There are some things that you must know about your contracting company at all times. I am talking about the numbers or your bookkeeping.
This is the back bone of your company. I also like to call it the heart beat. Yes it breathes life into your company everyday and you must take great care of it or it can be the death of you.
If your company plans on moving up and you plan to grow to any type of size you must learn the numbers everyday. Now I like to keep it as easy as possible in my head so I look at the income side and the expense side of things.
These two things I look at everyday. Kind of simple really: you need to bring in more everyday than you spend. Yes there is a lot more to the bookkeeping than that I know, but I like to make it easy as possible.
The person who works your numbers must know your business and understand the accounting software. Most contractors use Quickbooks and I have found that it is easy to learn.
It’s also important to have a great accountant who understands your business. This can be hard at times because most accountants are well-rounded in all types of business.
So look for one that has experience in contracting or home building. Check their references and talk to some of their current clients.
This is important because you put yourself and your company in the hands of your accounting firm. You will make life changing decisions on what they tell you as you grow. You may hire more or buy equipment or purchase real estate on the recommendation of your accountant.
So all I am saying here is be careful about who does your book keeping at your company and pick your accountant wisely.
When contractorblab.com goes live this month they will have an accounting pro on-hand who will help you with all your questions.
Happy Selling
Glen
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