Are you leveraging your business metrics to make better management decisions for your business? According to a survey conducted by CPA2Biz you aren’t. CPA2Biz, the marketing and technology services subsidiary of the American Institute of CPAs, surveyed 500 small businesses with an average of less than 15 employees and $2 million in annual revenues.

“Clearly, based on the survey, these small business owners are not taking advantage of simple tools that would help them better manage their profitability and performance,” said Bill Reeb, CPA.

The number one issue facing small business is ensuring adequate cash flow from operations, according to 83% of survey respondents. That’s no real surprise. Most small business owners I’ve encountered say cash flow is the issue that keeps them awake at night.

Driving this issue is the fact that 51% of those surveyed say they don’t use a cash flow budget or forecasts to help manage their business and 32% say they don’t have specific metrics in place to monitor performance on a daily or weekly basis. And only 17% agreed that daily or weekly metrics are as important to them as their financial statements.

Plus another key survey finding indicated only 21% of participants measure their return on investment of advertising and promotional dollars; and only 11% stated that they regularly monitor non-financial indicators, like customer support calls and visits to the company Web site, to further evaluate business performance.

Surely you can do better. Take the time to determine key metrics for your business and make a pledge to keep on top of them next year. You’ll sleep better.

Are you already using metrics to manage your cash flow? Tell me about it.

More on this topic:

1. Pump Up Your Cash Flow By Getting Paid
2. A Cash Flow Budget Can Help You Control The Ebb And Flow
3. Timely Tips for Avoiding an IRS Audit from Tax Ninja
4. Think Sideways to Keep the Cash Flowing
5. Yes, Credit Is Still Available If Your Business Is In Good Shape