Do you really keep track?

Discussion in 'Lawn Mowing' started by Phishook, Jan 9, 2004.

  1. Phishook

    Phishook LawnSite Bronze Member
    Posts: 1,143

    Do you keep track of your expenses and income on a regular basis. Like, sit down once a week or month and go over what is actually going on?

    What about each account? Do you know how profitable each one is? Or keep a log of what you did each day, things just as reminders for the next season?

    Or do you just blunder through the year putting receipts in one box and checks in the bank?
     
  2. o-so-n-so

    o-so-n-so LawnSite Bronze Member
    from Alabama
    Posts: 1,218

    Yep, I keep up with everything. I can tell you exactly what my expenses or income was on any particular day/week/month of the year. Before my wife started helping with the books I would log everything daily or sometimes every few days depending on my time. Now, I give my wife the receipts and tell her what they are charged to. Same with the income. Every dollar has a name. This helps me to be more aware of where my business is financially. I can also compare to last years sales and set budgets easier with past information. Makes tax time less of a hassle also.
     
  3. KenH

    KenH LawnSite Bronze Member
    from CT
    Posts: 1,622

    If you wish to run a profitable business. You need to keep track of where the dollars are going and coming from. Start on a program like Quickbooks. It will tell you everyhting you can possibly want. Not keeping trakc of things might mean the money you are making on a good account is probably just paying for money you lost on a bad one. Reigning in your expenses is a very smart move.
     
  4. mtdman

    mtdman LawnSite Gold Member
    Posts: 3,137

    I blunder through the year.

    :D
     
  5. paponte

    paponte LawnSite Silver Member
    Posts: 2,366

    Absolutely! There's a HUGE difference between what you bill out, and how much you actually make. Though I would like it to be every week, it is just a logistics nightmare to do it. We sit down once a month and put all our costs in the computer. Doing it this way we can run reports at any given time. Gotta see what makes money, and see what costs. :cool:
     
  6. Strawbridge Lawn

    Strawbridge Lawn LawnSite Senior Member
    Posts: 660

    You do Not have to keep up monthly to be successful.. But it sure helps save time/work during tax season. I have 12 month Folders for everything and I put everything in them at the end of the day. I am going through them this week and I will finish today or tomorrow since the snow is flin.
     
  7. Randy Scott

    Randy Scott LawnSite Bronze Member
    Posts: 1,915

    Size of your company would have some affect on how you may keep track. When I first started I could keep track of everything in my head just about. Now I need to look at it on paper and see where the dollars are going and coming from. Helps weed out jobs that were costing you money that might not have been real clear to you just by performing them weekly. Gives you an idea on what tasks may need to be looked at as to why profit percentage is down when it should be higher. Adjustments can be made or that work eliminated. Any sizable company needs to track these things closely.
     
  8. Mustang

    Mustang LawnSite Member
    Posts: 36

    If you don't track your expenses how do you know where you are making money. Maybe you on making money on 7 accounts and losing money on 3. In this case you could make MORE money doing LESS work if you dropped the 3 losers.
     
  9. dvmcmrhp52

    dvmcmrhp52 LawnSite Platinum Member
    from Pa.
    Posts: 4,205

    I know the hourly costs of running each mower,as well as costs for other particulars.I already know when the job is finished or after the third mowing on a new account how profitable it is.I don't get into the minutia......It's not worth my time.
     
  10. rodfather

    rodfather LawnSite Fanatic
    Posts: 9,501

    QuickBooks Pro does it all for us...P & L's, Cash Flow, Balance Sheet, Income Statement, etc. The key is making sure you log in EVERYTHING that is business related, no mattter how small or trivial.
     

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