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Which KPIs to include in a monthly client report
Most small business owners need fewer numbers, explained better. These KPIs can all be calculated from a standard Profit and Loss and Balance Sheet, so you don't need extra data or software to report them every month.
Core KPIs and formulas
| KPI | Formula | What it tells the owner |
|---|---|---|
| Revenue and growth | Total income; change vs. prior month and vs. same month last year, in $ and % | Is the business selling more? |
| Gross margin | (Revenue − cost of goods sold) ÷ revenue | How much of each sales dollar is left after direct costs. Only meaningful when COGS is recorded consistently. |
| Operating margin | Operating income ÷ revenue (operating income = gross profit − operating expenses) | Profitability of the core business before other income and expenses. |
| Net margin | Net income ÷ revenue | The bottom line as a share of sales. |
| Operating expenses | Total operating expenses, also as % of revenue | Whether overheads are growing faster than sales. |
| Cash | Sum of bank and cash accounts at month-end | The number owners care about most. |
| Current ratio | Current assets ÷ current liabilities | Short-term obligations covered by short-term assets. |
| Quick ratio | (Cash + accounts receivable) ÷ current liabilities | A stricter version that leaves out inventory and prepaid items. |
| Burn and runway (loss-making clients) | Burn = average monthly net loss (e.g. last 3 months); runway = cash ÷ burn | Roughly how long current cash lasts at the current loss rate. |
How to pick for each client
- Service businesses often have little or no COGS. Skip gross margin and focus on revenue, operating expenses as % of revenue, net margin and cash.
- Retail, restaurants, product businesses: gross margin is usually the most important line. Watch it monthly.
- Businesses with invoices: add accounts receivable and its change. A rising receivable balance with flat revenue means slower collections.
- Startups and loss-making clients: lead with cash, burn and runway.
Pitfalls to avoid
- Percentage changes on tiny bases. “Other income up 400%” from $20 to $100 is noise. Show the dollar change alongside.
- Margins when revenue is zero or negative. They are undefined; leave them blank rather than printing a misleading number.
- Runway as a forecast. Net loss is not the same as cash burn: depreciation, loan principal, owner draws, inventory and receivables timing all differ. Label runway as a rough estimate, and use the change in cash as a second view.
- Comparing different bases. Accrual and cash basis reports place transactions in different months. Use the same basis every month.
- Partial months. A report period that ends mid-month makes the last column look artificially low.
Presenting KPIs
Put the KPIs on one page as cards: the number in large type, and one or two lines of context underneath (for example “+9.1% vs Aug 2026”). Keep the same order every month. Then use the commentary to explain the two or three that moved most.
Closeleaf calculates these KPIs from your QuickBooks Online or Xero exports and lays them out on a summary page.
Open the report builder Try it with sample data