"May was a structural wake-up call — the Urban Sheds fee model drove gross profit negative for the first time."
Three Power Insights
Insight 01
The Urban Sheds Fee Structure Reversed Gross Profit
May COGS hit $23,075 on $20,271 in revenue — $10,165 of that was Urban Sheds fees hitting in a single month, plus $7,735 in materials and $5,174 in subs. Gross profit: −$2,804, before a single dollar of payroll or overhead.
Verify the May Urban Sheds billing with Aaron — the timing of these fees may have created a one-month anomaly.
Insight 02
OnDeck Drew $9,263 to Keep Cash Positive
Without a $9,263 net draw from OnDeck, May ends at −$5,042. The OnDeck balance jumped from $5,376 to $14,639 in a single month — it's carrying the business right now.
Pause new draws and resolve the gross margin structure before drawing again.
Insight 03
COGS and Payroll Are Consuming Nearly All of Revenue
In the three months before May, COGS and payroll together averaged $16,800 on $20,400 in revenue — leaving only ~$3,600 to cover everything else. That's a razor-thin window, and one bad cost month tips the business into a loss.
A price increase on jobs or tighter direct cost controls is likely needed to build any real cushion — the current model leaves almost no room for error.
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This report is prepared by Prosynergy Bookkeeping for internal client use. All figures are derived from QuickBooks Online exports on an accrual basis as of May 31, 2026. This report is for informational purposes only and does not constitute financial, legal, or tax advice.