PVI Financial

Tag: Fractional CFO

  • I Have Underwritten Dozens of RV Park Deals. Here is Exactly What I Look at Before I Look at Anything Else.

    I Have Underwritten Dozens of RV Park Deals. Here is Exactly What I Look at Before I Look at Anything Else.

    If you have been scrolling through RV park listings lately you already know the feeling. The photos look great, the location seems solid, and the revenue numbers the broker is showing you look attractive. So you start getting excited. You start running the math in your head. You maybe even start picturing yourself as the owner.

    And then you dig in and realize the deal is nothing like what it appeared to be on the surface.

    I have been there more times than I can count. I have underwritten RV park deals that looked incredible on a one page marketing flyer and fell completely apart under scrutiny. I have also passed on deals that looked rough on the outside and turned out to have real upside hiding underneath the surface numbers.

    After doing this work over and over the same framework keeps proving itself. Here is exactly what I look at before I look at anything else.

    The Revenue Mix Tells You Everything

    Before I look at a single expense I want to understand how the revenue is being generated. Specifically I want to know the breakdown between long term tenants, short term seasonal guests, and transient nightly guests.

    This matters more than most buyers realize. A park that generates 80% of its revenue from long term tenants looks stable on paper but carries significant risk. Long term tenants pay less per night, they are harder to remove if needed, and many lenders including SBA will not finance a park with that revenue composition. If you are planning to reposition the park toward higher paying short term guests you need to understand exactly what that transition looks like, how long it takes, and what happens to your cash flow during the process.

    A healthy revenue mix for most acquisition purposes is somewhere around 60% short term and transient combined with no more than 40% long term. If the numbers are flipped that is not automatically a dealbreaker but it is the first conversation you need to have.

    The Occupancy Number is Rarely What It Seems

    Sellers love to quote peak season occupancy. What you need is annual average occupancy by site type and by month. Twelve months of data minimum. Ideally two to three years.

    A park that runs at 95% occupancy in July and 20% in January is a very different investment than a park that runs at 70% occupancy year round. The blended annual average tells you the real story and it directly determines how you underwrite the income.

    Also ask how many sites are actually available for rent versus taken offline for storage, employee use, or owner personal use. I have seen parks quote 150 sites where 30 of them were permanently occupied by staff or family members generating zero revenue. That changes your effective inventory and your income projections significantly.

    The Seller’s NOI is a Starting Point Not a Destination

    Every broker and seller will present you with a net operating income figure. Your job is to treat that number as a starting point for your own investigation, not a conclusion.

    Here is what commonly gets left out of a seller’s NOI that you need to add back in as expenses before you can trust the number. Management fees are almost always missing if the owner is self managing. A professional management fee typically runs 8 to 12 percent of gross revenue. If you are not planning to self manage you need to include this. If you are planning to self manage you still need to include it because your time has value and you need to understand what the park looks like without you in it.

    Owner salary is another common omission. If the owner is working full time in the park and not paying themselves a salary the expenses are understated. Capital expenditure history is almost always missing. When was the last time the roofs were replaced, the bathhouses were renovated, the electrical was upgraded? Deferred maintenance shows up in the purchase price negotiation and in your first year of ownership.

    Legal and professional fees that spike in a single year are worth investigating. I have seen deals where a large legal fee appeared in one year of the financials that turned out to be related to a tenant dispute or regulatory issue that was never fully disclosed.

    Infrastructure is Where Deals Go to Die

    The physical infrastructure of an RV park is where deals go to die if you are not paying attention. Utility systems, septic, water, electrical, and roads are the unglamorous backbone of the operation and they are expensive to fix when they fail.

    Here is what I specifically investigate on every deal. Who owns the utilities? A park on city water and sewer is a very different risk profile than a park on a private well and septic system. Private systems require regular maintenance, have finite lifespans, and can come with significant regulatory requirements depending on the state. Find out the age of every major system, when it was last serviced, and what the estimated remaining useful life is.

    Roads and common areas are often overlooked. Gravel roads that have not been graded in years, drainage issues, and aging common area infrastructure all represent capital expenditure that needs to be budgeted. Walk the property on foot, not just in a car. The things you see on foot tell a completely different story than the aerial photos in the marketing package.

    The Real Estate and the Business are Two Separate Things

    One of the most common mistakes I see buyers make is evaluating the real estate and the business as one thing. They are not. You are buying both and they need to be evaluated separately.

    The real estate question is straightforward. What is the land worth, what are the comparable sales in the area, and is the property appropriately zoned for its current and intended use? Are there any title issues, easements, or encumbrances that affect the property?

    The business question is more nuanced. What systems are in place for reservations, guest management, and operations? Is there a management team or is everything dependent on the owner? What is the online reputation of the park on Google, Campendium, and The Dyrt? Reviews tell you what the financials cannot. They tell you whether guests are happy, whether the facilities are well maintained, and whether there are recurring issues that show up over and over in the comments.

    A park with strong financials and terrible reviews is a business that is heading in the wrong direction. A park with modest financials and excellent reviews is a business with real upside potential.

    The Lease and Permit Situation

    If the park is on leased land rather than owned land this is the first thing I want to understand. What are the lease terms, what happens at expiration, is there a right of first refusal, and what does the rent escalation look like over time? A 25 year lease with a first right of refusal is very different from a 5 year lease with no renewal option.

    Permits and licenses are equally important. Is the park operating with all required permits current and in good standing? Are there any open violations, pending regulatory actions, or zoning issues? In some states RV parks require specific operating licenses and the transfer of those licenses to a new owner is not always automatic. Find out before you close, not after.

    My Final Rule

    After doing this work across dozens of deals I have one rule that I always come back to. Never fall in love with a deal before you have verified the numbers yourself.

    The seller’s package is a marketing document. The broker’s pro forma is an optimistic projection. Your job as the buyer is to reconstruct the financials from scratch using verified data, apply your own expense assumptions, and determine what the property is worth to you at your required return, not what the seller thinks it is worth to them.

    If the deal still works after you have done that work it is worth pursuing. If it does not you just saved yourself from a very expensive mistake.

    That is the job. And if you want someone in your corner who has done this work on real deals and knows exactly what to look for, that is exactly what I do at PVI Financial.

    Reach out at pvifinancial.com and let’s take a look at what you are working with.

    And if you have not grabbed a copy of my book yet, From Offer to Operation: The Complete RV Park Investor’s Guide ($49), it covers the full acquisition and operations framework including a bonus report with 34 red flags to verify before you close. I am very confident you will learn something you had not thought of.

    You can get it direct here: https://wendipvifinancial.gumroad.com/l/kqmyb

    Or if you prefer Amazon has it too, just search author Wendi Rook.

    Click here to read “What is NOI? And How To Find the REAL Number in an Acquisition”

    Click here to Download my free guide, The 5 Numbers Every RV Park Buyer Must Know Before Making an Offer

  • What Is a Fractional CFO and Does Your Small Business Need One?

    What Is a Fractional CFO and Does Your Small Business Need One?

    If you have heard the term fractional CFO floating around lately and wondered what it actually means, you are not alone. It is one of those phrases that sounds more complicated than it is. Let me break it down in plain language and help you figure out whether it is something your business actually needs right now.

    First, what is a CFO?

    A Chief Financial Officer is the senior financial leader of a company. In a large corporation the CFO oversees everything from financial reporting and cash flow management to strategic planning, capital raises, and investor relations. They are the person in the room who understands not just what the numbers say but what they mean and what to do about them.

    A full time CFO at a large company can earn $200,000 to $500,000 per year or more. For most small businesses that is simply not a realistic option.

    So what is a Fractional CFO?

    A fractional CFO gives you access to that same level of financial expertise without the full time salary, benefits, and overhead. You get a seasoned financial professional working with your business on a part time or project basis, for a fraction of the cost.

    The word fractional simply means you are getting a portion of their time rather than all of it. You pay for what you need, when you need it.

    What does a fractional CFO actually do?

    This is where it gets interesting because the answer is different for every business. A fractional CFO is not your bookkeeper. They are not your tax preparer. They are the person who takes all of that financial data and turns it into something you can actually use to run your business better.

    In practical terms that might look like:

    A monthly CFO report that tells you exactly where your money went, where it is going, and what you should do about it. A 30/60/90 day cash flow forecast so you are never surprised by what is coming. A KPI dashboard that tracks the metrics that actually matter for your specific business. Strategic guidance on pricing, expenses, debt, hiring, and growth decisions. Deal analysis and acquisition underwriting if you are a real estate investor or looking to buy a business. A cash flow rescue plan if things have gotten off track and you need to stabilize fast.

    Think of it this way. Your bookkeeper tells you what happened. Your CPA helps you file your taxes. Your fractional CFO helps you figure out what to do next.

    How is a fractional CFO different from a bookkeeper?

    I get this question a lot, especially from clients who have had a bookkeeper for years and are happy with their books. Clean books are essential. But clean books alone do not tell you whether your business is healthy, whether you are pricing your services correctly, whether you have enough cash to make it through a slow season, or whether you are leaving money on the table every single month.

    A bookkeeper looks backward. A fractional CFO looks forward.

    I started as a bookkeeper. I am good at it and I still offer it. But I made the shift to fractional CFO work because I kept seeing the same thing over and over. Business owners with clean books who had absolutely no idea what their numbers were telling them. No cash flow visibility. No KPI tracking. No strategic thinking about where the money was going or where it needed to go. Just a P&L that showed up once a month that nobody really knew how to use.

    That gap is exactly what a fractional CFO fills.

    Does your small business need one?

    Here are some honest signals that the answer might be yes:

    Your business is generating revenue but you still feel like you never have enough cash. You make financial decisions based on your bank balance rather than a forward looking picture. You have no idea what your profit margins actually are by product or service. You are growing but the growth feels chaotic and financially stressful rather than exciting. You are thinking about acquiring a property or business and want someone in your corner who can analyze the deal. You are heading into a busy season and have no plan for managing the cash that comes in. You have never had anyone really dig into your expenses to find what is being wasted.

    If any of those sound familiar, a fractional CFO is probably worth a conversation.

    What does it cost?

    Fractional CFO engagements vary widely depending on the scope of work and the complexity of your business. Monthly retainers typically range from $1,500 to $15,000 per month. Newer or simpler businesses will be on the lower end of that range. Project based work is also available for one time needs like deal analysis, financial model builds, or cash flow rescue plans.

    The better question is not what does it cost but what is it worth. If a fractional CFO identifies $50,000 in recoverable expenses, helps you avoid a bad acquisition, or gives you the financial clarity to make one better decision per month, the fee pays for itself many times over.

    How do you get started?

    At PVI Financial I work with small business owners and real estate investors who are ready to stop guessing and start making decisions from a place of clarity. I offer a free financial health check to start, so you can see exactly where your business stands before committing to anything.

    If you are curious whether a fractional CFO makes sense for your business, reach out at pvifinancial.com. The conversation is free and you will walk away with more clarity than you had before regardless of whether we work together.

    That is a promise.

    Wendi Rook is the founder of PVI Financial, a fractional CFO and bookkeeping practice serving small business owners and outdoor hospitality operators. She is a private money lender, real estate investor, and former long time business owner with a multi-seven figure exit. She helps business owners find clarity in their numbers and confidence in their decisions.

    Enjoyed this post? Click here to read “Why Profitable Businesses Run Out of Cash and How To Make Sure Yours Doesn’t”

  • What is NOI? And How to Find the REAL Number in an Acquisition

    What is NOI? And How to Find the REAL Number in an Acquisition

    Because the number on the listing and the number that matters are often very different things

    If you’ve spent any time looking at RV parks, campgrounds, or commercial real estate you’ve seen the term NOI everywhere. Net Operating Income. It’s the number brokers lead with, sellers brag about, and buyers base their offers on.

    And it’s also one of the most manipulated numbers in a deal.

    I don’t say that to scare you. I say it because understanding how NOI gets inflated, and how to find the real number, is one of the most valuable skills you can develop as a real estate investor. It’s the difference between buying a great asset and buying a great story.

    Let’s break it down.

    What is NOI really?

    Net Operating Income is the income a property generates after operating expenses but before debt service, taxes, depreciation, and capital expenditures.

    The formula is simple:

    Gross Revenue − Operating Expenses = NOI

    A property with $738,000 in gross revenue and $338,000 in operating expenses has a $400,000 NOI. Simple right?

    Sure, until you start asking what’s actually in those two numbers.

    The revenue side and what to verify

    Sellers and brokers present gross revenue in the most favorable light possible. That’s not dishonest, it’s how deals get done. But your job as a buyer is to verify every dollar.

    Here’s what to look for on the revenue side:

    One time or non-recurring income. Did they have an unusually strong season last year due to a local event, a viral social media moment, or a competitor closing? One time revenue inflates the T12 and won’t repeat. Back it out.

    Owner managed revenue. If the current owner is personally managing the property and not taking a salary that income looks great on paper. The moment you hire a manager that expense hits and your NOI drops. Always underwrite a management fee even if the current owner doesn’t take one, a safe number to use would be 8-10% of gross revenue for an RV park or campground.

    Projected or pro forma revenue. Some listings include “projected” revenue from planned improvements or expansions that haven’t happened yet. That is not T12 income. It’s a dream. Underwrite only what the property is actually producing right now.

    Gross vs net revenue. If the property uses OTA platforms like Airbnb, Hipcamp, or Booking.com those platforms take 15-25% in commissions. Make sure you’re looking at net revenue after commissions, not gross bookings.

    The expense side and what gets left out

    This is where the real manipulation happens. Expenses get minimized, forgotten, or deliberately excluded to make NOI look bigger. Here’s what to watch for:

    Owner salary or management fee. As mentioned above. If the owner runs the property themselves and takes no salary add a market rate management fee back in. This alone can drop NOI by $50,000-$80,000 on a mid-size park.

    Deferred maintenance. The roof that needs replacing next year, the electrical hookups that are aging out, the roads that need grading. These aren’t on the income statement but they’re coming out of your pocket. A thorough property inspection and a CapEx analysis will surface these. Budget 5% of gross revenue annually for CapEx and make sure your NOI can absorb it.

    Property management software and booking systems. Small line items but real costs that often get buried or omitted in seller financials.

    Insurance. Was the property underinsured? I’ve talked to some owners recently who are not insured! Get your own insurance quote before you close and make sure the actual cost is in your underwriting not the seller’s potentially outdated number.

    Utilities. Did the seller get a sweetheart rate that won’t transfer to you? Verify utility costs independently especially if the property has well water, septic, or propane infrastructure.

    Seasonal labor. Some sellers understate seasonal staffing costs. Ask for payroll records not just the summary expense line.

    Non-arm’s-length expenses. Did the seller’s brother-in-law do the landscaping for below market rates? Did they use their own equipment instead of hiring out? Real world costs may be higher than what the books show.

    The adjustments that give you REAL NOI

    Once you’ve verified the revenue and normalized the expenses you’re ready to calculate what I call Adjusted NOI; the number that actually tells you what the property will perform to under YOUR ownership.

    Here’s the adjustment process:

    Start with the seller’s stated NOI. Then:

    +Add back any non-arm’s length expenses that were below market

    -Subtract any one time or non-recurring revenue that won’t repeat

    -Subtract a market rate management fee if not already included

    -Subtract a CapEx reserve (5% of gross revenue)

    -Subtract any expenses that were omitted or understated

    -Subtract OTA commissions if not already netted out

    What you’re left with is your Adjusted NOI; the real number. And I promise you it is almost always lower than what was on the listing.

    That doesn’t mean it’s a bad deal. It means you’re buying it with your eyes open.

    Why this matters so much

    NOI drives valuation. Most commercial properties are valued using a cap rate; you divide NOI by the cap rate to get value. If a broker is using an inflated NOI to set the asking price the property is overvalued relative to what it will actually produce for you.

    A $50,000 difference in NOI at a 7% cap rate is a $714,000 difference in value. That’s not a rounding error. That’s the difference between a great deal and a very expensive mistake.

    Know your NOI. Know how it was calculated. And always, always, build your own adjusted number from verified data before you make an offer.

    You can do this

    I know this might feel like a lot, but I promise you it’s learnable. Every sophisticated real estate investor goes through this process on every deal. It becomes second nature.

    And if you want a partner to help you work through the numbers on a specific acquisition, that’s exactly what I do. Acquisition underwriting is one of my favorite things because there’s nothing more satisfying than helping an investor see a deal clearly and make a confident decision.

    Whether you decide to buy or walk away, you deserve to do it with full clarity!

    Visit me at https://www.pvifinancial.com and let’s talk about your next deal.

    — Wendi | PVI Financial | Fractional CFO & Bookkeeping Services for Small Business & Outdoor Hospitality

    Click here to read “5 Financial Mistakes New RV Park Owners Make in Year One”

    Click here to Download my free guide, The 5 Numbers Every RV Park Buyer Must Know Before Making an Offer

  • How to Evaluate an RV Park Manager Before You Close

    How to Evaluate an RV Park Manager Before You Close

    Because the person running your park day to day can make or break your investment

    When investors analyze an RV park acquisition they spend a lot of time on the financials. They verify the T12, they stress test the NOI, they model the debt service coverage, and they walk the physical property looking for deferred maintenance and capital needs.

    All of that is absolutely right and necessary.

    But there’s one due diligence item that often gets less attention than it deserves and in my experience it’s one of the most important factors in whether a stabilized RV park stays stabilized after you close.

    The manager.

    The person or people running your park day to day are not just employees. They are the face of your business to every guest who checks in. They are the reason your long term guests come back year after year. They are the operational backbone that keeps things running while you’re not on site. And in a remotely operated park they are essentially the business.

    Getting this evaluation right before you close can save you enormous headaches, expense, and lost revenue after you close. Here’s how I think about it.

    Why the manager evaluation matters so much

    Let me paint two pictures for you.

    In the first picture you close on a stabilized park, the manager stays on, guests love them, operations continue smoothly, and your financial results in year one track closely to the T12 you underwrote. Your transition is seamless.

    In the second picture you close on the same park, the manager leaves or turns out to be underperforming, guests notice the change in service quality, your online reviews take a hit, your repeat guest rate drops, and six months into ownership you’re scrambling to hire and train a replacement while trying to figure out why your revenue is running 15% below pro forma.

    The difference between those two scenarios is often the manager. And you have a much better chance of landing in the first picture if you do a thorough manager evaluation before you close rather than just hoping for the best.

    Step 1, understand the current manager’s relationship with the owner

    The first thing to understand is how the current manager relates to the outgoing owner. Are they a professional property manager with a formal contract? A longtime employee who has been there for years? A family member of the seller? Someone who was recently hired and has no deep roots in the property?

    Each of those situations has very different implications for your transition.

    A professional manager with a formal contract gives you clarity on terms, compensation, and expectations. A longtime employee with deep guest relationships is a huge asset worth protecting but may also have loyalty to the previous owner that takes time to transfer. A family member of the seller may not be interested in staying under new ownership at all. A recently hired manager may have less institutional knowledge than you’d hope.

    Understanding this dynamic tells you a lot about the stability of your management situation going into close.

    Step 2, review their track record objectively

    Look at the operational results on their watch. Occupancy trends, online review scores and volume, repeat guest rates if you can get them, maintenance response times, and any guest complaints or incidents that are documented.

    A manager who has been running a park at 85% occupancy with 4.7 stars on Google for three years is a very different asset than one who recently took over a declining property that happens to look stabilized on a trailing 12 month basis.

    Ask the seller directly how long the current manager has been in the role and what the occupancy and review trends looked like before and after they took over. The answer tells you a lot about whether the financial performance you’re underwriting is because of the manager or in spite of them.

    Step 3, have a direct conversation with them

    This is the step many buyers skip and it’s a mistake. Before you close ask the seller for permission to have a direct conversation with the manager. Most sellers will agree especially if they want a smooth transition.

    In that conversation you’re not just gathering information. You’re also building a relationship. Here’s what to cover:

    How long have they been in the role and what did they do before. What they love about the property and what they find challenging. How they handle guest complaints and difficult situations. What systems and processes they have in place for operations. What they think the property needs most. Whether they’re interested in continuing under new ownership and what their expectations are around compensation and their role going forward.

    Pay attention not just to what they say but how they say it. Do they talk about guests with genuine care? Do they have a clear and organized approach to operations? Do they seem proud of the property? Do they ask thoughtful questions about your plans as the new owner?

    A manager who is engaged, knowledgeable, and genuinely invested in the property is an asset worth paying for. A manager who seems checked out, vague about operations, or primarily concerned about their own situation is a risk worth understanding before you close.

    Step 4, verify their compensation and understand the full cost

    Make sure you understand exactly what the current manager is being paid, including salary or hourly rate, any housing provided on site, utilities covered, bonuses, and any other benefits or perks.

    This matters for two reasons. First, you need to make sure the full cost of management is accurately reflected in your underwriting. Second you need to know what it will take to retain them if you want to.

    A manager who is being paid below market is a flight risk. If they leave shortly after your acquisition because a competitor offers them more money, you’re left scrambling at exactly the wrong time. If retaining them requires a compensation adjustment factor that into your numbers before you close not after.

    Step 5, have a retention plan ready

    If your evaluation tells you this is a strong manager worth keeping have a retention conversation before or immediately after closing. Not a vague “we hope you’ll stay” conversation but a specific discussion about their role, their compensation, their responsibilities, and your expectations going forward.

    Strong managers have options. They know good parks want them. If you want to keep yours, give them a reason to stay early and make it concrete.

    A simple retention bonus tied to staying through the first 12 months of your ownership, a modest compensation increase that reflects their value, and a clear conversation about your plans for the property and their role in those plans goes a long way toward securing the continuity that protects your investment.

    What to do if the manager is a risk

    Sometimes your evaluation tells you the current manager is not someone you want to retain. Maybe their track record doesn’t support the financial results. Maybe they’re clearly not interested in staying. Maybe the seller confirms they’re planning to leave regardless.

    In that case your job before closing is to have a replacement plan ready. Not a theoretical plan but an actual plan. Who will manage the property on day one if the current manager walks? Do you have a candidate identified? Do you have a relationship with a professional property management company that specializes in RV parks?

    Walking into close without a management succession plan when you know the current manager is a risk is one of the most preventable mistakes in RV park acquisition. Don’t let it happen to you.

    The bottom line

    The financial analysis you do before closing tells you what the property has been. The manager evaluation tells you a big part of what it will be under your ownership.

    A great manager is one of the most valuable assets you can inherit in an acquisition. A problematic management situation is one of the most expensive problems to fix after the fact.

    Do the work before you close. Have the conversation. Understand what you have. And walk in on closing day with a clear plan for the person who is going to run your investment every single day.

    If you want help reviewing the deal or thinking through your management transition plan, I would love to work with you.

    Visit me at https://www.pvifinancial.com and let’s make sure you’re set up for success from day one.

    ~Wendi | PVI Financial | Fractional CFO & Bookkeeping Services for Small Business & Outdoor Hospitality

    Click here to read “How to Structure Your First 90 Days as a New RV Park Owner”

  • What Good Bookkeeping Actually Looks Like and Why Most Small Businesses Don’t Have It

    What Good Bookkeeping Actually Looks Like and Why Most Small Businesses Don’t Have It

    Clean books are not just nice to have. They are the foundation everything else is built on.

    If you asked most small business owners whether their bookkeeping is in good shape they would probably say yes. And then if you asked them when their books were last reconciled, what their accounts receivable aging looks like, or whether their chart of accounts actually reflects how their business operates, you would get a very different answer.

    Good bookkeeping is one of those things everyone assumes they have until they actually need it. And by the time they need it, it is usually because something has gone wrong.

    Here is what good bookkeeping actually looks like, why most small businesses fall short, and what it means for your business when you get it right.

    What good bookkeeping is not

    Let me start here because there is a lot of confusion about what bookkeeping actually is and what it is supposed to do.

    Good bookkeeping is not just recording transactions. Anyone can categorize expenses and import a bank feed. That is data entry, not bookkeeping.

    Good bookkeeping is not just having a QuickBooks file. A lot of businesses have QuickBooks. Very few have QuickBooks that is actually clean, accurate, and up to date.

    Good bookkeeping is not something you catch up on once a year before tax time. If your bookkeeper is doing a big cleanup every spring that is not bookkeeping, that is archaeology. And by the time you are filing taxes it is too late to use that information to make better decisions.

    Good bookkeeping is also not the same as accounting or tax preparation. Your bookkeeper keeps your records clean and current. Your CPA uses those records to file your taxes and advise on tax strategy. They are two different roles and confusing them is one of the most common and costly mistakes small business owners make.

    What good bookkeeping actually looks like

    Good bookkeeping is a system that runs consistently every month and produces financial information you can actually use to run your business. Here is what that looks like in practice.

    Transactions are coded correctly and consistently

    Every transaction in your books should be categorized to the right account every time. Not approximately right, actually right. Income goes to the right revenue account. Expenses go to the right expense category. Owner draws are not mixed in with business expenses. Personal charges are not sitting in your business accounts.

    A well structured chart of accounts is the foundation of this. Your chart of accounts should reflect how your specific business operates, not a generic template that was set up when you first opened QuickBooks and never touched again.

    Bank and credit card accounts are reconciled every single month

    Reconciliation is the process of matching every transaction in your books to your actual bank and credit card statements. It is how you catch errors, identify fraud, and make sure your books actually reflect reality.

    If your accounts are not being reconciled every month your financial statements are not reliable. Full stop. You might have duplicate transactions, missing entries, or outright errors sitting in your books that are distorting every report you look at.

    Good bookkeeping means every account is reconciled every month without exception.

    Financial statements are produced on a consistent schedule

    Your P&L, balance sheet, and cash flow statement should be produced and reviewed every single month, not just at year end. Monthly financial statements are how you catch problems early, spot trends, and make informed decisions throughout the year.

    If you are only seeing your financials once a year at tax time you are making every business decision with a blindfold on for eleven months of the year.

    The books are current

    Good bookkeeping means your books are never more than thirty days behind. Ideally they are closed within ten to fifteen days after the end of each month. If your bookkeeper is consistently behind, constantly catching up, or doing quarterly instead of monthly closes that is a problem.

    Current books mean current information. Current information means better decisions. It really is that simple.

    Accounts receivable and payable are tracked

    If your business invoices customers you should know at any given moment exactly who owes you money, how much, and how long they have owed it. That is your accounts receivable aging report and it is a critical piece of your cash flow picture.

    Similarly if you have outstanding bills or obligations your accounts payable should be tracked and current so you always know what is coming due.

    A lot of small business bookkeeping focuses entirely on what has already happened and ignores what is outstanding. That is an incomplete picture and it creates cash flow surprises.

    Why most small businesses don’t have this

    If good bookkeeping is this straightforward why do so many small businesses fall short? Here are the most common reasons.

    The owner is doing it themselves. I have enormous respect for business owners who handle their own books in the early days. But as a business grows the complexity grows with it and the time required to do bookkeeping well competes directly with the time required to run and grow the business. Something always gives, and it is usually the books.

    They hired the cheapest option. Bookkeeping is one of those services where you often get exactly what you pay for. A bookkeeper who charges very low rates is either very new, working very fast, or both. Fast and cheap bookkeeping is almost always incomplete bookkeeping.

    Nobody is actually reviewing the output. Even businesses with a dedicated bookkeeper often have nobody reviewing the financial statements to make sure they make sense. Errors sit in the books for months or years because nobody is looking critically at the numbers.

    The setup was never done correctly. A lot of bookkeeping problems start on day one when the chart of accounts is set up incorrectly, the opening balances are wrong, or the software is configured for a generic business instead of the specific one. Bad setup creates compounding problems that get harder to fix the longer they sit.

    They think their CPA handles it. A CPA who sees your books once a year at tax time is not your bookkeeper. They are working with whatever they are given, cleaning up what they have to, and filing your return. That is not the same as maintaining clean, current, accurate books throughout the year.

    What it costs you when your books are a mess

    This is the part most people do not think about until it is too late.

    Bad bookkeeping costs you time. Every hour you spend hunting for receipts, explaining transactions to your CPA, or trying to figure out why your numbers do not add up is an hour you are not spending on your business.

    Bad bookkeeping costs you money. Your CPA charges more when your books are a mess because cleanup takes time. You may miss deductions because expenses were not categorized correctly. You may overpay taxes because your income was recorded incorrectly.

    Bad bookkeeping costs you opportunities. If you ever want to get a business loan, bring in a partner, sell your business, or acquire another one you will need clean accurate financial records. Messy books kill deals and delay timelines at exactly the wrong moment.

    Bad bookkeeping costs you clarity. When your books are a mess you cannot trust your financial statements. And when you cannot trust your financial statements you are making every decision in the dark. That anxiety, that uncertainty, that feeling of not really knowing where your business stands, that is the real cost of bad bookkeeping. And it is completely avoidable.

    What changes when you get it right

    When your books are clean, current, and accurate something shifts. You stop guessing and start knowing. You stop reacting and start planning. You stop dreading the conversation with your CPA and start having real strategic conversations about where your business is going.

    One of my clients came to me with five years of incomplete books, unfiled taxes, and no idea what her business actually made. We cleaned everything up, built the right systems, and got everything current. In the ten months since she has more than doubled her revenue, paid off all her business debt, and knows exactly where her business stands at any given moment.

    That is not a coincidence. That is what happens when the financial foundation is right.

    The bottom line

    Good bookkeeping is not glamorous. It is not the most exciting part of running a business. But it is the foundation that everything else is built on, your cash flow visibility, your tax strategy, your ability to get financing, your ability to make confident decisions, and ultimately your ability to grow.

    If you are not sure whether your books are actually in good shape I would love to take a look. A free Financial Health Check is a great place to start.

    Visit me at https://www.pvifinancial.com and let’s make sure your foundation is solid.

    ~Wendi | PVI Financial | Fractional CFO & Bookkeeping Services for Small Business & Outdoor Hospitality

    Click here to read “Why Profitable Businesses Run Out of Cash, and How To Make Sure Yours Doesn’t”

  • Should You Raise Rates After Acquiring an RV Park? How to Know When the Numbers Support It

    Should You Raise Rates After Acquiring an RV Park? How to Know When the Numbers Support It

    Because raising rates too fast can hurt you just as badly as leaving money on the table

    One of the first questions new RV park owners ask after closing is some version of this: the previous owner was charging below market rates, can I just raise them right away?

    It’s a fair question and the instinct behind it is right. If you underwrote the deal partly based on a rate increase thesis you want to start capturing that upside as quickly as possible. Every month you’re charging below market is money you’re leaving on the table.

    But here’s the thing. Rate increases after an acquisition are one of the highest leverage moves you can make AND one of the easiest ways to damage a business you just paid a lot of money for. The difference between a rate increase that works and one that backfires almost always comes down to timing, magnitude, and how well you understand what you actually have.

    Here’s how I think through it.

    First, understand why the previous owner charged what they charged

    Before you change anything you need to understand the pricing strategy you inherited. Was the previous owner charging below market because they didn’t know better? Because they wanted to keep long term guests happy? Because the property has specific limitations that justify lower rates? Because they were afraid of losing occupancy?

    Each of those situations calls for a different approach.

    An owner who simply never raised rates because they were too comfortable is a very different situation from an owner who kept rates low intentionally to maintain 95% occupancy in a market where competitors sit at 70%. In the first case you have real upside. In the second case raising rates aggressively might just trade occupancy for revenue with no net benefit.

    Know why rates are where they are before you decide where they should go.

    The math behind a rate increase

    Let me show you why rate increases are so powerful when they work.

    A 100 site park averaging 75% occupancy at $65 per night generates $1,780,125 in annual revenue. That same park at $70 per night, just a $5 increase, generates $1,916,250. That’s $136,125 in additional annual revenue assuming occupancy holds.

    At a 7% cap rate that incremental revenue adds nearly $2 million in property value. A $5 rate increase becomes a $2 million value creation event if you execute it correctly.

    That’s why rate optimization is one of the first things sophisticated operators look at after acquisition. The upside is enormous.

    But notice the assumption in that math. Occupancy holds. That’s the variable you have to manage.

    The occupancy trade off

    Every rate increase carries some risk of occupancy reduction. The question is how much and whether the math still works.

    Here’s a simple way to think about it. If you raise rates by 10% and occupancy drops by 5% are you better or worse off?

    At $65 per night and 75% occupancy on 100 sites your monthly revenue is approximately $148,750.

    At $71.50 per night and 70% occupancy your monthly revenue is approximately $150,150.

    You’re slightly ahead even with the occupancy drop. The rate increase worked.

    Now run the same math with a 15% occupancy drop and the picture changes. This is why you model before you move.

    When to raise rates and when to wait

    Here’s my general framework for rate increases after acquisition:

    Raise rates immediately if:

    Your rates are more than 20% below comparable properties in your market. You inherited a property with consistently full sites and a waiting list. Your due diligence showed rates haven’t been adjusted in several years. You’re heading into peak season and demand is strong.

    Wait and learn if:

    You just closed and you’re still in your first 30-60 days of ownership. You inherited a property with occupancy below 80% that needs to be stabilized first. You’re heading into shoulder season where demand is softer. You don’t yet have enough data to understand your guests’ price sensitivity.

    Never raise rates if:

    Your DSCR is already tight and any occupancy reduction would put your debt service at risk. You have a significant number of long term tenants whose contracts specify a rate and require notice. You haven’t yet reviewed your competitive set and don’t know where market rates actually are.

    How to raise rates without losing guests

    The how matters as much as the when. Here are the approaches that work best:

    Raise rates on new bookings first. Don’t change rates for guests who are already booked. Honor existing reservations at the old rate and apply new rates to future bookings. This is the least disruptive approach and gives you real data on how new bookings respond before you affect existing relationships.

    Start with your highest demand site types. Full hookup pull-throughs are typically your most in-demand sites. Start your rate increase there where demand is strongest and price sensitivity is lowest. Leave your lower demand site types alone until you have more data.

    Use dynamic pricing if your booking system supports it. Rather than a single flat rate increase consider implementing seasonal pricing, weekend versus weekday pricing, and advance booking discounts. Dynamic pricing lets you capture maximum revenue during peak demand without scaring away guests during slower periods.

    Communicate proactively with long term guests. If you have monthly or seasonal guests who are accustomed to a certain rate a rate increase requires advance notice, often 30-60 days depending on your lease terms. A personal conversation or a well-written letter explaining that you’re investing in improvements goes a long way toward preserving those relationships.

    The competitive set analysis you need to do first

    Before you change a single rate spend an afternoon doing a competitive set analysis. Identify the five to ten RV parks most comparable to yours within a reasonable drive, similar amenities, similar site types, similar market. Check their current rates on their website or on the booking platforms they use.

    Build a simple spreadsheet that shows your current rates versus market rates for each site type. Where are you at market? Where are you below? Where are you actually above market and potentially vulnerable to losing guests to competitors?

    That analysis tells you exactly where your rate increase opportunity is and where you need to be careful. It takes a few hours and it’s worth every minute.

    The bottom line

    Raising rates after an RV park acquisition is one of the most powerful value creation levers available to you. Done correctly it can add significant revenue and meaningful property value in a relatively short period of time.

    Done incorrectly it can damage guest relationships, hurt occupancy, and create the kind of revenue volatility that makes lenders nervous and makes your life stressful.

    The difference is doing the analysis first. Know your market. Know your occupancy. Know your guests. Model the math before you move. And when you do raise rates do it thoughtfully, communicating clearly and honoring existing commitments.

    The numbers will tell you when the time is right. Trust the numbers.

    If you want help analyzing your rate increase opportunity and modeling the revenue impact before you make any changes I would love to work through it with you.

    Visit me at https://www.pvifinancial.com and let’s look at your numbers together.

    ~Wendi | PVI Financial | Fractional CFO & Bookkeeping Services for Small Business & Outdoor Hospitality

    Click here to read “How To Structure Your First 90 Days as an RV Park Owner”

  • How to Structure Your First 90 Days as a New RV Park Owner

    How to Structure Your First 90 Days as a New RV Park Owner

    The decisions you make in the first three months set the trajectory for everything that follows

    Closing day is one of the best feelings in real estate. You’ve done the work, you’ve run the numbers, you’ve negotiated the terms, and now the keys are yours. It’s exciting and it should be.

    And then reality sets in.

    The first 90 days of owning an RV park are simultaneously the most important and the most overwhelming period of the entire ownership experience. You’re learning the operations, building relationships with staff and guests, figuring out the systems the previous owner had in place, and trying to protect the investment you just made, all at the same time.

    Most new owners wing it. They show up with good intentions and figure it out as they go. And while that works eventually it almost always means missed opportunities, preventable mistakes, and a slower start than necessary.

    Here’s a better way. A structured 90 day plan that gives you clarity, protects your investment, and sets you up for long term success.

    The mindset going in

    Before we get into the specifics I want to address the most common mistake new RV park owners make in their first 90 days, and it’s not a financial mistake or an operational mistake. It’s a mindset mistake.

    The mistake is trying to change too much too fast.

    You just bought a stabilized business. It was working before you arrived. The guests who come back year after year, the staff who know the property, the systems that keep things running, those are assets. Treat them that way.

    Your job in the first 90 days is not to reinvent the park. It’s to learn it, stabilize it, and build the foundation for intentional improvement. Change comes later, after you understand what you have.

    𝗗𝗮𝘆𝘀 𝟭-𝟯𝟬: 𝗟𝗲𝗮𝗿𝗻 𝗲𝘃𝗲𝗿𝘆𝘁𝗵𝗶𝗻𝗴.

    Your first month has one primary goal. Learn the business as it actually operates, not as it looked in the financials.

    Here’s what that looks like in practice:

    Meet every staff member individually. Understand their role, their tenure, their relationship with the previous owner, and their concerns about the transition. Your staff knows things about this property that no due diligence package will ever tell you. Treat that knowledge as the asset it is.

    Walk every inch of the property with fresh eyes. Not the due diligence walk you did before closing, a slower more deliberate walk now that you own it. Look at what needs attention, what’s been deferred, what surprises the inspector might have missed. Start a running list.

    Talk to your long term guests and regulars if you have them. These are the people who love your park and come back year after year. Their loyalty is worth protecting. Introduce yourself, thank them for their business, and listen to what they have to say. You’ll learn more in those conversations than you will from any report.

    Review every vendor contract and service agreement. Know what you’re paying, who you’re paying, and when each contract expires or renews. Look for anything that seems overpriced or underperforming.

    Get your books connected and your bookkeeping system live. As we talked about in a recent post your first month of ownership is your most important baseline. Capture every transaction from day one.

    𝗗𝗮𝘆𝘀 𝟯𝟭-𝟲𝟬: 𝗦𝘁𝗮𝗯𝗶𝗹𝗶𝘇𝗲 𝗲𝘃𝗲𝗿𝘆𝘁𝗵𝗶𝗻𝗴.

    Your second month shifts from learning to stabilizing. You now have enough context to start making informed decisions. Here’s what to focus on:

    Build your first monthly financial report. Now that you have a full month of actual results compare them to your pro forma. Where are you ahead? Where are you behind? Why? This is your first real look at how the property is actually performing under your ownership and it sets your baseline for everything that follows.

    Address any urgent operational issues you identified in month one. Not the wish list items, the genuine problems that could affect guest experience, safety, or revenue if left unaddressed.

    Confirm your staffing model is right. Is the team you inherited the right team going forward? Are there gaps? Are there redundancies? Month two is when you start to have enough information to make thoughtful staffing decisions rather than reactive ones.

    Review your booking channels and pricing strategy. How are guests finding you? What percentage of bookings come through OTA platforms versus direct? What does your pricing look like relative to comparable parks in your market? You don’t need to change anything yet but you need to understand the current state before you can improve it.

    Establish your monthly reporting rhythm. Pick your review date, set up your KPI dashboard, and commit to looking at your numbers on the same day every month going forward. The discipline of consistent financial review is one of the highest value habits you can build as an operator.

    𝗗𝗮𝘆𝘀 𝟲𝟭-𝟵𝟬: 𝗣𝗹𝗮𝗻 𝗲𝘃𝗲𝗿𝘆𝘁𝗵𝗶𝗻𝗴

    Your third month is about looking forward. You’ve learned the business, you’ve stabilized the operations, and now it’s time to build the plan for the first full year of ownership.

    Build your annual operating budget. Using your pro forma as a starting point and your first two months of actual results as a reality check, build a month by month budget for the full year. Include revenue projections by site type, all operating expenses, debt service, CapEx reserve contributions, and tax reserve contributions. This budget becomes your financial roadmap for year one.

    Identify your top three value creation opportunities. After 90 days of learning the business you should have a clear picture of where the biggest opportunities are. Maybe it’s raising rates on a specific site type that’s consistently at 95% occupancy. Maybe it’s adding a direct booking capability to reduce OTA dependency. Maybe it’s a specific capital improvement that would meaningfully increase revenue or reduce costs. Pick your top three and build a simple plan for each one.

    Have your first formal review with your property manager if you have one. Set clear expectations, align on goals for the year, and establish the reporting and communication cadence that will govern your working relationship going forward.

    Review your insurance coverage. Now that you’ve owned the property for 90 days you have a much better understanding of what you actually have. Make sure your coverage is appropriate, not just what the previous owner had.

    Check in with your lender. If you have a seller carry or any other financing, a proactive check in at 90 days is a smart relationship move. Share your early results, highlight what’s going well, and flag anything you’re watching. Lenders who feel informed are lenders who give you flexibility when you need it.

    The financial foundation checklist at 90 days

    By the end of your first 90 days here’s what your financial infrastructure should look like:

    Three bank accounts are set up and funded, operating, CapEx reserve, and tax reserve. Your bookkeeping system is live and current with zero backlog. You have two full months of actual financial results in your books. Your first monthly CFO report has been produced and reviewed. Your pro forma tracking document is live with actual versus projected variance for months one and two. Your annual operating budget is built and approved. Your KPI dashboard is set up and you’ve reviewed it at least twice.

    If you have all of that in place at 90 days you are in genuinely great shape. You have the financial visibility to manage the asset intentionally, the baseline to measure performance against, and the systems to catch problems early before they become expensive.

    The bottom line

    The first 90 days of RV park ownership are not the time to swing for the fences. They’re the time to learn, stabilize, and build the foundation that makes everything else possible.

    The operators who build real lasting wealth in this asset class are almost always the ones who were patient and intentional in the beginning. They didn’t rush to change things. They took the time to understand what they had, built the right systems, and then made thoughtful improvements from a position of knowledge rather than assumption.

    You can absolutely do this. And if you want a financial partner to help you build your 90 day financial foundation, produce your monthly CFO reports, and make sure your numbers are telling you the full story from day one, I would love to work with you.

    Visit me at https://www.pvifinancial.com and let’s talk about getting your first 90 days right.

    ~Wendi | PVI Financial | Fractional CFO & Bookkeeping Services for Small Business & Outdoor Hospitality

    Click here to read “The 5 Financial Mistakes New RV Park Owners Make in Year One”

    Click here to read “What is a Fractional CFO and Does Your Small Business Need One”

  • About the PVI Financial Blog

    About the PVI Financial Blog

    I’m Wendi — founder of PVI Financial and a fractional CFO, bookkeeper, and real estate investor based in Oregon.

    I started this blog to share what I’ve learned over many years in business — not just as a financial advisor to others, but as a business owner myself who lived the same challenges my clients face. I know what it feels like to run a business, manage the finances, and try to grow — all at the same time.

    You’ll find practical financial content here — no fluff, no jargon, just real insights you can actually use.

    Whether you’re a small business owner trying to understand your cash flow, an RV park or outdoor hospitality operator looking for financial clarity, or a real estate investor analyzing your next acquisition — you’re in the right place.

    New posts coming regularly. I’m glad you’re here!

    — Wendi https://pvifinancial.com

    Here’s a preview of my 1st post:

    5 Financial Mistakes New RV Park Owners Make in Year One