Contractor MomentumARTICLES

As an HVAC contractor, your service may be stellar, but are your company’s finances equally good? If not, your accounting practices may be sabotaging your business.  Knowing how to identify the top bookkeeping errors HVAC contractors make, like mixing business and personal expenses, miscalculating job costs, not monitoring cash flow, payroll mistakes, and not paying regular attention to financial disciplines, ...

We’d all like to keep more of our hard-earned money at the end of a financial year. However, tax planning can be complex and tedious for many HVAC contractors. By implementing proactive tax planning strategies, you can prepare for the future and improve your financial position. HVAC contractors’ best tax planning strategies include maximizing deductions, utilizing refundable tax credits, planning ...

Any plumbing company that wants to succeed must be able to turn current clients into repeat customers. Although increasing customer retention can be difficult, there are techniques you can do to increase sales and your level of success. Plumbers use customer retention techniques to increase revenue and build a strong customer following. Improving repeat business from customers requires personalized services, ...

If you own a plumbing business, you probably started out as a plumber and a good one. That resulted in more and more work coming in. Now you’re a business owner, manager, employer, and administrator, and you may not have the skills or strategies to enhance service efficiency.  Practical strategies to enhance plumbing service efficiency revolve around three areas: the ...

Chances are that if you’re an HVAC contractor, bookkeeping may not be your passion, but as a business owner, you need a squeaky-clean set of books to keep your company profitable. Learn the best practices and tools for streamlining HVAC bookkeeping and watch your business soar! The best HVAC bookkeeping practices include updating the books regularly, checking your financial statements, ...

Many contractors find managing the financial aspects of each project challenging and fail to allocate correct pricing for their projects. Understanding job costing for HVAC and plumbing contractors is fundamental to staying competitive and maintaining a healthy profit margin. The fundamentals of job costing are similar in the HVAC and plumbing industries. Two specific price models exist, hourly rate and ...

Benjamin Franklin said, “In this world nothing can be said to be certain, except death and taxes.” That is an unfortunate reality, and even businesses in the HVAC industry must manage their tax liabilities wisely to avoid financial struggles. But how can they do so effectively?  Taxes can be complex in the HVAC industry. However, businesses can manage it through ...

Tim Stobierski from Harvard Business School mentions that there are two basic ways to improve profit margins: increasing revenue (by selling more) and decreasing costs. Reducing COGS (“Cost of Goods Sold”) is a popular way to help improve profit margins, but will it be helpful in a plumbing business, and how can you use it? You can lower your plumbing ...

In the competitive landscape of the HVAC industry, maintaining robust financial health isn’t just a best practice—it’s a necessity for survival and growth. The financial foundation of an HVAC business influences everything from daily operations to long-term strategic planning. Recognizing and regularly reviewing financial vital signs can help business owners preempt issues, optimize performance, and secure the financial resilience needed ...

Effective management of accounts receivable (AR) is crucial for maintaining robust cash flow and financial stability within the construction industry. Given the standard practice of extended payment terms and the complexity of project-based billing, managing AR efficiently ensures that a business can cover its operational costs while safeguarding against the unpredictability of payment inflows. This blog post explores advanced strategies ...

In the competitive world of plumbing, staying on top of your financial metrics is crucial to running a successful business. By understanding and tracking key financial indicators, you can make informed decisions that drive growth, improve efficiency, and increase profitability. The plumbing industry is evolving rapidly, with the plumbing fixtures market alone growing from $91.68 billion in 2022 to $98.16 ...

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