Phil Knight, co-founder and chairman of Nike, attends the annual Allen & Company Sun Valley Conference, July 8, 2016 in Sun Valley, Idaho. (Photo by Drew Angerer/Getty Images)

In the excellent book Shoe Dog, Phil Knight details how he built Nike into a world power. Interestingly enough, one of his keys to success — during the early years — was that he worked full-time as a CPA to pay the bills!

But of course, the knowledge he gained from understanding the language of business — that is, accounting — proved invaluable. Let’s face it, running a fast-growing company requires tremendous discipline.

OK, in light of this, what are some of the things entrepreneurs should consider about accounting?

Well, to get some answers, I recently talked to Rob Nixon, who is the co-founder and CEO of Panalitix. His business helps accountants boost their own operations, such as with marketing, sales and advisory services.

So here are some of his takeaways:

Leverage The Cloud: The more you learn the more you earn. But with your accounting, this is amplified when you use real-time data.

“If you are relying on ‘desktop’ accounting software,” said Rob, “you are looking at redundant data. To get real-time data you need to switch your accounting software to the cloud. You can than access richer, more accurate data on any device.”

Use Dashboard Magic: A key advantage of a cloud accounting system is automated dashboards, which can be tailored to your business.

“First and foremost,” said Rob, “you need to have a consolidated view of the main operating metrics pertinent to your business. For example, if inventory is important, then make sure you track the amounts and timing of the purchases. This can be extremely helpful in avoiding problems with your cash flows.”

Next, you can use a dashboard to zero in on which customers are profitable. With this, you can make sure you are not in jeopardy of losing them. Oh, and you may realize that some customers always generate red ink — and probably will continue to do so. In this case, the best approach is probably just to let go of them.

Rob also recommends looking at your revenue breakdown. “You can multiply the customer count by the transaction frequency and then by the average price per transaction,” he said. “A 10% improvement in each of the three areas yields a 33.1% improvement in revenue. You can find the source numbers by dividing the number of invoices into revenue and than the number of invoices into the customer count. Real-time accounting systems can give you this data of exactly what your average invoice value is and the frequency of purchasing. Once you understand the numbers, you can set some goals and apply tactics to improve the numbers. What you can measure, you can manage.”

Thinking Holistically: Financial ratios and metircs are certainly critical for any successful business. But there is still much more you can do with a cloud-based accounting system. That is, since the data is centralized, you can connect it to other systems like a CRM, payroll, distribution and so on. For the most part, you have the opportunity to get a much better picture of your business — the good, the bad and the ugly.

Granted, this can get a bit complicated. So this is where you can get your money’s worth with a qualified CPA. He or she can be more than just a bean counter and instead help create financial management systems.

“If your accountant is nervous or ignorant about cloud accounting software and is not tech savvy,” said Rob, “then find a new one immediately.”

Tom Taulli, an Enrolled Agent, operates BizDeductor, which helps prepare tax returns as well as provide services to deal with IRS actions like audits, wage garnishments and bank levies.”