To have a successful business of any kind, managing finances is in order. While laundry business owners wear many hats and oversee various components such as hiring, firing, marketing, maintenance and more, keeping a close eye on cash flow is a top priority for fabricare business owners. In this article, we’ll cover the basics of managing your finances and go into detail about what each portion is. In addition to reading on, protect your entire operation front to back with a custom-tailored FabriCare Advantage™ Insurance program.
The tricky thing with businesses is simply because you’re technically profitable, that doesn’t mean you can take a vacation or upgrade equipment whenever necessary. According to American Dry Cleaner, there are two primary financial documents for operating a business: P&L and Balance Sheet. There are also two secondary statements: Cash Flow and Retained Earnings.
The P&L, also known as the income statement, reflects a specific period of time, usually monthly, quarterly or yearly, with accumulated year-to-date information as well. It reflects sales/revenues, expenses and net income.
This is a set of documents that evaluates the business’ assets, liabilities, and equity stakes. These numbers reflect that exact point in time.
This number shows the cash that’s going in and out of the business. This sheet breaks down finances into operating expenses, investments, overhead, and more.
“Retained earnings refer to the percentage of net earnings not paid out as dividends, but retained by the company to be reinvested in its core business, or to pay debt. It is recorded under shareholders’ equity on the balance sheet,” explains Investopedia.
About Irving Weber Associates
At Irving Weber Associates, Inc., we understand what it takes to run a successful Dry Cleaner, Commercial Launder, Linen Supplier or Coin Operated Laundromat, including investing in IWA’s comprehensive FabriCare Advantage™ Insurance Program to ensure that you are financially protected against legal claims. Our program includes specialty coverages including General Liability, Property, Pollution Liability, Boiler & Machinery, Business Auto, and many more as well as offering Pollution Liability Coverage. For a detailed look at how we can safeguard your business with a custom-tailored package, please contact our experts today at 800-243-1811.