Ten Essential Financial KPIs

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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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There’s not too much explanation required for this one. It’s simply the total amount of available (cleared) cash in your bank , PayPal or wherever else you store your money. Simple though it is, this is the most important measure for your business, along with net profit.

Without cash, you can’t function as a business. Enough said?

Example from Woeful Widget Warehouse

Will logs into his online company bank account and sees the cleared company funds are £24,500. The company also has an overdraft of £2,000 in another account, so...

Net total ‘Cash in bank’ is £24,500 - £2,000 = £22,500

Definition or formula

Sum of [Cash in bank] for all company bank accounts

Typical data sources

  • Bank records (don’t forget to include payment services like Stripe and PayPal, if they can hold cash)

Ref: F1.4.0.1