You don’t need to memorize every line of your financial reports.

But there are a few key numbers every business owner should know without having to dig through spreadsheets or wait for tax season.

These numbers give you clarity. And clarity creates confidence.

Here are the five financial numbers that matter most.

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1. Monthly Revenue

This is the total income your business brings in each month.

Why it matters:

• It shows growth trends
• It reveals seasonality
• It helps you forecast realistically

If you do not know your average monthly revenue, it is difficult to plan hiring, investments, or pricing adjustments.

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2. Monthly Expenses

Knowing what it costs to run your business every month is just as important as knowing what you earn.

This includes:

• Fixed expenses like rent, payroll, and software
• Variable expenses like marketing, contractors, and supplies

When you know your monthly expense baseline, you understand what your business needs to stay sustainable.

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3. Profit Margin

Revenue alone does not tell the full story. Profit margin tells you how much of your revenue you actually keep.

If revenue is growing but profit margin is shrinking, something needs attention.

A healthy profit margin creates:

• Stability
• Flexibility
• The ability to reinvest

Without margin, growth can actually increase stress instead of reducing it.

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4. Cash on Hand

Cash flow is what keeps your business operational day to day.

Knowing how much cash you have available — and how many months of expenses it covers — gives you perspective and reduces panic.

Many financial decisions become clearer when you understand your true cash position.

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5. Accounts Receivable (What You Are Owed)

Outstanding invoices directly impact your cash flow.

If a significant portion of your revenue is still unpaid, your business may appear profitable on paper but feel tight in reality.

Tracking receivables regularly helps you stay proactive instead of reactive.

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Why These Numbers Matter

When you know these five numbers:

• You stop guessing
• You reduce stress
• You make decisions based on data instead of emotion

You do not need to be an accountant to understand your business. You just need accurate financials and a consistent review process.

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Turn Numbers Into Confidence

Your reports should not feel overwhelming or intimidating. They should support your decisions and help you move forward with clarity.

If you want help identifying and reviewing the key numbers that drive your business, this is exactly what we support clients with through monthly financial reviews and ongoing bookkeeping services. Click the link here to schedule a consultation https://aem-accounting.com/contact