Financial KPIs help you see the true financial state of your business.
Profit Margins:
Track both gross profit (before expenses) and net profit (after expenses). A T-shirt printing business in Pretoria might find that bulk orders increase gross profit but reduce net profit if delivery costs are high.
Cost of Goods Sold (COGS):
The cost to make or buy what you sell — important for a baker who needs to price cakes accurately
Cash Flow:
Monitor how much money is coming in and going out. Knowing your income and expenses is key to understanding where money is being spent and if it’s effective. A plumber in Port Elizabeth can’t rely on invoices alone — they need to track when clients actually pay. In addition, financial records, including income and expenses, must be kept for tax compliance and decision-making
Return on Investment (ROI):
If you spend R1,000 on Facebook ads and make R3,000 in sales, that’s a 3:1 ROI. Great! But if you only make R900? Not so great. This helps determine which expenditures are worthwhile.
Cost Per Order (CPO):
How much it costs to complete a single order, including fuel, staff time, and packaging.
Profit & Loss Statement:
This tells you if you made or lost money over a period.
Balance Sheet:
A snapshot of what your business owns (assets), owes (liabilities), and is worth.