Tracking your business
Running a business can feel like spinning plates most days. You’re juggling sales, staff, customers, suppliers, and about a hundred other things, so it’s easy to let the numbers slide into the background. But keeping a close eye on your finances and key performance indicators (KPIs) can be one of the smartest moves you make for your business.
It’s not about spending all of your time collecting data —it’s about being smart and giving yourself a clear picture of how things are really going, and where you need to head next.
Why Bother With Financial Tracking?
Keeping a track on your business finances is important. If you don’t keep a track on things, you won’t spot problems until they’re already too big to ignore. Financial tracking will help with:
Early warnings – Spot rising costs, slowing sales, or cash flow pinches before they turn critical. Spotting trends early gives you a competitive advantage.
Better cash control – Plan for when money’s coming in and going out.
Smarter decisions – Clear numbers mean clearer choices about pricing, staffing, or growth.
Funding confidence – If you ever need investment, tidy accounts instantly make you look reliable. This results in quicker decisions and more choice with finance products.
Practical Financial Metrics to Track
Here are a few simple but powerful numbers most SMEs benefit from watching:
Cash Flow – Enables you to keep ahead of business income and costs. You can also spot any regular costs that are no longer required, such as monthly subscriptions and DD payments.
Gross Profit Margin – Shows the percentage of profit you’re making after covering the cost of goods or services.
Net Profit Margin – What’s left after all expenses—this tells you the real bottom line.
Break-Even Point – The sales you need each month just to cover costs.
Accounts Receivable Days – How long, on average, it takes customers to pay you. Long waits here can strangle cash flow.
Accounts Payable Days – How long you take to pay suppliers—important for balancing out cash flow.
Why KPIs Make the Difference
While your finances show where you are, KPIs tell you why you’re there. They’re the day-to-day signals that show if your business is on track. Depending on what you do, that might mean customer satisfaction, sales conversion rates, or how quickly you deliver projects.
They matter because:
They keep you focused – You’ll know what really makes your business work.
They show what’s working – And help cut out what isn’t.
They motivate your team – Everyone loves hitting targets.
They drive improvement – They push you to refine and adapt as you grow.
Practical KPI Examples
Different industries will track different KPIs, but here are a few common ones that SMEs find useful:
Sales Conversion Rate – How many leads turn into paying customers. A sales funnel focusses your marketing effort and lets you know what works and what doesn’t.
Customer Retention Rate – How many customers come back for repeat business. RFM (recency, frequency, monetary) analysis will let you know who are your best customers and where to focus marketing to gain sales volume.
Customer Acquisition Cost (CAC) – How much it costs you to win a new customer.
Average Order Value (AOV) – The typical amount a customer spends per transaction.
Employee Productivity – Output per employee, whether that’s sales, projects delivered, or hours billed.
On-Time Delivery Rate – Particularly useful if you’re in services, logistics, or product supply.
Website Traffic & Lead Conversion – For businesses with an online presence, tracking digital KPIs is key.
Combining the financials with KPI’s
Here’s where the real insights come: financials tell you what happened, and KPIs usually explain why.
Example: Your revenue is dipping (financial metric). KPIs then show you that your sales conversion rate has dropped, or maybe fewer repeat customers are coming back. With that knowledge, you can fix the real problem—whether that’s your sales process, customer service, or marketing.
How it helps your business grow.
By keeping tabs on both, you’ll:
Grow steadily without nasty surprises.
Put your money and energy where it really counts.
Plan confidently, using facts not guesswork.
Stay ahead of competitors who aren’t measuring as closely.
At the end of the day, tracking your finances and KPIs isn’t about more paperwork—it’s about giving yourself control. You’ll see clearly what’s happening in your business, spot problems early, and make smarter, quicker decisions. Once you get into the habit, it’ll feel less like a chore and more like a tool to help with growth.
If you would like some help developing a manageable set of financial and KPI measures specifically for your business, please get in touch and we can arrange a time to meet and discuss your needs.