--- title: Roller Coaster Profit description: Matching is an accounting process that can help you avoid huge variations in your profit month to month. Read to learn more about matching. image: https://resources.annealbc.com/hubfs/Article%20Thumbnails/Roller%20Coaster%20Profit.png --- [![Logo.png](https://resources.annealbc.com/hs-fs/hubfs/Logo.png?width=671&name=Logo.png "Logo.png")](https://www.annealbc.com/) - [Coaching](https://www.annealbc.com/coaching/) - Resources - [Book](https://www.theprofitproblem.com/) - [Articles](https://resources.annealbc.com/blog) - [Downloads](https://www.annealbc.com/downloads) - [Podcast](https://www.annealbc.com/cfc-podcast) - [Events](https://www.annealbc.com/events/) - [About](https://www.annealbc.com/martins-story/) - [Martin's Story](https://www.annealbc.com/martins-story/) - [Contact](https://www.annealbc.com/contact/) [![Let's Talk](https://no-cache.hubspot.com/cta/default/3424889/a3dd966d-0300-4139-9700-bf45cd2f0ac9.png)](https://cta-redirect.hubspot.com/cta/redirect/3424889/a3dd966d-0300-4139-9700-bf45cd2f0ac9) - [Administration (34)](https://resources.annealbc.com/blog/tag/administration) - [Leadership (19)](https://resources.annealbc.com/blog/tag/leadership) - [Customers (8)](https://resources.annealbc.com/blog/tag/customers) - [Production (7)](https://resources.annealbc.com/blog/tag/production) Subscribe ### Subscribe to Email Updates [![Get Started](https://no-cache.hubspot.com/cta/default/3424889/bae86343-62c3-4c89-8b1c-0410096cea73.png)](https://cta-redirect.hubspot.com/cta/redirect/3424889/bae86343-62c3-4c89-8b1c-0410096cea73) [Administration](https://resources.annealbc.com/blog/tag/administration), [Finance](https://resources.annealbc.com/blog/tag/finance) 2 MIN READ # Roller Coaster Profit March 23, 2021 [Martin Holland](https://resources.annealbc.com/blog/author/martin-holland) [Download Article](https://resources.annealbc.com/hubfs/Article%20PDFs/Roller%20Coaster%20Profit.pdf) https://f.hubspotusercontent30.net/hubfs/3424889/Article%20PDFs/Roller%20Coaster%20Profit.pdf - - - [mailto:?subject=Why%20Create%20Systems%20and%20Processes?%2011&body=Why%20Create%20Systems%20and%20Processes?%2011%20http://resources.annealbc.com/new-blog/why-create-systems-and-processes-11](mailto:?subject=Why%20Create%20Systems%20and%20Processes?%2011&body=Why%20Create%20Systems%20and%20Processes?%2011%20http://resources.annealbc.com/new-blog/why-create-systems-and-processes-11) - A lot of us are tired of looking at our income statements. Even when business is “about the same” from month to month, our income statements show wild, roller coaster results. Profits up one month and down the next with no obvious reasons to explain the differences. If that sounds like you, a likely explanation is that you have a matching problem.    ![Roller Coaster Profit - 1](https://resources.annealbc.com/hs-fs/hubfs/Article%20Graphics/Roller%20Coaster%20Profit%20-%201.png?width=700&name=Roller%20Coaster%20Profit%20-%201.png) ## What is Matching? Matching is the process of recording income in your books in the same period as the expenses incurred in earning it. To show you what I mean, let’s say you expense material or pay labor for a job in one month but don’t invoice your customer until next month. The first month would look bad because you incurred expense with no revenue. The next month would look good because you showed revenue with no expense.  On the flip side, suppose you get a deposit on a job and record it as income this month without spending a penny on material or labor until next month. The first month would look good and the next month would look bad. Those are matching problems. Multiply the problem by any number of jobs or sales, each at a different stage of payment and expense, and you can see why your income statements don’t make sense.  ## Why You Need to Get Matching Right You have to get matching right because your income statement is a critically important report, not only for your banker and the IRS, but also for you to use to make management decisions [(I wrote a book to show you how to do that).  ](https://www.theprofitproblem.com/) ![Roller Coaster Profit - 2](https://resources.annealbc.com/hs-fs/hubfs/Article%20Graphics/Roller%20Coaster%20Profit%20-%202.png?width=700&name=Roller%20Coaster%20Profit%20-%202.png) Matching may sound complicated, but it doesn’t have to be first, because your bookkeeper or accountant, not you, should do the matching and second because I have some simple procedures you can follow once per month to get matching right. If you’re suffering from roller coaster profit, talk with your accountant or [email me](mailto:martin@annealbc.com). I will send you detailed instructions showing how to correct matching errors using well-tested techniques that work but don't require a degree in accounting.     [Administration](https://resources.annealbc.com/blog/tag/administration) [Finance](https://resources.annealbc.com/blog/tag/finance) - - - [mailto:?subject=Roller%20Coaster%20Profit&body=Roller%20Coaster%20Profit%20https://resources.annealbc.com/blog/roller-coaster-profit](mailto:?subject=Roller%20Coaster%20Profit&body=Roller%20Coaster%20Profit%20https://resources.annealbc.com/blog/roller-coaster-profit) - ### Related articles ## [The Contractor Death Spiral](https://resources.annealbc.com/blog/the-contractor-death-spiral) [Finance](https://resources.annealbc.com/blog/topic/finance) 5 MIN READ ## [How Much Profit Do Businesses Make?](https://resources.annealbc.com/blog/how-much-profit-do-businesses-make) [Finance](https://resources.annealbc.com/blog/topic/finance) 2 MIN READ ## [Hiring in a Post-covid World](https://resources.annealbc.com/blog/hiring-in-a-post-covid-world) [Administration](https://resources.annealbc.com/blog/topic/administration) 5 MIN READ ### Search Result By: [![Anneal Article Thumbnails Continued (9)](https://resources.annealbc.com/hubfs/Article%20Thumbnails/four-words-that-.jpg)](https://resources.annealbc.com/blog/four-words-that-will-change-your-life) ## [Four Words that Will Change Your Life](https://resources.annealbc.com/blog/four-words-that-will-change-your-life) [Administration](https://resources.annealbc.com/blog/tag/administration) 4 MIN READ [![Anneal Article Thumbnails Continued (8)](https://resources.annealbc.com/hubfs/Article%20Thumbnails/Anneal%20Article%20Thumbnails%20Continued%20(8).jpg)](https://resources.annealbc.com/blog/why-create-systems-and-processes) ## [Why Create Systems and Processes?](https://resources.annealbc.com/blog/why-create-systems-and-processes) [Administration](https://resources.annealbc.com/blog/tag/administration) 5 MIN READ [![Anneal Article Thumbnails 3 (3)](https://resources.annealbc.com/hubfs/Article%20Thumbnails/Anneal%20Article%20Thumbnails%203%20(3).jpg)](https://resources.annealbc.com/blog/what-is-break-even-and-why-should-we-care) ## [What is Break Even and Why Should We Care?](https://resources.annealbc.com/blog/what-is-break-even-and-why-should-we-care) [Administration](https://resources.annealbc.com/blog/tag/administration) 4 MIN READ [![Anneal Article Thumbnails 3](https://resources.annealbc.com/hubfs/Article%20Thumbnails/Anneal%20Article%20Thumbnails%203.png)](https://resources.annealbc.com/blog/three-reasons-business-fail) ## [Three Reasons Businesses Fail](https://resources.annealbc.com/blog/three-reasons-business-fail) [Administration](https://resources.annealbc.com/blog/tag/administration) 4 MIN READ [![Anneal Article Thumbnails 3 (5)](https://resources.annealbc.com/hubfs/Article%20Thumbnails/Anneal%20Article%20Thumbnails%203%20(5).jpg)](https://resources.annealbc.com/blog/can-i-afford-to-hire-more-people-ii) ## [Can I Afford to Hire More People? 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