With the midway point of 2019 fast approaching, it is an important time for companies to review their mid-year performance. For many remodelers, the early months of 2019 followed the trends observed over the past few years: lots of leads, jobs, and growth. Judith Miller of Remodelers Advantage shares several important financial areas to review at the year's midpoint to help analyze the results from the first half of the year and plan for better performance in the second half.
- First, make sure your balance sheet is right on June 30—when the balance sheet numbers are correct, the profit/loss bottom line is correct to the penny, even if some income/expense has been mis-coded.
- Make your WIP (over/under billings) calculation correct for the end of June—if applicable.
- Review your profit/loss actual against your budget for the six months on a line item basis. Don’t only look at the bottom line; you have to know all the details.
- Recast your budget for the next six months, using what you’ve learned through the analysis in the second step. This is your opportunity to assure yourself of year-end profitability.
- Look at job costs reports for a few standard, representational jobs you’ve completed during the first six months. Again, review line item details to make your estimating more accurate for the jobs in the bidding process now.
- Last, but certainly not least, measure customer satisfaction in detail to make sure that your rating is high and stable.