Profit Problems? Why Reviewing Your Financials Wrong Could Cost You Thousands [E186] - Business By The Numbers
About this episode
Understanding your financials is crucial for automotive shop owners, yet many overlook their importance. Tom Demers emphasizes the need to analyze financials based on specific goals, whether it's improving productivity or increasing profit. By adopting a scientific approach—identifying problems, brainstorming solutions, implementing changes, and analyzing outcomes—owners can better navigate their financial landscape. The episode dives into practical examples, illustrating how to effectively use financial statements and shop management software to track performance and make informed decisions.
Thanks to our partners Promotive and Wicked File
Welcome to another episode of Business by the Numbers with Hunt Demerast, CPA at Parmelis & Associates. This week, Hunt digs into a deceptively simple question every shop owner should be asking: when and how should you look at your financials?
Too often, business owners flip through their QuickBooks file or shop management system without clarity on what they’re really trying to uncover. Hunt breaks down the process like a scientist testing a theory: identify the problem, brainstorm possible fixes, implement solutions, and then analyze results.
From chasing profitability to tackling parts gross profit, Hunt explains how daily, weekly, and monthly reviews tell different stories about your business. Along the way, he shares why financials are trailing indicators, how leading metrics like productivity or parts pricing play a bigger role than many realize, and why “set it and forget it” rarely works when it comes to profitability.
You’ll also hear:
- (03:07) Why the frequency of financial reviews should match the problem you’re solving
- (05:55) How to use the scientific method to test business decisions
- (10:53) A real-world example of fixing low parts gross profit margins
- (17:53) The danger of only reviewing numbers once a year
- (19:47) Why your assumptions must be tested against reality—and how to course-correct
Whether you’re chasing higher margins, fighting to stay profitable, or just trying to sleep at night knowing your numbers are right, this episode offers a roadmap to thinking about financials with purpose instead of panic.
Stay safe out there—and remember, your financials are only as valuable as the questions you ask of them.
Thanks to our partner Promotive
It’s time to hire a superstar for your business; what a grind you have in front of you. Introducing Promotive, a full-service staffing solution for your shop. Promotive has over 40 years of recruiting and automotive experience. If you need qualified technicians and service advisors and want to offload the heavy lifting, visit https://gopromotive.com/
Thanks to our Partner WickedFile
Turn chaos into clarity with WickedFile, the AI for auto repair shops. Transform invoices into insights, protect cash flow, and stop losing parts, cores, or credits to maximize your bottom line. visit https://info.wickedfile.com/
Paar Melis and Associates – Accountants Specializing in Automotive Repair
Visit us Online: www.paarmelis.com
Email Hunt: [email protected]
Text Paar Melis @ 301-307-5413
Download a Copy of My Books Here:
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