Chris, Virginia, Accountant discussed on The Dave Ramsey Show

Automatic TRANSCRIPT

Okay i am talking with chris in virginia's got two hundred and fifty thousand dollars out a line of credit and rapid advance and family on moving business the seasonal and doesn't know if he's making a profit hasn't seen a pnl top line of over a million dollars he thinks and wondering if he's in chapter eleven you with me so far chris okay the first thing you've got to do and you have to do this without chapter eleven and did you're going to build a pnl need to build a profit and loss statement and you can start primitive and and get a little bit more sophisticated with a million dollar business doesn't have to have a ton of sophistication but basically your income monitor go equals your profit you know that right right right and the first step is doing on yellow pads the second step sit sit down with an accountant then begin to lay that out have you not been paying your taxes well we have we have an accounting team not in house or anything developed your tax returns which shows your prophet and i've been talking to them they said we don't understand you should be profitably should be profitable and you know we looked at the coffee nine percent you know or excuse me production wages that thirty nine percent and they made the suggestion that we cut that down to twenty nine would be read if you have a million to and you've got four hundred thousand dollars or four hundred fifty thousand dollars in production expenses meaning your labor costs that seems even low it's probably above that then what other expenses you've got you've got insurance and you've got your you talked about your worker's comp is high that would be normal in your business and then you've got truck operations and rental truck operations and and insurance do you own a building or you've got a.

Coming up next