This might seem like a common sense post, but it’s so important for crypto based businesses to track the basic financial metrics like any other business would.
As a crypto accountant, I help businesses track and manage their financial data. I’ve seen first hand how important it is for crypto businesses to track the right financial metrics in order to make informed decisions and improve their bottom line.
Here are some of the key financial metrics that I recommend crypto businesses track:
Revenue: This is the total amount of money that a business brings in from its operations. It’s a good measure of the size of the business and its growth potential.
Cost of goods sold (COGS): This is the cost of the products or services that a business sells. It’s a good measure of the profitability of the business.
Gross margin: This is the difference between revenue and COGS. It’s a good measure of how much profit a business makes on each dollar of sales.
Operating expenses: These are the expenses that a business incurs in order to operate its business. They include things like rent, salaries, and marketing costs.
Net income: This is the profit that a business makes after all of its expenses have been deducted. It’s a good measure of the overall financial health of the business.
Free cash flow: This is the amount of cash that a business generates after it has paid for its operating expenses and investments. It’s a good measure of how much cash a business has available to reinvest in its operations or return to its investors.
These are just a few of the key financial metrics that crypto businesses should track. By tracking these metrics, businesses can gain valuable insights into their financial performance and make better decisions about their future.
If you’re a crypto business owner, I encourage you to start tracking these metrics today. It’s one of the best ways to improve your understanding of your financial health and make better decisions for your business.