Arkansas HVACR NewsMagazine November 2019

Business

month and then if needed, you need to make changes so you have a better chance of winning next month. Let’s take a look at these five areas.

Five Financial Areas You Must Review Monthly As a business owner, you are like the coach of a football team. For many, you’re in a game where no one is keeping score or stats. The guys are running play after play, but you only have an idea

Profit & Loss statement

You need to review your Profit and Loss each month. Run the report from a cash basis and turn on the previous year and dollar change. In QuickBooks, that means you will customize the

of how you’re doing but not exactly sure. At the end, there is no way of knowing if you won or lost the game. You have to wake up the next morning, check the

The NewsMagazine welcomes Bill Kinnard, President & CEO for Grandy Associates. Grandy Associates and Bill focus on training HVACR owners and their key employees financial, customer, & business services. You can contact Bill at 877-202-8891 or www.grandyassociates.com

report and make the changes as shown in the figure below.

As you look at each line item, don’t just celebrate the areas that are up and mourn the areas that are down. Instead, try to identify why it changed. What caused the increase in sales? What caused the decrease in subcontractor costs? If you don’t know what caused the change, you can’t replicate it. As you do this, you will find errors. Make note of these and fix them.

online scores to see what the final outcome was. If you lost that game, what can you do about it? Nothing. The game is over. For many business owners across the county, you’re coaching one game per year. You get to the end of the year and find out that you lost the game and you think “There is nothing I can do about it”. In reality, you are coaching 12 separate games – one each month. During each month, you have to keep stats and score. Then after each month, you need to review the tape and see what you need to change for next month. The tape is your financial reports. There are five different financial areas that you need to review each