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Original data · Published monthly

Small Business Financial Health Report

August 2026 Edition

Aggregated, anonymized financial benchmarks from small businesses ($1M–$25M revenue) that connect QuickBooks to The Pro CFO app. No individual business is identifiable.

70
Aggregate Business
Health Score (0–100)
▲ +4.7 vs Jul
43.6%
Median gross
margin
▲ +17.4 pts vs Jul
4.4%
Median net
margin
▲ +22.9 pts vs Jul
90
Median days
cash on hand
▲ +9.3 days vs Jul
13
Median AR
days outstanding
▼ −9.3 days vs Jul

Medians used throughout — no single company can move a number.

Median Health Score — trailing 12 months

The Business Health Score is a 0–100 composite of cash flow, profitability, and efficiency, computed per company and aggregated as the median across all reporting businesses each month.

8074686155 70 SepOctNovDecJanFebMarAprMayJunJulAug

Three things the August data says

1. August erased July's loss.

Median net margin swung back to 4.4% from −18.5% in July, and median gross margin rebounded to 43.6% from 26.2%. Taken together, the July result looks like a one-month summer dip rather than the start of a trend.

2. The Health Score reached its best level since May.

The median score rose to 69.7 from 65 in July, the highest reading since May's 71.5. The improvement came from profitability and collections recovering while cash stayed strong.

3. Cash has now grown for two months running, and receivables are back in line.

Median days cash on hand reached 90, up from 72 in June and 81 in July. Median AR days fell back to 13.4 from July's 22.7, so the collection slowdown we flagged last month corrected itself within a month.

Methodology

Data covers small businesses ($1M–$25M annualized revenue) with QuickBooks Online connected to The Pro CFO app that completed a August accounting close and synced by the 10th of the following month. All metrics are computed per company, then aggregated as medians — individual businesses are never identifiable. The Business Health Score is a 0–100 composite: 40% cash flow, 35% profitability, 25% efficiency, with frozen thresholds across editions. Figures may be revised as additional closes sync.

Citing this report: free to cite with attribution and a link to this page.

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