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Ten Essential Financial KPIs

Finding the critical missing financial KPIs for your business

Typically, within most businesses, the financial measures are the best (sometimes only) KPIs already in place. This is usually because of the legal requirements to submit accounts, pay tax and the fact that if you lose the plot on financial measures you will quickly go out of business - leaving only businesses with some kind of a grip on their finances. The problem with finance measures is that most of them look backwards - they are lagging measures - so make sure you take a look at some of the other KPI Posts listed at the bottom of this post to help you look forward.

The financial KPIs here are probably not going to help you with your legal accounting and reporting requirements (make sure you discuss those with your accountant), but they are definitely going to help you run your business. Keeping a close eye on things like ‘Cash in the bank’, ‘Working Capital Ratio’ and ‘Net Profit’ is the key to a successful business and being able to sleep at night.

 
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