Year to date | January – August 2026 · QuickBooks Online
Accrual basis
Total Income
$340,177
Management, accounting and leasing fees
Gross Margin
$137,763
Income after all payroll
Non-Payroll Expenses
$90,619
Everything else it costs to operate
Net Operating Income
$47,144
Gross margin less those expenses
Net Cash Flow
−$183,869
After owner draws and contributions
Payroll
Property Payroll by GL Account
Property payroll accounts month by month. Includes the 1099 contractors working on the properties. GL 50110/50115 (Paul and Grant), the outsourced accounting fee and the January contractor project are in the table below. A dash means nothing posted that month.
What corporate absorbs. The properties are billed a fixed labor budget each pay period. Whatever property payroll costs above that budget, Coves pays out of corporate cash — $81,630 year to date. The January contractor line is a one-time project rather than ongoing property labor, so it sits in the table below instead.
Corporate Payroll — Paul and Grant
Why this sits on its own. Paul and Grant are each paid $1,875 a pay period — $7,500 a month combined, $8,122 with employer taxes. None of the costs in this table are billed to the properties, so none of them are covered by the labor reimbursement: officer pay, the outsourced accounting fee and the January contractor project are all Coves costs, $120,784 year to date. They still draw on the same shared services account as property payroll, so they are a real call on the same cash.
Monthly Results
Revenue and Operating Expenses by Month
Accrual basis. Operating expenses are net of the property labor reimbursement and exclude owner draws.
Revenue is growing; the expense line is growing faster. June through August averaged $50,743 of income against $42,981 in January through March — up 18.1%. Operating expenses over the same stretch went from a $39,141 average to $53,531, so the gap between the two lines has widened every quarter. February is the one month where expenses fell well below income, and it is also the only month of the eight with positive net income.
Net Cash Flow by Month
What the business actually kept, after other income, interest and the net amount Paul and Grant took out \u2014 draws less anything they put back in.
Owner draws are what turn the year negative. Net operating income across eight months is $47,144 — operations are profitable. Subtracting the $238,591 Paul and Grant took out on a net basis, now recorded in GL 58000 and GL 58050, takes the bottom line to −$183,869.
Operating Summary
Income, Payroll and What's Left
Accounts Receivable Aging
As of August 31, 2026. Accrual basis. A/R is a point-in-time balance, so this section does not change with the period selector.
Property
Current
1–30
31–60
61–90
91+
Total
Total
$11,832.70
$5,479.63
$880.83
$1,301.39
$1,522.38
$21,016.93
A/R is small and mostly fresh. $21,017 outstanding, 43.7% past due, but only $2,824 has aged past 60 days. Legacy Apartments carries a third of the book at $6,915, including $1,838 at 61–90 and $571 at 91+.
Action Items
Open Items
Identified during the August 2026 close.
Workers' compensation is being paid from the wrong entity. Since May the premium has drafted from Legacy's operating account rather than Coves. The policy is active; the cost needs to be accrued back to Coves once the amounts are confirmed.
June's $11,700 payroll drop is explained. A salaried position ended 5/29 and June ran fewer hourly pay lines than the surrounding months. No correction is needed.
The labor budget has not kept up with the labor. The $13,000 a month of maintenance labor that began in March was never built into what the properties are billed. Corporate has absorbed about $10,200 a month year to date, and closer to $17,000 in July and August.
Raised by 20 Mile Consulting · September 2026
Executive Summary
Year to date, January – August 2026
1Operations are profitable. The distributions are what create the loss. Eight months of fee income at $340,177 less all payroll leaves $137,763, and everything else it costs to run the business came to $90,619 — so operations landed at $47,144. Paul and Grant moved $309,324 of cash out over the same eight months and put $29,898 back; net of the June W2 true-up credited to the same capital accounts, $238,591 is recorded as an expense in GL 58000 and GL 58050 rather than buried in equity. That takes the bottom line to −$183,869. The operating business is paying for itself; the draws are what it cannot cover.
2The labor budget no longer covers the labor. The amount the properties are billed for labor has not changed since April, while the $13,000/month of maintenance labor that began in March was never built into it. Property payroll ran $419,154 against $337,524 reimbursed, so $81,630 of property labor was paid by corporate rather than by the properties — about $10,200 a month on average, and closer to $17,000 in July and August.
3Payroll is the whole picture. Total payroll of $202,414 against $340,177 of fee income leaves $137,763 of gross margin, and everything else it costs to run the business came to $90,619. Property payroll was $419,154, of which the properties reimbursed $337,524 — the remaining $81,630 stayed with corporate, before Paul and Grant's own compensation and the outsourced accounting fee.