Financial “Reality Check” For a Changing Market - Leeroy Beeby
Have you ever wondered why the bookkeeping and accounting for your contracting or trades business is so challenging? Well, there is a very real reason, and no it’s not because you hated math in high school.
Have you ever wondered why the bookkeeping and accounting for your contracting or trades business is so challenging?
Well, there is a very real reason, and no it’s not because you hated math in high school.
A lot of it has to do with the fact that your project lifecycles and the cash inflows and outflows that happen therein don’t follow the gridded and calendarized rhythms of accounting cycles.
They march to the beat of a different drummer (so to speak) and this can create all sorts of headaches and confusion when it comes to both your books and your bank account.
Our guest on this episode of Contractor Evolution is Leeroy Beeby, Co-Founder of Check the Level – an accounting, bookkeeping and software provider.
Check The Level was created for general and specialty contractors to master their pricing, profits, and cashflow. They do this through both managerial accounting as well as their proprietary reporting software.
What’s unique about Leeroy’s perspective is he has back-end access to the budgets, P&Ls, cash positions and pricing systems of hundreds of contractors all over North America and is able to see large-scale patterns in a way almost no one can.
To dive into the common practices that are shared by the top 10% of contractors (as well as the common mistakes made by the bottom segment of contractors) watch this episode.
Highlights from this episode:
- The difference between Financial Accounting vs. Managerial Accounting and why most firms won’t do the latter for you (even though you really need it)
- The patterns that become evident when you look at 100’s of contractors’ financials, and what the top 10% are doing differently than the rest
- How the top 10% of contractors set up their sales contracts uniquely to protect their cash flow
- Why you need to be charging a higher markup on your change orders than your standard rates
- How to get your team involved in the financial performance of each job
- The typical profile for a financially ‘at risk’ contracting company