Over my many years in the field service industry, I’ve learned that the way you look at your numbers can really make or break you and managing the finances of a retail business is nothing short of a balancing act. This is because you’re not just ringing up sales; you’re also tracking inventory, managing vendors, […]
Quick Answer In virtually all standard bookkeeping and accounting frameworks, land is classified as a non-current asset, specifically as a fixed asset or property, plant, and equipment (PP&E), NOT a current asset. I know when you’re running a field service business, your mind is on the next call, the technician in the field, and the […]
In my 27 years navigating the trenches of this industry, from turning a wrench to consulting for hundreds of contractors, I’ve seen a clear dividing line. A line that separates the companies that lurch from season to season, hostage to the weather and the next breakdown call, from those that command their destiny, grow steadily, […]
As a long-time HVAC industry consultant, I’ve helped countless companies grow and become more successful. Along the way, I’ve experienced both wins and setbacks, each one shaping the advice I share today. In this article, I’ve done my best to condense the value of a full one-year consulting program into just a few thousand words. […]
Quick Answer: What is Unearned Revenue? At its core, unearned revenue (also known as deferred revenue) is simple: it’s money you have received from a customer for a service you have not yet performed or a product you have not yet delivered. Think of it as a prepayment. In this article, we’ll tackle what unearned […]
Quick Answer The definitive answer is no: equipment is NOT a current asset. It’s classified as a non-current asset, specifically a fixed asset, on your balance sheet. But here’s the real question: why? Let me be blunt. If you’re running an HVAC, plumbing, or electrical business and you don’t understand the why, you’re flying blind. […]
Quick Answer: What is Accumulated Depreciation? Accumulated depreciation is the total amount of an asset’s value that has been used up over time. It shows how much wear and tear an asset has gone through since you bought it. This amount builds up year after year and helps reduce the asset’s value on your balance […]
So, What’s with Those Negative Numbers? If you’ve ever looked at a balance sheet and wondered why there’s a negative number under “Assets”, or why some accounts seem to contradict themselves, you’re probably staring at what’s known as a contra account. As an owner or manager of a field service business, knowing how contra accounts […]
Quick Answer Simply put, to calculate cost per hire, you’ll need to divide your internal and external recruiting costs by your total number of hires within a given timeframe. The formula is simple: Now, Let’s Break It Down Now that we’ve uncovered the mystery of how to calculate your cost per hire, let’s delve into […]
Quick Answer Yes, depreciation is an operating expense. While not directly reducing your bank account, it does impact your profits. Classifying depreciation as an operating expense allows you to match revenue generated by an asset with its related expense, providing a clear picture of your business’s true profitability. Depreciation is one of those accounting concepts […]
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