The Top 5 Financial Metrics Every CEO Should Track Monthly (But Most Don’t)
Running a successful business isn’t just about driving sales or launching new products. It’s about understanding the numbers that reveal what’s really happening behind the scenes. Yet, many CEOs overlook critical financial metrics that could transform their decision-making, improve cash flow, and prevent costly surprises.
This is why outsourced CFO services can transform your business. An experienced CFO helps you interpret your numbers and make strategic moves with confidence, whether you’re scaling your business or tightening operations for stability.
Below are the top five financial metrics every CEO should be reviewing each month (but most don’t).
1. Cash Flow Forecast
Why it matters:
Cash flow is the heartbeat of your business. You might show strong profits on paper, but still run into trouble if your cash isn’t timed properly. A cash flow forecast shows how much money will flow in and out of your accounts in the coming weeks and months.
By tracking it monthly, you can anticipate dips before they happen — and plan accordingly. That could mean delaying expenses, collecting receivables faster, or drawing on credit lines strategically rather than in a panic.
Pro tip: A fractional CFO can build rolling cash flow forecasts that help you spot trends and manage liquidity with precision.
2. Gross Profit Margin
Why it matters:
Your gross profit margin reveals how efficiently your company turns revenue into profit after accounting for direct costs like materials or labor. When margins start to slip, it’s an early warning sign that something in your pricing, production, or vendor relationships needs attention.
What to do:
Compare your margins month over month. Even a 2-3% decline can point to hidden issues — like rising supplier costs or over-staffing on certain projects. Outsourced CFO services can help you analyze your data and recommend ways to improve profitability without sacrificing quality.
3. Accounts Receivable Turnover
Why it matters:
It’s not enough to make sales; you have to collect the cash. Many CEOs don’t realize how much capital is tied up in unpaid invoices. Your accounts receivable turnover ratio shows how efficiently you collect money owed to your business.
What to watch for:
If your customers are taking 45, 60, or even 90 days to pay, your business could face unnecessary cash constraints. Tracking this metric monthly helps you tighten payment terms, incentivize faster payments, or adjust credit policies to improve working capital.
4. Operating Expenses as a Percentage of Revenue
Why it matters:
As businesses grow, expenses tend to creep up, sometimes faster than revenue. Monitoring your operating expenses as a percentage of revenue helps ensure you’re scaling sustainably.
What to do:
Your CFO services provider can categorize expenses by department and highlight trends over time. You’ll quickly see which areas are growing too fast and which investments are paying off. The goal isn’t just to cut costs, but to allocate resources strategically — so every dollar spent supports your long-term goals.
5. Burn Rate and Runway
Why it matters:
Especially for startups and growing companies, burn rate (the pace at which you spend cash) and runway (how long your cash will last) are crucial survival metrics. These numbers help you decide when to fundraise, when to expand, and how aggressively to reinvest profits.
How CFO services help:
Fix-It Accounting’s fractional CFOs provide clear visibility into your monthly burn rate and runway projections, giving you time to pivot before you hit a cash crunch. For CEOs, that foresight means fewer sleepless nights and smarter, more confident leadership.
Partner with Fix-It Accounting for Smarter Financial Management
Most CEOs didn’t start their companies to spend their days buried in spreadsheets. But knowing these five metrics and using them to guide decisions can make the difference between growth and stagnation.
That’s where Fix-It Accounting’s CFO services shine. Our fractional CFOs go beyond bookkeeping and reporting. We help you analyze key financial indicators, plan for the future, and build a strategy that aligns your finances with your vision for the business.
Whether you need help forecasting cash flow, analyzing profitability, or scaling sustainably, Fix-It Accounting can bring clarity to your financial picture and confidence to every decision.
Contact Fix-It Accounting today to schedule your free consultation and discover how our CFO services can help your business grow with strategy, insight, and peace of mind.