When you started your HVAC business you did so to work for yourself, own your own business, and make more money than when you worked for someone else. But, are you making the profit you expected or hoped for in your HVAC business? At Exigo Business Solutions in the Kansas City area, we help our clients turn profit into a habit instead of a coincidence. How can you make profit a habit in your HVAC business? Here is the process in two easy steps. Outsource your bookkeeping to the top accounting firm in the Kansas City area and use the Profit First method of bookkeeping.
Many businesses choose to outsource their bookkeeping as a cost-saving measure. They can often save money on salary and benefits by having an outside service do the job. However, it is really important to get your bookkeeping done right or the mistakes or oversights will end up costing you money in lost work, badly bid jobs, hidden expenses, and missed business opportunities. At Exigo Business Solutions we know from years of experience that you can outsource your bookkeeping and it can pay for itself. How does this happen?
The best bookkeeping software for small and medium-sized businesses is QuickBooks. Both the desktop version and the online version are excellent tools to give you useful and actionable insights into the financial aspects of your business. And, QuickBooks can be used with so-called business intelligence tools like Microsoft Power BI. The point is that many bookkeeping reports really don’t tell you anything except a list of expenses and a bottom line profit (or loss). But, with business intelligence software, you can see the hidden costs that are eating away at your profit. You can get a better idea which jobs you are taking are the most profitable and which ones you need to either turn down or only take for better payment. Cash flow management and budgeting are important parts of managing your business. When you outsource your bookkeeping to someone who can help you do this better, you will have more money to apply to profits. Then, there is the matter of making profit a habit instead of a coincidence.
The other great reasons to outsource your bookkeeping to Exigo Business Solutions are our Profit First ProAdvisor Services. When you do an HVAC job there is always a right way to do things and a lot of wrong ways. Unfortunately, the same applies to bookkeeping. If you want to make profit a habit in your HVAC business, the right way to do the bookkeeping is with the Profit First approach managed by someone who is a master in this field.
The idea behind Profit First is that expenses tend to creep up and get the better of almost any business. To counter this tendency, you need to set up a system in your HVAC business. This disciplined approach starts with setting up separate bank accounts for profit, owner’s pay, operating expenses, and taxes. More accounts may be needed but we can tell you when this will be necessary based on the specific needs of your business.
With your new bank accounts in place, you will allocate money to each account twice a month, typically on the 10th and 25th. You will immediately see a profit because you allocated one. You will be putting money into the necessary accounts to run your business. Then, with this disciplined approach to your HVAC business, you will look at your “business intelligence” reports from QuickBooks or other smart software. With the help of Exigo Business Solutions in the Kansas City area, you will make the changes in budgeting, cash flow management, and other parts of your business to help contain costs, take better-paying work, and, in general, make your business more cost-effective and profitable.
For more information about outsourcing your bookkeeping and making profit a habit in your HVAC business, contact us.