As we round out 2018, it’s time to look back on what you accomplished this year and establish goals for 2019. Even though it may be overwhelming, it is important to review your business for ways to improve profits for next year. Below are some things you can review to achieve higher margins.
- Review your accounting setup. If you use an accountant for your business financials, your reporting may not be set up to show proper profit and loss values. Request P&L reports from your accountant now and monthly moving forward to ensure you are aware of the clear financial picture for your company.
- Review your labor costs. Knowing how much your employees really cost your business will allow you to properly bid the labor on your job estimates. Review the cost of small tools, electronics and travel to analyze whether adjusting your methods could save you money or if you need to increase your labor job estimates.
- Look for Inefficiencies. Ensure that your project managers have a budget for tasks so that your production time matches the estimated project time. Trimming non-billable time such as set up and clean up time, material runs and travel will also make you more efficient. Consider instituting time tracking for your employees to better understand where time on the job is being spent.
Knowing the intricacies of your business is important for improving the productivity and profitably of your business in the new year.
Read more here.