Originally Posted by JB1
all because they didn't have the right version of quickbooks.
Some that have Quickbooks don't even bother the put all of their expenses into it. They run their business like they run their household. This is a true story. I have one employee that in December he got his regular paycheck (salaried), his year end bonus check, and two weeks of unemployment. After all his expenses for the month he had $2500 left over. I encouraged him to put some of that away to subsidize his unemployment til he start working again in March. Almost exactly three weeks he didn't know how he was going to pay his utilities. I was like you had over $2500 left over what did you guys buy. He said nothing big. He was right there was no new computer, plasma tv, etc. They just piss potted it away. They do it all the time and never know where the money went.
There are people like this running businesses all over the country some right here on lawnsite that think they are making a killing. They think besides a few monthly pmts and gas its all profit right. They can't really manage a household. I can' imagine what would happen if I handed the business over to someone like that. I could just envision after about one one the employees all show up for work but the boss blew all the profits from the previous month and can't buy gas for all the crews. Disaster waiting to happen.
Procut, I have been close to that line a few times myself. I constantly worry about a hurdle being thrown into my path and the impact that would have. I pay attention more now then ever before but often feel like I am sinking a bit even though the gross # increase by 15-20% each year. I get my taxes done next week and we just got everything ready to take. I almost crapped myself when I seen everything put together. Our record keeping it better then ever thanks to our tax man. Everything that ties to the business from postage stamps to gatoraide in the cooler gets counted. When its all figured up it really makes a person step back.
Thanks for posting this Procut. I just hope everybody understands how easy it is to fall into this spot.