Reporting · 6 min read
Five numbers every owner should watch
You don't need an accounting degree to run a healthy business. You need a short list of numbers and the habit of looking at them.
01
Cash on hand
Not profit — cash. How many weeks of expenses could you cover if income stopped tomorrow? This single number tells you how much runway you have and how much risk you can take.
02
Gross margin
What's left after the direct cost of delivering your product or service. If margin is thin, growing revenue just grows your problems faster. Watch it by product line or service to see what actually pays.
03
Accounts receivable
Money customers owe you. Revenue on paper isn't cash in the bank. Rising receivables often mean you're effectively funding your customers — track how long invoices take to get paid.
04
Overheads and break-even
Your fixed monthly costs, and the revenue you need to cover them. Knowing your break-even point turns pricing and hiring from guesswork into arithmetic.
Watch these five consistently and you'll spot trouble — and opportunity — long before it shows up in your bank balance.