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Key KPIs Every Business Should Track in 2025
As we dive into 2025, it’s time to focus on the numbers that truly matter for your business. Tracking the right Key Performance Indicators (KPIs) helps you stay aligned with your goals, spot opportunities, and make data-driven decisions.
Here are some KPIs to watch this year, with examples to help you apply them:
Revenue Growth
Example: If your revenue was $50,000 last quarter and it’s $55,000 this quarter, that’s a 10% growth!
Net Profit Margin
Example: If your business earned $100,000 and your expenses totaled $80,000, your profit margin is 20%.
Customer Acquisition Cost (CAC)
Example: If you spent $1,000 on marketing and gained 10 customers, your CAC is $100 per customer.
Customer Retention Rate
Example: If you had 100 customers at the start of the year and retained 90 by the end, your retention rate is 90%.
Accounts Receivable Turnover
Example: If your annual sales on credit are $120,000 and your average accounts receivable is $20,000, your turnover rate is 6—meaning you collect payments every two months.
Operating Cash Flow
Example: If your inflows (sales and other income) total $50,000 and outflows (expenses) are $30,000, your cash flow is $20,000—positive and healthy!
Inventory Turnover (if applicable)
Example: If you sold $10,000 worth of inventory and your average stock value is $2,000, your turnover rate is 5, meaning you’re moving inventory efficiently.
These metrics provide a clear snapshot of your business health and help you plan for sustainable growth. Your business numbers don’t have to be a mystery, let’s make them work for you in 2025 with our help! Reach out we can help. Book a free 30-min Consultation. www.kgtaxaccounting.com
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