Accounting for Startups Part 2: The Metrics That Drive Growth

📊 Understanding your financial statements is only the beginning. The next step is knowing which numbers truly drive your startup’s growth. In this video, we go beyond the basics to explore the key financial metrics that help founders measure performance, manage cash, and make confident decisions.

We cover:

• Burn Rate – How fast your startup is spending cash and why it matters

• CAC (Customer Acquisition Cost) – What it costs to gain each customer

• Churn Rate – How many customers you’re losing and how to improve retention

• LTV (Lifetime Value) – The long-term revenue each customer brings

• Gross Margin – What’s left after covering the direct costs of your product or service

📈 With clear explanations and startup-focused examples, you’ll see how to calculate each metric, identify risks early, and use the numbers to guide your growth strategy.

👉 Want more founder-friendly guidance? Explore our blog.

🔗 Learn more about our accounting services for startups.

📺 If you haven’t already, watch Part 1: Foundations and Financial Statements to build your base before diving into these metrics.

📚 Part of EIM’s Startup Financial Management Series.

➡️ Next in the series: Accounting for Small Business – Part 1, where we adapt core accounting principles to the realities of small business owners