In this transcript from a video by Steven J Wick & Associates PC in Fort Collins, we discuss key strategies for job costing for remodeling businesses in Fort Collins. The video highlights how new contractors can manage cash flow, streamline operations, and implement systems to track costs and improve profitability. It covers critical topics such as upfront payments, employee management, and accounting practices to ensure accurate job costing and sustained business growth.
To learn more about how to effectively track expenses and improve profitability, check out our detailed article on job costing for remodeling businesses in Fort Collins.
This video does not constitute legal advice, and we recommend contacting a CPA about your specific situation.
Transcript
00:00:07 – Starting a New Business and Cash Flow Challenges
[Music] A new person to the industry is starting a brand new business, so they are on a continuing growth pattern right now and have also brought in product lines. Cash flow has been a problem. One of the critical things is capital, or access to capital, to get the ball rolling. The other piece is pennies and getting the systems in place. If it is in your head, that’s great, but there are other heads in the business that don’t know what’s in your head—not just within
00:01:00 – Employee Management and Bid Strategy
Subcontractors, but pretty much everywhere, are affected by the challenge of finding employees. Also, managing the expectation of the employer is key. The employer needs to understand that their employees will never be as invested in the product as they are. Managing all of those things is essential. You are building in a factor for how fast a product can be delivered, or the quality you can achieve as a person, into your bids. You make money on the job, but you must understand that not everything is going to run perfectly.
00:01:39 – Systems and Procedures Implementation
Using the strategy sessions that we’ve had, we work through various problems, basically getting systems and procedures in place and talking them through so that they can work it through within their system. This ensures that operations are streamlined. Part of this is that the business now works with a lot of people on remodels to get customers locked in and, importantly, to get the cash flow going.
00:02:20 – Upfront Payments and Scheduling
The business now requires a 40% to 50% down payment, depending upon the project, in order to get started. This allows the business to have money upfront—or at least part of it—so that they can pay for materials and schedule the work. With that deposit comes a committed schedule, typically 30 to 60 days out. This approach has helped a lot with cash flow.
00:03:02 – Job Costing and Accounting
The business also works to identify mistakes within crews and jobs. Part of this is job costing—analyzing a job where, for example, they expected to make $3,000 on a $20,000 job but experienced cost overruns or had to redo work. Small issues like these can eat into profits. Accounting is a significant piece of running a business. It is a measurement tool. Once the team understands it, things go a lot better for them.
Conclusion – Job Costing for Remodeling Businesses in Fort Collins
Implementing effective job costing for remodeling businesses in Fort Collins helps contractors manage cash flow, track expenses, and maximize profitability. By combining upfront payments, proper employee management, and structured accounting systems, remodeling businesses can maintain financial stability while delivering high-quality projects. Understanding the cost of each job and planning for overruns ensures better decision-making and long-term success.
