SmartBooks Founder and CEO Calvin Wilder wrote The Financial Operating System to help business owners take control of their finances. One of the most critical components of this system is Step #3: Define Metrics and Targets. A section designed to bring financial clarity and drive better decision-making. The Financial Operating System Define Metric step focuses on helping business owners understand which key financial metrics to track and how to set targets that align with their growth goals. Without clear financial targets, it’s nearly impossible to measure progress or identify problem areas. Calvin’s system removes the guesswork and gives leaders a framework to create meaningful, measurable goals.

Inside this step, you’ll discover how to track important metrics like labor efficiency, contribution margin, and net profit. These aren’t just vanity numbers—they give real insights into your operational health. You’ll also learn how to create customized targets that match your business model and help guide performance management across your team.

Setting goals is only the beginning. The Financial Operating System Define Metric approach encourages regular review and adjustment of those targets based on real business performance. This ensures you’re always working from a current, realistic plan, not outdated assumptions.

Whether you’re a solo founder or managing a growing team, Step #3 helps you build a performance-focused culture. When everyone knows what success looks like and how to measure it. You get better alignment, smarter decisions, and healthier profits.

Download the excerpt below and explore how Step #3 of the Financial Operating System can help your business define metrics that matter and stick to them.