When you run a small business, there are tons of numbers involved. A lot of owners are focused on the basics like sales and expenses, and they trust their accountant to handle their statements. While an annual tax accountant can give you a reflection of your last year, you might not have a deeper understanding of what each line on your financial statements means.
Here are the KPIs (key performance indicators) you should be tracking year-round for your small business.
If you own a business similar to a restaurant, you will want to know how full your business needs to be to break even on a typical day. If you're seated at capacity, how quickly do your customers need to finish their meals so you can turn over a new table?
What if you own a business similar to an automobile repair shop? You will want to know how many cars you need to service to break even on a typical day. How quickly will you need to finish the average repair job so you can start the next one?
It’s more than just saying you’ll need a certain number of dollars in sales to break even. How much will go to your bottom line? What's your average sale per customer, and how does it compare to other businesses in your industry? These are all important things to analyze in order to grow.
How a Monthly Accounting Firm Can Help
As we mentioned, an annual tax accountant can give you a reflection of your last year, but you might not have a deeper understanding of what each line on your financial statements means. Have you considered a monthly accounting firm? We go beyond financial statements to help you find out what your business needs to be doing to maximize your profits throughout the year.
For more information about monthly accounting, check out this blog post.
Another benefit that CSI offers is free resources to help small businesses. On our website, we have several pages that are intended to provide viewers with valuable content.
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If you have questions about if monthly accounting is the best option for your business, our professionals are here to help! We'll examine your situation and discuss what we can do for you. Click the button below for a free consultation to see if we can be a match.