You might very well have a nice reporting package, but perhaps the biggest number of all might not even be shown there, one that’s really important to you.

What might that number be? Owner compensation.

As the owner of the business this is close and center to you. It can include what you’re taking in compensation, what you’re pulling out for retirement, what you’re getting from distributions or dividends, any special expenses or other benefits, etc.

In many cases, it’s the real measure that a buyer will look at to determine how much a business is really worth. With a number that important, you might as well have it tracked in the business reporting package. Now, it could be on a supplemental sheet. It might not be on a sheet that others can see, but it should be something that you know each month. You should not only track how it’s doing this year, but how’s it doing against budget and how is it doing against last month. Are you taking out as much as you’re expecting? Are you taking out more than what you got last year?

It also can be important so you’re not caught by any surprises and having to scramble at yearend for either things such as income tax payments or setting aside funds for retirement plan payments.

It’s a big number to you, might as well have it tracked.