I know you’re exhausted. You’re wearing a million hats, and the last thing you want to do before bed is open your P&L.

First—know this: you are not alone. Most of the clients we work with don’t review their P&L monthly. And if they do, they often aren’t sure what the numbers are really telling them or where the opportunities (and pitfalls) are hiding.

If you feel like you’re working nonstop but your cash balance keeps shrinking, it may be time to dust off your Profit & Loss Statement. In QuickBooks, you can enable a setting to view expenses as percentages of income, which makes it much easier to see exactly where your money is going—and what’s eating into your profit.

Wouldn’t it be nice if the Net Income at the bottom of your P&L matched the increase in your cash each month? Yeah… same.

Unfortunately, Cash Flow and Net Income aren’t the same thing. Several factors affect your cash that don’t show up clearly—or at all—on your profit and loss statement, including:

● Expenses placed on a credit card (your cash stays higher now, but drops later when you pay off your credit card)
● Loan principal payments (interest hits your P&L, principal does not)
● Owner distributions or tax payments
● Purchases of new devices and equipment
● New loans or financing

Once you factor in these items, the gap between your monthly net income and the change in your cash balance finally starts to make sense.

If reviewing and analyzing all of this every month feels overwhelming—or simply not the best use of your time—that’s where we come in.

Partner with us at Maven.You focus on patient care. We’ll focus on the numbers. Email us at info@mavenfp.com to schedule a call. You’re the health expert. We’re the financial expert. Name a better duo.

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