Cash Flow:  This metric is one of the most vital KPIs for manufacturers who keep materials on hand in inventory, sometimes for months. It’s important to make sure there is enough cash coming in to keep up with charges without running out of money or accumulating too much supply inventory. Operating cash flow metrics rely on accurate net income calculations, non-cash expenses, and working capital analysis.

Income:  Monitor your firm’s income in total sales of products and services. This lagging indicator is typically measured against sales targets. In some cases, this KPI will need to be adjusted for market fluctuations or seasonal impacts. Be sure to measure new income and recurring income separately. Recurring revenue is much easier to predict.

Cost:  Monitor fixed costs separately from your variable costs. Direct variable costs such as materials and labor will have impacts on your costs of goods sold. In contrast, costs related to overhead such as equipment and rent should be tracked as indirect fixed costs because they’re independent of sales and production volume.

If you’d like to know more about how Multiable ERP system can help your business grow, contact for a free consultation with one of our experts at Multiable.