What Is Benchmark Accounting?
Benchmark accounting compares a business’s financial performance with competitors, historical data, or industry standards. The key elements of benchmark accounting are revenue, expenses, and profit margins. Its main purpose is to identify areas of improvement and check if the business is on the right track.
If you have ever run a marathon, you’ll understand benchmark accounting better. In a marathon, you don’t just track your pace but also note others’ pace so you can keep up with them.