Elevate Your Projects with Our Roofing Invoice Template for Supervision

Roofing invoice template for Supervision

they want to be in business but they don't want to look at the numbers i know a lot of contractors really struggle with that awareness problem how many contractors have their books figured out i find that cash flow is something that a lot of accounting professionals and business owners kind of skip over what are the most important kpis to use in european business or construction business if i'm looking at your labor number let's talk about what's going on with your sales team your staff your subcontractors what do those relationships look like [Applause] [Music] morgan you work with the contractors helping them with accounting services that's right must be super boring how do you start conversation with someone who probably already too bad and too neglected his books for years i can always start a conversation on the grounds that accounting is terrible we can bond over that the mutual distaste for the fact that it's very very annoying to have to bog through all of your numbers so you know the where the place that we start with contractors is right there that it's annoying and so we need to find a way to make it as easy as possible so that the follow through on getting that tracking and then getting that information that you really need for all of your operational decision making make it easy so that the follow-through is there percentage-wise how many contractors have their books figured out you like open it up like ah yeah like you don't need my help yeah i would so part of our qualification process with clients is that we do do a diagnostic we'll dive in we'll take a look at everything i would say probably about ten percent of the contractors books that we take a look at are in pretty good shape so five to ten percent of them all take a look and i'll say hey your system's working really well if your bookkeeper needs some extra work let me know i got lots of contractors that need an extra hand too but 90 there's some really rough stuff going on um i know a lot of contractors really struggle with that awareness problem you know like they might take a look at the reporting and they're not quite sure when you're looking at the financial reports is the information good or not even if they do get to reports uh how do you explain this neglect because contractors are business owners right but they want to work with their hands it's actually very unique business owners because contractors they like to work hard they didn't start the business to start the business they started a business not to have a full-time job so and they've been neglecting it for years and now they have to wrap their hand around a head around it so how do you explain that they just they want to be in business but they don't want to look at the numbers yeah the the easiest way to the way that we approach talking about the financial reporting is that we've got to tie this back to reality right i was definitely one of those people i grew up in a trades family everyone all of them in my family are contractors of different types so i feel like i speak that language really well i totally understand what it's like talking about business around the dinner table and i was the kind of person that when it came to any kind of accounting or mathematics or finance it didn't click for me until i could tie it into what does this actually mean on the ground you know if i'm looking at your labor number let's talk about what's going on with your sales team your staff your subcontractors what do those relationships look like so when you can kind of break the financial reporting down into like this is your day-to-day what is what are these numbers actually plugging into and what does it mean for you every single day that makes it a lot easier to digest absolutely what are the most important kpis to use in earthing business or construction business you know roofing is really interesting because gross profit margin is a huge one that we want to track make sure that it's really healthy but part of what makes roofing interesting is that for most specialty trade contractors we have pretty tight kpis for labor costs and materials costs but with the roofing contractors that i work with i see some really big differences and where people can come in on materials spend on their direct labor spend with their subcontractors but still be hyper profitable so the area that i'm seeing that a lot of businesses are really excelling and being more efficient is that they're saving on overhead costs so you know i see gross profit margins that can kind of vary i see a lot of different kpis for materials but at the end of the day a lot of people are managing to run really agile lean businesses on the overhead side and as a as a end result they're bringing home really good discretionary earnings there's so many contractors that i see who opened credit lines and those credit lines absolutely or you smiled so i'm gonna i know you have opinion on it so they open these credit lines abc supply these vendors whatever and then at the end of the year they never have enough money to spend and actually i've seen so many nightmare stories where contractor did not link his crm to his quick books and he did not know that he even owes the money what's your advice on managing credit lines yeah so the credit lines the vendor accounts a lot of people don't know this but the way that we actually set up and track those inside of something like quickbooks online we treat them just like credit cards so a lot of the vendors like abc supply is a really great example you can get directly into their website you can export spreadsheets and import those into quickbooks so they look like a bank feed so they look like individual purchase items so you're not just waiting for one bill to come in and it looks like a lump sum that hits and if somebody's not tracking the paperwork they're not tracking the bill that goes missing and you don't necessarily see it if the tracking's not dialed in but when you're tracking it like a credit card it's a lot more obvious where the expenses are coming in you can see a lot more detail and then where you can reconcile that every single month just like a credit card you should be doing that with your vendor accounts and then checking in routinely with your statement of cash flows so i know that you teach a lot on this i find that cash flow is something that a lot of accounting professionals and business owners kind of skip over because it's really not intuitive when you look at it and kind of see where the cash is coming in and out but if you're eyeballing that routinely it really does show you how much of your cash flow is because you're leaning on your vendor accounts you're pulling in from there and you've got to have a place to make up for that later when you have to pay those bills that come dude absolutely what's your take on mike mcallivation profit first i love mike mcallister so profit first is i think has some really excellent guiding principles and what i really love about that system is that it taps into a lot of really good spending psychology and i think that's really important like we like to all think that we're super rational the way that we make decisions in the way that we spend money and we're really not and so a lot about the profit first system really helps us dial those more basic spending urges um there's some great banking systems and stuff too that make the profit first tracking a lot easier so it's something that my team helps out with a lot helps a lot of contractors out with describing one minute services that you offer to the contractors yeah we're full service accounting services so we do monthly bookkeeping anywhere from monthly to weekly updates very heavy on the advising side so everything that we do is really trying to make your financial information useful like let's dial it back into reality so you know are your operational decisions good bad you're trying to like work towards specific goals how's that going and then we do taxes so we'll check all those compliance boxes as well awesome yeah guys i cannot stress enough how important financing and accounting in your business i know it's boring i know you don't want to deal with it but you have to or you will be out it's numbers game and numbers don't lie you cannot neglect them anymore so i'm put morgan's information in description below hit her up her company give her a call let them evaluate your books maybe she will work with your accountant comment below how are your books here's what i want to know rate yourself from 1 to 10. and be honest one would be i'm absolutely horrible i'm delusional i don't want to ever look at my numbers and tend to be i'm excellent i wake up in the morning with a checking my reports and i know my numbers to the t from one to ten where are you at in your accounting game comment below i'll see you guys in the next video give it a like for morgan thank you so much thank you awesome 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