Metrics that matter (but don’t show up in your accounts)

As the year draws to a close, most small business owners do the same thing: they look at the numbers. Revenue versus last year. Profit margins. Growth percentages. Whether you hit the targets you set back in January.

For some, those numbers will tell a satisfying story. For others, they could be deflating. Revenue might be flat, or only marginally up. Profit might have been squeezed by rising costs. The spreadsheet doesn’t look as impressive as you’d hoped.

But here’s what spreadsheets can’t capture: the real progress you’ve made that simply doesn’t show up as a line item in your accounts.

There are metrics that matter just as much as revenue and profit, but rarely get measured. They’re the things that make running a business easier, more resilient, and more sustainable over time.

The decisions that feel easier now

Think back to a year ago. What problems felt overwhelming then that you now handle routinely? 

Maybe it’s operational – you’ve got better at managing stock, so you’re not firefighting shortages or sitting on dead inventory. Perhaps you’ve become better at spotting cash flow problems earlier and managing them more confidently. Or you’ve simply become better at the dozens of small judgement calls that running a business requires.

None of this appears on a balance sheet, but it reflects something real: you’ve built experience, judgement and fluency in running your business. You’re likely making decisions faster, with more context, and with fewer surprises than you were twelve months ago – and that kind of competence compounds quietly over time.

The trust you’ve built with customers and suppliers

Customer retention doesn’t generate headlines, but it’s one of the most valuable things a small business can achieve. Acquiring new customers is expensive and uncertain. Keeping existing ones is how sustainable businesses are built.

If you’ve spent this year deepening relationships — responding thoughtfully to problems, delivering consistently, showing up reliably — that creates value that won’t show up in this year’s accounts but will absolutely show up in next year’s (and the year after that).

The same applies to supplier relationships. Have you bolstered trust with key suppliers? Negotiated better terms? Over time, these relationships can reduce friction. Problems get resolved faster, conversations become easier, and there’s more goodwill when things don’t go perfectly. That kind of stability is hard to measure, but it materially changes how a business operates.

The reputation you've earned

What do people say about your business when you’re not in the room? How do they describe you to others? Reputation is built slowly and demonstrated through accumulated evidence. Every well-handled complaint, every deadline met, every time you’ve done slightly more than was strictly necessary – these moments add up. 

You might not be able to put a number on reputation, but you can see its effects. And if people trust your business more now than they did at the start of the year, that’s a form of progress worth recognising.

What you can do now that you couldn’t before

What can you do now that you couldn't do twelve months ago? Maybe you’ve learned basic bookkeeping, or how to use social media more effectively, or simply become more confident negotiating with customers and suppliers.

Every skill you develop is an asset that stays with you. It’s professional capital that makes you more resilient and more capable. And, unlike physical assets, skills don’t depreciate – they compound.

So, before you close the books on the year, it could be worth taking ten minutes to write down some wins that don’t involve money:

• One problem you solved this year that would have stumped you last year

• One relationship that is stronger now than it was in January

• One system or process that is running smoother than before

It’s always worth looking back and realising just how far you’ve come.

Why numbers don’t tell the whole story

Revenue and profit still matter. They’re the outcome every business ultimately needs. But they’re also lagging indicators – they, to a large extent, reflect decisions, systems and relationships built over time.

But if you’re ending the year feeling disappointed because the numbers aren’t quite where you wanted them to be, it’s worth asking what else has improved. What have you built that doesn't show up in accounts but will create value over time?

Sometimes, flat years can be the ones where foundations get laid – learning what doesn’t work, tightening systems, strengthening relationships, and earning trust. The business you’re running today is likely more robust, better understood, and better positioned than it was a year ago, even if the accounts don’t fully reflect that quite yet.