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Guard Your Balance Sheet
When I came to a dead end many years ago the first thing I did was remain calm – well sort of UNTIL a tall, dark-haired muscle-man. like right out of the mafia, came into my office and said, “I want my money”.
We had rental properties, we had tenants who worked at Caterpillar; Caterpillar paid well but went on strike for 9 months. Tenants could not pay their rent and we could not pay the mortgages. We tried to sell, but the bank wanted money or the properties. They got the one but not the other.
So, overnight, we lost our assets as well as the corresponding liabilities. With a “revised” balance sheet, we started to rebuild again – slowly.
Fast forward to now …
Something I’ve done for over twenty years in accounting, and many more years personally, was to guard the balance sheet – and try and grow the equity. Sometimes you have to take an axe to certain things (like we did); other times you take a small knife. But, guard your balance sheet.
Strong assets that are appreciating in value and a debt burden that does not erode your cash flow will keep your equity from deteriorating and may even grow it.
There are strategies for growing your equity – why focus on equity? Because if and when bad fortune decides to pay you a visit, a strong balance sheet will help weather the storm.
You may have heard we are expanding here – we’ll be doing the normal freight broker training as well as dispatch and hotshot training. We’ll also start doing bookkeeping for owner operators and freight brokerages. (And there’s even more in store but one step at a time).
Click HERE to Learn About Our New Bookkeeping Services
At some point soon, I’ll introduce you to Yvonne. You’ll like her. She did some training for me years ago. She’s coming back and this is good for me and for everybody. She may do some training; better yet, she may play play a bigger role. More on this later.
I’ll be using QuickBooks for the bookkeeping. QB got its start in 1983 but I was using an earlier version before it became QB. My background is in accounting after all.
My target market is small to medium-sized fleet owner operators and freight brokerages.
You can take a look at my bookkeeping webpage if you like. Then, even if you are not ready to sign up, give me a call if you have questions.
Click HERE to Get Financial Reports to Help Manage Your Business AND to Learn Why to Choose Us Over Others