You did three million dollars in revenue last year. Your bank account looks like you did three hundred thousand. Where did it go? In this episode Derek Cormier pulls apart a real profit and loss statement layer by layer and shows contractors exactly where the money disappears between the top line and the bank account. One month of peak season produced ninety eight thousand dollars in gross margin that walked out the door — and most of it left through a line item nobody tracks. Derek then breaks down the three numbers every trades business owner should know from memory: gross profit, net profit, and cash flow. Not the numbers your accountant brings up in April. The three that decide whether you keep a single dollar of what you make. Including the math on why twenty percent net profit is impossible for most contractors at their current overhead, and why your profit and loss statement can look great on the exact same day your account is empty. What You Will Learn: Where the money actually goes between three million in revenue and what you take home. Why discounting and financing fees are the largest untracked expense in most trades businesses. How to read your gross margin by department against real industry benchmarks for plumbing, electrical, HVAC service, and HVAC install. Why field managers control gross profit and owners control overhead, and why confusing the two means nothing ever gets fixed. The exact math behind hitting twenty percent net profit and why selling more will not get you there. Why profit is an opinion and cash is a fact. How trucks, loan principal, and inventory hide on the balance sheet and make your profit look higher than your reality. How to diagnose whether your margin problem is labor, materials, or pricing. Topics Covered: Contractor profit and loss. HVAC gross margin benchmarks. Net profit for trades businesses. Cash flow management for contractors. Overhead as a percentage of revenue. Discounting and financing fees. Departmental budgeting. Job costing. Home service business financials. Contractor pricing strategy. Who This Episode Is For: This episode is for HVAC contractors, plumbers, electricians, and home service business owners who are producing real revenue and cannot figure out why there is nothing left at the end of the year. It is for owners who have never compared their departments against industry benchmarks, owners who use their bank balance as a financial system, and any trades business owner who wants to understand their numbers well enough to actually change them. About Escape the One Man Show: Escape the One Man Show is a podcast for contractors and trades business owners who are tired of being the bottleneck in their company. Host Derek Cormier shares the leadership lessons, systems, marketing strategies, and operational frameworks that helped build Climate Experts into a multi million dollar home service business. Have a question you want answered on the show? Call 321-495-7788 and leave a voicemail. Your question may be featured in an upcoming episode. Keywords: contractor profit and loss, HVAC gross margin, net profit trades business, cash flow for contractors, overhead percentage revenue, HVAC benchmarks, contractor financials, discounting HVAC, home service profitability, contractor budgeting, job costing HVAC, trades business numbers, Derek Cormier, Escape the One Man Show, Climate Experts, HVAC owner podcast, contractor coach, home service business growth, profit and loss contractor, HVAC business finance.