Are your accounting systems and processes holding you and your company back? I hate to be the bearer of bad news, but procrastinating on accounting means that you are also procrastinating on your business goals. Having accurate and timely accounting data is an essential piece of the puzzle. Below are some main reasons why you should be prioritizing the accounting in your landscaping business:
Numbers don’t lie! Accurate accounting will give you an unbiased look at the performance of your business:
Are you having trouble holding your team accountable? Do you have a gut feeling that your team is not working efficiently? No need to struggle or wonder anymore, clear accounting data and Key Performance Indicators (KPI’s) will give you insight into which employees, crews, and divisions are performing well.
You will be able to give profit sharing and bonuses with confidence:
It’s great to reward employees, but remember that as a business owner there is a large amount of risk associated with running a landscaping business. Before considering sharing profit or bonuses with employees, its best to first understand the full picture of your company’s financial health. This includes balance sheet and cash flow considerations, not just profits and losses. Understanding the financials will then give you the ability to help improve the financial literacy of your employees, and will result in your employees understanding how their role in the company effects the business financially.
Accurate accounting will give you the data needed to budget and plan for the upcoming year:
Your sales and overhead budget are only as good as your historical financial data. Decisions like knowing when to hire, if you can hire, which assets should be purchased, etc., are just a few key moves that rely on financial data to back them up. Sign up for our upcoming 2023 budgeting and planning free webinar for landscaping businesses on December 14th 2pm est here.
You will gain clarity into any adjustments that need to be done with your estimating and pricing:
Many times with clients we find that efficiencies are phenomenal in the field, but there may need to be adjustments made in pricing and estimating. Having accurate financial data will give you the confidence to approach new or existing customers with price adjustments.
Expand your business:
Potential investors, lenders, etc. will want to see your financials. Having well organized and accurate accounting will help you with getting loans at the best rates, and will give your investors an impression that your business is professional and organized.
Better prepared for tax time:
The end of year should be for strategic planning, not for scrambling to make sure your business is ready for tax time. We see many times that business owners and upper management get dragged into this, when their time and attention should be focused on higher revenue generating activities. An inaccuracy we sometimes see with new clients to our accounting firm is duplicated and overstated sales, which is one example of how sloppy accounting can result in a higher tax liability!
If you find yourself behind on bookkeeping and accounting, and would like to get your accounting caught up, then you can learn more about our services here.