Chris, Virginia, Accountant discussed on The Drew Show

Automatic TRANSCRIPT

Okay i am talking with chris in virginia he'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 lower million dollars he thinks and wondering if he's in chapter eleven you with me so far chris okay first thing you've got to do and you're going to do this chapter eleven anyway 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 outgo equals your profits you know that right right right and the first step is do it 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 if you've been paying your taxes how did you do that without a pl well we have we have an accounting team it's not in house or anything developed your tax returns which shows your prophet right and i've been talking to them they said we don't understand you should be profitable to be profitable and you know we looked at the cotton forty nine percent you know or excuse me production wages at thirty nine percent i made that suggestion that we cut that down to twenty nine we'll be of course but if you have to and you've got four hundred thousand dollars or four hundred fifty thousand dollars and.

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