The point of starting your own HVAC, plumbing, or electrical business was to be your own boss and make more money. You have accomplished the first part but your profit picture is not what you had imagined. You have plenty of work and are putting in long hours but profits are not going up. What can you do? You need to take a long, hard look at your finances, including cash flow, budgeting, expenses, profit margin on jobs that you take, and more. Unfortunately, like most folks starting a business in the skilled trades, your bookkeeping is not up to the task of providing you with the information that you need. Believe it or not, but, you can make your skilled trades business more profitable by outsourcing your bookkeeping! If you are already counting the cost of such a decision, we at Exigo Business Solutions in the Kansas City area can tell you that when you outsource your bookkeeping it can pay for itself in better-paying work, lower expenses, and more impressive profits.
What you get when you outsource your bookkeeping to professionals like the top accounting firm in the Kansas City area are useful information and insights you can act on to improve income and reduce expenses. The result is that your business becomes more profitable. But, how does that work?
Professional bookkeeping is a lot more than writing down money collected, salaries paid, other business expenses, and “passively” writing down the profit (or loss) at the bottom of a column of numbers. Certainly, if your current bookkeeping is not done on time or is not accurate, you need to make changes. But, the way to find better profits by outsourcing your bookkeeping is to go with someone who knows how to use intelligent business software like the custom reports in QuickBooks or Microsoft Power BI. The point is that you are probably missing out on some of your most cost-efficient and profitable work because you are not getting the right numbers in a report. Oh, those numbers are there but they are hidden because of how the information (data) in organized (or disorganized). Using modern business intelligence software you can spot things like which jobs pay the best for the amount of time and effort and which one may actually be costing you money!
Likewise, there is a tendency in every business of inefficiencies to creep in, jobs to take longer than necessary, and costs to mount up beyond what should be reasonable. Using the services of a bookkeeping and accounting firm like Exigo Business Solutions, you will find “answers” to “questions” that, perhaps, you never thought to ask! Contact us today for a look at how we can help your skilled trades business be more profitable.
You know that to do a job right in your HVAC, electrical, or plumbing business that you need a clear idea of what the job should look like when it is done. At Exigo Business Solutions in the Kansas City area, we have a clear idea of what your profit picture should look like and, therefore, can help you turn profit into a habit instead of a monthly guessing game.
In your business, there is a way to set up a job, a way to proceed, a way to finish, and specific ways to check your work as you go and in the end. The same is true in the bookkeeping and accounting business. And, there is a specific way to go about making profit a habit. It is called Profit First. In a nutshell, when you use this method you will allocate profit, owner’s pay, taxes, operating expenses and other items as needed to segregated bank accounts. This “financial discipline” is the first step. Then you will put your expenses in the spotlight, hopefully using the new bookkeeping help you have outsourced to get. To a large degree, you will force yourself to make smart business decisions by taking profit first and then attacking the expenses.
This is an excellent way to make your skilled trades business more profitable along with outsourcing your bookkeeping. For more information about Profit First and making profit a habit in your business, contact us at Exigo Business Solutions in the Kansas City area.