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Finance & Succession Planning

Tips from Ruth King - Wealth Rule 1: Pay Attention to Your Balance Sheet

The total balance on the accounts receivable and accounts payable aging reports should match the values printed on the balance sheet.

Originally published Published: 02.01.20 Author By Ruth King

Avoid the Pitfalls of Short Term Working Capital

It’s vital to know your options and plan for the future to obtain financing that will not constrict the cash flow of your business.

Originally published Published: 11.01.19 Author By Brandon G. Jacob

Recurring Revenue is Your Rocket Fuel

Whether residential or commercially focused, all companies need a thriving maintenance program.

Originally published Published: 11.01.19 Author By Ruth King

You Can’t Take a Percentage to the Bank

What matters is the bottom line dollars or that the gross margins are consistent.

Originally published Published: 10.01.19 Author By Ruth King

Inventory is a Bet

Profitable contractors do two things extremely well: Manage labor and manage inventory.

Originally published Published: 09.01.19 Author By Ruth King

Review Timely, Accurate Financial Statements Each Month

Once owners are in the habit of receiving financial statements and asking good questions about them, they get more accurate.

Originally published Published: 08.01.19 Author By Ruth King

How to Tell if Your Financial Statements are Wrong

Accurate financial statements are critical to ensure that the business is profitable or to give owners the information they need to take steps to make it profitable.

Originally published Published: 07.01.19 Author By Ruth King

Profits and Cash are Not the Same

Collect for profitable work quickly, pay the bills associated with that job and stay solvent.

Originally published Published: 06.01.19 Author By Ruth King

Balance Sheets are More Important than Your P&L

Balance sheets track profits and losses from the time the business started until the day it’s sold.

Originally published Published: 05.01.19 Author By Ruth King

You’re Headed Toward Your Goal — Continuous Profits are Critical

One of the biggest keys to having a break even or profitable first quarter is your attitude.

Originally published Published: 04.01.19 Author By Ruth King

7 Essential Accounting Practices for Your Business

Familiarize yourself with your financial statements and have a good understanding of your company’s accounting.

Originally published Published: 03.01.19 Author By James Leichter

You’re Headed Toward Your Goal — Know Your True Costs

By tracking all of your costs you can make decisions about whether the costs are acceptable or whether they should be cut.

Originally published Published: 03.01.19 Author By Ruth King

Prepare for Lift Off — Live, Eat and Breathe Net Profit Per Hour

If you track by net profit percentage, you’re fooling yourself.

Originally published Published: 02.01.19 Author By Ruth King

Rocket Profits — Where Do You Want to Go?

Decide what you want your goals to be, why you want to achieve them and get your employees on board.

Originally published Published: 01.01.19 Author By Ruth King

Three Essential Functions, Part 2 — Service Profitability

Your service rate would be $140/hr, assuming you could bill 100 percent of a service technician’s time.

Originally published Published: 11.01.18 Author By Ruth King

Three Essential Business Functions, Part 1 — Maintenance Profitability

The foundation of every HVACR company is a thriving maintenance program.

Originally published Published: 10.01.18 Author By Ruth King

What To Do When You Can’t Make Payroll

Almost every business runs into cash flow problems at some point. It rarely happens but it does happen.

Originally published Published: 09.01.18 Author By Ruth King

Determine if Your Fall Advertising Activities are Profitable

Before you make any advertising purchase, determine whether you can at least break even on that purchase or earn your desired net profit on that purchase.

Originally published Published: 08.01.18 Author By Ruth King

The $99 Maintenance Agreement Too Good to be True

You can’t do a good job and stay in business at that price if you don’t sell something during the maintenance visits.

Originally published Published: 07.01.18 Author By Ruth King

Seven Ways to Have a Profitably Busy Summer

These seven procedures help you have a profitably busy summer so that you have cash to survive the slower times of the year.

Originally published Published: 06.01.18 Author By Ruth King

‘I Made a Profit — Where’s the Cash?’

There are times your company shows a profit, yet you have problems scraping enough cash together for payroll.

Originally published Published: 04.01.18 Author By Ruth King

Try a New Pricing Level, Improve Your Bottom Line

Add your overhead cost per hour and your direct cost per hour. This is the absolute minimum price you must charge your customers.

Originally published Published: 03.01.18 Author By Ruth King

Build Your Pricing Around Net Profit Per Hour

The key to pricing using net profit per hour is that you must estimate labor hours correctly.

Originally published Published: 02.01.18 Author By Ruth King

Vanity Metrics vs. Clarity Metrics

There are many metrics to track, however, none are as important to profitability than current ratio, acid test, productivity ratio and net profit per hour.

Originally published Published: 01.01.18 Author By Ruth King

Five Activities that will Make a Difference in 2018

Profitability is the key to survival. Here’s five things you can do to ensure profitability in the New Year.

Originally published Published: 12.01.17 Author By Ruth King

Keep the Honest People Honest

Should you prosecute? It depends on how much hassle you’re willing to put up with during the investigation and court cases.

Originally published Published: 11.01.17 Author By Ruth King

Do You Have a Loyal Bookkeeper? Watch out!

You have the perfect employee: hard working, dedicated and accurate. But do you? Here’s how to spot a red flag.

Originally published Published: 10.03.17 Author By Ruth King

Beware of Sub-Contracted Commercial Work

Bankruptcy court has the right to request return of payments made to vendors.

Originally published Published: 09.01.17 Author By Ruth King

If it Seems Too Good to be True, Then it Probably is

Your interview process must include a background check, especially for the bookkeeper.

Originally published Published: 08.01.17 Author By Ruth King

Nice is Nice, Until it Costs You Big

Be forewarned: the Department of Labor says you have to pay for meeting time and “gab time.”

Originally published Published: 07.05.17 Author By Ruth King

Two Great Ways to Protect Your Money

You shouldn’t be giving your money away, nor should you make it easy for anyone to simply take it.

Originally published Published: 06.01.17 Author By Ruth King

The Sneakiest, Most Ingenious Way to Steal From Your Company

No one thinks to put the numbers you see on your profit and loss statement into an Excel spread sheet to ensure the numbers match. Until now.

Originally published Published: 05.04.17 Author By Ruth King

Why Employees Steal from Your Company

Theft is heart wrenching. You work hard and you never expect people to steal from you. When they do, your first reaction is disbelief, then sadness.

Originally published Published: 04.12.17 Author By Ruth King