Most small business owners skip their books until tax season. By then, it's too late to make good decisions — you're just doing damage control.

Here are 3 numbers you should know by the 10th of every month:

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1. Net Profit Margin

Formula: Net Income ÷ Revenue × 100

If you made $15,000 in revenue and $3,000 in net profit, your margin is 20%.

Why it matters: Revenue is vanity. Margin is reality. A 20% margin means $1 in every $5 you earn is actually yours. Below 10% on a service business is a warning sign — you're working hard and keeping very little.

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2. Outstanding Receivables (Unpaid Invoices)

Formula: Sum of all invoices sent but not yet paid

If you have $8,000 sitting in unpaid invoices right now, that's $8,000 your business is owed but can't use.

Why it matters: Cash flow kills more businesses than lack of profitability. You can be profitable on paper and broke in reality. Know this number and chase it aggressively.

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3. Months of Operating Runway

Formula: Cash in Bank ÷ Average Monthly Expenses

If you have $12,000 in the bank and spend $4,000/month, you have 3 months of runway.

Why it matters: This number tells you how long your business can survive if revenue stopped tomorrow. Under 2 months = danger zone. Over 6 months = you have breathing room to make bold moves.

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Most business owners don't know any of these three numbers off the top of their head.

If that's you — your books need attention. And it's not as hard as you think to fix it.

We built Bookkeeping Blueprint specifically for beginners who want clean books without hiring a $500/month bookkeeper.