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What Financial KPIs Should I Track?

Greg Swanson

If you’re wondering what financial KPIs should I track, you're not alone. These key metrics help you stay on top of cash flow, profitability, and long-term growth.

Quick answer: The most important financial KPIs include revenue, profit margin, cash flow, customer acquisition cost, and accounts receivable turnover.

Revenue and Profit

Track your total income and subtract your expenses to understand your net profit. This shows whether your business is actually making money.

Cash Flow

Cash flow tells you how much cash is coming in and going out. Positive cash flow keeps your business running even when profits dip.

Profit Margins

Gross and net profit margins show how efficiently you’re managing costs. These key financial metrics reveal how much of each dollar is actual profit.

Accounts Receivable Turnover

This measures how quickly customers pay you. A low turnover might signal cash flow issues or poor collection practices.

Customer Acquisition Cost (CAC)

This small business KPI shows how much it costs to gain a new customer. Compare it to lifetime value (LTV) for profitability insights.

Final Thoughts

Tracking these KPIs gives you a clearer picture of your business health. Review them monthly so you can make smarter financial decisions.

Updated: August 16, 2025

What is the most important financial KPI?

Net profit is one of the most important financial KPIs because it shows how much money your business keeps after expenses.

How often should I review my KPIs?

Most businesses benefit from reviewing financial KPIs monthly or quarterly to stay proactive and avoid surprises.

Is cash flow a KPI?

Yes, cash flow is a crucial KPI that helps you understand your business’s ability to meet short-term obligations and stay liquid.

What’s the difference between gross and net profit margin?

Gross margin shows profit after direct costs like materials, while net margin accounts for all expenses, including overhead and taxes.