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Accurately Track Your Business Growth Using Cloud Accounting

Cloud accounting software is a tool that can be used by small business owners to track their business growth. The following are three examples that can be tracked:

  • Sales growth – Use cash flow forecasts to ensure your cash and profit margins are well-aligned. To complete a cash flow forecast, add the existing cash in the business to your projected cash flow, and subtract the projected cash outflows for the next term.
  • Revenue growth rate – While this is a basic calculation, it is useful to ensure the business is growing. Divide the current year’s revenue by the past year’s revenue to obtain the revenue growth percentage.
  • Inventory turnover – This is used to show how quickly inventory moves. Add up the cost of goods sold, which is the expenses that go into producing goods, such as utilities and salaries, and divide by the total value of what remains at year-end.

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