Double Your Profit Day #14 Why Waiting For Monthly Reports Is Hurting Your Business

Welcome back to Double Your Profit. Today we're talking about making your P&L a daily tool. Now, I hinted at this at earlier videos when we were talking about keeping score and training on profit. Today we're gonna talk even deeper on what that looks like. Now, most businesses that I know are checking profit monthly and maybe not even then. Maybe they get financials for May at the end of July or mid-July. That is not good enough. We should be driving profit-making decisions every single day based on good data every single day. So what that means is We need to know our key numbers every day. What's my revenue month to date? What was my revenue for yesterday? What was my labor? What was my materials? And what was my gross profit month to date? Now, if you can, you should be taking this even a step further. What we have on our dashboard is how much cash have we deposited in our account this month? Exactly how many dollars we pulled off our credit card? How many dollars have come off our credit card for marketing this month? What day are we hitting our breakeven? That's really important. When do we actually start making a profit? And are we pacing to budget? We even have our net profit month to date on there based off a couple of assumptions. We might be a little wrong, but we are directionally correct, and it gives us the information to drive P&L decisions every single day. The team knows the score. If you're asking why, the answer is we're here to maximize profit. If I have an issue and I'm getting financials 10 days or 30 days after that issue happened, and that issue happened mid-month, then I might be 40 or 50 days behind in solving that issue. If I had an issue yesterday and I know that today, I'm 24 hours behind. And that makes a real impact when you are driving to be profit first. You need a fast feedback loop so that you can solve real decisions in real time. This takes a little bit of work to get right, and it starts with having clean financials. So talk to your accountant, talk to your bookkeeper, talk to your controller and say, hey, how do we get this not just on a monthly, how do we get this weekly? How do we get this daily? And if you can, how do we get this hourly? What is the tightest you can get your reporting so that you always know exactly where you are. If you liked this video, make sure you like and sub so you don't miss the next couple.