April 2026 Insights for River Green Home Solutions
Prepared by Tim · Prosynergy Bookkeeping
Revenue
$26,820
▼ $17,419 vs March
Net Income
($2,926)
▼ $32,748 vs March
Cash in Bank
$19,961
▼ $13,127 vs March
Profit Quality Score
1.62
✓ YTD — Healthy
"April looked like a losing month on paper — but with $31,706 in year-to-date profit and a pipeline full of active jobs, the business has real momentum heading into summer."
Three Power Insights
Insight 01
Your April P&L is distorted — here's what's actually happening with your margins.
April shows a $2,926 net loss, but the real story is a COGS timing mismatch: $20,077 in materials hit the books this month regardless of which jobs those materials were for. Your gross margin has swung from 0.4% to 83% across four months — that's not a real business pattern, it's a recording timing issue. The fix is WIP (Work in Progress) tracking: materials sit on the Balance Sheet as an asset until the job closes, then move to COGS at the same time revenue is recognized. Every job's true cost and revenue land in the same month, every time. Tim can walk you through the setup — it takes about 30 minutes and will give you an accurate margin picture going forward.
💡 Action: Connect with Tim to set up WIP tracking before spring jobs pile up further.
Insight 02
April's $13,387 tax payment is a reminder to stay ahead of the tax bucket.
Federal and personal taxes landed simultaneously in April, and it showed — cash dropped $14,102 for the month. Your Bluevine Taxes account is exactly the right structure. Make sure you're sweeping 15–20% of every deposit there automatically. Given your year-to-date earnings of $31,706, your tax obligation is real and growing — pre-funding it monthly is far less painful than a lump-sum hit each quarter.
💡 Action: Confirm your Bluevine Taxes sweep rate is keeping pace with YTD earnings.
Insight 03
Credit card balances grew 47% in April — keep these from compounding.
Chase and Lowe's combined balances rose from $4,611 to $6,795 in one month. Putting materials on the card for jobs is fine — but only if the balance clears when each job closes. Carrying balances at 20%+ APR quietly eats your job margins. A simple rule worth building into your workflow: when a job is invoiced, pay the cards used for that job in full the same day.
💡 Action: Job closes → invoice goes out → cards clear. Same day, every time.
Insight 04
Your labor isn't on the P&L — and that's making every job look more profitable than it is.
You're doing the actual field work, but there's no owner salary anywhere on the income statement. All $34,150 in year-to-date compensation flows through equity as draws — completely invisible to your gross margin. That means a job that takes 20 hours of your time shows an 80% margin, when in reality your labor is one of the biggest costs on that job. The fix is a COGS account called Owner's Guaranteed Draws: when you close a job, book a market-rate labor cost — what you'd pay a skilled contractor to do the same work — directly against that job's revenue. Your gross margin will look lower, but it'll finally be true. And when you go to price a new job, you'll know exactly what you need to charge to actually make money after paying yourself.
💡 Action: Work with Tim to establish a market-rate labor cost and create the Owner's Guaranteed Draws COGS account. Price every future job with that number baked in.
📊 P&L Summary — January through April 2026
Line Item
Jan 2026
Feb 2026
Mar 2026
Apr 2026
Revenue
$14,174
$3,594
$44,239
$26,820
COGS
$2,568
$3,579
$7,558
$22,468
Gross Profit
$11,605
$15
$36,681
$4,352
Operating Expenses
$2,572
$4,026
$6,736
$6,766
Net Income
$9,050
($4,239)
$29,821
($2,926)
Gross Margin %
81.9%
0.4%
82.9%
16.2%
Where Did the Cash Go? — April 2026
What This Means
Revenue
$26,820 came in — solid spring volume, but not all jobs have closed and been invoiced yet.
COGS
$22,468 in materials expensed — the single biggest driver of the cash decline and the root of the WIP timing issue.
A/R Collected
$6,002 recovered from prior receivables — partially offset the cost pressure this month.
Owner + Taxes
$10,088 in owner draw and $13,387 in federal and personal taxes were the two largest cash exits in April.
Ending Cash
$19,961 at month-end — down $14,101 from March. Healthy enough, but the job pipeline needs to keep closing.
🏦 Key Accounts Snapshot
Cash in Bank
$19,961
▼ $13,127 from March
Accounts Receivable
$236
DSO: 0.3 days ✅
Credit Cards (A/P)
$6,795
▲ 47% from March
BlueVine LOC
$8,316
▲ $4,246 from March
Van Loan Balance
$31,432
~$392/mo payment
Profit Quality Score
1.62
YTD — Cash exceeds earnings ✅
📐 Financial Health Ratios
Current Ratio
1.10
Watch
Assets barely cover liabilities. Healthy is above 1.5. Closing jobs and paying down credit cards is the path forward.
April Gross Margin
16.2%
Concern
Heavily distorted by the WIP timing issue — not a true reflection of job-level profitability.
YTD Gross Margin
59.3%
Healthy
Year-to-date tells the real story — strong underlying margin once timing is smoothed out.
Owner Draw / Revenue
38.5%
Watch
YTD owner draw at 38.5% of revenue. Worth monitoring as revenue and costs normalize in Q2.
📅 Before Next Month
The Event
Now is the right time to set up WIP (Work in Progress) tracking in QuickBooks — before spring jobs pile up and the COGS timing problem compounds further.
How WIP Tracking Works
Right now, materials are expensed the moment they're purchased — even if the job won't close for weeks. WIP tracking changes that: instead of going straight to COGS, material costs land in a "Work in Progress" account on the Balance Sheet. When a job closes and you invoice the customer, the WIP balance moves to COGS in the same entry as revenue — so cost and revenue always match. Every job shows its true margin. One journal entry per job closure is all it takes.
Estimated Impact
Zero impact to cash — this is a bookkeeping structural fix. The payoff: month-over-month financials that actually reflect how the business is performing, and a clear view of what each job makes.
One Action Item
Connect with Tim before June 1st to create the WIP account in QuickBooks and update the workflow for new material purchases. The whole setup takes about 30 minutes — and it's the single highest-impact bookkeeping change you can make right now.
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This report is prepared by Prosynergy Bookkeeping based on financial data provided by the client and is intended for informational purposes only. It does not constitute tax, legal, or investment advice. Please consult a licensed professional for guidance on your specific situation.