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Month-over-month (MoM) growth is a critical metric that provides insight into the short-term performance of a business. It helps you understand how a specific value, such as revenue, active users, or any other key metric, changes from one month to the next. By accurately measuring MoM growth, businesses can identify trends, make informed decisions, and adapt strategies for sustainable growth. This guide will explore the meaning of month-over-month growth, the formulas used to calculate it, and common pitfalls to avoid.

\n\n\n\n

Understanding Month-Over-Month Growth

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What is Month-Over-Month Growth?

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Month-over-month growth refers to the percentage change in a specific metric from one month to the next. It’s a granular measure that provides insight into a business’s growth trajectory, helping identify short-term trends and assess the effectiveness of strategies. This metric is handy for startups and early-stage companies that need to track rapid changes in their performance.

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Why Measure Month-Over-Month Growth?

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Understanding how your business performs month-to-month can be invaluable for making strategic decisions, attracting investors, and identifying growth opportunities. MoM growth is often used to track revenue, user acquisition, and customer retention, offering a clear view of how these factors evolve. By monitoring these changes, businesses can adapt their strategies to optimize growth.

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Calculating Month-Over-Month Growth

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To calculate month-over-month growth, use the following formula:

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Month-Over-Month Growth (%) = (Current Month Value − Previous Month Value / Previous Month Value) × 100

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For example, if your business had 200 active users in January and 240 in February, the calculation would be:

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(240 − 200 / 200) × 100 = 20%

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This indicates a 20% growth in active users from January to February.

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Compound Monthly Growth Rate (CMGR)

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When dealing with multiple months of data, the compound monthly growth rate (CMGR) can provide a more comprehensive view of growth trends. CMGR assumes a constant growth rate over a period and is calculated using the formula:

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CMGR = (Final Month Value / Initial Month Value) 1 / Number of Months − 1

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For instance, if your user base grew from 1,000 in January to 5,000 in December, the CMGR would be:

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(5000 / 1000) 1 / 11 − 1 = 14.35%

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This indicates an average monthly growth rate of 14.35% over the year.

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Common Mistakes to Avoid

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Small Numbers and Misleading Growth Rates

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One common error is presenting growth rates based on small absolute numbers, which can create an exaggerated perception of success. For example, increasing from 10 to 20 users represents a 100% growth rate but doesn’t reflect substantial business progress. Ensure that growth rates are contextualized with absolute numbers to provide a more accurate picture of performance.

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Irregular Growth Patterns

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Growth can fluctuate significantly month-to-month, leading to misleading conclusions if not properly accounted for. Avoid flattening these fluctuations into a single growth rate without considering the underlying variability. Instead, present growth as a range or use absolute numbers to represent your business trajectory better.

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Confusing Linear and Exponential Growth

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Linear growth involves adding a constant number each month, while exponential growth compounds the previous month’s growth. It’s essential to distinguish between these two patterns, as misrepresenting linear growth as exponential can lead to unrealistic projections and expectations.

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Practical Applications of Month-Over-Month Growth

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Tracking Business Performance

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MoM growth is vital for tracking short-term performance and identifying trends that might not be visible in broader time scales. It allows businesses to respond quickly to changes, adjusting strategies and operations based on real-time data.

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Supporting Investor Relations

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Investors are often interested in a company’s growth metrics, as they provide insight into its potential for future success. Demonstrating consistent MoM growth can enhance your company’s attractiveness to investors by showcasing steady performance and progress.

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Strategic Decision-Making

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By monitoring MoM growth, businesses can make data-driven decisions that align with their goals. Whether optimizing marketing campaigns, adjusting pricing strategies, or enhancing product offerings, understanding MoM trends helps refine tactics to achieve desired outcomes.

\n\n\n\n

Calculating month-over-month growth is essential for businesses aiming to optimize performance and achieve long-term success. By understanding how to calculate month-over-month growth, interpreting results accurately, and avoiding common mistakes, you can leverage this metric to guide strategic decisions and drive sustainable growth.

\n\n\n\n

Ready to elevate your business with actionable insights? Modeliks offers comprehensive tools and resources to help you track and analyze key growth metrics, empowering your business to reach new heights. Explore our Modeliks today to see how we can support your growth journey. Start your free trial!

\n","slug":"how-to-calculate-month-over-month-growth","date":"2024-08-12T12:14:19","categories":{"nodes":[{"id":"dGVybToxMQ==","name":"Business Plans"}]},"mainCategory":{"mainCategory":["business-plans"],"videoHeader":null},"tags":{"nodes":[{"name":"financial reporting"}]},"featuredImage":{"node":{"id":"cG9zdDoyNjM1","sourceUrl":"/images/cms/Modeliks-6.jpg","altText":"Modeliks guide explaining how to calculate month over month growth with examples, formulas, and tips for accuracy."}},"seo":{"metaDesc":"Learn how to calculate month over month growth to track business performance and make informed decisions. Explore Modeliks today!"},"modified":"2024-08-12T12:14:20","related":[{"id":"cG9zdDoxMTU0MQ==","title":"How Accountants Can Offer High-Margin Advisory Services","content":"\n

Why Advisory Services Matter for Accounting Firms

\n\n\n\n

The accounting profession is shifting. Compliance and bookkeeping remain essential, but today’s clients expect more. They want guidance on how to run their business smarter, manage cash flow, and plan for the future.

\n\n\n\n

According to a CPA.com survey:

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This means the demand is already there. The opportunity for accounting firms is clear: move beyond bookkeeping into high-margin advisory services.

\n\n\n\n
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The Challenge: Scaling Advisory Without Burning Out

\n\n\n\n

For most small and mid-sized firms, the hesitation is simple:
❌ Limited staff time
❌ No standardized tools for forecasting & reporting
❌ Concern about overcomplicating workflows

\n\n\n\n

The good news? Advisory can be delivered at scale, without adding headcount or creating inefficiencies — if you have the right system.

\n\n\n\n
\n\n\n\n

The Solution: Modeliks for Advisory Services

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Modeliks helps accountants transform their existing relationships into advisory partnerships by automating the heavy lifting.

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Here’s how it works in practice:

\n\n\n\n

1️⃣ Connect QuickBooks in Minutes
Sync client actuals directly — no messy spreadsheets or manual imports.

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2️⃣ Build Budgets & Automated Financials
Instantly generate a forward-looking P&L, Balance Sheet, and Cash Flow statement, tailored to each client.

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3️⃣ Deliver Dashboards & Variance Analysis
Clients see Actual vs. Plan vs. Previous Periods. You provide insight into why numbers moved — without building reports from scratch each month.

\n\n\n\n
\n\n\n\n

The Impact for Accounting Firms

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Firms using Modeliks see:
New revenue streams by offering planning & reporting as premium packages
Higher client retention thanks to consistent value beyond compliance
No extra headcount required, since processes are automated
Improved positioning as trusted advisors, not just bookkeepers

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As one accountant put it:

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\n

“Our clients can now make confident decisions. For us it’s a game-changer — we finally sell insight, not just compliance.”

\n
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Why Now Is the Time

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Client expectations are rising. Competitors are moving into advisory. Technology makes it easier than ever to scale.

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If you’re an accountant or firm owner, now is the time to position your practice for the next decade. Advisory services are not just an add-on — they’re the future of accounting.

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\n\n\n\n

Next Steps

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📽️ Watch the full video playbook here: https://www.youtube.com/watch?v=UlQEwnWOdKQ.
🌐 Explore how Modeliks can help you launch advisory services in under an hour -> HERE.

\n\n\n\n

📩 Or reach out to us directly to explore how Modeliks can be tailored for your firm.

\n\n\n\n

Enjoy Modeliks! We know we are!

\n\n\n\n

Author:
Modeliks Team

\n","slug":"high-margin-advisory-services-accountants","date":"2025-09-02T08:30:06","categories":{"nodes":[{"id":"dGVybToxMQ==","name":"Business Plans"},{"id":"dGVybToxNA==","name":"Financial Forecast"},{"id":"dGVybTozNQ==","name":"News"},{"id":"dGVybTozNA==","name":"Partners"},{"id":"dGVybToxMg==","name":"Pitch Decks"},{"id":"dGVybToxMw==","name":"Reports & Dashboards"}]},"mainCategory":{"mainCategory":["financial-forecast"],"videoHeader":"https://www.youtube.com/watch?v=UlQEwnWOdKQ"},"tags":{"nodes":[{"name":"accounting advisory services growth"},{"name":"budgeting and forecasting"},{"name":"business planning"},{"name":"consulting firm profitability strategies"},{"name":"Financial analysis"},{"name":"financial forecasting"},{"name":"financial modeling"},{"name":"financial planning"},{"name":"financial planning for professional services firms"},{"name":"financial reporting"}]},"featuredImage":{"node":{"id":"cG9zdDoxMTU0Mg==","sourceUrl":"/images/cms/Screenshot-2025-09-02-at-10.27.59.png","altText":"How to offer Advisory Services at High Margin?"}},"seo":{"metaDesc":"Learn how accounting firms can add high-margin advisory services without extra headcount. Discover how Modeliks helps accountants deliver financial planning, reporting, and dashboards that clients will pay more for."},"modified":"2025-09-02T08:30:10","related":null},{"id":"cG9zdDoxMTQ4Mw==","title":"How to Manage & Grow Your Professional Services Business: A Strategic Playbook","content":"\n

Running a professional services business is demanding. Whether you’re a founder, consultant, accountant, or finance leader, the challenges are similar:

\n\n\n\n\n\n\n\n

The truth? Many services firms outgrow spreadsheets faster than they realize. A project-based business requires a planning and reporting framework that adapts as you grow – not one that breaks every time a new client, project, or team member comes onboard.

\n\n\n\n

That’s where having a structured financial planning and reporting system becomes a game-changer.

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\n\n\n\n

Who is This Playbook For?

\n\n\n\n

This strategic framework is designed for:

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If you run a project-based business, use timesheets, or manage multiple clients, this playbook is for you.

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\n\n\n\n

How to Grow Profitability in Professional Services

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Professional services firms often face profitability challenges because margins are tied to capacity, efficiency, and client mix. Here’s where the right planning approach makes a difference:

\n\n\n\n

1. Plan by Project (Not Just Company-Level)

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Each project has its own revenue, costs, and resources. Without project-level visibility, it’s impossible to know which work is actually profitable.

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2. Track Actuals vs. Plan

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It’s not enough to create a yearly budget. Monthly actuals vs. plan reporting helps you quickly see where projects are off track and adjust before problems snowball.

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3. Build Scenarios

\n\n\n\n

What happens if a big client leaves? Or if you add two more consultants next quarter? Scenario planning gives you the confidence to make tough decisions with numbers to back them up.

\n\n\n\n

4. Monitor Utilization & Capacity

\n\n\n\n

Employee utilization is the heartbeat of a services firm. By linking financial forecasts to billable hours, staffing, and client demand, you can identify bottlenecks and prevent costly underutilization.

\n\n\n\n
\n\n\n\n

How Modeliks Helps

\n\n\n\n

At Modeliks, we’ve built a platform that turns these best practices into a structured, repeatable process.

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With Modeliks, you can:

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Why This Matters Now

\n\n\n\n

Most firms wait until they have 100+ employees to rethink planning. But the truth is, dimensional planning and reporting matters at 20 employees, as much as at 200.

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The earlier you set up a scalable framework, the faster you can:

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Key Takeaway

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Growing a professional services business isn’t just about winning more clients — it’s about building a system that lets you manage projects, measure performance, and grow profitably.

\n\n\n\n

That’s what this playbook is about — and why we built Modeliks.

\n\n\n\n

👉 If you want to see how Modeliks can help you manage and grow your services firm, watch the full video walkthrough here.

\n\n\n\n

📩 Or reach out to us directly to explore how Modeliks can be tailored for your firm.

\n\n\n\n

Enjoy Modeliks! We know we are!

\n\n\n\n

Author:
Modeliks Team

\n","slug":"financial-planning-for-professional-services","date":"2025-09-01T11:47:08","categories":{"nodes":[{"id":"dGVybToxMQ==","name":"Business Plans"},{"id":"dGVybToxNA==","name":"Financial Forecast"},{"id":"dGVybTozNQ==","name":"News"},{"id":"dGVybTozNA==","name":"Partners"},{"id":"dGVybToxMg==","name":"Pitch Decks"},{"id":"dGVybToxMw==","name":"Reports & Dashboards"}]},"mainCategory":{"mainCategory":["financial-forecast"],"videoHeader":"https://www.youtube.com/watch?v=E87pBDPZzPc"},"tags":{"nodes":[{"name":"accounting advisory services growth"},{"name":"budgeting and forecasting"},{"name":"business planning"},{"name":"consulting firm profitability strategies"},{"name":"Financial analysis"},{"name":"financial forecasting"},{"name":"financial modeling"},{"name":"financial planning"},{"name":"financial planning for professional services firms"},{"name":"financial reporting"}]},"featuredImage":{"node":{"id":"cG9zdDoxMTQ4NA==","sourceUrl":"/images/cms/Screenshot-2025-09-01-at-13.39.02.png","altText":"Financial planning for professional services"}},"seo":{"metaDesc":"Discover how to manage and grow your professional services firm with project-based financial planning, reporting, and forecasting strategies."},"modified":"2025-09-01T11:47:11","related":null},{"id":"cG9zdDoxMDQyMA==","title":"Modeliks 2.0 is Live!","content":"\n

Today we released a massive new update of Modeliks.  A multidimensional Modeliks 2.0. I am both happy and sad to see Modeliks grow up. I liked baby Modeliks. He was cute and a little clumsy. Now, we created a beast.  

\n\n\n\n

We listened to your feedback and made Modeliks by far the best financial planning and reporting tool for SMEs. Alright, I might be a bit subjective, but here is what’s new:

\n\n\n\n
    \n
  1. Multi dimensional planning and reporting. This means that you can plan and track performance by organizational unit, whether that is business units, departments, geography, stores, projects. However your company is structured, you can have clear targets and track performance across your whole organization.
  2. \n\n\n\n
  3. Consolidation: if you plan on a business unit level, Modeliks will consolidate your financial plans upwords.
  4. \n\n\n\n
  5. Allocations: allocate costs from the head office down to the operating units. Why? Some costs are incurred in the head office, or regional offices, but should be allocated down to the operating units, in order to get a correct picture of profitability across the organization.
  6. \n\n\n\n
  7. Quickbooks integration. Connect Modeliks to your Quickbooks and have your planning and monthly reporting automated, error free and done in minutes.
  8. \n\n\n\n
  9. Account grouping. Group several accounts into one group account. For example, you can create a Utilities group account and make your Energy, heating, phone, internet, water accounts part of the utilities group. Why? Because when you plan, you don’t want to plan on every single small account that you have in your accounting system. It is too tedious and messy. So, group them logically, plan on groups, and make planning and reporting easy and useful.
  10. \n\n\n\n
  11. Initiative planning and evaluation. You have a new initiative in mind for your business? Create a business case and see how it will impact your business. If the numbers say it’s good, keep it. If not, drop it.  
  12. \n\n\n\n
  13. Monthly forecasting. Now you can forecast up to 3 years on monthly basis.
  14. \n\n\n\n
  15. Lastly. Speed. Modeliks is now 10 times faster than before.   
  16. \n
\n\n\n\n

And there is a lot more to come in the next few months. Stay tuned for new features, and in the mean-time, plan, manage and grow your business with Modeliks 2.0.

\n\n\n\n

Let’s recap. Now you can:

\n\n\n\n
    \n
  1. Build driver based financial models for any business
  2. \n\n\n\n
  3. Do it by department, business unit, geography, stores, projects
  4. \n\n\n\n
  5. Run scenarios and evaluate new initiatives
  6. \n\n\n\n
  7. Track actual performance vs budget, on every level in your organization. Especially easy with the Quickbooks integration
  8. \n\n\n\n
  9. Automate monthly investor and management reporting
  10. \n\n\n\n
  11. And write professional and detailed business plans with the help of our AI assistant.
  12. \n
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Enjoy Modeliks 2.0! We know we are!

\n\n\n\n

Author:
Modeliks Team

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