Bluegrove Coffee Roasters, Inc. · S corporation · accrual basis
Financial Diagnostic — Year Ended December 31, 2025
Financial health score
Good — cleanup needed
Blends bookkeeping reliability with financial condition — formula below.
How this is calculated
Score = 100 − finding deductions (high 5, medium 2 per 1,000 transactions, capped at 30) − 10 if current ratio < 1.2 − 10 if net margin is negative. Deductions are normalized by ledger size so a larger, well-documented book isn't penalized for volume. The score measures bookkeeping reliability and financial condition together; it is not a credit score. No score is produced when statement-integrity checks fail.
- − 30: Open findings (4 high, 15 medium across 284 transactions — normalized per 1,000, capped at 30)
Revenue · FY2025
$1.28M
Gross margin 55.7%
Net income · FY2025
$132K
10.3% of revenue · before proposed corrections
Cash · Dec 31
$137K
Trailing 3-month cash flow is positive — runway not a binding constraint
The three messages that matter
The business is profitable and liquid — but the books need cleanup before you rely on them.
Net income of $132K on $1.28M of revenue (10.3% margin) with a 4.5x current ratio. But 4 high-severity bookkeeping matters — including a misposted card payment and an unsupported year-end revenue entry — must be resolved before these numbers are decision-grade.
Wholesale is becoming the growth engine.
Q4 wholesale accelerated 20% over Q3 while cafe stayed flat. Growth planning — roasting capacity, green-coffee contracts, AR terms — should center on the wholesale channel.
Resolve the owner-compensation question before filing.
$86.0K of distributions were taken with no owner payroll visible in the books. For an S corporation with an active owner, that mix needs a documented reasonable-compensation review with your tax preparer.
Revenue by channel — actual, monthly
Total cash — actual, month end
Open findings by severity
Review all4
high
15
medium
4
insights
$462K of flagged amounts across 23 findings · 4 balanced correcting entries proposed. Flagged amounts are matters to review — not necessarily misstatements or losses.
Integrity checks passed (17)
- Trial balance ties (debits = credits), all 12 periodsDebits equal credits in every reporting period.
- Balance sheet equation holds, all 12 periodsAssets = liabilities + equity (including current-year income) in every period.
- No missing reporting periodsActivity present January 2025 through December 2025.
- No sign of a double-imported file2 transactions have an exact twin (0.7% of the ledger) — within the normal range for repeated charges and split payment runs. Genuine duplicate payments are reported separately under L-01.
- Net income / retained-earnings roll-forward consistentMonthly activity sums to the year-to-date figure; no direct postings to Retained Earnings in the final period.
- Debit/credit signs intact; every entry balancesNo negative debit or credit fields; all entries balance.