Profitability isn’t just about dollars on a balance sheet. It’s about understanding what truly drives your small business—and that begins with reliable data.
At e2E, we’ve seen too many small and mid-sized businesses struggle simply because they lack timely, accurate information. Roni Gach, e2E’s Accounting Services Practice Leader, explains, “Sometimes step one is just cleaning up the accounting data so leaders can see what’s really happening.” Without that step, every decision is based on hunches or outdated reports—more guesswork than guidance. It’s like trying to navigate with last year’s map: you may eventually get somewhere, but the chances of wrong turns, roadblocks, or late arrivals are far too high.
Small Business Metrics Matter
Operational metrics—things like staff utilization, realization rates, job costing, average monthly recurring revenue per customer, or customer churn—are the gears that power your financial engine. When those gears are measured, tracked, and tied to financial models, leaders can clearly see how day-to-day decisions impact the bottom line. For example, one e2E client was struggling to meet their revenue targets even though they were meeting their new client account goals. After working with e2E to dig in and understand the lagging revenue, they discovered their average monthly recurring revenue per client was lower and client churn was higher than they thought. These insights allowed them to adjust sales goals and plan with confidence.
From Data to Insights
Collecting data isn’t enough. Leaders need to understand what that data means. Reliable data allows businesses to model scenarios, test assumptions, and make smarter decisions.
Roni explained it this way: “It’s about setting targets for metrics like utilization, monitoring results, and then asking: Why are we missing the target? Is it unrealistic or is there an operational issue to solve?”.
In practice, this could mean analyzing why employee utilization is consistently below target. Is demand weaker than expected? Are staffing levels too high? Or is the target itself too aggressive? Reliable data transforms conversations like these from guesswork into fact-based decision-making.
Roni adds, “The data really can help you take the emotion out of it and say, here’s what’s real, here’s what we know for a fact is happening. Now what tweaks can we make?”. This shift from reactive to proactive thinking is what helps businesses avoid costly missteps and move toward sustainable profitability.
Technology as an Enabler
Having the right systems is critical. Tools like QuickBooks Online, Ramp, and Gusto—when set up properly—streamline operations, improve reporting, and provide leaders with real-time data. But the real value isn’t just in the software itself. It’s in how those tools are implemented and integrated into a broader financial roadmap allowing real-time data to be used for insights and forward planning. Without proper setup and interpretation, even the best technology produces noise instead of clarity.
The Takeaway
Data alone doesn’t create profitability. But reliable metrics, consistently tracked and interpreted in the context of a financial roadmap, empower leaders to make smarter, faster, and more profitable decisions.
That’s the power of turning operational metrics into insights. And for business owners ready to put their numbers to work, the next step is having the right partner to guide the process.
If you’re looking for clarity and confidence on your own Path to Profitability, reach out to Roni Gach at e2E. With years of hands-on experience helping businesses turn raw data into actionable strategies, Roni can help you connect your operational metrics to your financial roadmap—and move your business closer to its goals.