The danger of taking money from one job to another

We have been in the reform plan since 2012. with our service to help reformers and architects find 100% filtered customers. It’s long enough to see how many reformers have problems with their businesses and they keep opening and closing business because they go bankrupt. And they have to start over each time. Unsurprisingly, the majority of home improvement companies are not even 2 years old.


Are they bad professionals? Not necessarily. We have little education about finances (but about the situation of rivers, something really useful for everyday life). Either we learn to solve complex mathematical equations, although most of the calculations consist of adding and subtracting the tax borne and carried over, or we take into account income tax.

In fact, the biggest cash flow problem with any home improvement store is having you. Multitasking or self-employed. You are sure machinery what you have to do for everything: Taking customers, visiting, budgeting, selling, buying equipment, negotiating with suppliers, and most importantly, controlling taxes, which is not easy or intuitive. After all, it’s a mess that often leads you to ignore how much money you have in the bank.

Short term vision: the big problem

The main problem is that the only thing you control is how much money do you have in the bank todayregardless of the fact that within 10 days you receive VAT or payments for card purchases made in the last month.

The second problem is to think that your accountant controls your cash flow, your cash i.e. the money you have in the bank now, and it is more serious to believe that cash will control you in the future and will warn you. Don’t make mistakes Unless you have specifically requested this service, an accountant will only enter invoices into the accounting system VAT calculation and tax return. The sooner you realize this and roll up your sleeves (yes, unfortunately you have to roll that up too), the better you will be.

Therefore, you should check the following:

  • The actual profit margin on each job. When you have your budget approved, revise it. Report the actual cost of purchasing the materials. It is a common mistake that sometimes we have to buy more materials (which we can use for other jobs but now have to pay for). And we increase the costs in the short term and thus the money (hence the importance of always having a mattress).
  • TVA, that great ally who always RESERVES us. We should never think about VAT. Value-added tax is a tax that the end customer actually pays because entrepreneurs and the self-employed can deduct it. We also can’t rely on it when we present it through sales. VAT is usually the main problem with debiting the treasury (my God, I’m in the red this month). VAT is money that comes and goes and should therefore never be taken into account. Some of them have a bank account on which they introduce sales tax, but of course they must also receive sales tax from there if they are strict Either way, you need to keep this under very good control, or by fine Excel, or with an accounting program that allows you to do this.
  • You have mastered the real cost of labor. Never let market prices guide you alone. In this article we explain how to correctly distribute all direct and indirect costs on the one hand. Then you have to be realistic and know how long it takes to get something done. Otherwise, you might work, and you work, and in fact, the more you work, the more money you lose, and you don’t even know why. Your hourly rate is not just your salary or that of your employees. It’s your office, your food, your car maintenance, etc. In this article on calculating labor costs, we’ll explain this in more detail.
  • Labor insurance. There are insurance policies that cover damage during the service; Mistakes that would otherwise eat up your profit margin. When you make this investment, you can sleep more soundly.
  • Cheap mattress if an order gets out of hand for any reason. You have to set a fixed salary that you can use in gfa. impose

If you check these points, You will see that there is no need to withdraw the money from the advance of a work. Keep in mind that this is very dangerous as any job should be self-sufficient and give you benefits when you factor in your target fixed salary.

Do it properly allows you to live with less stressShe should work fewer hours and not run « like a headless chicken ». Keep in mind that all of this can even cause you to break up with your partner (quite common in the health care industry) or suffer from insomnia and anxiety. Does that sound familiar to you? Wouldn’t you like to live more peacefully?