When running a small business, you can’t rely on your gut instinct all the time. Key performance indicators (KPIs) also have a part to play, especially when it comes to financial reporting. It’s best to be objective rather than subjective when determining the financial health of your company so you can make informed and data-backed decisions.
One way to objectively track the health of your business is through KPIs. KPIs are metrics that can help you chart progress toward a variety of business goals. Below we’ll explore 14 financial KPIs, their use cases, formulas, and other tips to help you make informed financial decisions.