Arkansas HVACR NewsMagazine September 2026

HVACR NewsMagazine September 2026

Business & Marketing Tips

Blood Test & Financial Statements

Then you need to read them. (The blood test results). Then analyze them and take action based on what they are telling you. (Interpretation of the blood test results). If you don’t get any financial statements you are operating in the dark – you have no clue whether your company is truly profitable. Your bank balance doesn’t tell you! If you get financial statements, look at the bottom line of the profit and loss statement, and throw them in a drawer, that still doesn’t tell you anything on a long term basis about the financial health of your company. Like your blood tests, financial statements tell you what is happening with your business. They give you the warning signs of impending cash flow, profitability, and productivity issues. Take action to resolve them before they become business crises. If you don’t understand what they mean get help: Ask your CPA , read a book (The Courage to be Profitable explains financials), subscribe to Financially Fit Business. Just like a blood test is critical to your physical health, your financial statements are critical to your business health.

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

Most people have blood taken when they go to the doctor for their annual physical, i.e. their health checkup. The results come back and the doctor should review them with you. If you just get the tests and the normal ranges for the results, that is a disservice to you. If there is an area that is out of normal, either high or low, the doctor should explain what you need to do to get that test result back in range. If this is not explained to you, then the result doesn’t help you improve your health.

The same is true for financial statements.

First, get an on time and accurate balance sheet and profit and loss statement every month. (The blood test at your physical exam).