Revenue is usually the number that gets the most attention — it’s the one on the dashboard, the one that comes up in conversation, the one that feels like the scoreboard.
But revenue alone doesn’t tell the whole story of whether a business is healthy. It’s possible to grow revenue every month while margin quietly erodes, cash runs tighter than profit suggests, or a debtors book grows large enough to fund someone else’s business more than your own.
Here are five numbers worth checking alongside revenue — and what each one is really telling you.
Gross Margin
Is each sale making what it should?
Gross margin measures profitability per sale — strip out the cost of what you sold, and see what’s left. A slipping margin is often one of the earliest warning signs available, showing up well before it’s visible in the bank balance. Keeping an eye on it means growth and profitability can be tracked together, not just assumed to move in step.
Net Profit vs Last Month
Not just the number. The direction.
A single month’s net profit tells you very little on its own. What matters more is the trend — is it climbing, flat, or slipping when compared month to month? Trend beats snapshots: one strong month doesn’t say much on its own, but a consistent direction over a few months usually does.
Cash vs Profit
Profit on the page doesn’t always mean money in the bank.
This is a gap that can catch out even experienced business owners, simply because of how accounting works — profit is recorded when it’s earned, not necessarily when it’s collected. Checking what’s actually landed in the bank, alongside what’s recorded as profit, gives a fuller picture of where the business really stands.
Debtors
Who owes you, and for how long?
Growth funded by outstanding invoices can feel the same as growth funded by cash — until the timing catches up. Tracking outstanding amounts and how long it typically takes to get paid helps keep growth and collections moving at the same pace.
Tax Set-Aside
Tax liabilities sitting in the account aren’t part of available cash.
Income tax, VAT, and PAYE held on behalf of SARS can look like available funds if they’re not tracked separately. This is mostly a timing and visibility question rather than anything more — knowing that number ahead of time, and setting it aside as it accrues, helps avoid surprises later.
None of these five numbers replace revenue — they sit alongside it.
The Common Thread
Revenue shows that activity is happening. These five show whether that activity is building a healthy, sustainable business.
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