Ep. 592 Accounting MUST Be a Priority

Prioritize accounting by blocking out dedicated time monthly or quarterly for financial review, whether with an internal or external accountant.

Outsource your accounting to specialized firms like Cycle CPA; don't attempt to manage complex financial tasks yourself, as this can lead to significant errors and missed opportunities.

Ensure your QuickBooks (or equivalent) is accurate by regularly reconciling all accounts, including checking, savings, and especially loan accounts, to correctly track interest and depreciation.

Utilize budgeting and estimating software like LMN to accurately calculate job costs, overhead, and labor rates, enabling you to bid with confidence and understand your true profit margins.

Be strategic with lines of credit during busy seasons: if you need to pull from one, have a clear plan for repayment once cash flow improves.

Establish clear financial goals and open separate savings accounts for specific objectives (e.g., winter savings, bonuses), setting up automated transfers to build these funds during periods of high income.

Carefully manage overhead salaries; understand the difference between direct labor and overhead, and avoid overspending on administrative staff by benchmarking salaries against industry standards.