 So where did all my money go? So I was going through all of my expenditures for 2016 for my business. I've been wanting to talk more and more about business and I'm always just not sure where to start or what to start at, but I thought, you know, where did my business spend all of its money and what are the expenses and that's what's on the screen right here. The majority of the money, the lion's share of it is people because working in IT, it's really about the people and they don't come cheap. Now, you can get cheap people, but they're not good. So you don't want that. So one of the things we have to spend a little bit of money on is a little bit smarter people. And smarter people seem to be more expensive and don't wanna work for less money, which is good. So that is my number one expenses, all the people and I'm actually among the lower part of that. Some of my employees make even more money to me and I don't have a problem with that and that's just kinda how business goes because I own the place and certain things are expensive to the company. So if you looked at what my payroll is, all the money goes is not my payroll, it's actually theirs and then I get things like a car out of owning a company and a cell phone. Anyways, next one is parts for clients, cabling and computers. That's right now at 33%. Now these are expenses as percentages as total of expenses. So basically I took up a total of the expenses, not the total income for the company, but total of expenses and this is how we came up with these numbers and then when you add them as percentage, the term you'll find is common size financials and I always break my financials down to common size and maybe I'll do another video on a little more how you do that. What common size financials helps you do is no matter what the size of your company, what your annual revenues or annual expenditures are, if you did a million or if you did 10 million, the percentages don't change. It is still what it is and it's how you can understand your margin, it can understand your profitability. It also just gives you perspective. You know, the building we have is in huge and right now it occupies 5% of our income. So a building is a significant expense, but it's not that significant. And if we had a bigger building but it's also a bigger company, you can rationalize decisions better by having everything broke down as a percentage because it gives you a better understanding is this a lot. Now things I'm not spending a lot of money on this year was like advertising. I only spent 3.78% on advertising which is actually lower than I had spent before. Not by much, Joe. I think I had some of the years were 5%. I'd have to go backwards because I haven't been doing this common-sized financial. So I have to go back and recalculate some of the previous years on this. Vehicle expenses for company cars and the fuel that goes in them and repairs to them was 3.38%. Insurance was 1.53%. Shareholder payouts, that is a structured payouts I have set up was 1.4% and it's like actually this money paid out to me and that's separate because it's a shareholder payout. It's not exactly labor as in payroll. Then there's accounting and banking and credit card fees. Those are all those little fees that are associated with that. It's 1.3%. Cell phones, sometimes you can add about the cell phone bill but when you can put things into perspectives, all the company phones and everything, that is 0.64%. Office supplies, paper and pens and all of that stuff, 0.09% so pretty small. The other one that's a little bit up is this hosting, internet and RMM and what those are is those are the fees associated with kind of operating the business as in providing internet, leasing for servers that we have and our remote management solution. Those things just don't take up a significant amount of budget but that's what those are recurring costs for the tools that we have. I just want to run down this and kind of do an overview of where all my money went because it's something that I try to look at on a monthly basis but this is an entire year and I compare that from time to time. Now we do job costing differently and maybe I'll do one how we do some of the job costing. That comes from, we look at each individual job for profitability. This is overall profitability of the company or at least understanding expenses related to it but then there's a job cost and then there's also income sources which we have several, for example, we have the retail store and then we have the business and then we have the MSP. We're working especially in 2017 of kind of categorizing those a little better in our system so then I can do better breakdowns and understand where my revenues are coming from. But I just wanted to share that and maybe start a conversation about it if people had questions or comments or maybe other things they'd like to know. I've always like, I've been in business for 13 years and I will not say I know at all. I just want to share a little bit what I do know from being in business for 13 years but it's one of those things I like watching other people and they talk about some of these things so I can maybe get my own perspective and one of them is this common-sized financials actually I only learned about this more recently and I'm like, wow, that does make it easier to look from year to year because even though I did much less revenue, let's say seven years ago, I can look to see what my costs were then when it's based as percentage and now I can do a year-to-year comparison and see what's changed. Maybe I spent more as a percentage in advertising or less as a percentage because always if your company's bigger, sure you spent dollar-wise double in advertising that I spent a few years ago but that doesn't relevant. What was it in percentage total revenue and should that be adjusted? So thanks for watching and if you like to content here, like and subscribe.