--- title: "An Introduction to Benchmarking: Part 3" description: CRR Supervisor Wendy Li discusses the process of benchmarking, and how it can improve your company's performance. image: https://www.crradvisors.com/hubfs/AdobeStock_288090621-2.jpeg --- [Skip to content](https://www.crradvisors.com/blog/an-introduction-to-benchmarking-part-3#main-content) [![CRR](https://www.crradvisors.com/hubfs/CRR.svg)Homepage](https://www.crradvisors.com) - [Home](https://www.crradvisors.com) - [Services](https://www.crradvisors.com/services) - [Audit & Assurance](https://www.crradvisors.com/services/accounting-auditing) - [Business Valuation](https://www.crradvisors.com/business-valuation) - [Client Accounting + Advisory Services](https://www.crradvisors.com/caas) - [Private Client Services](https://www.crradvisors.com/private-client-services) - [Tax for Businesses](https://www.crradvisors.com/tax-services-business) - [Tax for Individuals](https://www.crradvisors.com/tax-services-individual) - [Transaction Advisory](https://www.crradvisors.com/transaction-advisory-services) - [Industries](https://www.crradvisors.com/industries) - [Blog](https://www.crradvisors.com/blog) - [About Us](https://www.crradvisors.com/about-us) - [Team & Careers](https://www.crradvisors.com/about-us) - [CRR Charitable Foundation](https://www.crradvisors.com/crr-charitable-foundation) - [Contact](https://www.crradvisors.com/contact-us) - [Client Tools](https://www.crradvisors.com/client-portal) - [Home](https://www.crradvisors.com) - [Services](https://www.crradvisors.com/services) - [Audit & Assurance](https://www.crradvisors.com/services/accounting-auditing) - [Business Valuation](https://www.crradvisors.com/business-valuation) - [Client Accounting + Advisory Services](https://www.crradvisors.com/caas) - [Private Client Services](https://www.crradvisors.com/private-client-services) - [Tax for Businesses](https://www.crradvisors.com/tax-services-business) - [Tax for Individuals](https://www.crradvisors.com/tax-services-individual) - [Transaction Advisory](https://www.crradvisors.com/transaction-advisory-services) - [Industries](https://www.crradvisors.com/industries) - [Blog](https://www.crradvisors.com/blog) - [About Us](https://www.crradvisors.com/about-us) - [Team & Careers](https://www.crradvisors.com/about-us) - [CRR Charitable Foundation](https://www.crradvisors.com/crr-charitable-foundation) - [Contact](https://www.crradvisors.com/contact-us) - [Client Tools](https://www.crradvisors.com/client-portal) ![](https://www.crradvisors.com/hs-fs/hubfs/AdobeStock_288090621-2.jpeg?width=6000&height=4000&name=AdobeStock_288090621-2.jpeg) Accounting Business Advisory Small Business # An Introduction to Benchmarking: Part 3 ![Wendy Li](https://www.crradvisors.com/hs-fs/hubfs/Li-Wendy.jpg?width=48&height=48&name=Li-Wendy.jpg) Wendy Li February 3, 2022 In [Part 1](https://www.crradvisors.com/blog/an-introduction-to-benchmarking-part-1) and [Part 2](https://www.crradvisors.com/blog/an-introduction-to-benchmarking-part-3) of our benchmarking blog series, we introduced benchmarking and provided examples of key benchmark findings for staffing companies. Based on these findings, we identified specific problems for the companies to solve. This blog provides some hypothetical solutions stated below. ###### **Solutions** Based on benchmark analysis, we find that all companies had the ability to meet their short-term obligations and utilize their current assets efficiently and properly. Some KPI/metrics indicate red flags in areas that need to improve. - **Current Liabilities to Net Worth.** None of the four companies can use equities to pay off current liabilities due in a year with a ratio above 1. This affects the company’s ability to borrow, since current liabilities to net worth is a key ratio that banks use to evaluate risk. In order to improve financing ability, companies should try to pay off vendors earlier and generate more profits down the road. - **Days Accounts Receivable or Days sales outstanding (DSO).** In order to speed up the collection of accounts receivable, companies should consider the following: first, standardize procedures for product or service quotation and order management; second, get electronic invoices out fast; third, outsource collections; fourth, adjust credit terms based on customer history. - **Working Capital Turnover.** Four companies didn’t manage their working capital efficiently to support revenue. Ways to help improve can be: first, shorten operating cycles; second, cut unnecessary expenses; third, reduce bad debt; fourth, generate more revenue; fifth, balance cash reserves against accounts payable. Our Client Accounting & Advisory Services (CAAS) team is helping businesses of all sizes gain a competitive advantage by focusing on specific practices and operations that are centered around your needs and goals. We offer insight and support to help you make critical business decisions that lead to improved profitability. If you have any questions about benchmarking in your industry, please leave a comment below or feel free to contact me directly. I’m happy to help! ## Share this post [mailto:https%3A%2F%2Fwww.crradvisors.com%2Fblog%2Fan-introduction-to-benchmarking-part-3](mailto:https%3A%2F%2Fwww.crradvisors.com%2Fblog%2Fan-introduction-to-benchmarking-part-3) ## Keep reading ### [![](https://www.crradvisors.com/hs-fs/hubfs/AdobeStock_808994683.jpeg?width=4823&height=2412&name=AdobeStock_808994683.jpeg) Transaction Advisory Banks Banking What the SBA's New Quality of Earnings Rule Means for Your Next Deal](https://www.crradvisors.com/blog/what-the-sbas-new-quality-of-earnings-rule-means-for-your-next-deal) ### [![Staffing agency employees having a team meeting](https://www.crradvisors.com/hs-fs/hubfs/AdobeStock_1876259626.jpeg?width=7936&height=5291&name=AdobeStock_1876259626.jpeg) Staffing Staffing Series Week 4: What Staffing Agency Owners Should Know About the Work Opportunity Tax Credit (WOTC)](https://www.crradvisors.com/blog/staffing-series-week-4-what-staffing-agency-owners-should-know-about-the-work-opportunity-tax-credit-wotc) [![CRR](https://www.crradvisors.com/hubfs/CRR.svg "CRR")](https://www.crradvisors.com) *"CRR" is the brand name under which CRR, LLP and Bridgepoint Alliance, LLC, doing business as CRR Advisors, offer professional services to its respective clients in an alternative practice structure in accordance with the AICPA Code of Professional Conduct and applicable laws, regulations, and professional standards. CRR, LLP is a licensed independent CPA firm that delivers attest services to its clients. CRR Advisors provides tax business consulting, and other non-attest services to their clients. Although it may employ CPAs, Bridgepoint Alliance, LLC is not a licensed CPA firm. The use of the terms “our firm,” “we,” and “us,” and similar language, may refer to CRR, LLP and CRR Advisors as it operates in its alternative practice structure.*       - [Home](https://www.crradvisors.com) - [Services](https://www.crradvisors.com/services) - [Industries](https://www.crradvisors.com/industries) - [Blog](https://www.crradvisors.com/blog) - [About Us](https://www.crradvisors.com/about-us) - [Contact](https://www.crradvisors.com/contact-us) - [Client Tools](https://www.crradvisors.com/client-portal) --- © 2025 CRR, LLP. All rights reserved.