All businesses have key factors that, if regularly monitored, can give a current indication of how the business doing. Monitoring such factors has an advantage over looking only at financial statements. Financial statements are historical documents. They tell us what happened weeks ago. Key performance indicators (KPIs) can tell us what is happening today, and can sometimes predict what will happen in the future. We may find KPIs in production, distribution, overtime statistics, sales operations, order taking, cash collections, inventory levels, backlog statistics, or other areas depending on the type of business. We can identify these factors and set up a process for tracking and analyzing them.