You're In Business To...
and Build Wealth!
Accounting is often referred to as the language of business. Bankers, insurance brokers, and accountants speak that language fluently.
To most contractors, accounting might as well be a language from another planet. They just don't understand one word of accounting. Do you?
You need to be aware that the number one thing bankers and insurance brokers look for when evaluating your qualifications as a client, is whether you appear to have sound financial control procedures in place. They use that gut instinct to guide their trust in your company. Let me share an example of their logic.
If your company can't produce proper financial statements within 30 days of quarter end, and reviewed statements within 45 days of year end, they assume your financials are bogus. Not real. Not worth risking money against. History has taught them well.
A business that can spit out it financials quickly almost always has legitimate numbers. And that also usually indicates a well-run company.
They know how difficult it is to bring a balance sheet, income statement and cash flow statement into balance unless the data you have is complete and accurate.
The better your financial control system, the better the odds your business is on solid financial ground. You need systems for:
- Developing relationships with bankers.
- Developing relationships with bond and insurance agents.
- Qualifying and evaluating your CPA.
- Getting the proper business licenses.
- Processing payroll.
- Making scheduled federal and state tax payments.
- Managing your cash.
- Verifying money is not being improperly removed from the company.
- Verifying that suppliers' bills are legitimate.
- Collecting late receivables.
- Paying bills on time.
- Paying employees correctly and on time.
- Filing liens and claims.
- Collecting employee information.
- Sending out 1099s.
- Getting the proper insurance coverage.
- Verifying lease terms and payments are proper.
- Building and managing your credit line.