0386: Costly Bookkeeping Mistakes That Kill Profit And Growth

<h1 style="text-align: center;"><span style= "color: #0000ff;"><strong>This Podcast Is Episode Number 0386, And It's About Costly Bookkeeping Mistakes That Kill Profit And Growth</strong></span></h1> <p><span style="color: #000000;">Most construction business owners like you understand that effective financial management is key to your success. But lack of knowledge, frustration, and even avoidance can add up to your bookkeeping mistakes that derail future company growth.<br /> <br /> With everything contractors like you need to do every day, including weekends and holidays, it's too easy to let crisp, timely Financial Reports go unread, and in some cases, you may not fully understand what they are telling you when you do read them.</span></p> <p><span data-preserver-spaces="true">Protect your construction business and reduce stress by avoiding these costly bookkeeping errors:</span></p> <p><span style="color: #0600ff;"><strong>Mixing personal and professional finances</strong></span></p> <p><span data-preserver-spaces="true">From day one, business owners should have a separate bank account to deposit their income and pay their business expenses.</span></p> <p><span data-preserver-spaces="true">It's also crucial to designate a business-only credit card. Come tax time; separate statements will make submitting claimable expenses quick and easy while reducing painful audit risk.</span></p> <p><span style="color: #0600ff;"><strong>Letting accounts receivable slide</strong></span></p> <p><span data-preserver-spaces="true">It's frighteningly easy to lose track of which customers have paid you and which clients are late. Implement a strict policy and schedule for tracking accounts receivable and pursuing unpaid invoices. </span></p> <ul> <li><span data-preserver-spaces="true">Ask customers to pay at the point of purchase or no more than 30 days later;</span></li> <li><span data-preserver-spaces="true">Contact clients to confirm they have received your invoice and to agree on a payment date;</span></li> <li><span data-pr