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8 examples of Finance Team metrics and KPIs

What are Finance Team metrics?

Identifying the optimal Finance Team metrics can be challenging, especially when everyday tasks consume your time. To help you, we've assembled a list of examples to ignite your creativity.

Copy these examples into your preferred app, or you can also use Tability to keep yourself accountable.

Find Finance Team metrics with AI

While we have some examples available, it's likely that you'll have specific scenarios that aren't covered here. You can use our free AI metrics generator below to generate your own strategies.

Examples of Finance Team metrics and KPIs

Metrics for Student Start-Up Launch

  • 1. Customer Acquisition Cost (CAC)

    The cost of acquiring a new customer, calculated by dividing total marketing expenses by the number of new customers acquired.

    What good looks like for this metric: Varies greatly, often between $5-$100

    Ideas to improve this metric
    • Optimise marketing campaigns
    • Leverage social media and word of mouth
    • Increase conversion rates on landing pages
    • Experiment with cost-effective advertising channels
    • Focus on customer referrals and discount programs
  • 2. Monthly Recurring Revenue (MRR)

    The predictable revenue expected every month from subscription services or regular sales.

    What good looks like for this metric: $0 in month one, with rapid growth expected

    Ideas to improve this metric
    • Introduce subscription-based services
    • Enhance product features to retain users
    • Upsell to existing customers
    • Expand market to new customers
    • Regularly assess pricing strategy
  • 3. Customer Retention Rate

    The percentage of customers a company retains over a specific period.

    What good looks like for this metric: 60-70%

    Ideas to improve this metric
    • Offer excellent customer service
    • Maintain high-quality products
    • Engage customers through regular communication
    • Implement a loyalty or rewards program
    • Regularly collect feedback and adapt
  • 4. Net Promoter Score (NPS)

    A metric to gauge customer satisfaction and loyalty on a scale from -100 to 100 based on likelihood to recommend.

    What good looks like for this metric: Above 20 is considered good

    Ideas to improve this metric
    • Regularly survey customers about their experience
    • Implement customer feedback quickly
    • Enhance product offerings based on feedback
    • Improve customer support processes
    • Build a community around your brand
  • 5. Burn Rate

    The rate at which a company is spending its capital before generating positive cash flow.

    What good looks like for this metric: Typically 1-2 years runway

    Ideas to improve this metric
    • Optimise operational efficiency
    • Prioritise spending on revenue-generating activities
    • Regularly review and adjust budget
    • Seek additional funding if necessary
    • Monitor cash flow closely

Metrics for Timelines and Feasible KPIs

  • 1. Project Completion Rate

    Measures the percentage of projects completed on time within the planned timeline

    What good looks like for this metric: 80-90%

    Ideas to improve this metric
    • Set clear project milestones
    • Use project management tools
    • Regular progress reviews
    • Allocate resources effectively
    • Adjust timelines as needed
  • 2. On-time Delivery Rate

    Tracks the percentage of tasks or projects delivered by the agreed deadline

    What good looks like for this metric: Above 85%

    Ideas to improve this metric
    • Identify potential bottlenecks early
    • Communicate deadlines clearly
    • Set realistic schedules
    • Prioritise critical tasks
    • Monitor progress frequently
  • 3. Scope Change Request Rate

    Measures how often project scopes change, indicating potential misalignment with initial plans

    What good looks like for this metric: Less than 10%

    Ideas to improve this metric
    • Define clear scope at the start
    • Conduct thorough stakeholder consultations
    • Implement a formal change request process
    • Engage in continuous communication
    • Evaluate risks proactively
  • 4. Budget Variance

    Compares the budget forecasted with the actual spend to determine financial accuracy

    What good looks like for this metric: Within ±5%

    Ideas to improve this metric
    • Track expenses regularly
    • Review budget assumptions
    • Implement cost-control measures
    • Reallocate funds as necessary
    • Maintain transparent reporting
  • 5. Team Productivity

    Assesses how efficiently teams complete tasks within the designated timeline

    What good looks like for this metric: 3-5% improvement per quarter

    Ideas to improve this metric
    • Provide proper training
    • Encourage collaboration
    • Incorporate technology solutions
    • Set clear roles and responsibilities
    • Review workloads and redistribute as needed

Metrics for Profit increase strategies

  • 1. Net Profit Margin

    Calculated by dividing net profit by total revenue, expressed as a percentage. It shows how much profit a company makes for each dollar of revenue.

    What good looks like for this metric: 10-20%

    Ideas to improve this metric
    • Reduce operational costs
    • Increase product prices
    • Enhance sales volume
    • Improve customer retention
    • Optimise supply chain
  • 2. Return on Investment (ROI)

    Determines profitability by comparing the gain from an investment to its cost, calculated as (Net Profit / Cost of Investment) x 100.

    What good looks like for this metric: 15-25%

    Ideas to improve this metric
    • Choose higher-yield investments
    • Reduce investment costs
    • Increase revenue from investments
    • Enhance marketing strategies
    • Improve financial forecasting
  • 3. Gross Profit Margin

    Calculated by subtracting cost of goods sold (COGS) from revenue and dividing by revenue, expressed as a percentage, indicating the efficiency of production and pricing.

    What good looks like for this metric: 20-40%

    Ideas to improve this metric
    • Negotiate better supplier terms
    • Increase production efficiency
    • Enhance sales and pricing strategy
    • Reduce waste in production
    • Control direct labour costs
  • 4. Operating Profit Margin

    Measures what proportion of revenue is left as profit after accounting for operating expenses, calculated by dividing operating profit by total revenue.

    What good looks like for this metric: 10-15%

    Ideas to improve this metric
    • Streamline operational processes
    • Reduce administrative expenses
    • Enhance revenue streams
    • Focus on core business activities
    • Minimise utility and overhead costs
  • 5. Expense Ratio

    Expresses the percentage of total expenses to total revenue, highlighting cost management efficiency.

    What good looks like for this metric: 60-80%

    Ideas to improve this metric
    • Implement cost-cutting measures
    • Monitor expenses regularly
    • Automate routine tasks
    • Negotiate better vendor contracts
    • Outsource non-core processes

Metrics for Improve Financial Reporting

  • 1. Data Entry Error Rate

    Percentage of financial entries that contain errors, calculated by dividing the number of inaccurate entries by the total number of entries

    What good looks like for this metric: Less than 1%

    Ideas to improve this metric
    • Implement data validation rules
    • Provide regular training for staff
    • Utilise automated data entry tools
    • Conduct regular audits
    • Create a feedback loop for continuous improvement
  • 2. Reporting Cycle Time

    Time taken to complete the financial reporting cycle, measured from the end of the reporting period to when the report is finalised

    What good looks like for this metric: 15 days or less

    Ideas to improve this metric
    • Automate data collection processes
    • Implement efficient workflow software
    • Streamline approvals and reviews
    • Set clear deadlines for each stage
    • Regularly review and refine processes
  • 3. Report Revision Rate

    Number of times a financial report needs to be revised after initial completion, divided by the total number of reports

    What good looks like for this metric: Less than 5%

    Ideas to improve this metric
    • Standardise report templates
    • Enhance internal review processes
    • Use predictive analytics for forecasting
    • Incorporate real-time financial dashboards
    • Foster better inter-departmental communication
  • 4. On-Time Financial Close Rate

    Percentage of times financial reports are completed within the designated reporting period

    What good looks like for this metric: 95% or higher

    Ideas to improve this metric
    • Set clear and realistic closing deadlines
    • Ensure adequate staffing during close periods
    • Implement parallel closing processes
    • Monitor and address bottlenecks promptly
    • Use performance incentives to motivate staff
  • 5. Cost Of Financial Reporting

    Total expenses incurred to complete financial reporting activities, including personnel, software, and other resources

    What good looks like for this metric: 2-5% of total finance budget

    Ideas to improve this metric
    • Adopt cost-effective software solutions
    • Optimise resource allocation
    • Decrease manual interventions
    • Leverage cloud-based reporting tools
    • Regularly assess and adjust the budget

Metrics for Business Development Performance

  • 1. Revenue Growth Rate

    Percentage increase in revenue over a specified period, calculated as (Current Period Revenue - Previous Period Revenue) / Previous Period Revenue * 100

    What good looks like for this metric: 5-10% annually for stable growth

    Ideas to improve this metric
    • Enhance sales team training
    • Expand product/service offerings
    • Improve market analysis for new opportunities
    • Increase customer referrals and testimonials
    • Implement targeted marketing strategies
  • 2. Customer Acquisition Cost (CAC)

    Total cost of acquiring a new customer, calculated as total sales and marketing expense / number of new customers acquired

    What good looks like for this metric: Typically $1 to $300 per customer

    Ideas to improve this metric
    • Optimize marketing channels for efficiency
    • Improve targeting of ideal customer profiles
    • Enhance website conversion rates
    • Leverage partnerships and collaborations
    • Increase use of digital marketing tools
  • 3. Customer Retention Rate

    Percentage of customers retained over a given period, calculated as ((End of Period Customers - New Customers) / Start of Period Customers) * 100

    What good looks like for this metric: 70-90% depending on the industry

    Ideas to improve this metric
    • Improve product/service quality
    • Enhance customer support experience
    • Develop customer loyalty programmes
    • Regularly gather and act on customer feedback
    • Create engaging communication and content
  • 4. Net Revenue Retention (NRR)

    Percentage of recurring revenue retained from existing customers, including upgrades/downgrades, calculated as (Starting Revenue + Expansion Revenue - Churn) / Starting Revenue * 100

    What good looks like for this metric: Over 100% indicates good growth

    Ideas to improve this metric
    • Upsell existing customers to higher-tier plans
    • Introduce new features to drive value
    • Regularly communicate new offerings to customers
    • Reduce churn by addressing common concerns
    • Conduct regular account reviews with key clients
  • 5. Profit Margin

    Percentage of revenue that exceeds total costs, calculated as (Net Income / Revenue) * 100

    What good looks like for this metric: 10-20% is common in the industry

    Ideas to improve this metric
    • Reduce operational and production costs
    • Negotiate better supplier contracts
    • Optimize pricing strategies
    • Increase operational efficiency
    • Enhance financial management and reporting

Metrics for Instituição de Pagamento

  • 1. Customer Transaction Volume

    The total number of transactions processed by the payment institution over a given period

    What good looks like for this metric: Varies widely; high growth companies see 20% annual increase

    Ideas to improve this metric
    • Increase customer acquisition through marketing
    • Improve user experience to encourage repeat transactions
    • Expand partnerships to access a wider customer base
    • Offer promotions or discounts to drive transaction volume
    • Enhance payment options to support diverse needs
  • 2. Transaction Approval Rate

    The percentage of successful transactions approved compared to total transaction attempts

    What good looks like for this metric: Typically over 95% for competitive institutions

    Ideas to improve this metric
    • Enhance fraud detection accuracy
    • Optimise payment processing systems
    • Collaborate with banks to iron out common approval issues
    • Monitor transaction decline reasons closely
    • Regularly update customer payment information on file
  • 3. Net Revenue Margin

    The net revenue generated as a percentage of total revenue post expenses

    What good looks like for this metric: Ranges from 30% to 50%

    Ideas to improve this metric
    • Reduce operational costs
    • Increase service charges where feasible
    • Negotiate better rates with banks and card networks
    • Optimise risk management to reduce losses
    • Focus on high-margin products or services
  • 4. Customer Satisfaction Score

    A measure of how satisfied customers are with the service provided, often derived from surveys

    What good looks like for this metric: Aim above 80% satisfaction

    Ideas to improve this metric
    • Enhance customer service response times
    • Conduct regular feedback surveys
    • Implement suggestions from feedback
    • Regularly update and simplify user interfaces
    • Maintain transparency in fees and processes
  • 5. Average Transaction Value

    The average amount of money handled per transaction

    What good looks like for this metric: Dependent on industry; typically between $50 and $100

    Ideas to improve this metric
    • Encourage bulk purchases or payments
    • Promote higher-value products or services
    • Implement loyalty programs for higher spends
    • Offer tiered service packages at different price points
    • Cross-sell products to increase transaction value

Metrics for Balanced Growth and Success

  • 1. Revenue Growth Rate

    Measures the percentage increase in revenue over a specific period, indicating business expansion and success

    What good looks like for this metric: 10-25% annually for small businesses

    Ideas to improve this metric
    • Enhance marketing strategies
    • Diversify income streams
    • Optimize pricing models
    • Improve customer retention
    • Expand product or service offerings
  • 2. Customer Acquisition Cost (CAC)

    Represents the total expense incurred in acquiring a new customer, essential for evaluating marketing efficiency

    What good looks like for this metric: $50-150 for small businesses

    Ideas to improve this metric
    • Leverage referral programs
    • Utilize social media marketing
    • Optimize sales funnel
    • Focus on targeted advertising
    • Improve lead conversion rates
  • 3. Customer Retention Rate

    Indicates the percentage of customers who stay with a business over a given period, reflecting customer satisfaction and loyalty

    What good looks like for this metric: 50-80% for service-based businesses

    Ideas to improve this metric
    • Enhance customer support
    • Implement loyalty programs
    • Request regular feedback
    • Personalize customer communication
    • Increase service quality
  • 4. Net Profit Margin

    Calculates the percentage of revenue that remains as profit after all expenses are deducted, showing the efficiency of the management

    What good looks like for this metric: 10-20% for small to medium enterprises

    Ideas to improve this metric
    • Reduce operational costs
    • Increase sales volume
    • Evaluate supplier contracts
    • Optimize inventory management
    • Automate standard processes
  • 5. Employee Satisfaction

    Assesses how content staff members are, which can influence productivity and company culture

    What good looks like for this metric: 70-80% satisfaction rate

    Ideas to improve this metric
    • Conduct regular surveys
    • Improve work-life balance
    • Provide professional development
    • Offer competitive benefits
    • Encourage a collaborative environment

Metrics for Automate Billing Process

  • 1. Process Time Reduction

    Measures the reduction in time taken to complete the billing process after automation compared to before.

    What good looks like for this metric: 30% reduction in process time

    Ideas to improve this metric
    • Use programmable robotic process automation tools
    • Integrate with existing accounting software
    • Utilise cloud computing for scalability
    • Streamline data entry with OCR technology
    • Implement a database for template management
  • 2. Error Rate in Billing

    Assesses the percentage of billing errors post-automation compared to manual processes.

    What good looks like for this metric: Under 2% error rate

    Ideas to improve this metric
    • Implement validation checks
    • Conduct regular training for software use
    • Use automated reconciliation methods
    • Regularly update software for accuracy
    • Use real-time data error alerts
  • 3. Cost Savings

    Calculates the reduction in costs due to automating the billing process.

    What good looks like for this metric: 20% cost reduction

    Ideas to improve this metric
    • Optimise software licenses
    • Reduce paper and printing expenses
    • Automate repetitive tasks to reduce overtime
    • Conduct a cost-benefit analysis regularly
    • Invest in preventive maintenance
  • 4. Employee Productivity

    Measures the increase in productivity of employees as a result of reducing manual billing tasks.

    What good looks like for this metric: 15% increase in productivity

    Ideas to improve this metric
    • Reallocate time savings to skill development
    • Schedule regular feedback sessions
    • Use productivity tracking tools
    • Encourage a culture of continuous improvement
    • Provide resources for professional growth
  • 5. Billing Accuracy Rate

    Monitors the percentage of bills processed accurately after automation.

    What good looks like for this metric: 98% accuracy rate

    Ideas to improve this metric
    • Ensure comprehensive testing before full deployment
    • Regular data audits
    • Use machine learning for pattern recognition
    • Integrate feedback loops for corrective action
    • Keep detailed records of errors for analysis

Tracking your Finance Team metrics

Having a plan is one thing, sticking to it is another.

Don't fall into the set-and-forget trap. It is important to adopt a weekly check-in process to keep your strategy agile – otherwise this is nothing more than a reporting exercise.

A tool like Tability can also help you by combining AI and goal-setting to keep you on track.

Tability Insights DashboardTability's check-ins will save you hours and increase transparency

More metrics recently published

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Planning resources

OKRs are a great way to translate strategies into measurable goals. Here are a list of resources to help you adopt the OKR framework:

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