Have you ever said “I know I should understand my financials but they just don’t interest me?” Have you even thought it? Admit it, probably! Owners of most remodeling companies came from design or production backgrounds, few from accounting.
In fact the simple term “job cost accounting” recently caused looks of disdain and disgust among the TSA team where I was briefly detained on my way to Dallas. They asked what made my suitcase so heavy: job cost accounting books, I said. Then they laughed at me and said “ick!” True story!
Regardless of whether you’re a member of the Remodelers Advantage Roundtables or simply receive Power Tips in your inbox weekly, it’s time to take the 2016 Challenge: get your finances and job costs in order and reap the rewards!
Here’s what “in order” means:
That’s the first part of the challenge: you can do this, probably by the middle of February. Now you’ll have a very good baseline from which to begin 2016.
Here’s the next part of the challenge and the most important part: learn to understand what they mean. Start with job costs: review estimated to actual with every payroll or at least twice a month. Monthly review and question the balance sheet and the profit/loss – they go hand in hand. One can’t be correct without the other’s accuracy.
If you don’t’ understand something – ASK! Ask your bookkeeper, who should definitely know the answer, ask your CPA, ask members of your local NARI or NHBA, ask me, ask the Googleweb.
The point is – in 3 months you have accomplished the following: