Running a contracting business has its own challenges. We wanted you to be mindful of a few mistakes that you or your business could be making. Check them out below:
1. Failing to Write-Off Business Expenses
You're allowed to deduct reasonable expenses incurred to earn your business income, such as interest paid, memberships, wages and benefits of employees, fuel costs, etc. when you file your taxes. Be sure to do so this tax season! Now we don’t have anything against big-box tax filing companies, however, you might be surprised how much money you could save by hiring an accountant that’s familiar with your industry.
2. Forgetting to Track Expenses
You need to be aware of where you’re spending money and evaluate where you can reduce it. You could use a free mobile expense tracker to manage all your expenses in one place. Tools like this could help you figure out your major expenses, such as tools and parts purchased, so you can determine if you’re overspending or not. You can even use it for your taxes! Let’s be honest, storing all your receipts and then figuring out your expenses when it’s time to file taxes just causes stress and wastes time. Instead, use an app like QuickBooks or Expensify to track your expenses as you incur them! Plus, if you wait until the end of the year to know whether you’re overspending or not really isn’t a good idea…the sooner you can react to your financials the better the chances are that your business will succeed.
3. Avoiding Technology
New business owners may be hesitant to incorporate technology they may not know how to use. Many contracting businesses, for example, don’t have the best websites or social media presence. There are tonnes of free online resources to help you figure out how to do these things on your own, and I almost guarantee most of you are saying the same thing “I don’t have time right now”, well, unfortunately, if you want to make your life easier and your business grow faster, you have to do these things. And if you’re still not sure what you should do or how you should do it, send us an email and we’ll make some recommendations.
4. Incentivizing Employees
Your highest performers typically are competent and always highly motivated. While some people don’t usually need to be incentivized to do their jobs, they might need incentives to not seek out better opportunities. There are all kinds of ways to incentivize employees and the path you choose is important to the culture and success of your business. We recommend researching this thoroughly before making a decision. In the meantime, an easy way to incentivize them with no expense to you is to let them purchase parts and materials with a corporate card that offers them points or let them make purchases through Phyxter and they’ll get 1% back in points. That’s an easy way to not only please them but also to incentivize them to try and sell more products for you.
5. Not Using Phyxter!
Phyxter is a free app that can help you become more productive and save your company money! By using Phyxter to help you find the products you need and to get competitive quotes from nearby wholesalers, you can gain a lot of benefits for yourself and your company! Plus, if the wholesaler processes your payment through Phyxter you’ll get 1% back in points!
If you ever have questions or would like help with your business, make sure to join our Business Group on Facebook.