As a business owner, you make decisions every day—about spending, hiring, pricing, and growth.
But how do you know if those decisions are working for your business?
The answer lies in your monthly financial metrics.
Tracking the right numbers each month helps you spot problems early, measure progress, and make confident decisions. At FLSA, we support small business owners with the financial clarity they need to grow—without the guesswork.
Here are the key financial metrics every small business should track monthly:
- Revenue (Sales)
Your monthly revenue tells you how much income your business generated before expenses. Tracking this over time helps you spot trends and evaluate the impact of marketing, pricing, or seasonal changes. - Gross Profit Margin
Your gross profit margin shows how much of each dollar you keep after covering direct costs. Your gross profit margin tells you if you are making money from your core business, if you are managing your raw material and your direct labour costs. This metric is crucial for evaluating pricing strategy, supplier costs, and operational efficiency. - Net Profit (Bottom Line)
Net profit tells you what’s left after all expenses are deducted—including rent, salaries, and taxes. Tracking net income monthly helps you measure overall financial health and long-term sustainability. - Cash Flow
You can be profitable on paper and still run out of cash. That’s why monthly cash flow tracking is non-negotiable. It helps you avoid shortfalls and plan for future obligations. At FLSA, we build custom cash flow forecasts so business owners always know what’s coming. - Accounts Receivable (A/R) Aging
If your clients are slow to pay, it can choke your cash flow. Monitoring A/R aging reports each month helps you stay on top of collections and keep cash moving. - Operating Expenses
Track your monthly operating costs like rent, subscriptions, and wages. Look for areas where spending is creeping up or where cuts can be made without hurting performance. - Burn Rate (for early-stage or scaling businesses)
If you’re investing in growth, your burn rate shows how quickly you’re spending cash reserves. This is essential if you’re pre-profit or managing external funding. - Budget vs. Actual
Compare your actual performance against your budget every month. This shows you whether your business is on track—and where adjustments may be needed.
Why These Metrics Matter
Monitoring monthly financial metrics helps you:
– Make faster, smarter decisions
– Avoid financial surprises
– Identify opportunities for profit improvement
– Build a more resilient, scalable business
At FLSA, we help business owners set up financial systems that simplify reporting and highlight what really matters.
Ready to stop guessing and start leading with clarity?
Book a discovery call and let’s set up the right metrics for your next stage of growth.