Cloud accounting software is a tool that can be used by small business owners to track their business growth. The following are three examples that can be tracked:
*Sales growth – Use cash flow forecasts to ensure your cash and profit margins are well-aligned. To complete a cash flow forecast, add the existing cash in the business to your projected cash flow, and subtract the projected cash outflows for the next term.*Revenue growth rate – While this is a basic calculation, it is useful to ensure the business is growing. Divide the current year’s revenue by the past year’s revenue to obtain the revenue growth percentage.*Inventory turnover – This is used to show how quickly inventory moves. Add up the cost of goods sold, which is the expenses that go into producing a good such as utilities and salaries, and divide by the total value of what remains at year-end.