Running a small business is tough. You juggle many roles, from sales to customer service. But one thing you can’t afford to overlook is your financial health. Knowing the right numbers to watch helps you make smart decisions and keep your business steady.
At Nexera Consulting, we work with business owners who need clear financial leadership. Here are the simple KPIs (Key Performance Indicators) you should track to keep your business on track.
1. Cash Flow
Cash flow is the lifeblood of your business. It’s the money coming in and going out each month. Without steady cash flow, paying bills and planning for growth is risky.
Track your monthly cash flow to see if you’re bringing in enough money to cover expenses. If cash flow dips, act fast to adjust spending or boost sales.
2. Gross Profit Margin
This shows how much money you keep after covering the cost of goods sold. A healthy margin means you’re pricing products or services well and managing costs.
Calculate it by subtracting your cost of goods sold from sales, then dividing by sales. Aim for a margin that supports your business goals and covers overhead.
3. Accounts Receivable Turnover
How quickly your customers pay you matters. Slow payments can choke your cash flow. This KPI tells you the average time it takes to collect payments.
Track it monthly and follow up on overdue invoices promptly. The faster you collect, the healthier your cash flow.
4. Operating Expenses
Keep a close eye on your regular expenses. Rising costs can eat into profits without you noticing.
Review your expenses monthly and look for areas to cut back or negotiate better deals.
5. Customer Acquisition Cost (CAC)
Knowing how much it costs to win a new customer helps you budget marketing and sales efforts wisely.
Calculate CAC by dividing your total marketing and sales spend by the number of new customers gained. Lowering CAC means more profit per customer.
Next Steps
Start by picking one or two KPIs to focus on this month. Use simple spreadsheets or accounting tools to track them regularly. If you need help setting up or interpreting these numbers, Nexera Consulting is here to guide you.
Financial clarity isn’t complicated. It’s about focusing on the right numbers and using them to make steady, smart decisions. That’s how you keep your business growing and thriving.
Need help with your financial KPIs? Contact Nexera Consulting today.
