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.


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. 


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

Resources Every Business Owner Can Benefit from Utilizing

When you’re running a business, it’s important to be aware of the resources that can help your business be more...
Read More

How to Be a Tech-Savvy Small Business Owner

When you run a small business, every skill you bring to the table is going to be a major benefit...
Read More

How to Shield Your Reputation From Harm

A brand’s reputation is its lifeblood. In the highly politicized, constantly digitized and online society of today, it becomes more...
Read More

The Most Important Numbers You Need to Know in Your Business

If you don’t keep track of the finances in your business, there is a lot of room for error. It’s...
Read More

Important Accounting Tasks You Need to Get Done at Your Business

If you want to run a successful business, you absolutely need to keep up with your finances. Your financial abilities...
Read More

How to Keep Everything at Your Business Organized

One of the most important and underrated parts of running any successful business is the organization that goes on behind...
Read More

Types of Investors That Will Buy Your Business

When growing and building a business from the ground up, there are several different ways that you can make a...
Read More

How to Handle an Influx of Clients

Any business can experience times of growth and times of stagnation. And when you are experiencing growth, your first response...
Read More

How to Improve Client Satisfaction

Making clients happy from the start of their journey is important to keeping them long-term and to their success. All...
Read More

How to Keep Up With Your Competitors

As a successful business owner, your first priorities are on doing quality work and serving the needs of your clients....
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