5 financial KPIs every SME should track

To run an SME well, you need reliable, up-to-date financial indicators. Here are the five metrics every business owner should keep a close eye on.

1. Monthly revenue

Revenue is the most fundamental indicator. Track it month by month to spot seasonal patterns, measure the impact of your sales activity, and project future income.

2. Margin rate

Your margin rate tells you the profitability of every sale. Too low, and you may have a pricing or cost-of-goods problem. Calculate it per product and per category for a sharp view of how your business is performing.

3. Customer payment terms (DSO)

DSO (Days Sales Outstanding) measures the average number of days between invoicing and payment. The higher it is, the tighter your cash flow. Below 30 days is generally a good target.

4. Burn rate

Burn rate is the speed at which your business is consuming its cash. It's a particularly important indicator for young businesses in growth mode.

5. Return on investment

Every investment should be evaluated. Whether it's a trade fair, a marketing campaign, or a new tool, measure the ROI systematically to guide your future decisions.

What gets measured gets better. These five indicators give you a solid foundation for running your business with confidence.

Pendi lets you track these indicators live from a single, unified dashboard. Get started today.