Am I Making Any Money? How To Set Up Your Financial Management System Kevin Kehoe

Financial Reporting Start with the end in mind…

Financial Reporting Apples to Apples to Compare…

Transaction Flow Process to get useful reporting… Estimate the Job Schedule / Time Sheet Job Update Complete /Invoice the job Purchase / Yard Tickets Produce Financial Reports Operations – Transactional Accounting Financial Accounting

Paperwork Flow How to do it… integrated or not? Use Estimate Spread sheet Or Software program Use Schedule Board and Paper or Electronic Monitor the job with spread sheets, Quick Books, or Software Program Invoice the job in Quick Books or Software Program Use Purchase Orders and Yard Tickets Produce Financial Reports in Quick Books

The Quick Books Set Up Standard process….. Create Service Items Estimate in Spread sheet Enter Estimate in QB’s and Create WO Create Schedule Board and use daily ticket to keep time Create Excel Job/WO Tab… Enter Hours by employee QB’s WO and Material via PO to WO (Direct v. Indirect Acct.) Invoice the job and cost in QB’s Create PO’s in QB’s based on WO Tab Actuals from Estimate Produce EOM/WIP Financial Reports with focus on timing (invoices – payments) in Quick Books (3 months)

▪ Estimate Accurately: Target NP% / GP% and accurate items counts with price controls ▪ Job Set-Up /Management: Reporting in “real time” not 15 days after month end ▪ Purchasing: Specific lists and costs to manage quantities and costs ▪ Labor: Specific Schedule Tickets with Hours Actual, Budget and Remaining ▪ Billing and Costing: Real Time Billing and accounting for WIP – even in Maintenance Key Concepts To get the number right and the information worthy

▪ Industry Benchmarks: These are OK but can also cause great confusion and lead to big mistakes – chart of account, process, geography and regional cost differences ▪ Your Budgets: This is really the best benchmark – establish standard pricing systems (MORS, etc.) with controls and updated cost catalog of items (Materials and labor) Using the Numbers To compare to a benchmark

Keys to Making Money What we have learned over the past 25 years.. 1.Culture is everything: Focus on Better, Best. People are the problem and the answer. Hire and fire for it… until you get it. 2.Speed wins: Service response is better. Anticipation is best. 3.Information in “real time”: You can’t manage what HAS happened… you can manage what will. 4.Salesmanship: Yes nice landscape matters, but delivering value sells. The guy with the best mousetrap DOES NOT always win!

Am I Making Any Money? How To Set Up Your Financial Management System Kevin Kehoe

The Numbers: Chart of Accounts

The Numbers: Chart of Accounts