The starting point for most social enterprises in measurement is to set up a bookkeeping system to track money in and money out. While financial bookkeeping and accounting are fundamental to running a business, it may also be useful to track other aspects of business performance early on to be able to make good operational and planning decisions. So if you're increasing profits, it can be useful to understand: What led to that? How you can do more of that? What decisions led to the improvement: targeted sales, marketing campaign, staff hire, new equipment investment (among other things)? Having a picture of the critical factors driving success, can help inform wise future investment decisions.Just looking at profit won't reveal this.
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