Latest / Contractor Business Builder Podcast / Job Costing for Contractors Explained Maximize & Scale

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Job Costing for Contractors Explained Maximize & Scale · Contractor Business Builder Podcast

• 0:00
  Well, look at your bank account and thought, where did all the
• 0:02
  money go? You're not alone.
• 0:04
  This video is your blueprint job costing success.
• 0:07
  This is the same systems that we help our clients set up so that
• 0:10
  they can boost their profits as well as grow and scale their
• 0:13
  general contracting businesses. Alright, job guys.
• 0:15
  If you get this right, it'll keep you alive.
• 0:18
  You will make sure that you know where your numbers are at.
• 0:21
  It is so essentially important to any business that's looking
• 0:25
  to grow or if you're just wanting to get a handle on where
• 0:28
  your profits are going, where your expenses are, all that good
• 0:31
  stuff. So I've been going through the
• 0:33
  different steps of the whole system that you need to put in
• 0:35
  place in order to do proper job costing.
• 0:36
  If you've tried to set this up on your own, you know how
• 0:39
  difficult it can be to get all these pieces working together.
• 0:41
  So the first thing that we're going to be talking about is
• 0:43
  your system setup. So you need the right software.
• 0:46
  You need the right system and process in place in the 1st
• 0:49
  place. So typically speaking, the way
• 0:51
  this is going to work is you're gonna have your project
• 0:53
  management software. There's a lot of, you know,
• 0:55
  bunch of good ones out there. If you're wondering which ones,
• 0:57
  I've got other videos on how to get these, you know which ones I
• 1:00
  suggest, but essentially you can have your project management
• 1:02
  software and this is where a lot of your transactions are going
• 1:06
  to flow through expenses as well as time tracking, which I'm
• 1:09
  going to dive into deeper. So that's the first component.
• 1:12
  The second component is your actual bookkeeping slash
• 1:15
  accounting software. QuickBooks is sort of the top
• 1:17
  dog in the industry, if you will, the most well known.
• 1:20
  There's also, you know, 0 as well as other ones that that are
• 1:22
  available and getting those two to communicate is always a bit
• 1:26
  of a challenge. But essentially, those are the 2
• 1:28
  software pieces that you need in place in order to get this
• 1:31
  system flowing. There's other kind of ways doing
• 1:33
  options, but this is what we suggest and the easiest way that
• 1:36
  I've found for contractors to get job costs in place.
• 1:39
  And then the final kind of piece of the puzzle as far as the
• 1:41
  setup goes is you need proper cost codes.
• 1:44
  So cost codes is the number code that's going to link a certain
• 1:47
  expense transaction time, whatever may be from one part of
• 1:51
  your business to the other. So it could be from your
• 1:53
  estimate to your job site, from your job site to your accounting
• 1:56
  software, your PM software is that common ground that you
• 2:00
  build this job costing off of. Now cost codes are pretty easy
• 2:03
  to get in place. If you've got a good project
• 2:05
  management software, it is gonna have built-in cost codes and
• 2:08
  typically you're gonna wanna use either the National Association
• 2:11
  of Home Builders, they've got their own set.
• 2:13
  If you're more of a residential type contractor, that's a good
• 2:15
  set. Even like commercial, it's a
• 2:17
  little bit more simplified and is a great way to get started
• 2:20
  with cost codes. And I would say the majority of
• 2:23
  contractors are probably in that camp, especially on the
• 2:25
  residential side mentioned. If you're a larger commercial
• 2:27
  contractor, then you're probably going to be familiar with the
• 2:30
  CSI cost codes, which is the Construction Standards
• 2:33
  Institute. That's a more built out larger
• 2:36
  set of cost codes, have thousands of of cost codes in
• 2:39
  there. Of course you don't need to use
• 2:40
  them all, but you need to get the basic one set up its first
• 2:42
  cost codes. You don't need to use all the
• 2:45
  cost codes that are out there in this huge list.
• 2:47
  Just kind of simplify it into the ones that that you know are
• 2:49
  going to be meaningful. The purpose of the cost code is
• 2:52
  so that later you can categorize your expenses or your time
• 2:55
  tracking per cost code. So you don't need a cost code
• 2:58
  for screws or nails or things like that.
• 3:01
  You know, we could have, you could have much more generic
• 3:03
  ones for your larger categories. Good rule of thumb is if you
• 3:06
  wouldn't have it in an estimate as a line item, you don't need a
• 3:09
  cost code for it. That's how that split works.
• 3:11
  Alright, so that's the first set up #2 here.
• 3:15
  So step number 2 is your time tracking.
• 3:17
  Time tracking again is, is not overly difficult.
• 3:20
  You may already be doing this, but you need to make sure that
• 3:23
  your guys are not just tracking per project, but they're
• 3:25
  tracking for task as well. And that's where the challenge
• 3:28
  comes in. Easy to get people on board
• 3:30
  with, you know, filling out their hours on an app per
• 3:32
  project and where they work. But then getting them to put in
• 3:35
  the tasks per day per cost code is, is often where the challenge
• 3:39
  comes in. And this is another reason why
• 3:41
  you don't want to have a gigantic list of cost codes
• 3:44
  available because it's just gonna confuse people.
• 3:46
  So they should be able to on site be able to choose, you
• 3:50
  know, what did I do today? Framing.
• 3:51
  Maybe I did like 3 hours of demo and five hours of framing or
• 3:55
  something like that. So they can put in their tasks
• 3:57
  per job. And that's how you will start to
• 3:59
  track that. Typically speaking, that's gonna
• 4:01
  be on your project management software.
• 4:02
  You could also be using like a QuickBooks time or something
• 4:05
  like that. I've set up both ways of you
• 4:07
  know, expense and time tracking either with project management
• 4:11
  software or the bookkeeping software.
• 4:12
  So either one will work. If you're having difficulty with
• 4:15
  this, if you tried it and given up or whatever, reach out to us.
• 4:18
  This is what we do. We help our clients set this up
• 4:20
  for them. We make it easy for you done for
• 4:21
  you and and just walk you through it and set up, you know
• 4:24
  a system that we've already perfected.
• 4:25
  So there are links in the description below to get some
• 4:28
  more free resources as well as reach out to us if, if that's
• 4:30
  something that you want help with.
• 4:32
  Alright, so with the the time tracking, kind of the things to
• 4:35
  remember is that you need to set reminders.
• 4:38
  It's very common when you start using different apps or asking
• 4:42
  people to start tracking their tasks, they're going to forget.
• 4:44
  If you know site guys, if you know construction guys, once
• 4:46
  that 5:00 bell or 4:00 bell rings, they're gone, they're not
• 4:50
  thinking about it. So especially at the beginning,
• 4:52
  you may have to remind them how you like to do this.
• 4:55
  If you run payroll, let's say on a Monday or Tuesday because you
• 4:59
  know you want to have the checks go out or the direct deposit go
• 5:02
  out on Friday for them, then you need to remind them previous
• 5:06
  Friday. Hey, everybody, take an extra
• 5:07
  1015 minutes. Go through your hours this week.
• 5:10
  If you forgot any, make sure they're accurate.
• 5:13
  Add them in. Make sure it's 100% so that when
• 5:15
  you run payroll on Monday, you're not missing hours and
• 5:17
  we're underpaying you or we've got to call you a bunch of
• 5:19
  times. So you may have to send those
• 5:22
  reminders out regularly, especially at the beginning to
• 5:24
  remind everyone to to actually get their information into the
• 5:27
  app is their responsibility and you need to tell them why.
• 5:30
  Now you want to make it easy for them with training.
• 5:33
  So this is a big piece of the puzzle here is it's not just one
• 5:35
  need to set the system up and get everything kind of running.
• 5:38
  You need to have these reminders.
• 5:40
  You need to have the training and human side to it.
• 5:42
  So you want an SOP, very plain language.
• 5:45
  This is how you get the app from Google Play or Apple.
• 5:49
  You know your apps or whatever store and this is how you
• 5:51
  downloaded. This is how you put in your
• 5:52
  hours. This is what you do if you work
• 5:54
  multiple sites during the day. This is what you do if you work
• 5:56
  multiple tasks during the day, this is what you do.
• 5:58
  If you have a problem with it, you need to go back and change
• 6:01
  your hours or change the tasks you did or whatever, right?
• 6:04
  So you need a fairly SOP that's easy to follow but comprehensive
• 6:09
  so that they can use that and then also do a screen recording.
• 6:13
  So you can do a screen recording on your phone of you clicking
• 6:16
  through, adding hours. This is what you do this how you
• 6:18
  put in your notes. If you know, I was late this day
• 6:21
  or I had to leave early or whatever, right?
• 6:24
  You can put in notes and all that stuff.
• 6:25
  So have that all SOP training video, super easy.
• 6:30
  And then all of this data feeds into your payroll.
• 6:32
  So it keeps everything super simple.
• 6:34
  You guys manage their time, you get the job blasting down where
• 6:37
  you can see reports which I'm going to talk about later and it
• 6:40
  feeds into your payroll. So you're running payroll,
• 6:42
  everything is gold and and you are doing awesome.
• 6:44
  That I find is probably the kind of easier 2 steps as a setup and
• 6:48
  the time tracking. The third one, which I'm going
• 6:50
  to mention here, this is where things fall apart and a lot of
• 6:53
  people kind of give up expense tracking.
• 6:55
  Expense tracking is very difficult for a lot of number of
• 7:00
  reasons and a lot of it is kind of expectations or thought
• 7:04
  process around going this. When you start doing expense
• 7:07
  tracking, there is no easy automated way.
• 7:10
  You know, maybe in a year or two from now, AI has taken over her
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  and they're just like running the show and everything runs
• 7:17
  through that and it's just like perfectly categorized.
• 7:19
  That would be nice. But as of now, this does take
• 7:23
  somebody having to categorize and figure out which project,
• 7:27
  which expands which Costco and all this stuff.
• 7:30
  So there is a manual process, of course, with the software makes
• 7:33
  it easier than ever and there's some automation built around it,
• 7:36
  but there is still human involvement.
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  So expense tracking, who is going to be responsible for
• 7:40
  this? You're going to have your field
• 7:42
  team. So your guys on site, if they go
• 7:43
  to run to Home Depot, pick up a box of nails, whatever you may
• 7:46
  be doing, but you know what I mean, They will need to use the
• 7:49
  system. Your project manager will need
• 7:51
  to use the system superintendents, whoever pretty
• 7:53
  much is operating on the field. And then you're you're either
• 7:57
  going to have an admin person or bookkeeper who's also involved
• 8:00
  in this process. So that's who is involved.
• 8:02
  The way that I've seen this work the best is that there is ways
• 8:07
  to kind of build a form on a website and people can kind of
• 8:10
  upload their expenses, take a picture of the receipt and you
• 8:14
  know, accounting softwares and stuff like that will have have
• 8:16
  that functionality as well as project management software.
• 8:19
  So that's usually the easiest way.
• 8:21
  The other option and they could work in tandem is you have like
• 8:25
  an e-mail that has like accounting at xyzcontracting.com
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  and all the bills, all the receipts, all the invoices,
• 8:32
  anything financially gets forwarded to that e-mail address
• 8:35
  and then from there someone's going through and processing it.
• 8:38
  So either one can work. There is also e-mail addresses
• 8:41
  for project management softwares or the accounting softwares
• 8:44
  getting a little technical here, but where things can be
• 8:47
  forwarded to those emails and then it'll go directly into your
• 8:50
  systems as well. So there's, there's a bunch of
• 8:52
  moving parts here. That's why expense tracking is
• 8:55
  so difficult because you really need to find one that works for
• 8:57
  you and your team. And different softwares are
• 9:00
  going to have kind of different functionality and, and ways that
• 9:02
  you want to route this information.
• 9:03
  Once you've got the information getting properly from wherever
• 9:07
  it is, whether it's e-mail or site or guys taking a picture or
• 9:10
  receipts or whatever, it should all be funneling into whatever
• 9:13
  system you have. I'll just use project management
• 9:15
  software as as the example. So everything's getting funneled
• 9:18
  into the project management software.
• 9:19
  Now it needs to be categorized. And you also probably want to
• 9:22
  set up some approvals around it. So depending on the software,
• 9:24
  but typically the project manager is going to approve the
• 9:28
  purchases. Let's say your guy runs out and
• 9:30
  he buys a new saw or something like that.
• 9:33
  And you're like, well, no, that's, that's part of your,
• 9:36
  your personal tools or let's say a hammer or something, right?
• 9:38
  We can't cover that. So they would need to approve
• 9:40
  that or you might have a sub trade sending an invoice for
• 9:43
  deposit on a project. And it's like, you know, we're
• 9:45
  not even close to starting this project.
• 9:47
  You guys don't need to purchase any materials for it for like
• 9:50
  another month. So I'm not gonna approve that
• 9:52
  deposit expense or whatever rate.
• 9:54
  So that's why you need some approvals in there.
• 9:56
  Plus things just get mixed up sometimes.
• 9:58
  Sometimes people overcharge or undercharge you or whatever,
• 10:00
  right? So you need a project manager
• 10:02
  who knows what's going on in site to be approving and
• 10:05
  reviewing those expenses that go through this system.
• 10:08
  Project manager is also going to be the best person to be able to
• 10:10
  categorize those expenses properly because they should
• 10:13
  know which project this is for. If it's just kind of a random
• 10:17
  receipt or what have you, which project is for and also which
• 10:19
  cost. Cost code is often the hard
• 10:22
  part. Most people understand like,
• 10:24
  yeah, that's for this job or that job.
• 10:26
  It's that's fairly easy to figure out which cost code it
• 10:28
  is, is another story, because it could be some sort of adhesive,
• 10:32
  right? Well, is that a finishing thing?
• 10:34
  Is that a framing thing? Is that for the concrete?
• 10:36
  So someone who did not doesn't know what stage of the project
• 10:39
  it's at or what that material is really for is not going to
• 10:42
  understand how to code that properly.
• 10:44
  That's why the project manager is so important in this process.
• 10:46
  Now, if you have a good like extra template, this is kind of
• 10:50
  like a bonus pro tip here is have a spreadsheet somewhere
• 10:54
  that has a place where people can put expenses that they do
• 10:57
  not know how to Costco. Now, if you are passing this off
• 11:00
  to like your bookkeeper or admin person who's going to be
• 11:03
  categorizing these cost codes, they're not going to be
• 11:05
  construction oriented necessarily know what it is.
• 11:07
  So you want to have this spreadsheet to put in these
• 11:09
  things that's like this type of material or or purchase is
• 11:13
  associated with this cost code. And sooner or later they're
• 11:15
  going to put things in there and then you'll review it or the
• 11:17
  project management review it with them and tell them like, Oh
• 11:19
  yeah, that's a framing thing. Or Oh yeah, that's, you know,
• 11:22
  interior finishing thing. And then you'll have this big
• 11:24
  database essentially of, of different materials items and
• 11:27
  Costco's associated with it. So it'll improve overtime.
• 11:30
  So actually quick tip there. That's really saved a lot of
• 11:33
  headaches for a lot of clients getting, getting that set up.
• 11:35
  Now one thing I want to mention that's that's really important
• 11:39
  here is to understand there's a difference between the cost code
• 11:42
  categorizing and the accounts categorizing in your
• 11:46
  bookkeeping. So in bookkeeping, you're not
• 11:49
  going to have as many types of things like you might just have
• 11:52
  job materials, right? That could be the account that
• 11:54
  gets categorized in bookkeeping. But John, materials could be any
• 11:58
  number of cost codes depending on what the material is for, for
• 12:01
  the project. So just recognize that there is
• 12:03
  a difference there. I've been going on a while with
• 12:05
  this expense tracking because this is the hardest part to to
• 12:08
  get set up. And you just really need to
• 12:10
  stick with it and realize it's probably going to be a bit of a
• 12:12
  mess at the beginning and you just need to get it running and
• 12:16
  then hopefully get it in place. Alright, so moving on to #4 so
• 12:21
  now we've got, we've got set up, we've got time tracking, we've
• 12:24
  got expense tracking. Now we need to actually use this
• 12:26
  information to be useful to boost profits, to make sure
• 12:29
  we're not losing money, to know what's going on.
• 12:31
  And that has to do with reviews and reports.
• 12:33
  So reports can be run either through the PM software or your,
• 12:37
  your accounting software, bookkeeping software or whatever
• 12:39
  you want to call it. The big one you're going to
• 12:41
  check on is your estimates to actuals.
• 12:44
  So we just completed this new home build and we calculated
• 12:47
  that we were using, you know, $900,000 of expenses go to the
• 12:52
  actuals. We actually spent, you know,
• 12:54
  950,000. Well, where did we go over?
• 12:57
  Right. So you wanna be seeing like,
• 12:58
  where do we go over? Where do we go under?
• 13:01
  Did everything line up? Why are the discrepancy?
• 13:03
  Why the difference? And then you can make
• 13:05
  adjustments for your next, you know, estimates.
• 13:07
  So you've always got this feedback loop and, and can
• 13:09
  realize like where things commonly go out, things you want
• 13:12
  to be looking for is commonalities.
• 13:14
  You've just completed A5 projects and on all five of them
• 13:17
  you've gone over on framing labour.
• 13:19
  Then you know, you need to boost it up if on the last five
• 13:21
  estimates you've actually overestimated the, the
• 13:24
  landscaping or the excavation, Maybe you, you realize, hey, we
• 13:27
  could probably shave off 10% from our pricing because we seem
• 13:30
  to always be under on this category, which is great.
• 13:33
  But we, we want to be competitive in the marketplace.
• 13:36
  So you may want to adjust that, right?
• 13:38
  Or you just realize that it's a risky thing, like excavation is
• 13:40
  kind of risky. If we're, you know, overpricing
• 13:43
  a little bit on that, that's a good thing because we never know
• 13:45
  when we might hit something underground or perhaps some
• 13:48
  rough soil or need to bunch of backfill or something beyond
• 13:51
  what we expected. And so we need to to mitigate
• 13:53
  that risk with overpricing a little bit and hopefully coming
• 13:56
  under on the project on a number of them so that we do have that
• 13:59
  project that kind of goes over, we can balance things out.
• 14:01
  This is often an eye opening experience for contractors when
• 14:05
  you are able to run these reports and you realize like,
• 14:08
  wow, this is actually what's happening, right?
• 14:10
  You know, you pull your wall and you check your bank accounts and
• 14:13
  it's like, where's the profit? Or, you know, I think we went
• 14:15
  over on this job or I thought we made money on this job, but not
• 14:18
  sure where it is with job costing.
• 14:20
  It's like very black and white. You can see exactly.
• 14:23
  Did we make money? Did we not make money?
• 14:25
  Where was it and all this type of stuff?
• 14:27
  So things that you want to be looking for as far as
• 14:29
  inconsistencies is like large phases of the project as well as
• 14:33
  clients. So if you have a certain type of
• 14:36
  client or maybe a location and you're like, wow, we always do
• 14:40
  really good in this location. Or this seems to be the type of
• 14:43
  clients that those jobs are more profitable than these other
• 14:46
  jobs, right? Or job types, maybe like
• 14:48
  additions to houses. We seem to always make like
• 14:50
  really great margins on it, whereas basement renovations or
• 14:54
  or new home builds were we're struggling.
• 14:56
  So maybe we either need to transfer pricing or maybe we
• 14:58
  just target the certain type of job or the certain location to
• 15:01
  making, you know, be more profitable for us.
• 15:03
  So there's a lot of good information where you don't
• 15:05
  really need to change your business model or change your
• 15:07
  business very much, but just realizing where you're making
• 15:10
  money and doubling down on that. You know, something's working
• 15:13
  and working well, do more of that.
• 15:14
  If something's not working and not working well, then do less
• 15:17
  of that, right? So it makes those decisions a
• 15:20
  lot easier now #5 here, this is at the most critical step.
• 15:24
  This is the pitfalls. So I've just explained how to
• 15:26
  get this all set up. Obviously there's a lot of like
• 15:28
  tales of like technical things to get this set up.
• 15:31
  And again, if you need help with this, if you want someone just
• 15:33
  to set it up for you and knows how to do this, reach out to us.
• 15:36
  We'll be happy to help you with it.
• 15:37
  But with the pitfalls, this is where I've seen a lot of
• 15:40
  contractors go awry or when I've, you know, gotten new
• 15:44
  clients and have tried to do this.
• 15:46
  This is what's typically happened and the reason they
• 15:48
  kind of just fell, it fell off the rail.
• 15:50
  So software integration is a big one.
• 15:52
  Every project management software out there will tell
• 15:54
  you, yes, we integrate with Zero, with QuickBooks and you
• 15:58
  know, integration, everything is synced and tracked.
• 16:01
  A lot of it, It's true to the extent that they do it often
• 16:04
  when it gets turned on, there's inconsistencies, stuff going
• 16:08
  from one program to the other. And if it's not set up in the
• 16:11
  right way ahead of time before you start to integrate, it just
• 16:14
  becomes a huge pile of stinking hot mess.
• 16:17
  And it's, it's difficult to clean up.
• 16:19
  I had one client, we were going through this integration.
• 16:21
  He's like, yeah, I think I had an integrated, but I shut it
• 16:23
  down like minutes because it just made a huge mess of my, of
• 16:27
  both systems because you didn't have it set up properly.
• 16:29
  So that's a big one is realizing that not all software is created
• 16:33
  equal and the integrations even like all the integrations are
• 16:36
  definitely not equal. Some some work really well, some
• 16:39
  kind of work and some really do certain things and don't
• 16:41
  integrate completely. So that's one thing.
• 16:43
  The other big pitfall is incomplete or inconsistent
• 16:46
  tracking. So often when you start this
• 16:48
  process, especially with expense tracking, you're probably going
• 16:51
  to realize that there is anywhere from like 10 to 20%
• 16:56
  potentially of expenses that just kind of get left somewhere
• 16:59
  or maybe didn't make it into the system or are being tracked
• 17:02
  properly. And this can be a little bit
• 17:05
  deceiving when you go to check your ports because it's going to
• 17:08
  look like, wow, we made really good money on this.
• 17:10
  But that's because we're missing 10% of the expenses that should
• 17:14
  have been tracked this job but were put somewhere else or
• 17:17
  uncategorized or whatever, right?
• 17:18
  So having a, a complete tracking system that's making sure that
• 17:23
  if there's something that was not tracked properly, that it's
• 17:26
  flagged and you know about it and you can realize that
• 17:29
  something is off so you can go and fix it, right?
• 17:31
  And then inconsistency. If you as the business owner are
• 17:34
  the sole person responsible for this system, it's probably not
• 17:38
  gonna work because you've got other, I wouldn't say more
• 17:41
  important, but typically more important, higher level
• 17:44
  activities to do. You need this to be run by an
• 17:47
  operations like someone in operations like a project
• 17:49
  manager or your foreman or or whoever needs to be categorizing
• 17:53
  these things or as well as your admin and your bookkeeper.
• 17:56
  So you need to get this off your plate so that things are getting
• 17:59
  categorized for the job costing and tracking is being done.
• 18:02
  You may still need to forward emails with the right address
• 18:06
  and cost code where you may need to like give some initial
• 18:09
  information. But as far as like the back end
• 18:11
  system, that has to be done by somebody else because otherwise
• 18:14
  you're not gonna prioritize this and it's not gonna be effective.
• 18:17
  So that's a big one. Other pitfalls is you try to do
• 18:20
  too much too fast. If this is overwhelming, you're
• 18:22
  like Derek, I cannot get all this done and set up like this
• 18:25
  is just too much, right? Start with projects.
• 18:28
  Just get job costing per project.
• 18:30
  Don't worry about necessarily the cost codes or the expense
• 18:33
  tracking, you know, for individual cost codes or tasks,
• 18:37
  just try to get per project. So at least at the end of the
• 18:40
  project you can see, you know, we estimated $400,000 on this
• 18:43
  project, it cost us 410,000 or 350,000 or whatever.
• 18:48
  So at least you have those two numbers.
• 18:50
  So you can see are you being profitable, are you not being
• 18:52
  profitable? And that is at least you got
• 18:55
  that set up and it's a good start.
• 18:57
  Then from there you can add the expense tracking, the job
• 19:00
  costing, the more you know detailed information that you
• 19:03
  can need from there. So that's a big one.
• 19:05
  The last kind of two pitfalls I'm going to mention here is, is
• 19:08
  giving up. So don't give up on this.
• 19:10
  It is super important. I have rarely if ever seen a
• 19:14
  larger contracting company kind of break free of that maybe 3-4
• 19:18
  million work without proper job costing in place.
• 19:21
  If you want to be serious about growing your company, If you
• 19:23
  want to break free of like that one to 2 million area for like a
• 19:27
  general contractor as far as revenue, where you're doing more
• 19:29
  than just like, you know, a couple of homes or or a handful
• 19:32
  of projects a year, you're going to need job costing in place as
• 19:35
  well as if you ever want to step back from your projects, you
• 19:38
  need job costing in place. What's happening your company
• 19:40
  into to alert you quickly if things are going wrong.
• 19:43
  Because if you take a step back, you're just like hoping things
• 19:46
  will get done and you don't have the acumen to be able to check
• 19:49
  reports and see what's happening on projects.
• 19:51
  It's a recipe for disaster. So if you want to scale up, if
• 19:54
  you want to take a step back from site, this is an important
• 19:57
  step in your journey as a business owner to get this in
• 20:00
  place for your for your business.
• 20:01
  Now, the last one I'm going to mention is this is going to cost
• 20:04
  you. This is going to cost you time
• 20:05
  and it's going to cost you money.
• 20:06
  It's going to cost you if you do it or if you don't do it.
• 20:08
  But realize that getting this set up is not just the software,
• 20:12
  it's not just automations. Yes, it seems like this should
• 20:15
  be something that could be handled through automations, but
• 20:17
  you're going to have to set up a team around this like I
• 20:19
  mentioned, and it's going to take people's time.
• 20:21
  But if you're doing this every day, it's not that bad.
• 20:23
  The problem is people that leave it for like a week or two weeks
• 20:26
  and then they've got to go through like 30 or 100 different
• 20:28
  transactions and categorize them, right?
• 20:30
  This should be like a daily practice, so they in real time
• 20:32
  you can see where your projects are at, but it's gonna take that
• 20:35
  time. It shouldn't be your time.
• 20:36
  It should be your project manager and your admin person,
• 20:38
  your bookkeeper like I mentioned, but it's going to
• 20:40
  take time and you're gonna have to pay those people for it,
• 20:42
  right? So it's going to cost you extra
• 20:43
  money. The small amount of money and
• 20:45
  extra time is going to cost is gonna you're gonna make up for
• 20:48
  it. Like I said, it's going to cost
• 20:49
  you if you do it or if you don't do it.
• 20:50
  So if you don't do it, it's going to cost you by not knowing
• 20:53
  your profitable, not realizing where to focus your energies to
• 20:56
  get, you know, more money and better profits as well as not
• 20:59
  like losing money because you're wasting money in areas that you
• 21:02
  don't even understand. You're sailing your ship blind.
• 21:04
  You're completely in the dark as far as like where do we go over,
• 21:07
  where do we go under all these things.
• 21:08
  So incredibly important to get this in place.
• 21:11
  Kudos to you for taking the time to watch this video and actually
• 21:14
  figure this out. Go get this, go get it set up.
• 21:17
  If you need help, check out the links in the description below.
• 21:19
  We've got a bunch of resource how to systemize your business
• 21:22
  as well as reach out to us if you want specific done for your
• 21:24
  help with this. Love to see you on the next
• 21:26
  video.