Episode 22: Our Favorite Metric to Look at Every Month and Why It Matters
Focus on the numbers that actually move your business forward.
It’s easy to feel overwhelmed by numbers as a business owner. There are so many metrics you could track, so many dashboards you could build, and so many opinions on what matters most. But in reality, clarity comes from focusing on a few key numbers that actually tell you how your business is doing.
In this episode of The Accounting Edit, we talk about the two metrics we come back to every single month, net cash flow and net profit margin. These are not just accounting terms, they are signals that tell you whether your business is sustainable.
We walk through what net cash flow really means and why it matters more than just looking at revenue. Money coming in does not always mean money available. Understanding how cash moves through your business helps you make better decisions, avoid surprises, and plan ahead with confidence.
We also break down net profit margin and why it is one of the clearest indicators of how efficiently your business is operating. It shows you what you actually keep after all your expenses, and whether your pricing and cost structure are working for you.
The biggest takeaway is this. You do not need to track everything. You need to track the right things consistently. When you focus on your own numbers over time instead of comparing yourself to others, you build a stronger, more grounded business.
If you have ever felt unsure about what metrics matter most, this episode will simplify it for you.
What we cover in this episode:
• Why net cash flow is key to understanding available cash
• What net profit margin reveals about your business performance
• How these metrics work together to show sustainability
• Why tracking trends over time matters more than one month
• The danger of comparing your numbers to other businesses
• How to simplify your metrics without losing insight
• Why reviewing your numbers monthly leads to better decisions
🎙 Listen to Episode 22: Our Favorite Metric to Look at Every Month and Why It Matters
Connect With Us
theaccountingedit.com
Aminder Mann, CPA
Website: sequoia-cpa.com
Instagram: @sequoiacpa
LinkedIn: Sequoia CPA
Leah McCool
Website: orca-accounting.com
Instagram: @orcaaccounting
LinkedIn: Leah McCool
Keywords: business metrics, net cash flow, net profit margin, financial sustainability, KPIs, accounting, business growth, profitability, cash management, financial health