Start with the basicsÂ
The first step is getting clear on which numbers actually matter for your business. While there are dozens of financial metrics you could track, we recommend starting with these:
- Cash flow: Understanding the timing and amount of money moving in and out of your business. This helps you spot potential cash crunches before they happen and make better decisions about timing major purchases or investments.
- Gross profit margin: The percentage of revenue left after accounting for direct costs of goods or services. This tells you if you’re pricing appropriately and helps identify opportunities to reduce costs.
- Monthly recurring revenue: The predictable income you can count on each month from ongoing customer relationships. This helps with planning and identifying gaps you need to fill.
Create a simple routineÂ
Pick one day each week to review your key numbers. Block 30 minutes on your calendar, pour your favorite beverage, and make it a consistent habit. The more regularly you look at your finances, the less intimidating they become.
Know when to get helpÂ
As your business grows, managing the financial side becomes more complex. Signs it’s time to bring in professional help include:
- Feeling constantly behind on bookkeeping and dreading tax time
- Uncertainty about pricing decisions and profit margins
- Questions about hiring, benefits, and payroll compliance
- Need for strategic planning and forecasting support
Our team works with business owners across Kansas to demystify the numbers and build stronger companies. We’d love to help you develop greater financial confidence – reach out anytime to learn more.
