How to Track the Financial Health of Your Business: 15 KPIs Every Owner Should Know

If you're running a business and feel like you're constantly reacting to financial surprises,you're not alone. Many entrepreneurs focus on sales and growth but miss the critical signals that indicate whether their business is actually healthy.

The good news? You don’t need an MBA or a CFO to get a handle on your numbers.

With just 15 key financial KPIs, you can monitor performance, spot problems early, and make smarter decisions faster. Think of this as your DIY guide to building a financial dashboard that keeps your business on course,and when you're ready to level up, a partner like ScaleFin can help automate the process and take it even further.

Let’s dive in.

💡 First Things First: Start with the Basics

Before you jump into ratios and metrics, get a handle on these two essentials:

1. Revenue

This is your top-line income,all the money coming in. Track it monthly, quarterly, and annually.

Use it to gauge growth and seasonality.

2. Expenses

Track fixed (rent, salaries) and variable (materials, shipping) expenses separately.

Break them down by department or function to find inefficiencies.

Pro Tip: If you’re not doing this already, start now. Even a basic spreadsheet will do. But if you’re tired of manual data entry, tools like QuickBooks, Xero, or working with a financial services team like ScaleFin can automate the process.

📊 13 KPIs That Keep You in Control

Once your revenue and expenses are under control, layer in these 13 financial KPIs. Together, they paint a clear picture of your financial health.

🔢 Profitability & Performance KPIs

3. Net Profit Margin

Formula: Net Profit ÷ RevenueHow much you keep after all expenses. Tells you if you're actually making money.

4. Gross Profit Margin

Formula: (Revenue – COGS) ÷ RevenueReveals if your pricing and production costs are working together.

5. Break-Even Point

Formula: Fixed Costs ÷ (Selling Price – Variable Cost per Unit)Shows how many units you need to sell before making a profit.

Great for pricing strategy and goal setting.

💵 Cash & Liquidity KPIs

6. Cash Runway / Burn Rate

Runway = Cash ÷ Burn Rate (Monthly expenses)Shows how long you can keep operating with your current cash.

Crucial for startups and growth-stage companies.

7. Quick Ratio (Acid Test)

Formula: (Current Assets – Inventory) ÷ Current LiabilitiesMeasures your ability to pay short-term bills without selling inventory.

8. Working Capital

Formula: Current Assets – Current LiabilitiesShows if you have enough short-term resources to cover short-term obligations.

🔄 Efficiency & Operations KPIs

9. Revenue Growth Rate

Formula: (Current – Prior Revenue) ÷ Prior RevenueMeasures momentum. Are you scaling sustainably?

10. Budget vs. Actuals

Compares planned vs. real-world numbers.

Helps spot overspending and course-correct quickly.

11. Days Sales Outstanding (DSO)

Formula: (Accounts Receivable ÷ Credit Sales) × DaysShows how long it takes customers to pay you.

The faster you collect, the healthier your cash flow.

12. Days Payable Outstanding (DPO)

Formula: (Accounts Payable ÷ COGS) × DaysHow long you take to pay suppliers.

Gives you more breathing room,but don’t overdo it.

🧲 Customer & Revenue Quality KPIs

13. Customer Acquisition Cost (CAC)

Formula: Sales & Marketing Spend ÷ New CustomersTells you how much it costs to gain a customer.

14. Customer Lifetime Value (LTV)

Formula: Average Purchase × Purchase Frequency × LifespanHow much value each customer brings over time.

Healthy LTV should far exceed CAC.

15. Churn Rate (for subscription models)

Formula: Customers Lost ÷ Starting CustomersMeasures retention. High churn = high leak in your revenue bucket.

🛠️ How to Track These KPIs (Without Losing Your Mind)

• Start by building a simple dashboard in Excel or Google Sheets.

• Use accounting software to pull real-time data.

• Set a monthly KPI review with your team,even if it’s just you.

• Automate wherever you can: real-time dashboards, alerts, and visual reports save hours.

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Or skip the spreadsheets.ScaleFin can help you build a customized, automated KPI dashboard using your existing systems,so you can focus on making decisions, not crunching numbers.

🚀 Final Thoughts

Tracking financial KPIs isn’t just about looking backward, it’s about steering forward. With just these 15 numbers, you can get clarity, reduce risk, and grow confidently.

Start small. Track them consistently. And when you're ready to move from DIY to done-for-you, ScaleFin is here to help.