Okay....so I joined the company business about two years ago. My financial knowledge is very limited but I need to understand something, which I don't seem to grasp....

We run a fitment centre. Dad is in charge of the finances, which makes perfect sense, given his history and track record. My older brother manages the shop and I do marketing and am the meet & greet guy...

According to our profit and loss statement we made around R500k net profit last year, which we now need to pay income tax on. The smart move would be to upgrade some equipment....however....we don't know where this money is, when asked, dad's reply is good question. This EXCLUDES three bonusses each during the year, which was declared, but we never received in order to better cashflow.

My opinion?
1. The profit and loss statement shows total sales and not what portion was made on account to debtors.
2. The profit and loss statement does not reflect any payment received from debtors....

Our debtors book is currently standing on about R750k....R350k of which is in 90 days and over. Would you agree with me this is where I profit is tied up? Is there any way to better control/ measure our profitability?

We have (finally, at my insistance, paid a retainer to Accountability) to start getting in the debtors that are
so far in arrears...

Just for clarity, I don't for one moment doubt my dad's integrity, just think he might be a little too 'old school'...

Opinions please Gents?

HB