• Thrive from OATS Africa
  • Posts
  • How to Track Your Business’s Monthly Revenue: A Practical Guide for Smart Business Owners

How to Track Your Business’s Monthly Revenue: A Practical Guide for Smart Business Owners

Your history, in business terms, is your data. Every sale, every expense, every customer interaction, and every quiet month tells a story.

Author

Team THRIVE
January 15, 2026

How much did your business make in 2025?
Which month recorded your highest sales?
What is your average monthly expense?
After expenses, rent, and staff salaries, how much profit did you actually make?

If you cannot confidently answer these questions, then sit tight. Grab a cup of hot coffee, pick up a book and a biro, because we are about to expose some important business truths in today’s letter to you.

Dear Business Owner,

As Bob Marley once said, “If you know your history, you will know where you are coming from.”

This isn’t just a music lyric, it’s a business principle.

Your history, in business terms, is your data. Every sale, every expense, every customer interaction, and every quiet month tells a story. That story is what helps you make smarter decisions.

If you don’t know what happened in your business last December, how can you realistically predict what January will look like? Growth is not based on luck. Stocking decisions, promotions, hiring, and even rest periods should be guided by patterns in your data and not guesswork.

If you don’t know when customers buy the most, when expenses spike, or when sales drop, you are running your business blindly.

Table of Contents

The Questions Every Business Owner Should Be Able to Answer

At any point in time, you should be able to answer these questions about your business without guessing:

  • How much revenue did you generate this year?

  • Which month performed the best and why?

  • What are your average monthly expenses?

  • After rent, salaries, and operating costs, how much profit remains?

If these answers are unclear, then your business is operating without direction.

Why Tracking Monthly Revenue Is More Than Just Numbers

Many business owners think tracking revenue is simply about setting targets like:

“I made ₦2 million last month. This month, I want ₦4 million. By year-end, I want ₦30 million.”

These goals are good, but they are incomplete.

The real value of tracking monthly revenue lies in how you interpret and act on the data. Numbers tell you what is working, what is failing, and what needs adjustment. Without this insight, growth becomes accidental instead of intentional.

4 Major Reasons You Must Track Your Business Revenue 

Understanding the True Value of Your Business

Consistent revenue tracking provides a realistic picture of your business's value. You understand how much you invested, how much has been generated over time, and what the business could be worth in the future. This removes uncertainty and positions you as a confident decision-maker.

Access to Funding, Grants, and Investment Opportunities

Investors and grant providers look for clarity. They want to see trends, not guesses. If you cannot clearly explain your revenue growth, profit margins, and financial trajectory, funding opportunities will pass you by, no matter how good your idea is.

Tax Compliance and Legal Protection

With the changing Nigerian tax regulations, understanding the difference between gross income, net income, expenses, and capital is crucial. Many businesses get into trouble simply because they mix personal and business finances. Monthly tracking protects you from penalties, audits, and unnecessary tax stress.

Knowing When and How to Scale

Scaling without data is risky. Whether you want to open another outlet or expand operations, your past revenue data helps you project future performance realistically, factoring in location, accessibility, and economic conditions.

Two Basic Methods of Tracking Your Business Revenue

No matter your business size, revenue tracking falls into two broad categories: doing it yourself or outsourcing it to professionals.

Method One: The Do-It-Yourself (DIY) Approach

This method works best for small businesses with relatively low transaction volumes. It allows flexibility and cost savings, especially in the early stages.

Free Tools for DIY Revenue Tracking

Pen and Paper:
Useful for daily expense notes, but not ideal long-term. Records should be transferred into a digital format regularly.

Spreadsheets:
Google Sheets is beginner-friendly, accessible anywhere, and offers customizable templates that make monthly analysis easier.

Cashbook:
A free tool that categorizes income and expenses and generates monthly summaries automatically.

QuickBooks:
An accounting solution for tracking income, expenses, payroll, and taxes, ideal for growing businesses.

Xero:
A cloud-based platform offering real-time insights and easy collaboration with accountants.

Zoho Books:
Great for small to medium businesses, especially those already using Zoho’s ecosystem.

MYOB:
Best suited for businesses with more complex accounting and payroll needs.

Method Two: Outsourcing Your Revenue Tracking

Outsourcing involves hiring professionals to manage your financial records, allowing you to focus on running and growing your business.

4 Benefits of Outsourcing Your Accounting

  1. Accurate and compliant financial records: Outsourcing ensures your revenue, expenses, and profits are recorded correctly and in line with current tax and regulatory requirements. This reduces errors, prevents costly penalties, and protects your business during audits or financial reviews.

  2. Professional interpretation of your data: Beyond recording numbers, professionals help you understand what your data is actually saying about your business performance. They identify trends, risks, and opportunities that you may overlook when managing finances on your own.

  3. More time to focus on growth: By handing over financial tracking, you free up time and mental space to focus on sales, operations, and customer experience. This enables you to make informed decisions without being overwhelmed by spreadsheets and calculations.

  4. Better financial structure for scaling: Professionals help set up systems that can handle increased transactions, new outlets, or team expansion without breaking down. This structure makes growth smoother, controlled, and financially sustainable instead of chaotic.

Final Thoughts: Data Is the Real Currency of Business Growth

Business data is one of the most valuable assets in the world. Companies pay heavily for insights because data drives smart decisions.

If you are not tracking your revenue, your business growth is limited. Regulatory bodies can request detailed explanations of your income at any time, and many businesses fail simply because they cannot explain their numbers.

Track your revenue consistently. Review trends monthly. Choose a system that matches your current stage, budget, and comfort level, and evolve it as your business grows.

Your future self will thank you.

Team Thrive

_____________________________________________________

Motivational Message

A few lines to keep you motivated, going, and on top of the world

A cool idea isn’t a business

Momentum is built, not felt

Every founder starts as a beginner

______________________________________________

News/Updates