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The question was: “What is the most important thing to look for in the income and expense statement?” In a conversation with a buyer he asked: “What is the most important thing to look for in the income and expense statement”? My answer: “Don’t know!” The problem with the question is that in every campground the key thing may be different! But here are a few things that I look at: Gross income over a three-year period, longer if available. This give you a quick look at the overall success of the campground. If the campground is growing in gross income, more and more people are willing to plunk money down on the registration desk. The percentage of site rental to gross revenue. It is always more profitable to sell a campsite than a loaf of bread. Also if the percentage is very high, it may indicate that you can add other sales to the gross. Repair and maintenance. This give you a good idea of the quality of care given the campground. If is, however, necessary to examine the individual items in the category. Advertising. Are they spending a lot to get revenue? Or are they spending little and getting a lot. Again, look at the individual items in the category. Bottom Line. This is always the first thing, but it may not be the most important thing. The bottom line can be manipulated by things up in the expense items. Better to look at the items first, then the bottom line. Check out the percentage of the bottom line to gross income. If it is too high, go back and check the expense items. Anything that is out of the ordinary. You should get a feel of what the norms are. If anything is too high, too low, check it out. For example, a high legal and professional fees number may indicate a lawsuit…and that is worth checking out! Note: we offer a report on the average income and expense items in our workbook (www.campground-data.com/workbook.html) along with several (a dozen or so) income and expense reports from campgrounds or various sizes. Ok, there are a few items to check out! End Notes: “People are often unreasonable, illogical, and self-centered. Forgive them anyway! If you are kind, people may accuse you of selfish, ulterior motives. Be kind anyway. If you are successful, you will win some false friends and some true enemies. Succeed anyway. If you are honest and frank, people may cheat you. Be honest and frank anyway. What you spend year building, someone could destroy overnight. Build anyway. If you find serenity and happiness, there may be jealousy. Be happy anyway. The good you do today, people will often forget tomorrow. Be good anyway. Give the world the best you have and it may never be enough. Give the world the best you have anyway. You see, in the final analysis, it is between you and God. It was never between you and them anyway!” Kent Keith
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