Business Finance 101: Run It Clean

Build your clean-books system: one page, or one folder, that shows how money moves through your business, from the estimate to the deposit to the tax payment. Pull it together from the nine Moves, then check yourself:

• Separate business accounts are open (operating, tax and reserve, plus payroll if you have employees), and your own pay goes out on set days.
• The books close by the 15th of every month, with every account reconciled.
• Your last job has a profit replay that counts labor burden, equipment and overhead.
• Your overhead per productive day is figured, and your next estimate shows the pricing floor.
• The tax account gets its share of every deposit, and the estimated tax dates and every payroll deposit date are on one calendar.
• Written payment terms, with any lien notice your state requires, go out with every job.