Bookkeeping Top Ten: Metrics Every Small Business Should Track

You can’t improve what you don’t measure. Keep an eye on these 10 key metrics:

1. Gross profit margin- Revenue minus COGS, expressed as a %.

2. Net profit margin- Your bottom line after all expenses.

3. Current ratio- Current assets ÷ current liabilities.

4. Accounts receivable turnover- How quickly you collect what you’re owed.

5. Revenue per employee- Measures productivity and efficiency.

6. Break-even point- Revenue needed to cover expenses.

7. Debt-to-equity ratio- Shows how leveraged you are.

8. Operating cash flow- Cash generated from normal business activities.

9. Customer acquisition cost- What it costs to land a new customer.

10. Customer lifetime value- The total revenue expected from a customer.

💡 Bottom line: Numbers tell the story of your business.👉 We create custom dashboards so clients can track these at a glance.