Tax

5 Tips for Managing Your Painting Business

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At BKE, we know how much dedication and skill goes into running a painting business.  In addition to all of that, there are all the tasks and responsibilities that come with managing a successful business.  Over the years, we have discovered some tips that may make the business of running a business a little easier.  

  • Track your COGS. Home service contractors have various expenses that need to be tracked and managed. Cost of Good Sold (COGS) are expenses directly attributable to creating a product or service. For home service contractors, COGs can include the cost of parts and materials, labor, and even merchant fees from accepting credit card payments. Properly tracking your COGS is critical because it can be deducted from Gross Revenue in order to calculate your Gross Profit. By understanding your Gross Profit, you can set the right prices and accurately project sales goals. You can learn more about Cost of Goods Sold (COGS) in this blog post.
  • Keep it separated.  You’re at a job, and you run into a snafu. It can be easy to come out of pocket for a quick run to the store for supplies, but if you aren’t tracking those purchases as part of your business expenses, you may be missing out on tax opportunities and under-reporting your costs. Make sure you are reporting all business expenditures and work to keep business and personal funds separate. 
  • Understand your capital and cash flow.  Capital and cash flow impact all aspects of your business, from operations to marketing, to surviving a crisis. Stay on top of your invoices and make sure your bookkeeping is up to date so that you can see what is happening with your financials before problems arise. 
  • Don’t ignore your online presence.  You may not feel like your business is of a digital nature, but the internet is exactly where potential customers are going to find and research businesses before they work with them.  It is also where they are going to leave reviews and communicate the level of service provided. Make sure you are managing your digital presence, including your message, ways to reach you, and your online reputation. 
  • Get and stay organized. Without proper organization and support, a small business can become the victim of its own success. One missed customer appointment can damage your company’s reputation and send a potential client to a competitor. Even if you’re well organized, administrative tasks may be taking too much time away from your core business. It is important to determine where you need help. For example, scheduling software and a virtual assistant can manage appointments and calls. If billing, payments, collections, and accounting have become stumbling blocks rather than engines that propel your business, consider a bookkeeping service to get your records in shape.

 At BKE we have designed our system of people and technology, BKE insight, first and foremost to deliver timely and accurate books that meet industry-specific needs to help our clients succeed. If you are interested in learning how  BKE can help your business, please schedule a time here. 

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