Episode Details

How To Set Up Your Financials The Easy Way with Diane Gilson

Episode 237 Published 4 years, 10 months ago

Description

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