Priyanka Ganguly

I saw a bookkeeping problem recently that I had honestly never thought about before.

A company was doing around $16 million a year and had about 44 employees.

Everything looked normal.

Employees were getting paid. Money was leaving the bank. QuickBooks was recording the payroll.

But...

I recently worked on a bookkeeping cleanup where the business was bringing in over $600,000 a year.

From the outside, it looked like a healthy business.

But honestly, when I first opened the books, the numbers told a very different story.

Bank accounts hadn’t been properly...

An eCommerce store can grow 50% and become a worse business.

Sounds weird, but:

Year 1: $500k sales $100k profit

Year 2: $750k sales $90k profit

Sales went up $250k.

The owner worked more. More inventory was purchased. More money went into ads. More orders had to be shipped.

And the...

A landlord told me:

“My rentals are profitable. I have money left in the bank every month.”

But cash left in the bank is not always profit.

I asked 3 questions:

• How much of your mortgage payment is principal? • Are property improvements separated from repairs? • Can you see a P&L...