A common problem with an electrical business or any small or medium-sized business is that the bookkeeping is viewed as an expense to cut in order to maintain profits. But the truth is that good bookkeeping is a tool that should be used to increase profits. If you are not getting useful information out of your current bookkeeping setup, you may do better if you outsource your electrical business bookkeeping for better profits. How can you do this?
At Exigo Business Solutions we work with businesses in the skilled trades such as HVAC, plumbing, and electrical. We find that these businesses have a number of unique issues to deal with and a lot of problems that are common to all small and medium-sized businesses. The common thread is that all too often the bookkeeping is not providing insights that the owner can act on to improve cash flow, reduce expenses and drive higher profits. When you outsource to a pro like the top accounting firm in the Kansas City area, you gain insights that you can use to bring in more business, better manage cash flow, and bank more profits from day one.
There are a couple of common problems that we see in skilled trade businesses like electrical. While there is a lot of money coming in the door, hidden expenses are eating it up and profit is hugely diminished. Or, there is a lot of work but you are taking work without considering which jobs are the most profitable. The point of outsourcing your bookkeeping is to have someone who uses business intelligence solutions like the custom reports in QuickBooks bookkeeping software or Microsoft Power BI to ferret out those hidden costs or help you be more selective in taking the best-paying jobs.
The term, business intelligence, refers to business software that organizes your business information in such a way that it can be efficiently sorted. Then, rather than staring at pages of numbers with a profit (or loss) at the end, you can see the details that you need in order to cut unnecessary costs, invest in new equipment and technology, bid for the best-paying jobs, and in all ways make and carry out decisions that lead to better profits.
For more insights into how outsourcing your bookkeeping and using business intelligence software will increase profits in your electrical business, contact us today at Exigo Business Solutions in the Kansas City area.
Good bookkeeping and the use of business intelligence tools are great ways to increase your electrical business profits. But, there is more to the picture. Imagine that when you started working on an electrical job that you did not know what the final result would look like. As strange as that might sound, that is the situation with the profit in most businesses! And, it does not have to be the case. You really can make a habit of taking a profit in your electrical business. When you work with Exigo Business Solutions, we can use the Profit First method of bookkeeping for you.
What the Profit First approach does is allocate money for profit as well as owner’s pay, taxes, operating expenses, and more to designated bank accounts twice a month. This fiscal discipline in your bookkeeping will now more closely resemble the discipline you apply to your electrical work. With the Profit First system, you will start banking a profit on a regular basis (a habit) and then use your business intelligence bookkeeping tools to ferret out those hidden costs, select the best-paying jobs, and steadily increase the amount of money available to allocate as profit.
Contact us to learn more about how the Profit First method can help your electrical business make profit a habit.