Are You Even Winning? Track These 5 Numbers to Know for Sure

If you’re like most business owners, you’re putting in long hours, juggling problems, and making tough decisions. But do you actually know if your business is winning?

Most business owners can’t answer that with confidence. Sure, they know their revenue. But profit? Margin? Cash on hand? That’s usually a guess.

Financial statements feel overwhelming, and even if you review them, it's unclear what really matters.

At Patrick Accounting, we’ve worked with hundreds of owners to simplify their financial picture using just five key numbers. And it’s completely changed the way they run their business.

In this article, we’ll show you what those five numbers are, why they matter, and how to turn them into a clear monthly scorecard that tells you if you're winning…or if you need to change your game plan.

Why Most Business Owners Struggle Without a Scorecard

Most business owners obsess over the wrong numbers, especially revenue.

Revenue feels exciting. It’s the number you brag about at networking events. But it can also be misleading

We’ve seen it time and again:

• Construction companies with $50 million in sales but only $400,000 in profit
• Retailers with high volume but razor-thin margins
• Restaurants doing millions in revenue but barely paying the owner a salary

The problem is your financial statements are overwhelming. Dozens of line items and confusing categories. There no clear way to know if you’re actually winning.

So, you glance at the bottom line, maybe shrug, and move on, hoping for the best.

But that’s like playing a game without a scoreboard. You’re working hard, but you have no idea where you stand.

That’s why your business needs a scorecard, not just reports. A scorecard gives you:

• Clear targets to hit each month
• Instant feedback: Did you win or lose?
• Confidence to make smart decisions without guessing

The best part? You only need to track five numbers to build one.

The 5 Financial Numbers That Actually Show If Your Business Is Winning

You may not understand every line on your P&L, and you may feel like you’re drowning in dozens of metrics. But you only need to track 5 numbers to know if your business is healthy and heading in the right direction. Here they are:

1. Revenue – Track It for Trends, Not for Bragging Rights

Revenue matters, but not in the way most people think.

What to track: Are you hitting your monthly revenue goals? Are you on pace for your annual targets?

Break it down by product, service line, or customer segment to see what’s working and what isn’t.

Don’t confuse high revenue with strong performance. A $10M business and a $1M business can both net the same profit.

Revenue shows what’s coming in, but the next four numbers show if you’re keeping any of it.

2. Gross Margin – Are You Actually Making Money on What You Sell?

Gross margin measures what’s left after direct costs, and it looks different depending on your industry.

Examples by industry:

• Restaurants: Track food and beverage cost %
• Service businesses: Track realization rate (billed vs. collected)
• Retail: Margin by product line
• Construction: Job profitability

Track it as a percentage, not just in dollars. Benchmark it against your industry standard.

If your gross margin is off, your pricing or costs are out of sync, and that’s unsustainable.

3. Net Profit Before Owner – Your Business’s Real Operating Health

This number shows what’s left after operating expenses, but before you pay yourself.

This is your discretionary bucket. It funds things like:

• Owner retirement contributions
• Insurance
• Growth investments
• Reserves

Most owners never track this, but it’s one of the clearest indicators of business health.

Typical benchmarks:

• Service businesses: 20–40%
• Restaurants: 8–15%

If this number is low or negative, your business model is probably broken, regardless of how much revenue you bring in.

4. Net Profit After Owner – What You Actually Keep

Now we’re looking at true profit, what’s there after the owner has been paid.

This number reveals how sustainable your business is.

We could have two companies—a $1 million consulting business and a $50 million construction business. Both could net $500,000. The percentages look completely different, but they're both putting the same amount in the owner's pocket.

Track this as a percentage of revenue, and use it to guide growth decisions.

This is what’s left after paying yourself. It’s your real “keep the lights on” number.

5. Allocated Cash – Know What’s Truly Available to Spend

A lot of business owners just check the bank balance, but that doesn’t tell the full story.

That $50K in your account might already be spoken for:

• Payroll due next week
• Taxes next month
• Vendor payments
• Equipment purchases

Instead, allocate your cash into buckets (think Profit First):

• Payroll (1–3 months)
• Taxes
• Operating expenses
• Reserves

Start with a simple target like reaching those 3 months of payroll.

Cash in the bank isn’t helpful unless you know what it’s for.

How to Build Your Business Scorecard in 4 Simple Steps

Having the numbers is one thing. Turning them into a system that actually helps you run your business is another. Here's how to build your scorecard:

Step 1: Set Monthly Targets for Each of the 5 Numbers

Decide what “winning” looks like for each number.

Examples:

• Revenue: “$100,000 in sales this month”
• Gross margin: “30%”
• Net profit before owner: “25%”
• Net profit after owner: “15%"
• Allocated cash: “$25,000 in reserves”

You can’t keep score without targets. Start simple and write them down.

Step 2: Track Progress Monthly (at Minimum)

Build a simple tracker. One row for each metric, one column for each month.

• Record your target at the top
• Record actual results below
• Mark it as hit or missed

You don’t need fancy dashboards or expensive software. You just need visibility and accountability.

Step 3: Create Sub-Targets When You Miss Your Main Goals

If you miss a core number, break it down and solve it at the input level.

Examples:

• Missed revenue? → “Send 10 proposals” or “Book 5 discovery calls”
• Cash low? → “Collect on past-due invoices” or “Cut expenses by 10%”

Your scorecard becomes your playbook where you track inputs that drive your outcomes.

Step 4: Review and Adjust Your Targets Quarterly

Use the scorecard to evolve. Each quarter, ask:

• Are my targets realistic?
• Am I consistently hitting or missing?
• What’s changed in my pricing, costs, or goals?

What Makes a Good Target vs. a Bad One?

Good targets are specific, measurable, and tied to actions you control.

• Send 10 proposals this month
• Maintain 30% gross margin”

Bad targets are vague hopes or disconnected from reality.

• Sell more
• Make a lot of money
• Hit 50% profit in a 10% margin industry

Start with what’s realistic, then push toward what’s possible.

Your scorecard should grow with your business. Your goal is progress, not perfection.

Track Financial Metrics and Action Metrics for a Complete Scorecard

The five numbers you've already seen are outcome metrics, also called “lag indicators.” They tell you what happened.

But they don’t show you why it happened. For that, you need action metrics. These are the inputs that drive results.

Here are some examples of both:

Outcome metrics:

• Revenue
• Gross margin
• Net profit
• Allocated cash

Action metrics:

• Proposals sent
• Sales calls made
• Invoices collected
• Google reviews collected
• Appointments booked

You don’t need to track 20 things. Just track the two to three actions that consistently move your outcomes in the right direction.

Outcome metrics tell you if you’re winning. Action metrics show how to win.

How This Scorecard Makes Running Your Business Easier

Running a business without a scorecard won’t help you win anything. You might be moving, but you have no idea if you're headed in the right direction.

A simple scorecard removes that uncertainty. It gives you:

• Focus: You stop chasing dozens of metrics and zero in on the five that matter.
• Clarity: You know whether you're winning or falling behind, every single month.
• Confidence: You make decisions based on real numbers, not gut feeling.
• Accountability: You see what worked, what didn’t, and what needs to change.

And maybe best of all? It makes running your business more fun. When you can measure success, you actually get to feel it.

Clarity leads to confidence, and confidence leads to better decisions.

Know Your Score, Win Your Game

Most business owners struggle to track their numbers, but now you know exactly which five matter most: Revenue, Gross Margin, Net Profit Before Owner, Net Profit After Owner, and Allocated Cash.

If you’ve been relying on bank balances and revenue alone, it’s no wonder decision-making feels like guesswork.

But with a scorecard, you get clarity, accountability, and confidence every single month.

If you're ready to build a custom scorecard and finally know whether you're winning, let's talk.

At Patrick Accounting, we help small business owners understand their numbers, set realistic targets, and make smarter business decisions. Schedule a discovery call today and let’s build your scoreboard together.