We've brought together a team of educators and home care experts to answer the burning questions that you and every home care owner will ask at some point.
Connor Kunz VP @Careswitch, former head of education @ Home Care Pulse, scaled a service business 7 figures in 3 years
Brett Ringold Vice President of A Long-Term Companion & HCAOA board member
Connor Kunz VP @Careswitch, former head of education @ Home Care Pulse, scaled a service business 7 figures in 3 years
The main financial statements that Home Care business owners should be familiar with are:
Note: Click here to download a spreadsheet with template P&L and Balance Sheets built for a home care agency.
Within the P&L you should pay close attention to your:
Knowing what is going on in your P&L would allow you to know how well your business is doing and what actions you would need to take in order to improve your situation if needs be.
In the Balance Sheet you want to ensure that your bank accounts in your accounting software are saying what your actual bank statements are showing or there is an explanation if they do not match. You want to also pay attention to any loans, outstanding invoices that have not been collected (Accounts Receivables).
A reconciled bank account ensures that all the funds that are going in and out of your business are accounted for. This is where the owner can find out if payments are being duplicated or if fraud is taking place.
These are the main management reports that you should go over by yourself or with your accountant on a monthly basis.
I offer all my clients a free 4 module video course, Introduction to Bookkeeping and Accounting for Small Business owners where I further explain these reports and basic accounting concepts/principles that home care business owners need to know in order to operate their agency successfully.
Contact Mark at his website or schedule time on his calendar.