Here, I show you how to calculate the key business metrics that will keep you on track BUT to be AWESOME at business finance the trick is to KISS – Keep It Super Simple. I’ve highlighted which ones are KISS with a ?.

? Revenue per person by far the simplest calculation in your business. Take your total sales and divide by the number of people in your business. If it’s you and a half timer, the number of people is 1.5. (This measure is great when you’re thinking of getting bigger by employing more people).

?Gross profit Sales – Cost of Sales

Net Profit (after tax) Sales – Cost of Sales – Administrative costs – tax

EBITDA Profit earned before interest, tax, depreciation, amortisation is taken off

Accounts payable days coming soon

Accounts receivable days coming soon

Gearing ratio coming soon

Current Asset ratio Current Assets / Current liabilities. This should be greater than 1 in a healthy business

Acid test ratio (Current Assets – Stock) / Current Liabilities. This shows how quickly you can turn your assets into cash, not including stock. This should be greater than 1 in a healthy business

?Cost as a % of turnover (e.g wages) Wages / Turnover. This % should be what is typically for your industry.