How Your Bookkeeping Can Make You Money

iStock_000016111170XSmallMost business owners think of bookkeeping as a process that tells them what happened; a record of your recent financial history.  As such, bookkeeping is an expense.

We offer a different perspective, one that puts your bookkeeping front and center as a moneymaker.

What if your bookkeeping and accounting were integrated into you management processes, and the reports were real-time and automated so that they told you, not just what happened, but what was happening now, at the moment, while you still had control of the outcome?  That would be a whole new ballgame, one that would turn your bookkeeping into a tool to control income and revenue.

We call this Revenue-Generating Accounting.

Integrated management systems, such as Backroom’s CASHFLO™, do just that.  By linking your accounting system with your other key management data, you get real-time, instant financial reporting of every job as it’s happening, as well as a ‘big picture’ view of your company’s profitability.

For example, let’s say you’re half way through a project.  You’ve got invoices coming in from contractors for work that has been performed, and it’s about time for the next bank draw.  Unless your accounting software is integrated with your scheduling, job costing, and management software, you will have a hard time answering key questions about what invoices qualify for payment, whether the amount going out is greater or less than the amount coming in, and how your business is situated for cash flow.

Questions that need to be asked – and answered – before you sign any checks include:

  • Are my jobs on budget?  If the answer is No, then why not?
  • Am I getting more cash in than I’m paying out?
  • Which job or jobs are falling behind?  If you have project managers – which ones are performing well, who is not?
  • Which of my vendors are going over budget?  Which are behind schedule?
  • What lead sources are bringing me the most business?  Which is making me the most money?

In our CASHFLO™ system we have what we call a Job Profitability Report that you can call up with the click of a mouse.  The report instantly tells you where every project stands, and if there are any exceptions that need your attention before payments are made.  One remodeler that recently began using CASHFLO™ reported saving over $5,000 in contractor overcharges in the first month of using the system!

So, your bookkeeping can make you money – if it’s set up as part of your management system to deliver the right information at the right time.

If you’d like a demo of ourCASHFLO™ Job Costing System, simply click here or call 303-221-0823.

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