Money Moves Construction and Landscaping Businesses Need To Make To Prepare For A New Year
Introduce yourself and your business:
Get to the point and start discussing the 3 main points you plan to make.
This live today is all about providing you with some tips for making your financial life easier as we start the new year
First things first: you need to know your numbers throughout the whole year – not just for tax time
If you do not already have an accounting software in place now is the time to make it happen
As a construction business owner it critical it is critical that you know your numbers throughout the year. but you also need to know how much but you also need to know how much profit you are making on it job.
Your accounting software will give you a profit and loss statement and a balance sheet report at the end of each month when the bookkeeping is kept up to date. You can also produce job profitability reports to see how each job performed. This then helps you to make more informed decisions when you come to do your future jobs.
Next up, You need to have a system in place to track your expenses.
You need to think of a way that you can track all of the receipts and invoices and get them categorized to the correct job. one way to help you with this is to give each job a unique job number and you can then reference that job number when ordering supplies. You can also write that job number on receipts that you get when you purchase from local stores. This makes it a lot easier to remember which receipt and invoice went with which job. This in turn helps you to have more accurate job profitability reports.
Lastly, Assess Your 2023 goals
Even though it might be the first of March today it is never too late to write down your goals.
Take some time to sit down and think about what you want to achieve this year.
What Revenue goal do you want to achieve this year?
What profit margin do you want to achieve this year?
How many people do you want to have on your team by the end of the year? Remember, goals do not necessarily have to be a numerical target.
This is a great time to sit down with your team and figure out what you want to accomplish in the coming year, as well as how you’re going to get there.
Whatever your goals are, make sure they’re SMART (specific, measurable, attainable, realistic, and time-bound) and follow your CONSTRUCTION businesses data. After that you can develop a data driven action plan for achieving them.
It is also a good time to sit down and look back at 2022. The beginning of the year can often be crazy and you don’t always get chance to look back and to see how you performed last year.
Did you write down your goals for 2022 if so you can assess your goals using these questions:
- Were your goals achieved? Why or why not?
- If they were exceeded, why? How?
- What are the next steps? (Do you want to use higher than anticipated revenue to expand, for example, or make debt payments?)
- If they fell short, why? How?
- What are the next steps? (Do you need to pull back on your product line, for example? Pare down your forecasts? Lower prices?)
It’s no secret that construction and landscaping business owners need to focus on their numbers. This includes both preparing for the new year, AND taking stock of the year past!
And remember, your financial documents play a crucial role in your company. Reviewing these documents gives you three benefits.
- It shows you whether you’re running a healthy business or if you need some adjusting going forward.
- If you do need some adjustment (more sales, say, or fewer expenses), financial documents show you where adjustments are needed and tell you how much you need to adjust.
- If you’re in the market for funding, expansion, or mentorship, financial documents are often required to let interested parties see the financial records of your business.
It’s definitely a lot to consider this time of year so,
If you need support on this feel free to comment below with “next steps” so I can reach out to you to talk about how my team and I might be able to support you!
