7 Financial Management KPIs Every Eyecare Business Owner Should Track

Running an eyecare practice is rewarding but complex. Between patient care, staff management, and standing out from the competition, tracking the right financial metrics can feel like another full-time job–one you don't have time for. While it's important to understand your numbers, that doesn't mean you have to focus on every single metric. So which ones should have your attention?

Here are seven key performance indicators (KPIs) every eyecare business owner should track, and why these ones in particular matter.

1. Cost of Goods Sold (COGS)

COGS represents the direct costs of delivering your services or products to customers. Think frames, lenses, contacts, and the lab expenses for these items. For an eyecare business, ideally, COGS should not exceed 30% of your revenue.

Why is COGS an important KPI for financial performance? It helps you identify trends in supplier pricing, discounts, and even product performance. Are certain frames moving slowly? Are lab costs creeping up? By monitoring COGS, you can better optimize inventory, pricing, and vendor relationships to protect your bottom line.

2. Non-OD Staff Expenses

While your team is the backbone of your practice, salaries, benefits, payroll taxes, and other staff-related costs certainly add up. By including non-OD staff expenses in financial KPI calculations, you can:

• Allocate resources more strategically
• Reward performance appropriately
• Make data-driven hiring decisions

To ensure staffing levels and compensation structures support growth without destroying profits, many eyecare practices aim to spend less than 25% of revenue on non-OD staff expenses.

3. Occupancy Costs

Rent. Utilities. Maintenance. Running an eyecare practice means paying for facility-related expenses. While these costs are often fixed, meaning they don't change from month to month, there may be slight variations tied to seasonal usage and lease terms.

Tracking your occupancy costs helps determine if staying in your current space is sustainable. If more than 8% of your revenue starts going towards these costs, it may be time to negotiate leases, audit utilities, explore ways to make operations more efficient, or even consider moving your practice to another, more cost-effective location.

4. General Office Overhead

The general office category covers everything else that keeps your practice running, such as office supplies and software. While individually these costs can seem inexpensive, if left unchecked, they add up and can quietly eat away at profitability.

Many eyecare practices spend around 7% or 8% of revenue on general office overhead.

Consistently reviewing how much you're spending and on what can ensure your practice is lean and efficient without compromising quality or the experience you offer to patients.

5. Marketing

Marketing isn't just about spending; it's also about return on investment (ROI). Whether it's social media campaigns, local advertising, or patient referral programs, your marketing KPI measures how efficiently you're attracting new patients.

Spending no more than 3% of your revenue on marketing is a general benchmark, but it's important to adjust based on whether your efforts are delivering predictable, measured results.

6. Equipment and Debt

Another important financial management KPI to keep in mind is equipment and debts, which should be around 4% or less of revenue. Clinical equipment is essential, but leases, maintenance, and interest on loans come with a cost. Tracking equipment and debt expenses helps you plan for upgrades and manage finances more responsibly.

By keeping equipment costs predictable, you free up capital for growth initiatives or new locations without compromising patient care.

7. Practice Net

Your financial KPI metrics aren't complete without your practice net, as it reflects your practice's profitability after all costs have been deducted. A strong practice net (around 30% of revenue) means your independent eyecare business isn't just covering expenses but is also generating sustainable growth.

Tracking this KPI helps you make strategic investments, plan for long-term stability, and better evaluate any opportunities for expansion.

Leave the KPIs to ForEyes Solutions

Knowing where your revenue goes, which expenses to manage, and how your practice net reflects your financial health helps you make smarter business decisions. At ForEyes Solutions, we don't just track numbers–we provide clarity, insights, and strategies tailored to eyecare practices.

With our industry-specific chart of accounts, advanced bookkeeping, and advisory support, we take KPIs off your plate so you can focus on patients and growth. Ready for a partner who truly gets the eyecare business? Let's talk!