You cannot scale what you cannot see. Most business owners treat their P&L as a report card they read once a month. In reality, it is a diagnostic tool that—if read correctly—reveals the structural leaks draining your liquidity.
The “Growth Paradox” We often see trades and service companies growing at 30% YoY while their cash reserves shrink. This happens when operational drag outpaces revenue generation. Here are the three silent killers we look for immediately:
1. Accounts Receivable Lag
If your terms are Net 30 but your average collection period is 48 days, you are essentially financing your clients interest-free.
The Fix: Automate your invoicing triggers.
The KPI: Track DSO (Days Sales Outstanding) weekly, not monthly.
2. Unassigned Labor Efficiency
Are your technicians billable 85% of the time, or is 20% of their week lost to “shop time” and unallocated travel?
In a service business, time is inventory. If it expires unused, it is a 100% loss.
3. The “Miscellaneous” Black Hole
Review your General Ledger. If more than 5% of your expenses are coded to “Ask My Accountant” or “Office Supplies,” you lack granularity. You cannot cut costs if you don’t know what they are.
The PAGE Approach
We build financial dashboards that expose these leaks in real-time. Don’t wait for the quarter to end to fix your cash flow. Contact our team today to build a forecast that actually predicts the future.
