Siobhan Says - The Three Reports that Will Save your business

Dear Siobhan,

I run two food trucks in Detroit, and last month my bank account showed $8,500. I felt like I was finally getting ahead. So I hired another prep cook for $3,200/month and dropped $2,000 on summer festival booth fees.

Then my accountant called. Apparently I owe $2,800 in sales tax I “forgot about,” my food costs are eating my profits, and I’ve been spending more than I’m making for two months straight. Now I’m looking at putting expenses on my credit card just to cover everything.

How did I go from feeling like I had this figured out to realizing I’ve been flying blind?

—Ready to Learn on Livernois

Dear Ready to Learn,

Your bank balance is only telling you part of the story. You’re not bad at business. You’re just making decisions with one piece of information when you need three.

When you saw $8,500, you saw opportunity. Your accountant saw $2,800 in sales tax due, loan payments, shrinking margins, and two months of overspending. That $8,500 wasn’t yours to spend.

You’re not alone. I see this every week—food truck owners, consultants, product sellers, all making expensive decisions based on their checking account balance. Here’s what you need to do next.

The three numbers that matter:

1. Your P&L — Are you actually making money? Watch your food costs as a percentage of revenue. If it creeps up two months in a row, your margins are shrinking — even if sales look fine.

2. Your Balance Sheet — What do you actually have? Subtract everything you owe in the next 30 days from your bank balance. That’s your real available cash. You thought you had $8,500. After sales tax, loans, and supplier bills, you had $3,425 — not enough for the $5,200 you were about to spend.

3. Your Cash Flow Statement — Where is the money going? If “Net Cash from Operating Activities” is negative two months in a row, you’re draining cash even if you look profitable on paper.

Before any purchase over $500, ask:

Will this drop my profit margin below 10%?
Do I have cash left after covering what I owe in the next 30 days?
Have I been cash-positive for 60 days?

Can’t say yes to all three? Wait — or text your accountant first.

Speaking of your accountant: Stop treating them like a once-a-year tax filer. Set up a quarterly 15-minute check-in, send your three reports ahead of time with specific questions, and text them when something looks off. That relationship is your early warning system.

Your weekly habit: Every Monday, 10 minutes. Check last week’s revenue, scan expenses, calculate your real available cash (bank balance minus payroll, taxes, loans, rent). More in than out? Good. If not — flag it now, not later.

You weren’t flying blind because you’re bad at this. You were flying blind because nobody showed you where to look.

Now you know.

With love, Siobhan

Questions? Submit to Siobhan at [email protected]

Disclaimer

This article is written for educational purposes only and does not constitute financial or tax advice. If you have specific questions related to your situation, please consult your CPA or tax advisor.