Lessons Learned on Managing the Numbers in Your Contracting Business

In our latest episode, I had the pleasure of speaking with Jeff Graf, the owner of Fence Connections and Majestic Fence, as well as his accountant, Rosina Barkman. The conversation centered around the importance of managing the financial side of your contracting business - something that I'll admit has been a constant challenge for me over the years. Like many contractors, I started out focused solely on the work, without giving much thought to the numbers. It wasn't until I nearly went bankrupt that I realized the critical role that financial management plays in the success of a business. Listening to Jeff and Rosina discuss their approach to project-based accounting, overhead recovery, and cash flow projections was a real eye-opener. Rosina emphasized the importance of creating accurate estimates that account for all costs, including overhead and a healthy profit margin. She also stressed the need to track expenses in real-time, rather than waiting until the end of a job to assess profitability. One of the key takeaways for me was the value of working with a professional, like Rosina or the team at Cycle CPA that we use. As the host, I'm always preaching the importance of staying in your lane and focusing on what you do best. Well, the same goes for the financial side of the business. Trying to handle all of that on your own, while also managing the day-to-day operations, is a recipe for disaster. Jeff's experience of going from not paying much attention to the numbers to now having a much tighter grip on his finances was also incredibly insightful. He talked about the challenges of balancing field work with the business side, and how bringing on Rosina has helped him gain better visibility into his project profitability and cash flow. Overall, this episode was a powerful reminder that no matter how skilled you are at the technical aspects of your contracting business, you simply can't afford to neglect the financial management side. It may not be the most exciting part of the job, but it's absolutely essential to your long-term success and sustainability. If you're a contractor struggling to get a handle on your numbers, I highly encourage you to listen to this episode and consider reaching out to a professional like Rosina or our team at Cycle CPA. The investment may seem daunting, but I can assure you that it will pay dividends in the long run. Happy listening, and here's to your continued success!

Listen to the full episode here!