What is the last step of performing a cost/benefit analysis?

The final step in performing a cost/benefit analysis is to create a return on investment (ROI) report. This report synthesizes the data collected and analyzed throughout the cost/benefit analysis process, providing a clear summary of the financial implications of a project or decision.

Creating the ROI report is crucial because it captures the overall value generated by the investment in quantifiable terms, allowing decision-makers to evaluate the merits of the investment against the costs involved. This report typically includes key metrics such as total costs, total benefits, net benefits, and the ROI percentage, which helps stakeholders understand the financial viability of the initiative and aids in making informed business decisions.

While calculating quantifiable cost savings, identifying productivity improvements, and reporting time savings are important components within the overall analysis process, they serve as foundational steps leading up to the creation of the ROI report. This report ultimately allows organizations to succinctly communicate the expected financial return from the project, justifying the proposed expenditure and guiding future budget considerations.