Have you ever looked at your calendar, saw it jam-packed with customers, and thought, “Why am I still not making money?”
That’s exactly what happened with one of the business owners I work with.
For six months straight, we sat down together, staring at the same reports. He was fully booked, his schedule was maxed out, but there was barely any cash in the bank. His cost of goods sold was fine. His monthly expenses were normal. Yes, there was some debt, but we were watching that closely.
Nothing added up. Until one day, I said, “Let’s look at payroll.”
💡 The Hidden Leak in Your Business
I did a deep dive into his industry. I wanted to know what the standard pay should be, how much other businesses were spending, and how his numbers stacked up.
That’s when I found it.
His payroll was about 30% to 35% higher than what was normal for his type of business. That extra pay was wiping out his cash flow. The numbers finally told the truth.
It was a hard conversation to have, but an important one. I told him:
“You can turn this around. You just need to reset. Rethink how you price your people, how you staff, and how your payroll fits into your bigger picture.”
📊 What This Means for You
If you’re working long hours and still not making a profit, don’t give up. Keep looking at your numbers. Go line by line if you have to. Your profit is hiding in plain sight.
Here’s what to look at:
- Payroll – Are you overpaying based on industry standards?
- Pricing – Are your services priced to actually cover costs and bring in profit?
- Reports – Are you reading them regularly? (Don’t ignore them!)
- Cash Flow – Is money coming in and going out the way it should?
📌 Don’t Let Your Numbers Go Unread
Your numbers are trying to tell you a story. But you have to be willing to read it.
This business owner made some changes—reset staffing, adjusted pay, and restructured pricing. Within a few months, he was no longer just surviving… he was finally growing.
🛠️ Tools & Help to Get Started
If you’re not sure how to read your reports or you’re worried your payroll is draining your profits, you don’t have to figure it out alone.
🧭 Start with a QuickBooks Review → Schedule here
🧾 Learn more about our full-service bookkeeping and CFO options → Our Services
💬 Final Thoughts
Being busy doesn’t always mean you’re profitable. Sometimes the numbers tell a different story. But there’s always an answer—if you’re willing to look.
Check your payroll. Read your reports. And never stop asking why the numbers aren’t working.
Read more articles: 5 Reasons to Outsource Your Accounting & Bookkeeping
