To run a profitable roofing business, you have to understand the basics of accounting and the basics of setting up your financial system.

In this episode, I discuss with my go-to accounting expert, Diane Gilson, the easiest way to do just that!

Diane Gilson created Info Plus(+) Accounting® In 1994 to help business owners establish job-cost accounting systems so they can access critical day-to-day operations data using QuickBooks as their primary management accounting tool.

Diane’s passion is designing, customizing, and upgrading accounting systems and financial controls for small to mid-sized construction and manufacturing companies.

What you’ll hear in this episode:

• Re-organize the Chart of Accounts so that it provides more meaningful and useful information
• Construction businesses fail when owners don’t charge enough money because they don’t understand their costs
• The Chart of Accounts is your accounting system foundation
• Understanding direct costs
• Above and below the line and why it’s important to get this right
• Consistency is necessary to do comparisons of estimates vs. actuals
• How to keep your Chart of Accounts simple
• Having a consistent cash flow allows you to take a regular salary
• Net profit is NOT part of your salary, it is money that you’ll be reinvesting into the business
• Diane has created a Building Your Chart of Accounts Class!
• Why you shouldn’t ignore your balance sheet

Resources:

Time is running out! Are you eligible for the Employee Retention Credit (ERC)? Visit www.rpcfinancial.com to find out!

Do you need help with your books? We have a certified Quickbooks pro who is waiting to help you! Email John or Dave or contact us on Instagram for more information!

Connect with John DeLaurier:  www.calldrr.com, Instagram, and Facebook

Connect with Dave via text message: 510-612-1450

Let me know if you’d like to join one of our new Mastermind groups for contractors. Email me: [email protected] or visit The Roofer Mastermind to sign up.

Download my FREE 1-Page Business Plan template at www.theroofershow.com.

Contact me about one-on-one coaching at www.theroofercoach.com.

We need reviews of the podcast! Please leave a five-star review. It matters!

Additionally, I want to give a quick shout-out to our friend Tim Brown over at the Hook Agency for originally asking the question.

Check out their Facebook Page to find out what other contractors say about their gross profit margins.

Vetted Sponsors of the Roofer Show

Check out the programs that will help you gain confidence in your sales process, become a better leader, and build a winning sales team at Salestransformationgroup.com/roofershow

Tee up the sale and make a great first impression by having a friendly, professional receptionist answer your phone with Ruby Receptionists. Use this link for up to $150 off your first month’s service! get.ruby.com/theroofercoach

Be the modern-day contractor! We help you leverage technology to generate, organize and maximize commercial roofing leads. Find out more about Peak Leads at Peakleads.io.

Automate your systems and do follow-ups better! Check out ProLine and use promo code “Dave50” for 50% off your first month’s service!

Diane’s Resources:

Diane’s Website: Build Your Numbers

Building Your Chart of Accounts Class

Remodeling Your QuickBooks Chart of Accounts

Time Tracking and (Job-Costing) Payroll Class

Enjoy These Other Podcast Episodes Featuring Diane Gilson:

77: The Cost of Chaos: What’s It Costing Your Company with Diane Gilson

112: How To Calculate Your True Labor Burden And Why It Matters With Diane Gilson

105: Increase Your Profit With Effective Job Costing Reports With Diane Gilson