Compare selling and production expenses, and look at the ratio of cost of goods sold to sales. Unless you have made a major change in the business operation, these numbers should be stable from month to month. If they aren't, find out why. Expenses Next, focus on operating expenses. They come in two categories.
Some expenses occur every month at more or less the same time and costing the same amount of money.
Other expenses occur at less-regular intervals. Many accountants are paid every quarter for putting together your financial statements. Your tax accountant is paid once a year to fill out those IRS forms. Again, you're looking for stability in the monthly bills and a minimal number of surprises on the less-regular ones. Net profit Net profit before taxes is the other major number to examine.