Every session will provide a list of the Big Ideas that you can take away from the audio or video content. This is not an exhaustive list of ideas, so remember to take your own notes!
Financials is an area business that a lot of painting contractors ignore.
It is very important to record and organize your numbers to have accurate financials that can increase your profit.
If you don’t have good data going in, you won’t have helpful data coming out.
Benefits of hiring a bookkeeper:
- They will set up your chart of accounts correctly
- They will categorize your transactions correctly
- They will keep your Quickbooks up to date
- They will hand over your books to an accountant in an orderly manner, saving you money in the long run
Benefits of hiring an accountant
- They will file your taxes correctly
- They will save you time and stress
- They know the tax laws, which are constantly changing
- They will help you strategize on reducing your tax liability when you start making more profit
Profit and Loss Statements deal with gross profit, direct costs, net profit, and overhead.
- Gross profit = total revenue – direct costs
- Direct costs include paint/materials, labor, credit card fees, sales commissions, small tools/supplies
- Gross margin = gross profit / total revenue
- Gross margin averages
- Low – 37%
- Average – 41%
- Healthy – 45% +
Profit and Loss Statements typically are created monthly, quarterly, and yearly.