As a plumber, you are an expert at fixing leaks except, perhaps, when it is the profit pipeline that is dripping away your profits. We would like to discuss the best ways to make your plumbing business more profitable, right now. Although finding more business and working longer hours ought to help your profit picture that does not always turn out to be the case. All too often in a plumbing business, like with any small business, expenses creep in and siphon away the profits you should be taking home. The two best ways to make your plumbing business more profitable are things you can do without working yourself into an early grave. The first is to outsource your bookkeeping and the second is to adopt a better way to do the books.
At Exigo Business Solutions in the Kansas City area, we commonly tell prospective clients to outsource your bookkeeping and it can pay for itself. The point of keeping your books is not just to tally up the numbers and get ready for paying taxes. And, the point of outsourcing bookkeeping is not to get it done for less money. The reason you want to outsource your booking is to get an accurate picture of your finances and a clear view of where you can make changes to increase income and decrease overhead. At Exigo Business Solutions we use the best small and medium-sized business software, QuickBooks. We are able to generate custom reports that will give you insights into which jobs are making you the most money and which ones you should let your competitors have. These custom reports help you ferret out the “hidden” expenses that are sapping your profits. In short, outsource your bookkeeping to a professional with experience and tools to help you plug those leaks in your profit pipeline today.
You know plumbing. You know the tools. You know the problems. You know how to fix things and make installations that will work without problems for years. What you do not know as well are bookkeeping and accounting. So, you rely on an “old school” bookkeeper who simply puts the numbers together but does not do anything to help you improve your profit picture. At Exigo Business Solutions, we use a bookkeeping method called Profit First. With Profit First we help you make profit a habit and control of your budgeting, cash flow, and expenses second nature.
The “old school” way to do your books is “bank balance” accounting and is familiar to everyone.
Sales minus Expenses = Profit
The Profit First way is this.
Sales minus Profit = Expenses
These methods start with the same numbers but then everything changes because in Profit First you will open several bank accounts for profit, owner’s pay, taxes, and operating expenses. Then you will allocate money twice a month to each of these accounts. That means you will be banking a profit the very first month you use this method.
The Profit First method is one of the best ways to make your plumbing business more profitable right away because you make a habit of allocating money for profits right at the start.
Profit First is one of the best ways to make your plumbing business profitable over the long haul because it forces you to make the decisions necessary to cut costs and only take profitable work.
The point of this discussion is how you can increase profits in your plumbing business and do so without killing yourself off. The Profit First method is a fantastic way to instill discipline into the financial side of your operation. To really make it work you need to work with someone like Exigo Business Solutions in the Kansas City area. Take advantage of our expertise with this way of doing the books and managing your finances. And, because you will outsource to the top accounting firm in the Kansas City area, you will be able to take advantage of years of experience and a high level of expertise in making businesses run more profitably.
If you really want to stop that nagging leak in your profit picture, contact us today at Exigo Business Solutions.