenue, clients, jobs, or employees are included so results remain comparable.
A: It connects day-to-day activity to profitability, capacity, retention, or growth and can reveal problems before they become visible in the financial statements.
A: Review it at least monthly. High-velocity measures such as revenue, leads, jobs, labor, and staffing may also need weekly monitoring.
A: Confirm the data first, identify the operational driver behind the change, assign one corrective action to an owner, and monitor the next several reporting periods before drawing conclusions.
