Key Performance Indicators (KPIs) are like a GPS for your business. They help you monitor performance, make data-driven decisions, and keep your team aligned around measurable outcomes.

While every business is unique, here are essential financial KPIs that nearly every company should track:

1. Revenue Growth Rate – How fast is your income increasing month over month or year over year?
2. Gross Profit Margin – What percentage of your revenue remains after deducting the cost of goods sold?
3. Net Profit Margin – The actual bottom line—how much of your revenue turns into profit?
4. Customer Acquisition Cost (CAC) – How much do you spend to acquire each new customer?
5. Customer Lifetime Value (LTV) – The total revenue a single customer is expected to bring over the entire relationship
6. Cash Burn Rate – How quickly are you spending your cash reserves each month?
7. Current Ratio – Can your business cover its short-term liabilities with short-term assets?
8. Accounts Receivable Turnover – How efficiently are you collecting payments?

Tracking KPIs requires good data hygiene—make sure your accounting software is accurate and up to date. Use dashboards (like those from Fathom, LivePlan, or Google Data Studio) to visualize trends and share them with your team.

KPIs aren’t just about numbers—they’re about focus. They show what’s working, what’s broken, and where to direct your attention.

By reviewing KPIs regularly, you move from reactive decisions to strategic leadership—and that’s where real growth happens.