Arkansas HVACR NewsMagazine March 2026

HVACR NewsMagazine March 2026

Business & Marketing Tips

month is over?” You get to start again and do better the next month. Balance sheets begin the day you start or buy your company and end the day you sell your company or close the doors. They tell you whether your company is becoming more or less profitable. How? Through the profitability trends when you calculate the current ratio (current assets divided by current liabilities) and working capital (current assets minus current liabilities). 2. Cash may be “King and Queen”. But, profitability is more important for continuous cash. You need profitable revenue which, when collected, turns into positive cashflow, which turns into cash. Make sure that you save at least 1% of all revenues that comes in the door. It’s easy to do. Attach a savings account to your operating account. Each week transfer 1% of the collected monies into the savings account. 3. You can be profitable and go bankrupt. Not paying attention to collecting your accounts receivable as you grow could grow you out of business because you can’t pay your bills. Or, not saving enough cash can do this too – you need protection. True story: Three of a contractor’s major customers went bankrupt in a

Article furnished by Ruth King Profit & Wealth Guru 770-729-0258 rking@ontheribbon.com

5 Fun Financial Facts to Start the Year

Understanding analyzing financial statements can be fun – they are your scorecard. They tell you how healthy your business is. Here are five fun financial facts: 1. Balance sheets tell you the true profitability of your business. Profit and loss statements tell you profit or loss for a specific period of time. Then they start over – ever had a bad month and think “I’m glad that and