Find The Money Leaking Out Of Your Business
Most owners can feel money slipping away. Few can say where it goes or how much it costs them. MoneyHound reads your financial statements and tax returns, puts a dollar figure on every leak, and shows you the fix for each one, in the order that fits your business.
| Leak, in the order to fix it | Size |
|---|---|
| PricingFix: USP & Guarantee | $71,200 a year |
| Overhead controlFix: Break-Even Plan | $38,500 a year |
| CollectionsFix: Cash Gap Plan | $96,000 cash |
| Labor productivityFix: Key Performance Indicator System | $54,700 a year |
| Tax efficiencyFix: Tax Plan with your accountant | $22,800 a year |
A sample for illustration. Your report uses your own numbers.
Sound familiar?
Most Owners Feel The Leak Long Before They Find It
- Truth is, I don't really know where the money goes.
- Our sales are growing, but our margins aren't.
- I'm rich on paper, but usually cash poor.
- We're busy all the time, and there's still not enough left at the end of the month.
- I haven't raised prices in years. I'm afraid of losing customers.
- Customers take forever to pay, and I'm the one floating them.
Every one of these is a money leak. MoneyHound tracks each one down, sizes it in dollars, and tells you which to fix first.
Our main issue was that we weren't charging properly. My coach was the only person who identified the problem, and fixing it literally turned the company around.
Roofing company owner. A quarter million in profit.How MoneyHound works
Find It. Fix It. Keep It.
Three parts, each built on the proven tools in The Business Owner's Guide to Freedom.
The Money Leak Report
We measure thirteen money drivers from your financial reports and tax returns, compare each one with businesses like yours, and add up what the gaps cost you. Free.
The Right Fix For Each Leak
Each leak is matched to the Silver Bullet that fixes it, or to a tax plan with your accountant, and the list is put in order for the step your business is on. You know exactly what to work on first.
A Monthly Money Plan
Your Revenue & Profit Budget becomes a monthly scoreboard. Each month you see targets against actuals, so the money you recover stays recovered.
What your report tells you
Two Numbers Every Owner Should Know
Your Money Leak Report opens with two figures. One is profit you lose every year. The other is cash you could free up once.
Profit leaking each year
The profit your business misses every year because its revenue and cost ratios trail businesses like yours.
- Customers you win, keep and sell to
- Prices, direct costs, payroll and overhead
- What you pay for borrowed money
- Tax you pay beyond what good planning requires
Cash trapped today
Cash tied up in your balance sheet that a better run business would already have in the bank. Release it once and it stays released.
- Money customers owe you
- How quickly you pay suppliers
- Stock sitting on the shelves
No inflated numbers. We only count a leak where your numbers trail the benchmark for your industry. Where you already match or beat it, the report shows no leak.
What the hound sniffs out
Thirteen Places Money Hides
Each driver is something you can act on. Each is measured with a standard financial ratio, so your accountant can check every number.
Revenue
Three driversProfit
Seven driversCash
Three driversYour report also includes a scoreboard of seven results, including operating margin, break-even position, liquidity and cash reserve. They show how healthy the business is today and which of the 5 Steps it sits on.
Fixed in the right order
The Biggest Leak Is Not Always The First One To Fix
Every business sits on one of the 5 Steps to Freedom. Doing the right work in the wrong order is why most improvement efforts fail, so MoneyHound orders your leaks by step as well as by size.
- Foundations firstA leak whose fix belongs to an earlier step goes to the top. A crack in the foundation undermines everything built on it.
- Then the biggest leaks on your stepRanked by dollars, so the first fix is the one that pays you most.
- Then a look at the next stepWhat to prepare for as the business climbs.
The 5 Steps To Freedom, Written Down
The framework behind every Money Leak Report, and all 21 Silver Bullets, explained in The Business Owner's Guide to Freedom.
Get The BookGetting started
Your Numbers And One Conversation
Ask For Your Free Report
Tell us a little about your business. We connect you with a MoneyHound coach or accountant near you.
Send Your Reports
Your profit and loss, balance sheet and sales by customer for your last two full years, plus your tax returns if you have them. If you work with an accountant, they likely have all of it already.
Walk Through Your Report
Your coach or accountant takes you through both numbers, every leak, and the first Silver Bullet to put to work.
What to have ready
- Profit and loss, last full year
- Profit and loss, the year before
- Balance sheet, last year end
- Balance sheet, the year end before
- Sales by customer summary, last full year
- Sales by customer summary, the year before
- Business tax returns, last two years (if available)
- Your personal tax returns, last two years (if available; S corps, partnerships and sole proprietors)
QuickBooks produces the six financial reports as standard reports, and so does most other accounting software. The returns sharpen the tax finding; without them the report still runs and marks the tax figures as estimates.
Here is a sample email you can send to your bookkeeper or accountant
Copy it, fill in the names, and send it. It asks for exactly the reports we need.
Subject: Reports for my Money Leak Report
Hi [name],
I'm getting a free Money Leak Report done for the business through MoneyHound. Could you please send me the following items right away? Excel files are best. PDFs are fine if that's all the system gives.
1. Profit and loss for our last two full years, with the two years side by side. Annual totals are all that's needed. Please keep cost of goods sold, payroll, interest and depreciation on their own lines.
2. Balance sheet as of each of those two year ends, side by side.
3. Sales by customer summary for the same two years, showing every customer, not just the top ones.
4. If you have them, our business tax returns for those two years, and my personal returns for the same years.
Please run the reports on the accrual basis if that's how you keep our books. If any loans on the balance sheet are from me or another owner, please note which ones.
Thanks,
[your name]
Questions owners ask
Before You Send Your Numbers
Is the Money Leak Report really free?
Yes. The report and the conversation that walks you through it cost nothing, and there is no obligation to do anything afterwards.
What happens after the report?
You can take the report and run with it on your own. If you want help fixing the rest and keeping the money, your coach or accountant can run the monthly money plan with you. You will know the price before you decide.
Do I have to change accountants?
No. MoneyHound works alongside whoever keeps your books today. Your accountant can even deliver it.
Why do you need my tax returns?
Tax is one of the thirteen drivers. Your returns show what you actually paid and which standard planning steps you may be missing, so the report can put a confirmed figure on that leak. They also let us show every other leak in after-tax dollars, using your real tax rate. If you don't have them handy, send the financial reports anyway: the report still runs, and the tax figures are marked as estimates until the returns arrive.
Who sees my financial reports and tax returns?
Only the coach or accountant preparing your report and the MoneyHound team that supports them. Your reports are used to prepare your Money Leak Report and nothing else.
How is this different from reading my profit and loss?
Your profit and loss shows what happened. MoneyHound compares it with businesses like yours, puts a dollar value on each gap, and tells you which tool closes it.
Does it work for my kind of business?
Every driver is compared with a benchmark for your industry, so a contractor is measured against contractors and a clinic against clinics.
Start here
Find The Money Leaking Out Of Your Business
Send your reports, sit down with a coach or accountant, and leave knowing both numbers and the first fix to make.
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