Grow your business and monitor your fiscal accounting health
Whether you are a successful Fortune 1000 enterprise or an ambitious startup, success depends on generating revenue and managing your financial metrics. Stakeholders, investors, and customers look to financial data and KPIs to assess performance and viability of your business model. Use these financial KPIs and ratios to create dashboards to track the health of your business.
What are the top 3 financial metrics in any company?
There are 3 top financial metrics that are important in every company: revenue, net profit, and burn rate.
Revenue is the income generated through your business’ primary operations, often referred to as the “top line”. Net profit is the dollar value that remains after all expenses are subtracted from your company’s total income, often referred to as the “bottom line”. Net burn, or burn rate, is the amount of money a company loses per month as they burn through cash reserves.
Here are the key financial metrics and KPIs that you can add to a dashboard to track the financial health of your business.
Best Financial Metrics
The top KPIs for modern finance and accounting teams:
- Current Ratio
- Gross Margin
- Net Burn
- Net Profit
- Earnings Before Interests, Taxes, Depreciation and Amortization (EBITDA)
- Annual Recurring Revenue
- CAC Payback Period
- Customer Lifetime Value
- Revenue Per Employee
- MRR Growth Rate
Measure the ability of your organization to pay all of your financial obligations within a year.
Measure your organization's financial health by analyzing readily available assets.
Return on Equity
Measure profitability by examining your ability to generate revenue for each unit of shareholder equity.
Quick Ratio / Acid Test
Measure the ability of your organization to meet short-term financial obligations.
Keep track of what you owe your vendors with the vendor expense KPI
Profit and Loss Report
Track your income, cost of sales, and operating expenses to calculate net profit
Always know where your money is coming from by tracking your recent payment history
Current Accounts Receivable and Accounts Payable
Easily track your accounts receivable and payable for the month
Income and Expenses (Last 12 Months)
Track your income, expenses and profit over the past 12 months
Debt to Equity Ratio
Measure how your organization is funding growth and how effectively you are using shareholder investments.
Accounts Payable Turnover
Measures the rate at which your company pays off suppliers and other expenses.
Accounts Receivable Turnover
Measures the rate at which you collect on outstanding accounts.
Measures how often you are able to sell off your in-stock inventory in a given year.
Net Profit Margin
Measures how effective your business is at generating profit on each dollar of revenue you bring in.
Gross Profit Margin
Measures how much profit you make on each dollar of sales before expenses.