Setting Up Clean Financial Infrastructure

Mike stresses the importance of clean, audit-proof financial systems from the beginning. Start with a dedicated business checking account—no mixing with personal funds.

Choose a bank branch with a night drop box for cash handling. Inside the main account, open two sub-accounts: one for sales tax escrow (auto-sweeping 7–10%) and one for repair reserves.

Each card reader should have T+1 funding and a clear label (e.g., Site ID M01) so deposits match machine reports at a glance.

Secure Cash Handling Procedures

Cash should never sit in the vehicle. Count it on site, seal it in a tamper-evident bag, and drop it in the night deposit box the same day.

Add a bank rule: if the deposit label contains “USAT” or “cash,” automatically sweep the tax portion into escrow.

This protects you from accidentally spending tax money and ensures every transaction is recorded with clarity and precision.

Daily Flow & Reconciliation Discipline

At the end of each service day, you’ll have two deposits:

• The automatic card batch, pre-labeled by site

• The sealed cash bag dropped at night

The next morning, log into your banking app and verify both landed. Then, cross-check against the machine’s sales report—any variance over 1% should be flagged.

This daily habit ensures that fraud or tech issues are detected within 24 hours. No loose ends.

Monthly Financial Routine & Reporting

Pre-Flight Weekly Routine

Treat the first business week of each month like a pre-flight check. Match deposits to sales reports and investigate any major mismatch.

Calculate your COGS using:

(Beginning truck stock + Purchases - Ending stock) = Actual product cost.

Reconcile the sales tax escrow against the machine’s tax report column and top it up if needed.

Profitability Checks & Adjustments

Generate a route-level P&L and evaluate key performance indicators. If gross margin falls below 45%, or commission exceeds 15%, take corrective action.

This may involve raising prices, renegotiating commissions, or optimizing product mix based on profit margins.

Export the finalized P&L as a PDF, store it in Google Drive, and use it to support financing or partnership conversations.

Always Lender-Ready

Following this five-step monthly close ensures your business remains lender-ready and acquisition-ready at all times.

Strong financial hygiene builds confidence with partners and accelerates growth opportunities when the time comes to scale or exit.