5. Profit & Loss Review
Included with: All R.I.G. membership levels
Performed: Quarterly
It’s Time for Your Report Card.
Keeping track of money coming in and going out is crucial for any trucking business. Our quarterly Profit and Loss Review service simplifies this for you. We dive deep into your finances to figure out what’s working and what needs fixing. The goal is simple: help you understand where your money is going, so you can earn more and spend less. No complicated jargon, just clear insights and actionable advice to keep your trucking business on the road to success.
How Profit & Loss Review Works on the RIG
Initial Assessment
This process begins with an initial assessment where we take a detailed look at your Profit and Loss statement (if you don’t have one we can usually just use your bank statements). This overview helps us gain insights into your trucking company’s financial health, identifying areas that require immediate attention and those that are performing well. This step sets the stage for a more targeted analysis.
Revenue Analysis
A critical part of any P&L review is an in-depth analysis of revenue streams. We will break down your income by customer, load type, or any other criteria that apply to your business. By understanding where your revenue comes from, we can identify opportunities for growth and diversification.
Expense Breakdown
Managing expenses is a key element for profitability, especially in the trucking industry where costs can escalate quickly. Our review will itemize your expenses into fixed and variable categories, enabling us to isolate areas for potential savings or efficiency improvements. This gives you a clear picture of where your money is going each month.
Profit Margins
Once we have a comprehensive understanding of your revenues and expenses, we move on to evaluating your profit margins. We’ll assess if the margins are healthy and sustainable, and compare them with industry standards. This helps you understand how your trucking business stacks up against the competition and where there is room for improvement.
Recommendations
Based on our analyses, we will provide actionable recommendations targeted at improving your P&L performance. These could range from renegotiating vendor contracts to optimizing route planning, all aimed at boosting profitability. Our suggestions are customized to the unique challenges and opportunities facing your small trucking business.
Future Planning
Our P&L review is not just about looking at past and present performance; it’s also about planning for the future. With the insights gained, we help you create a forward-looking financial plan. This enables you to proactively manage both opportunities and challenges, positioning your business for long-term success.
Teamwork!
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What it is NOT.
Us controlling your money.
Everything about the R.I.G. is suggestive. If we think you’re spending too much money on Starbucks every week we will probably advise you to bring coffee in a thermos. But how many Venti lattes you buy is up to you.
Tax filing.
Our P & L review is meant to compliment your bookkeeping, not replace it. You will sill need to ensure your quarterly taxes are completed. If you need a bookkeeper, you can upgrade to Gold R.I.G. membership.
Anything permanent.
Credit repair services is not a program that lowers monthly payments or arranges settlement payoffs. While we can, and will, advise you on what debts to pay down and when, we don’t really get too involved in requesting/offering payment arrangements to creditors (although we do sometimes). We can however, make a recommendation to a non-profit credit counseling organization that can assist you in these matters.
Entirely up to us.
If you are truly serious about building your personal credit you are going to need to be a part of the process with us. This means you might need to make some changes to the way you have previously done things (or not done them!). It might not be easy at first, but it will be worth it.
Frequently Asked Questions
Can you explain exactly what a P&L review actually is?
If It’s like a health check-up, but for your business money. We look at what you’re earning and spending every quarter to see how you can make more profit. As consultants who have seen bank statements for hundreds of clients, many truckers don’t have a clue as to what’s coming in vs what’s going out.
Is this really necessary?
Knowing where your money goes can help you make better decisions. This service aims to find ways to cut down costs and boost your income, all explained in simple terms.
How often is the review done?
We do this review every three months, or quarterly. This way, you get regular updates on how your business is doing financially. Performing the review quarterly allows for a hdsjkhs way to see trends, as opposed to one month a a time. Blah blh.ddasdasdasdasdasd
How will I know if this is working?
You should start noticing more money in your account! You would be surprised how a far a little guidance, discipline and new habits go towards saving you money each month. Also this- an extra $500, $1000 or more in your bank is month is just that. Whether you earned it or kept it from leaving your account.
What do I need to do?
If you have accounting software (like Quickbooks) you can create a report directly from the main interface. If you don’t use any software you can simply provide us with your monthly bank statements. All R.I.G. clients have access to a portal to upload documents. Reminders are sent out automatically each month on the 10th.
Is this complicated?
Not at all! We break things down into simple language and easy-to-understand reports. No business degree needed, just a willingness to learn. Before you know it, you’ll be doing it for your buddies.
What if my business is too small?
No business is too small for good financial habits. In fact, smaller businesses often see quicker improvements, because every little change can make a big impact. Another thing to remember is small businesses can make big earnings-yet another reason why sound finances are important.
What if I don’t want to follow your suggestions?
Our suggestions are only offered to help you hold on to the money you earn. We know how hard truckers work, and it pains us to see any of you struggle. Habits may be hard to break, but we hope you at least try. But you don’t have to do anything we tell you.