Non-financial measures provide clear benefits over the measurement systems grounded upon financial facts (Said et. al., 2003). First among these is a closer association with long-term corporate approaches. Financial evaluation systems usually concentrate on yearly or short-term outcomes against accounting standards (Lev, 2001). They don’t deal with growth proportionate to customer needs or rivals, or rest of the non-financial goals, which might be vital in attaining profitability, longer-term strategic goals and competitive strength. For instance, new product or service development or increasing organizational abilities might be significant strategic objectives, but might hold back short-term accounting outcome. Through incorporating accounting measures with non-financial information related to strategic performance as well as execution of strategic plans, corporations could easily communicate goals and offer rewards for managers for addressing long-term approach (Said et. al., 2003).
Secondly, the critics of traditional means assert that factors affecting within several markets are “intangible assets” like customer loyalty and intellectual capital, instead of the “hard assets” mentioned on the balance sheets (Maines et. al., 2003). Even though, it’s hard to compute intangible assets in financial aspects, non-financial data could offer indirect, quantitative indicators of an organization’s intangible assets. Thirdly, non-financial measures could prove to be superior indicators of upcoming financial performance. Although, the final objective is increasing financial performance, present financial measures might be unsuccessful at capturing long-term advantages from decisions formed right now (Lev, 2001).