Video Walkthrough
Key Metrics — April 2026
Revenue
$29,730
↑ $12,328 from March (+70.8%)
Net Income
–$1,171
↑ $14,842 better than March
Cash in Bank
$23,096
↓ $5,235 from March
Gross Margin
37.2%
3-mo avg: 37.0%
"April was a near-breakeven turning point after March's deep loss — but COGS and software cost creep are the two levers that will determine whether May is a win."
Three Power Insights
Insight 01
Your Cost of Goods Has Grown 8× — Your Prices Need to Catch Up
In January you kept 93 cents of every revenue dollar before expenses. By April that's dropped to 37 cents — not because sales fell, but because COGS climbed from $2,290 to $18,668 while revenue stayed in the same range. Inventory purchases and subcontractor costs are both rising every month, which likely reflects growth in product volume. The business is spending more to make and deliver the product — that's a pricing conversation, not a crisis.
Action: Run a margin check on your top-selling SKUs and confirm current pricing fully reflects what it now costs to produce them. Even a 10–15% price adjustment could swing April from a loss to a profit.
Insight 02
Software & Processing Fees Are Quietly Tripling — Time to Audit
Two line items have gone from background noise to a real problem: Office Equipment & Software jumped from $1,311 in January to $4,790 in April (265% increase), and Processing Fees climbed from $182 to $2,156 — 300% above the rolling average. Together, just these two categories cost $6,945 in April alone — more than half your entire gross profit. Something is compounding in here: new subscriptions, platform fee increases, or one-time purchases that have quietly stacked up.
Action: Pull the transaction detail on accounts 605.03 (Office Equipment & Software) and 605.09 (Processing Fees). List every charge, identify recurring items, and cancel or pause anything not actively generating revenue. Target: combined admin under $4,500/month.
Insight 03
April Almost Broke Even — The Turnaround Is Real
March was a $16,012 loss. April trimmed that down to just $1,171 — a 93% improvement in one month on similar revenue. The business carries zero debt, has $23,096 in the bank, and the balance sheet is nearly 10 times over-covered on its liabilities. This isn't a business in trouble; it's a business with a cost structure that needs calibrating. The path back to consistent profit is clear and close.
Action: Address the two items above before May 31. Fix pricing and cut the software spend — and May doesn't just break even, it profits.
P&L Summary
|
Jan |
Feb |
Mar |
Apr |
3-Mo Avg |
| Revenue |
$32,711 |
$42,704 |
$17,402 |
$29,730 |
$29,945 |
| Inventory COGS |
$2,062 |
$10,928 |
$14,251 |
$15,762 |
$13,647 |
| Subcontractors |
$228 |
$2,468 |
$2,268 |
$2,906 |
$2,547 |
| Total COGS |
$2,290 |
$13,396 |
$16,519 |
$18,668 |
$16,194 |
| Gross Profit |
$30,422 |
$29,308 |
$883 |
$11,062 |
$13,751 |
| Gross Margin % |
93.0% |
68.6% |
5.1% |
37.2% |
36.9% |
| Advertising & Marketing |
$2,699 |
$3,621 |
$3,147 |
$206 |
$2,325 |
| Admin Expenses |
$2,847 |
$5,029 |
$6,071 |
$8,079 +74% |
$6,393 |
| ↳ Software & Equipment |
$1,311 |
$2,410 |
$2,607 |
$4,790 |
$3,276 |
| ↳ Processing Fees |
$182 |
$389 |
$1,048 |
$2,156 +300% |
$1,197 |
| Utilities |
$427 |
$549 |
$1,881 |
$1,091 |
$1,174 |
| Outbound Shipping |
$2,316 |
$2,594 |
$1,347 |
$209 |
$1,383 |
| Travel |
$1,513 |
$140 |
$1,121 |
$1,448 |
$903 |
| All Other Expenses |
$1,645 |
$3,795 |
$4,329 |
$1,295 |
$3,140 |
| Total Expenses |
$11,447 |
$15,729 |
$16,895 |
$12,233 |
$14,952 |
| Net Income |
$18,967 |
$13,579 |
(–$16,012) |
(–$1,171) |
(–$1,201) |
Cash Flow Waterfall — April 2026
What This Means
💰 Revenue In
$29,730 came in the door — right on track with your 3-month rolling average of $29,945.
📦 Cost of Goods
$18,668 went straight to product costs — 63¢ of every revenue dollar. This is the highest COGS month yet.
🔧 Operating Expenses
$12,233 in overhead — including $4,790 in software/equipment and $2,156 in processing fees alone.
🛡️ AP Buffer
$1,611 in unpaid vendor bills to Alpen Design Works kept that cash in your bank — for now. Due in May.
👤 Owner & Card
$4,854 in owner wages + $798 to pay down the credit card (which now has a credit balance).
📊 Net Result
Cash dropped $5,235 this month, ending at $23,096. The balance sheet is strong — costs need calibrating.
Key Accounts Snapshot
Cash in Bank
$23,096
$5,235 from March
Accounts Receivable
$0
DSO: 0 days — cash business
Accounts Payable
$2,787
DPO: 4.5 days · Alpen Design Works · All current
Credit Card Balance
–$318
Credit balance — card overpaid ✓
Long-Term Debt
$0
Fully retired Jan 2026 ✓
Net Fixed Assets
$24,836
Equipment, machinery, improvements
Profit Quality Score
0.31
⚠️ Watch
Loss month — but cash burn ($358) was much lighter than the accrual loss ($1,171). AP building and lower wages helped buffer cash.
Financial Health Ratios
Healthy
Current Ratio
9.35×
For every $1 owed short-term, you have $9.35 in assets. Fortress-level balance sheet. Threshold: >1.5×
Healthy
Quick Ratio
9.35×
All current assets are cash — no inventory lock-up, no receivables risk. Zero debt. Threshold: >1.0×
Watch
Gross Margin %
37.2%
COGS is taking 63¢ of every revenue dollar — down from 93% margin in January. Pricing review needed to restore margin. 3-mo avg: 36.9%
Concern
Admin Cost % of Revenue
27.2%
Software and processing fees are tripling quarter over quarter and now rival COGS in impact. Was 8.7% in January. Immediate audit needed.
Before Next Month
! Before Next Month — May 2026
The Event
Your $2,786.56 A/P balance to Alpen Design Works is all current and expected to come due in May. Separately, Office Equipment & Software has increased every single month since January ($1,311 → $2,410 → $2,607 → $4,790) — if any software subscriptions auto-renewed or new tools were added, they will hit again in May.
Estimated Impact
~$2,787 in confirmed vendor payment to Alpen. If software/processing costs continue at April levels, admin expenses alone will exceed $7,000 in May — keeping the business in loss territory even with healthy revenue.
One Action Item
By May 25: Pull the full transaction detail on accounts 605.03 (Office Equipment & Software) and 605.09 (Processing Fees). List every charge, identify recurring subscriptions, and cancel or pause anything not actively generating revenue. Target: bring combined admin expenses back under $4,500/month. This single action could recover $2,000–$3,000 in monthly profit.
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This report is prepared for informational purposes only and is based on data provided by the client.
It does not constitute tax, legal, or investment advice. All figures are accrual basis.
Please consult a qualified professional for specific guidance.