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The Ultimate Wire Hider
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4,455 Posts
Plenty of good answers so far but I gotta chime in with the not-so-obvious answer here..

If your husband is in charge of the business, and this is how he chooses to do business, and he is perfectly OK with doing things this way, I don't know if you can come here to find a solution to something that your husband does not see as being a problem.

Please forgive me if I'm off base and I'm understanding the situation wrong but it seems like you have some degree of success with an unconventional way of doing business. Be thankful that you have good credit. Be even more thankful that you can pay the bill at the end of the month. And if your way of doing business is creating the ability for you to stockpile cash, don't try to fix anything that isn't broken. I'm not negating that there is a better way that you could be doing business but you have some "good" problems that a lot of us on here wish we had.

IMHO the best thing that you can do is hire a business consultant who can look at your day-to-day dealings and transactions.
 

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271 Posts
You'll be out of business next year. He needs to start job searching.

I've seen so many people do this and it ends up the same way. They run the ragged edge and forget that life happens, then when the sales tax and income tax man hit them with a monster bill and they owe estimated taxes now as well and have to start doing monthly payments on some of these, they just fold up. They forgot to save 40% for the tax man.

You need a war chest in your bank account big enough to cover your expenses for at least a couple of months and a major tax hit. How much that is depends on your business. It sounds to me that is probably on the order of $50k for you.

At least half of your profit should stay in the bank until you have a good war chest.
 

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Wood Craftsman
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7,324 Posts
You'll be out of business next year. He needs to start job searching.

I've seen so many people do this and it ends up the same way. They run the ragged edge and forget that life happens, then when the sales tax and income tax man hit them with a monster bill and they owe estimated taxes now as well and have to start doing monthly payments on some of these, they just fold up. They forgot to save 40% for the tax man.

You need a war chest in your bank account big enough to cover your expenses for at least a couple of months and a major tax hit. How much that is depends on your business. It sounds to me that is probably on the order of $50k for you.

At least half of your profit should stay in the bank until you have a good war chest.


In a perfect world.....:rolleyes:


Why is it everyone wants to stamp an answer......:blink:


There is none........:blink:


What I DONT like the way the question was worded is....

The important aspect of our business is our clients.....


Where do you fall.....A - all the way down to fill in the blank, pick your letter......:laughing:


We live a roller coaster ride.......and there are so many factors that go into the ride.........


Most important (IMO),.....Who are your clients.... :blink:



If your not charging "what your goal is",.....constantly,,,,all your worried about is keeping the Schedual full....so....
Maybe,...move up a notch.......test the waters.....:blink:

There are so many variables.......:rolleyes:



That's why I say forget answering this thread....


There is no "logical" answer.....



JMPOV,....
 

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5,855 Posts
I don't think there is a "one way works for everyone" rule.

You said you not incurring any debt and your only complaint is that you want to be better organized in regard to accounting. You have two options and two options only: learn accounting or hire someone.

There is nothing wrong with taking a few night classes about accounting and business.

My wife is too busy with everything else to be involved with my business. Your husband is very lucky to have you add his office manager. Don't screw it up. lol

You can also try Accounting for Dummies book. I bought a couple. I even have some on my iPod and listen while I drive. But, accounting needs more "hands on" than listening.
 

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Wood Craftsman
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7,324 Posts
My solution to this troll....


Max out your credit, have a fling with your accountant....enjoy life.....





:rolleyes:




Trolls....


" someone on the internet told me to do this"......


:rolleyes:



Some people ....:rolleyes:,...
 

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This space for lease
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5,323 Posts
I've been in business for 27+ years and don't have any business plan more complicated than spend less than you make. I did lease a piece of equipment once but it payed for itself, then some. You might need to start out with smaller jobs and move up instead of jumping in the deep end right away.
 

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2,745 Posts
rangoWA, Imagine if you had a B. plan at year ten, say it helped you net 15 % more a year....You'd be retired contractor sharing instead of a working one sharing.:thumbsup:

I would not build a dog house without a Blue Print--why would we try to earn a couple of Million dollars without a game plan/strategy???
 

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This space for lease
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5,323 Posts
rangoWA, Imagine if you had a B. plan at year ten, say it helped you net 15 % more a year....You'd be retired contractor sharing instead of a working one sharing.:thumbsup:

I would not build a dog house without a Blue Print--why would we try to earn a couple of Million dollars without a game plan/strategy???
When I figure out a way to make more money that's what I do. I don't need a spread sheet to tell me if it's working or not. That works for my one/two man operation but I realize the bigger the company the more facts and figures you need. That said, I think many companies these days are run by bean counters and focus less on the product/service.
 
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