Few things are more frustrating for small business owners than pouring over financial statements. Most of us would rather be serving our customers and refining our business. That said, using a few simple financial metrics can help you monitor your business and adjust to trends in the market.

A quick refresher on the two key reports for all sizes of business are the Balance Sheet and the Income Statement. The Balance Sheet is an itemized statement that lists the total assets and the total liabilities of a business, and gives its net worth on a certain date (such as the end of a month, quarter, or year). The Income Statement records revenue versus expenses for a given period of time.

The table below offers a few ideas for some of the ratios that can help manage your business.

For additional resources, check out the links below:

Bond Street, The Small Business Owner’s Guide to Financial Ratios

Financial Ratios That Are A Must For Small Business

Business Planning & Financial Statements Template Gallery

5 Financial Ratios every business owner needs to know

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