Originally Posted by fastlane
At $250 a day x 4 days a week x 4 weeks you should have more than $4,000 a month in the bank. 2 month $8,000. You've been doing this for 3 years. Where did all the money go? Is this a cash flow or money management problem?
Definitely more to it than just cash flow...how is that $400/day calculated? Even though you cover all of your fuel, wages, and tangible expenses, does that also include your monthly costs? If the figure on the paper says $400 but the bank account say $0 at the end of the month, which one are you going to believe? This is where a good relationship with a CPA is crucial- they can show you the big picture instead of the day-to-day snapshot.
I have a Bachelor's and Master's in Accounting so it's become second nature to me, but when I mowed in HS I got caught up in the mindset of "I used $XX in fuel today and billed $XXX today, so I made a profit!" when in reality I forgot about that mower payment or insurance premium that was due each month, and never accounted for that in my daily costs.