Jacksonville CPA | More Experience Than The Other Guys

Hello everyone and welcome to today’s podcast episode. Today we’re going to talk about the importance of looking at your numbers and I’m sure that your Jacksonville CPA is not talking about this kind of stuff to you, probably more reactive where he just does your taxes, gets them out the door, does your accounts and gets it out the door, but mean if we take a real deep dive and look into your number. So donkey with a new client today. I said, looking at his books, doing a free analysis that we do. It looks like that your numbers are trending upwards, your gross sales numbers are trending upwards, however, your profit is not following suit, so he has a hole somewhere that needs to fix. So I find this to be a big problem in companies as they’re growing, they find it hard to manage the growth. They don’t know where

to cut, where to add most important things to work on. So in this gentleman’s case, we’re going to do a deeper analysis into his books to find out why his profit is not rising commensurate with his income. Okay. There’s no large capital expenditures, no drains, nothing out of the ordinary. His profit margin margin should be holding true cost of materials. Raw material supplies have not increased. Everything is remaining the same. However, it’s profit margin. It’s not an not increasing now without having gone into this, just off the top of my head. Here is where I would look and here’s where I would suggest that all business owners look at their facing this problem. Now, if you have a Jacksonville CPA that you’re not happy with, give them an eva call three, eight, nine slash seven slash 11. We will help you out. So one of the key drivers on profitability is going to be your labor productivity that’s so huge, so huge. You look at your labor productivity, your labor productivity, at a minimum, for every dollar you spend in labor needs to be driving a dollar a day in revenue. Okay? Is at the low point. You need to get the need to push it above two. So for every dollar you’re spending in labor, you need to spend the money. They need to be generating at least $2 and revenue for you to keep healthy margin. So you need to

10, 10 percent is the new break even. So Greg crabtree’s book goes a lot to more detail about this. Greg crabtree, CPA and Alabama. Ten percent is the new break even. You need to be shooting for 15 percent profit margin. Okay? Labor productivity. How are, what are some tips to increase your labor productivity? A huge problem that I see is people are away overstaffed. Okay? So you need to, you need to have a players. A good a player is going to do the job of to b players or three c players. So I bet you’re Jacksonville CPA is not talking about this kind of stuff, so you need to make sure you have a players, okay? Constantly be recruiting. Do your group interview. We’ll talk more about that later. We’ve talked about that before. You need to be doing on a regular group interview.

Get those a players, pay them above market. Now, paying one a player slightly above market wage is a whole lot cheaper than paying to be players market wage. Okay, or even below market which, so pay the guy pay what he’s worth and you’re going to be a whole lot happier and your books are going to be, are going to reflect a whole lot higher profit margin. Okay? So make sure you’re constantly evaluating your team members should know who your best players are, should know who your worst players are, and you should have a plan to show the worst player to introduce him to the labor force and um, and get another, a player, a player’s like working with other, a players. A good way to have an a player quit on you is to keep a, B and c player around, okay? Because no, a players going to like to work with a slacker. So if your Jacksonville CPA is not talking about this, then you need to come see me and ava. Okay, so labor productivity. Now another place that I would look is this instance looking at a landscaping company. John Profitability. Um, this particular revenue stream consists of two items. He has landscaping jobs,

he does a variety of from scratch, landscape design and installation. And then he has regular ongoing landscape maintenance. I eat cutting the grass, trimming the shops and things of that nature. So he needs to make sure that he is quoting his big jobs correctly. Seeing this happen way too many times you get a good job. You think it’s, ah man, this is $100,000 job and you don’t keep track. You don’t have a good job profitability system in place. And you have labor over runs, you have terror, love runs. You don’t keep track of the client scope. That means you know, the client says, oh, let’s do it. I know I wanted it here, but let’s move it over here. So if there’s going to be significant change, you need to put in a change order. Build the client extra. Explain that upfront, set your expectations, set the client’s expectations, let them know upfront price you quoted him is for an agreed upon job. If there are any changes, then there will be change orders and there will be more invoices headed their way. So very important job, profitability, labor, productivity. These are going to be the two biggest things that you’re going to want to look at.

Okay,and looking at your numbers on a weekly basis is going to get you where you need to go. No, because trying to go out and figure all this stuff out after the fact, it’s just a nightmare, so you need to be doing this proactively. If you’re not, if your numbers are not where there should, where they should be, give us a call. No Fire Jacksonville CPA that’s not doing his job. Give us a call. Let us get you caught up. We’ll have regular meetings with you to look at your numbers and show you how to read those books, to stay proactive. Make sure you have the profit jus deserve. Okay? I’ve witnessed this with my own eyes, entrepreneurs feeling loyal to employees who are underperforming. Okay, well I need to keep them around. I know there’s not a whole lot for them to do, but you know, you know, I’m afraid I can’t find. Won’t be able to find another person that my industry is so different. I won’t be able to find another person yet. Here you are sacrificing your kids, your family’s wellbeing or something with those underperforming. So if you’re not happy with your Jacksonville CPA, give Mineva call and we will help you out.

So I think that’s going to be about it for this segment. We’ll come back for the segments, but just to recap, if your net income is not rising commensurate to your gross income, then you need to take a closer look. You have a Jacksonville CPA that’s not looking to come. Give them a naval call labor productivity, job costs details. Watch those overruns. Thank you.