Dan Engbreston
May 2026 Financial Insights
Prepared by Krishna · Prosynergy
"Create Value to reduce suffering and restore human flourishing"
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Prosynergy
Create Value to reduce suffering and restore human flourishing
Monthly Financial Insights
May 2026 Insights for
Dan Engbreston
Prepared by Krishna  ·  Prosynergy Bookkeeping  ·  Skyline Gutters LLC
Key Metrics — May 2026
Revenue
$89,173
↑ 57.4% vs April
Net Income
$22,140
↑ 9.9% vs April
Cash (Bank + In-Transit)
$26,115
↓ $4,256 vs April
Profit Quality Score
0.50
Healthy range: 0.80–1.20
"May was Skyline Gutters' strongest revenue month in the four-month window — but cash fell to its lowest point as a surge in A/R, owner draws, and job prepayments absorbed the gains."
Three Power Insights
Best Revenue Month Yet — But the Cash Didn't Follow
May brought in $89,173 in revenue — your highest month in this four-month window, up 57% from April. The P&L looks great: $22,140 net income and a 47% gross margin. But cash fell by $4,256 this month. A/R jumped by $18,455 net — the earnings are real, they're just sitting in unpaid invoices. The biggest piece: Jay Surianello alone owes $12,096 across four recent jobs. Getting that collected in June closes the gap.
Action: Follow up with Jay Surianello before June 20. That single collection would more than reverse May's cash decline.
Urban Builders Is Running Lean and Profitable
Your Urban Builders division contributed $6,536 in revenue for May at a 98.7% gross margin — essentially pure service work with almost no materials cost. After its share of operating expenses ($3,200), it generated $3,249 in net income on a 49.7% net margin. Compare that to Skyline Gutter's 22.9% net margin. Urban Builders earns more per dollar of revenue than the gutter work does.
Action: Track Urban Builders revenue monthly to see if that margin profile holds as volume grows.
$11,920 in Stale A/R Tied to Incomplete Customer Records
Beyond Jay Surianello, you have $11,920 split across balances 60+ days old — and several are tied to first-name-only records: "Joe" ($3,419 at 91+ days), "Dan O'Brien" ($2,710 at 91+ days), "Deion" ($1,526 at 91+ days). Without full names and contact info in Jobber, follow-up is harder than it needs to be. There are also 11 customers with credit balances totaling $7,616 that may represent refunds owed or unapplied payments.
Action: Clean up customer records for "Joe," "Dan O'Brien," and "Deion" in Jobber, and review the 11 credit balances to confirm whether refunds or invoice matches are needed.
Profit & Loss Summary — 4 Months + Average
Line Item Feb 2026 Mar 2026 Apr 2026 May 2026 4-Mo Avg
Income
Revenue $72,493$62,850$56,667 $89,173 $70,296
COGS $38,152$45,234$23,725 $47,267 $38,594
Gross Profit $34,341$17,616$32,942 $41,906 $31,701
Gross Margin % 47.4%28.0%58.1% 47.0% 45.1%
Operating Expenses
Software & Subscriptions$3,817$640$611$506$1,393
QB Payment Fees$724$199$15$22$240
Bank Charges & Fees$46$46$30$84$51
Professional Services$495$495$495$495$495
Mortgage Interest$0$657$215$203$269
Truck R&M$315$1,704$281$1,649$987
Truck Gas$493$667$1,008$964$783
Insurance$4,675$1,001$1,001$6,126$3,201
Advertising & Marketing$9,983$6,324$6,609$7,796$7,678
Jobber Payment Fees$717$1,722$1,543$1,447$1,357
Rent$529$1,126$508$883$762
Meals & Entertainment$143$587$402$183$329
Other OpEx$263$112$5$220$95
Total OpEx $22,139$15,363$12,806 $20,579 $17,722
Net Operating Income $12,201$2,253$20,136 $21,327 $13,979
OP Margin % 16.8%3.6%35.5% 23.9% 19.9%
Net Income $15,737$2,160$20,138 $22,140 $15,044
Net Margin % 21.7%3.4%35.5% 24.8% 21.4%
May column: teal = favorable vs the 4-month average, coral = unfavorable (for expenses, higher than average is unfavorable). Accrual basis.
May 2026 — Department Comparison
Skyline Gutter
Revenue$82,637
COGS$47,180
Gross Profit$35,457
Gross Margin42.9%
Operating Exp$17,379
Net Op Income$18,078
OP Margin21.9%
Net Income$18,891
Net Margin22.9%
Urban Builders
Revenue$6,536
COGS$87
Gross Profit$6,449
Gross Margin98.7%
Operating Exp$3,200
Net Op Income$3,249
OP Margin49.7%
Net Income$3,249
Net Margin49.7%
Cash Flow Waterfall — May 2026
What This Means
Revenue → Cash Gap
$89,985 came in (revenue + other income), but A/R increased by $18,455 — strong billing activity, collections trailing. The profit is real; it's in invoices, not yet in the bank.
Customer Prepayments
$14,506 received for jobs not yet started — June production is pre-funded. This cash is sitting in the liability account until work is completed.
Owner Draws
$14,544 drawn in May — 16.3% of revenue and the largest single cash outflow after operations. Consistent with prior months.
CC & Credit Line
Net $7,721 in CC and credit line paydowns — $6,000 paid to credit line, reducing that balance from $11,025 to $5,063.
Net Cash Position
Down $4,256 for the month. A timing issue, not a profitability problem. Collecting Jay Surianello's $12,096 in June would more than reverse this.
Key Accounts Snapshot
Cash in Bank
$11,596
Bank accounts only
↓ vs April
Undeposited Funds
$14,519
In transit, clears to bank
↑ vs April
Accounts Receivable
$17,795
DSO: 6.0 days · 68% from 1 customer
↑ vs April
Customer Prepayments
$17,497
Liability — future work funded
↑↑ vs April
Capital One CC
$9,944
Balance ↑ slightly
↑ vs April
Chase Business Card
$15,048
Auto-payment active
↓ vs April
Credit Line (5398)
$5,063
$6,000 paid down this month
↓ from $11,025
Term Loan (6480)
$30,711
Regular payments on track
↓ vs April
Financial Health Ratios
Current Ratio
1.08
$1.08 in current assets per $1 owed short-term. Below 1.5 threshold — but $17,497 of current liabilities are prepayments (funded future work), not real debt. Adjusted: 1.71.
Quick Ratio
0.62
Strict view: cash + A/R only. Excluding prepayments from CL, adjusted quick ratio rises to 1.45 — healthy. The raw number understates true liquidity.
Profit Quality Score
0.50
$22,140 net income but only $11,095 converted to cash. The gap is entirely in A/R — a collection timing issue, not a structural problem.
Debt Service Coverage
26.4×
Operating income covers loan payments 26.4 times over. Debt is not a concern at this level.
Before Next Month
The Event
Jay Surianello has $12,096 outstanding across four large gutter jobs invoiced in May (Invoices #3348, #3362, #3366, #3367).
Estimated Impact
+$12,096 to cash when collected — represents 68% of all open A/R and would more than reverse May's cash decline.
One Action Item
Direct follow-up with Jay Surianello by June 20, 2026 to confirm payment timeline and method.
How helpful was this month's review?
This report is prepared for informational purposes only and does not constitute financial, tax, or legal advice. All figures are based on QBO exports provided as of May 31, 2026. Accrual basis. Please consult your CPA or financial advisor for guidance specific to your situation.