The Most Important Numbers You Need to Know in Your Business

by May 30, 2022

Get 60% off the ‘Secrets of a Six Figure Freelancer’ ebook today

If you don’t keep track of the finances in your business, there is a lot of room for error. It’s important to keep your finances in order to keep everything running smoothly. To ensure everything goes well, be sure to keep track of these important numbers.

Your Expenses

When you’re running a business, you need to keep track of your expenses. Not knowing how much your company is spending can cause potential damage to your company. Expenses are necessary costs that it takes to run your business. You need to pay for a business space, a website domain, a payment portal, the acquisition of your products, and more. These expenses allow you to run your business, but if you don’t keep track of your expenses, you can end up spending too much and damage your bottom line. Spending too much on expenses puts your business in the red. If your expenses outweigh your profits, you’ll continue to go deeper and deeper into debt until you’re forced to close your business. Keeping track of your expenses keeps you on top of all your business’ finances.

Profits

Your profits are another big number to keep track of within your business. Your profits allow you to continue to pay for and run your business, and provide a livelihood for yourself and your employees. To find your profits, subtract your various expenses from your revenue. Any remaining funds are the profits you’ve made from the sale. You should also understand the difference between profitability and profit. Profit is a fixed amount. You’ll know the exact amount that you received to pay your employees and yourself. However, profitability is an estimation of the profit your business can receive in relation to its size. 

Payroll

Without a strong group of employees, your business cannot succeed. It’s impossible to run a successful business all by yourself. You need a team of hardworking employees to make a business successful. It’s critically important to treat your employees well if you want to retain them, and a big part of that is payroll. It’s essential for you to stay on top of your employees’ salaries to pay them for their hard work and keep your company running smoothly. Luckily, there are hundreds of software programs that make keeping track of payroll easy.

Running a business isn’t only about the numbers, but it’s important to stay on top of your business’ finances to ensure it remains successful. Money matters should always be handled quickly and with care in your business. In general, these are three of the biggest numbers to keep track of.

Check out this step-by-step guide to building your own six-figure business!

Other Posts You Might Like

Why You Should Become a Freelance Writer

Writing is a skill that doesn’t come easy to everyone, but if it’s something you do well and enjoy then...
Read More

How to Get Out and Promote Your Brand

As a small business owner, it's important to get out and promote your brand. You can't just sit behind your...
Read More

The Benefits of Working as a Freelancer

Freelance work has become more popular, but for many people, it can still be an unfamiliar idea. While there are...
Read More

Underutilized Tools That Can Grow Your Business

Your business deserves only the very best. You should also be aware of the common pitfalls for new startups. One...
Read More

Strategies That Can Help Reduce Small Business Taxes

Finding ways to control costs is an important task for any business, no matter how big or small it is....
Read More

How to Become a Smarter Decision-Maker

Learning how to become a smarter decision-maker is a priceless life skill to have. This skill can save you a...
Read More

Challenges When Trying to Make Remote Work Function Well

Remote work can come with a lot of challenges if your company isn’t set up to facilitate this type of...
Read More

What to Know About Owning a Vehicle for Your Business

Different businesses are going to need different assets. Some might need commercial property. Others might simply need one or more...
Read More

How to Properly Vet Potential Employees

Employees are the lifeblood of any company. How should you vet potential employees to make sure you choose the right...
Read More

Why You Need Cloud Storage for Your Business

There are a lot of reasons why you need cloud storage for your business. Many businesses choose to store their...
Read More

Hi, I’m Kate

Hey, I’m Kate! I’m a designer, digital nomad and founder of Six Figure Freelancers – I love to help talented tech pros start businesses.

Work with Me

Get The Book

AppSumo badge

Featured Post

Pin It on Pinterest