Plain-language guides to the numbers that run your business. Read them, share them and bring your questions to us.
Revenue alone does not tell you whether a business is healthy. These four ratios do. The figures below come from an example business; try your own numbers in the calculator underneath.
(Revenue − Cost of goods sold) ÷ Revenue
Example: $120,000 revenue, $69,600 cost of goods sold
The share of each sales dollar left to cover overhead and profit. Watch the trend: a falling margin often signals rising costs or underpricing. Healthy levels vary widely by industry.
Cash on hand ÷ Monthly net cash burn
Example: $90,000 cash, $12,000 net cash outflow per month
How long the business could operate on current cash if no new money came in. Many advisors suggest keeping a reserve of at least three to six months.
Accounts receivable ÷ Annual revenue × 365
Example: $36,000 receivables, $480,000 annual revenue
The average number of days customers take to pay. Compare it with your payment terms: on Net 30 terms, a figure of 45 means customers are paying late and cash is tied up.
Current assets ÷ Current liabilities
Example: $150,000 current assets, $100,000 current liabilities
Your ability to cover bills due within a year. Above 1.0 means short-term assets exceed short-term debts; lenders commonly look for a comfortable margin above that.
Enter figures from your financial statements. The calculations run in your browser; nothing you type is saved or sent.
These ratios are general indicators, not a substitute for a professional review. Our financial reporting service tracks them for you every month.
Review My NumbersAlso called an income statement, your P&L answers one question: are you actually profitable? It covers a period of time, such as a month, quarter or year.
Revenue is everything you earned from sales and services. Cost of goods sold is what it directly cost to deliver them. Operating expenses are the costs of running the business: rent, payroll, software, marketing. What's left is your net profit.
Compare month to month and year to year. Is revenue growing faster than expenses? Which costs are creeping up? A healthy P&L shows not just profit, but the trend.
Your balance sheet is a snapshot of one moment in time. It shows what your business owns, what it owes, and what's left for you.
Assets are what you own: cash, money customers owe you, inventory and equipment. Liabilities are what you owe: loans, credit cards and unpaid bills. Equity is the difference, your stake in the business.
A business can be profitable on paper and still run out of cash. Your cash flow statement shows where your money really goes.
| Activity | Examples |
|---|---|
| Operating | Cash from customers, payments to suppliers and staff |
| Investing | Buying or selling equipment, vehicles or property |
| Financing | Taking out or repaying loans, owner contributions and draws |
Your structure affects your taxes, your personal liability and how you pay yourself. Here's a simplified overview.
| Structure | In short |
|---|---|
| Sole proprietorship | Simplest to start. No separation between you and the business, so your personal assets are exposed. |
| LLC | Separates personal and business liability. Flexible in how it's taxed. |
| S-Corporation | A tax election that can reduce self-employment taxes for profitable businesses, with payroll requirements. |
| C-Corporation | Taxed separately from owners. Often used by companies raising outside investment. |
Every legal deduction you miss is money you earned and never kept. These are commonly overlooked:
Typical U.S. federal deadlines for calendar-year filers. When a date falls on a weekend or holiday, it moves to the next business day.
| Date | What's due |
|---|---|
| January 15 | Q4 estimated tax payment (prior year) |
| January 31 | W-2s and most 1099s to workers and the IRS |
| March 15 | Partnership and S-Corp returns (or extension) |
| April 15 | Individual and C-Corp returns (or extension), Q1 estimated tax |
| June 15 | Q2 estimated tax |
| September 15 | Q3 estimated tax, extended partnership and S-Corp returns |
| October 15 | Extended individual returns |
No. Smaller businesses often benefit the most, because a sound setup early on prevents costly problems later, and tax planning can make a meaningful difference to a growing business.
Yes. Catch-up and clean-up bookkeeping is one of our most common engagements. We will bring your records current and keep them that way.
No. We work with businesses across industries, including retail, beauty, logistics, construction, professional services and more, and tailor our advice to how your industry works.
Fees depend on the services you need. After a complimentary consultation, we provide a written proposal with a fixed fee. See how our pricing works.
Monthly services have no long-term contract. You may cancel at any time with 30 days' written notice, with no cancellation fees, and you pay only for work completed. Read the full policy.
We respond to every message within 12–24 hours. Our virtual assistant is available 24/7 for general questions and can pass your request directly to our team.
Yes. We meet in person or virtually, and share documents and reports securely online.
It depends on your income, goals and state rules. We'll compare your options side by side during a consultation.
Bring it to a complimentary consultation, and we will provide a clear answer and a recommended next step.
Automated assistant. Our team replies within 12–24 hours. Please do not share sensitive information here. Privacy