So I'm going to start a small company.
Can anyone run down for me the billing process for a service call and, say, a basement reno. contract. ?
invoicing, what gets taxed, how to keep good records, how to deal with income tax, permit process, Anything that can help...
I'm in B.C. Canada
Welcome to ECN, mate.
I think that the Moderator of this area, Doug, would be your best source of info, after all he has been through this before and he is in your part of the world.
Heyyyy....Thanks.
Cool kitty. Are those for catchin fish in the river?
BACK TO BUSINESS!!
Pool8:
welcome to ECN Forums from one of the 'Jersey Guys'!
Dougwells, or one of the other 'North of the border' guys should jump in & try to help you.
I use a flat rate system for resi service calls, and basic circuits. Permits are taken out on BC Online, and my service software does the invoicing and estimates.
I would seriously read "The E myth contractor" by Michael E. Gerber
and "How much should I Charge" from Ellen Rohr.
Cool, thanks. I'm going to order those books tomorrow.
Does getting permits through BC Online differ from getting them through the Safety Authority?
great for getting them instantly. BC hydro needs permit for each service disconnect , the other night had a main breaker replacement i could hand the hydro guy a copy of the declaration before he even pulled the meter.
So BC Online for Electrical Permit AND Hydro Declaration?
Cool. That's a nice easy job for ya. Love those.
hydro declaration still has to be faxed in ,just that we can print the paper work from bc online but hydro stuff need to be faxed in
http://www.bchydro.com/etc/medialib..._Guide_Overhead_Residential_Services.pdfhttp://www.bchydro.com/etc/medialib...ide_Underground_Residential_Services.pdfHydro likes the contractor to call in prior to needed their service, to get a reference number
Thanks for those!
They answer a lot of questions I had.
Thanks for the reference # tip. Makes sense.
Do you send out bills monthly?
Do you do any on-the-spot billing for quick service calls?
most of my work is same day finish , my invoices say Please pay technician today. for some reason sometimes those priority calls are not so priority after a week or so
I would get a google places spot too if your not i the phone book yet.Its is amazing how many customers use their smart phone to search for us.
"for some reason sometimes those priority calls are not so priority after a week or so"
Ya, they kind of melt in where ever they may.
Another good tip, thanks.
Know of any good software for book keeping?
I saw quickbooks contractor in staples... $500 ahhh!!!
I think I am on QB 2006 standred
Cool. I'll try and get a trial version and check it out.
I'm reading E myth contractor. I like it. Different way of looking at things. I'll have to actually go through it with a pencil to get a better grasp on how the thinking will work for me. And look up a whole buncha words.
I'm still waiting on the other one you suggested.
Another question for you, doug, or whoever ever else....
With respect to income tax, do you put a percentage (30% or whatever) aside every job? Say into a high interest account?
well, if you're lucky enough pool....
a few simple things i would suggest
1)talk to your local peers, they are in fact your best allies
2) get a good accountant, spend a few $$$ on him/her to just sit and talk about your biz structure, biz plan
and good luck, times aren't what they used to be...
~S~
Sound advice from the sage in the north country...heed the part about the accountant.
QB is a great program...but, you (YOU) have to invest the time to 'learn' it. It's very easy, once you set it up. Including payroll!
Local conditions are critical.
Out my way the veterans are folding their tents and calling it quits.
The very established firms are laying off right and left.
New hires are expected to under-cut the current troops by 30% to 50% -- if you believe the ads.
Folks, we're coming off of the largest building bubble in the history of the planet. That means something.
The first thing it means is that profits and wages in our profession are being hammered across the board.
It means that there is a vast over supply of talent and tools.
It means that even when bidding government work there is no profit to be had.
As bad as it is for us...
We're not alone: real estate trading commissions have fallen 80%.
Obama took the government spending and used it to support schools, hospitals, government pension plans at the state level -- and generally spent the money on women -- per Reich's request. He did not shower it on the construction trades -- you would've noticed if he did.
So what happened in the Great Depression WRT the trades/ construction is not on offer.
We're probably looking at another massive slump downward.
Money printing = hyperinflation.
Right now the government is printing 40% to 50% of the money it spends. Without exception such policies drive the currency downward until a shift in public behavior causes currency revulsion. Then the second phase of hyperinflation kicks in: fantastic price movements -- which is why it is so named.
Hyperinflation is NOT inflation. It's a whole 'nother beast. When it's over the government will have eliminated its debts across the board. Anyone holding credit investments gets flat-lined.
The flipping point traditionally has been triggered by foreign traders. They stop accepting the currency. Next, all of the overseas currency comes back to the issuer in a flood.
What it means to us small guys: don't get caught extending credit.
I talked about this before but there is one thriving business out there ... Gates!
The people who didn't lose their butts in the recession want to live behind gates and they break a lot.
The gate company who hired away my wife's assistant is still growing and it is a pretty lucrative field. The assistant now makes well over $50k and he is just a kid.
I have never been a contractor so take my advice with a grain of salt. I have seen a lot of contractors make the same mistake. The were and are good electricians but typically lousy business men.
First thing you need to know is how much does it cost to make my expenses each day. It cost you money to make money.
Include everything that does not earn or is billable and this includes the time you spend here. Start your retirement plan the day you open or you will never retire.
Set your rates based on cost + profit + exit strategy + your cost to the company including feeding your family.
A contracting business is worth what ever depreciated assetts you have. Sell all your materials, trucks and customer lists and you will retire for a month. I had opportunity to buy in to the company I was working for with 3 other partners. I instead took a job with the municipality i work for now. The 3 remaining guys paid about $40,000 for a million dollar business. The owner took the cash money for his retirement or about $600,000. The three guys bought the physical assets, current contracts and the book keeper was hired by the new owners. They got a lot of old materials, old trucks and a great reputation. In addition to the 40 K they had to buy bonding insurance to service the customer base. No one was allowed to take a penny from the company beyond agreed upon wages until the company paid the purchase and was able to increase their bonding to allow about A million dollars work.
shortly after the accountant allowed a dividend the company suffered a huge loss and had an outstanding bill of near $90,0000. So back to no dividends.
They are still in business and recovered in short order from that unpaid bill.
I think they are doing fine but it required a good plan, discipline and good luck.
Once you make your plan test it constantly and adjust to meet it. Find the office work is overwhelming, you might need help. Office help is a cost and places demands on you to earn more to pay it.
Be darn careful about carrying employees too long in lean times. Yes loosing a good employee can set you back but construction is like that. I might also add don't buy work, it will ruin your plans and set you back often further than if you laid a guy or two off. This will be a hard one every time you have to do it because it generally means you are putting the tools on.
Good luck
How not to love this forum...
chears