Your profit and loss is giving you the detail of how is your business performing?

In this episode, Kerry Postel discusses the importance of knowing your numbers in a business. She uses the example of Robert, a plumbing business owner who didn't know the details of his numbers and was making decisions based on gut feelings and bank balances. Kerry explains that without knowing your numbers, you're running your business blind and may not be aware of expenses that are impacting profitability. She emphasizes the need to track and analyze all aspects of the business, such as cost of goods sold, fuel expenses, and utility bills, to make informed financial decisions and plan for the future.

If you are ready to know your numbers and take the next step then go to https://constructionprofitfirst.com/profitcall and schedule your 15 min call with Kerry - have a conversation to see if we are a good fit.

It's really important that you know how much you're spending and what you're spending it on.

In this episode, Kerry Postel discusses the importance of financial organization for business owners. She uses the case study of Brian, an electrician who is struggling to keep up with his expenses due to using a single bank account. Kerry emphasizes the need for multiple bank accounts to allocate funds for different purposes such as operating expenses, payroll, materials, and profit. She also advises against mixing personal and business finances. Kerry encourages listeners to take control of their finances and provides resources for further assistance.

Tim, a plumbing business owner, is facing challenges with cash flow, time management, and understanding his financial numbers. He is struggling to pay himself, manage expenses, and plan for future growth. The solutions for Tim include adopting the profitability accounting method, improving invoicing and payment collection, outsourcing bookkeeping, creating a budget and forecast, and implementing time management strategies. These strategies will help Tim take his business to the next level and make informed financial decisions.

Takeaways

Adopt the profitability accounting method to separate profit, taxes, and expenses.

Improve invoicing and payment collection to ensure timely payments.

Outsource bookkeeping to ensure accurate financial reports.

Create a budget and forecast to plan for future expenses and revenue.

Implement time management strategies to delegate tasks and avoid burnout.

In this episode, Kerry discusses the struggles faced by Steve, a business owner in the HVAC industry, and offers four solutions to improve cash flow. The main challenges Steve faces include inconsistent cash flow, slow customer payments, lack of expense management, and high operating expenses. Kerry suggests implementing the profitability accounting method, improving invoicing and payment processes, tracking and reducing expenses, and optimizing operating costs. By staying ahead of cash flow, business owners can stabilize their finances and create a more profitable operation.

Discover why knowing your profit is crucial for your success in our latest training with Kerry Postel. Understanding your numbers isn't just about bookkeeping—it's about making informed decisions that drive your business forward.

Discovering the Person Behind Nail the Numbers Podcast.