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Beyond the Bank Balance: The Financial Reports and KPIs Every Business Owner Should Track
Description
Your bank balance only tells part of the story. Financial reports and key performance indicators can help you understand what is really happening in your business before a problem becomes a crisis.
In this video, we discuss:
• Why regularly reviewing financial reports and KPIs matters
• How to use your income statement and P&L to understand performance
• Tracking gross profit margin and net profit margin
• Why profitability does not always mean you have enough cash
• Monitoring accounts receivable and collection periods
• Measuring labor costs and revenue per employee
• Using billable utilization to understand team capacity
• Choosing the KPIs that actually help you make better decisions
• Creating a consistent rhythm for reviewing financial information
• Turning financial information into better business decisions
You don't have to become an accountant to understand your numbers. You just need to know which numbers matter and make time to review them regularly.
⏱️ Timestamps:
00:00 – Why your bank balance isn't enough
00:29 – Welcome to Biz Help 4 You
00:42 – Why financial reports and KPIs matter
01:27 – Understanding your income statement and P&L
01:59 – Gross profit and net profit margins
03:03 – Cash flow and accounts receivable
04:29 – Labor costs and revenue per employee
05:12 – Billable utilization and team capacity
05:51 – Choosing the right KPIs
06:15 – Reviewing KPIs consistently and taking action
07:08 – Understanding your numbers and planning ahead
Resources: https://affordablebookkeepingandpayroll.com/resource-opt-in
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