In this episode of Home Care Hindsight, host David Knack talks with Dana Charumbira, CPA and financial strategist for home care agencies. Dana shares the biggest hiring mistake she made—bringing someone on board based on an impressive resume instead of proven skills—and how it impacted her business. She also dives into financial strategies, cash flow management, and key metrics that help home care owners scale profitably while avoiding common pitfalls.

Lesson Takeaways:

1. A great resume doesn’t guarantee great performance. Skills tests and structured interviews prevent costly hiring mistakes.

2. Cash flow should never be managed by what’s in the bank alone. Tracking gross margin, pay rate per hour, and Days Sales Outstanding (DSO) ensures financial stability.

3. Expanding into Medicaid or VA contracts can create cash flow strain. Home care owners must plan for delayed payments and adjust reserves accordingly.

4. Investing in the right systems saves time and improves profitability. Workflows, automation, and financial planning create a sustainable business model.

5. If a hire isn’t working, don’t wait to make a change. Prolonging the inevitable hurts both the business and the employee.

Timestamps: [00:00:00] Why Financial Planning is Essential in Home Care

[00:05:00] Dana’s Biggest Hiring Mistake & What She Learned

[00:10:00] How to Hire Smarter: Testing for Critical Thinking & Proactivity

[00:15:00] The Most Underrated Financial Metrics for Home Care Owners

[00:20:00] The Cash Flow Trap of Medicaid & VA Contracts

[00:25:00] How Technology & Workflows Improve Client & Employee Experience

Quotes

1. Dana Charumbira: "If you know a hire isn’t working, cut ties sooner rather than later."

2. Dana Charumbira: "A great resume doesn’t mean they can do the job."

3. David Knack: "Every new hire isn’t just about filling a role. They represent your brand and impact your entire business."

Resources:

1. The Home Care CPAs

2. Connect with Dana Charumbira on LinkedIn

3. Connect with David Knack on LinkedIn

4. Connect with Zingage on LinkedIn

5. Powered by Zingage

6. Subscribe on Zingage’s YouTube