May Revenue
$45,349
↓ $3,650 vs April (–7.5%)
May Net Income
$13,827
↑ $11,231 vs April (+433%)
Cash in Bank
$18,513
+ $6,686 undeposited = $25,199
Net Margin
30.5%
Best margin of the year
"May was Paradise Lawns' best month in two years of business — but protecting that momentum means treating legal risk just as seriously as revenue growth."
1
Best Month Yet — $13,827 Net Profit in May
Revenue hit $45,349, beating budget by $4,349. Net margin came in at 30.5% — twice what the budget projected. Crew wages dropped from April even as revenue stayed high: your team is getting more productive as the season matures.
→ Use strong months now to build a buffer for the slow season
2
Credit Card Is the One Cash Drag — $11,806 on Elan
With $18,513 in checking, you have a clear window to attack this balance. Paying it down now frees up credit capacity and eliminates the liability before fall revenue slows down.
→ Transfer $6,000+ to Elan before June 30 while cash is strong
3
One Big Risk Isn't on the Books — Build a Legal Reserve
The Mallory situation creates real financial uncertainty that doesn't appear anywhere on this balance sheet. Setting aside $500–$1,000/month into a dedicated legal reserve fund is the most important protection you can put in place right now.
→ Start a legal reserve fund this month — strong months are the right time
Budget vs. Actual — Jan through May
| Metric |
Jan |
Feb |
Mar |
Apr |
May |
YTD |
| Budget Revenue |
$10,000 |
$15,000 |
$30,000 |
$40,000 |
$41,000 |
$136,000 |
| Actual Revenue |
$8,340 |
$12,921 |
$37,634 |
$48,999 |
$45,349 |
$153,243 |
| Revenue Variance |
–$1,660 |
–$2,079 |
+$7,634 |
+$8,999 |
+$4,349 |
+$17,243 |
| Budget Net Profit |
$1,500 |
$2,250 |
$4,500 |
$6,000 |
$6,150 |
$20,400 |
| Actual Net Income |
–$5,175 |
$422 |
$7,154 |
$2,596 |
$13,827 |
$18,824 |
| Net Profit Variance |
–$6,675 |
–$1,828 |
+$2,654 |
–$3,404 |
+$7,677 |
–$1,576 |
Revenue is running $17,243 ahead of budget YTD. Net income is $1,576 behind budget YTD — January's loss and April's crew scale-up account for the gap. May's strong margin closed most of it.
📊 What This Means
Beginning Cash $13,745
Where the bank account started on January 1st.
Net Income +$18,241
Cash the business earned after every bill, wage, and expense was paid across five months.
Depreciation +$5,534
Equipment wear recorded on paper — but no cash left the bank. Adds back as real cash.
A/R Increase –$3,935
Revenue earned but not yet collected. Cash in transit — expect it soon.
Working Capital +$5,476
Net of vendor credit, accrued payroll, client prepayments, and tax reserves set aside in QuickBooks — all rolled into one working capital movement.
Client Acquisition –$3,332
Installment payments on the Grass Monkey client list. An investment in future revenue.
Loan Repayments –$10,502
Equipment loans and shareholder notes being actively paid down. Balance sheet getting healthier.
Ending Cash $25,224
$18,513 in checking + $6,686 undeposited funds. Cash position grew 83% since January 1.
Quick Ratio
2.2
✓ Healthy
Cash + A/R covers the credit card balance more than twice over. Strong short-term coverage.
Profit Quality
1.39
✓ Strong
Cash is running ahead of reported earnings — a positive signal for real-world liquidity.
Debt to Assets
64%
Watch
Total liabilities are 64% of total assets. Equipment-heavy for year two — normal at this stage, improves as loans pay down.
Before Next Month
The Event
The Elan Financial credit card carries an $11,806 balance. Peak season is the right time to clear it — cash is strong now and won't be this strong again until next spring.
Estimated Impact
Paying it down reduces your current liabilities by up to $11,806, improves your quick ratio, and frees up the full credit line for equipment or supply purchases down the road.
One Action Item
Before June 30 — transfer $6,000–$8,000 from checking to pay down the Elan card. You have $18,513 in checking right now. Use this window while you have it.
This report is prepared for informational purposes only and reflects data extracted from QuickBooks Online on an accrual basis. All figures should be verified against source reports before making financial decisions. Prosynergy Bookkeeping provides bookkeeping services only and does not provide tax, legal, or investment advice. Consult a licensed CPA or attorney for tax planning and legal matters.