194 - Why Your Financials Aren't Accurate (And Why It's Setting Your Business Back) with Jason Kruger

Feb 8

As a business owner, do you often ask - 'Where is all my cash?' Our guest Jason Kruger, President & Founder at Signature Analytics, addresses common issues in financial management for construction companies in our latest podcast. Don't miss his valuable insights!

Time Stamps

00:41 - Episode & Guest Introduction
01:46 - Understanding Financials in Construction
03:25 - Importance of Accurate Financials
05:53 - Common Pitfalls in Financial Tracking
10:11 - The Role of WIP Reports in Construction Accounting
15:01 - Challenges in Keeping Track of WIP
16:26 - Maximizing Margins
19:58 - Understanding WIP Reports
26:33 - Handling Customer Cash Deposits
30:52 - Handling Cash Deposits in Home Building
33:17 - The Process of Closing Out a Project
35:01 - Strategies for Better Cash Management
42:25 - The Challenges of Managing Inventory
50:33 - The Importance of Good Financials for Business Growth
53:53 - Conclusion
54:26 - How to Get in Touch with Jason Kruger

Quotable Moments from the Show

"I look at the WIP report in the construction industry as the Bible, or the source of truth, of really what's happening with your business. If you don't have anything else, you can run your business pretty fairly effectively, and understand your jobs and your job costing with a WIP report. And the WIP report is really what helps you, to define and develop accrual-based financials." - Jason Kruger
"I talk to business owners all the time and they're all revenue, revenue, revenue. And that's great. And a lot of it depends on what your ultimate goals are, how your business might be valued, those types of things. But the key is to run a profitable business if you can as well. And if you can squeak out an additional percentage point in the margin or even more than that, uh, that allows you to reinvest back in the business if you want to, allows you to take home more cash as a business owner if you want to. Um, it makes a big, big difference." - Jason Kruger
"Deposits are, basically a liability, because you haven't earned that cash yet. It's not appropriate to be calling that revenue until you've really earned that by performing the job." - Jason Kruger
"Good books accurately reflected that show your margins and other information, an accurate balance sheet enables you, Mr. Business, Mrs. Business owner, to make good decisions about managing your business. Without them, you can't, you do not have the information to make good decisions, so it's critical." - Martin Holland

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194 - Why Your Financials Aren't Accurate (And Why It's Setting Your Business Back) with Jason Kruger

195 - Buy Back Your Time!

193 - Managing Project Workflow: Keys to Keeping Jobs on Time