Newsline

Ask The Experts: Feb. 11, 2013

February 11, 2013
/ Print / Reprints /
ShareMore
/ Text Size+
Jodi Peter
Jodi Peter 
Question: I know I need to get better this year at tracking my financials. I keep a monthly profit and loss statement, but I’m not an accountant, so I’m not always sure what I should do with it. Where do I start?

Answer: You don’t have to be an accountant to understand the financial health of your business, but you do need a good understanding. It’s important to remember numbers are more meaningful when compared to something:

• Compare current month to the same time last year. Identify variances year-over-year. Do they make sense? Is the company growing? Are costs in line with revenue?

• Compare current month to the budget. Is the company meeting budget? If not, develop a plan immediately to correct deficiencies. If the answer is yes, thank your team for a great job!

• Compare current year-to-date to the same time last year. Reviewing year-to-date information ensures the company continues to work to make up any lost ground in previous months, if necessary.

• Repeat the same analysis for each trade you manage. Are all departments hitting their revenue and income plans or does one cover for another? Analysis by department ensures all departments carry their own weight.

• Compare financial data to other contractors.

Jodi Peter guides Nexstar members to their vision of success through setting and exceeding goals. Prior to Nexstar, Jodi successfully led a large plumbing, heating and air conditioning business. To learn more about Jodi and the Nexstar Coaches, visit nexstarnetwork.com and click on Member Services to find our coach link. To submit questions, email kylegargaro@achrnews.com.

Publication date: 2/11/2013

Did you enjoy this article? Click here to subscribe to The NEWS Magazine

You must login or register in order to post a comment.

Multimedia

Videos

Image Galleries

Mini Split Installation

Twin Cities contractor Aabott Ferraro helped retrofit an older St. Paul home.

Podcasts

NEWSMakers: Doug Dougherty

Doug Dougherty, president and CEO of the Geothermal Exchange Organization (GEO) joins the program to discuss the latest happenings with GEO, including the drive to get included in state and federal definitions of renewable energy, plus the future of geothermal.  Posted on July 25.

More Podcasts

ACHRNEWS

NEWS 07-28-14 cover

2014 July 28

Check out the weekly edition of The NEWS today!

Table Of Contents Subscribe

R-22 PHASEOUT POLL

Some in the industry are calling for the EPA to halt production of R-22 as of 2015. What do you think?
View Results Poll Archive

HVACR INDUSTRY STORE

plumbing-hvac.gif
2014 National Plumbing & HVAC Estimator

Every plumbing and HVAC estimator can use the cost estimates in this practical manual!

More Products

Clear Seas Research

 

Clear Seas ResearchWith access to over one million professionals and more than 60 industry-specific publications, Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.

DON'T MISS A THING

Magazine image
 
Register today for complete access to ACHRNews.com. Get full access to the latest features, Extra Edition, and more.

STAY CONNECTED

facebook icontwitter iconyoutube iconLinkedIn i con