FINANCE AND ACCOUNTING
FOR THE CONTRACTOR
An Intensive Four Day Workshop Designed
Specifically for the HVAC Industry
For managers,
business owners, and technicians with non-financial backgrounds – learn the
financial jargon, standard practices, and every day application of accounting
and financial analysis.
T
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o successfully operate a
really great company you need to be able to recognize and decipher numbers from
your balance sheet and profit/loss statement.
This seminar will teach you how to use your own financial documents as
tools for better management.
We will be critiquing
financials, discussing pricing strategies, as well as controlling overhead,
budgeting, cash flow, breakeven analyses, profit centers, creating compensation
plans, and improving the efficiency of your service department.
This seminar will teach you how to
get another $7-$10K profit per field employee in the HVAC business. That’s great news for any business! Consider your time well spent in this
seminar as an investment since it will more than pay for itself!
You’ll
evaluate your business in class and compare it to industry norms and trends.
We’ll also design specific strategies in marketing, cost control, pricing and
selling to maximize your profits.
Be sure to bring last year’s financial documents (Profit
& Loss Statement and Balance Sheet), as well as current ones. You’ll also need a good calculator, and lots
of paper to plan your strategies for success.
Please note that this four-day class can be broken up over
several periods. Many distributors conduct two meetings, two consecutive days
over two months. You may also consider one day per month for four months.
FINANCE AND ACCOUNTING FOR THE HVAC DEALER
Please note that
this four-day class can be broken up over several periods. Many distributors
conduct two meetings, two consecutive days over two months. You may also
consider one day per month for four months.
DAY ONE
PROFIT IS AN
ATTITUDE
Characteristics of Attitudes
Industry Profitability Statistics, A Sad Story
Why HVAC Business Fail And How to Prevent It
BALANCE SHEET
MANAGEMENT
The Accounting Equation
The Chart of Accounts
Assets and Liabilities
BALANCE SHEET
RATIOS AND MEASURES
Current Ratio
Acid Test Ratio
Working Capital
Total Liabilities to Net Worth Ratio
Current Assets to Total Assets Ratio
Degree of Fixed Asset Newness
DAY TWO
THE
INCOME STATEMENT
Cash vs. Accrual Accounting
Accounting For Jobs in Progress
Billings Basis of Accounting
Percentage Completion Basis
Completed Contract Method
Account Classification
Efficiency Analysis
Cash Conversion
Average Age of Accounts Receivable
Average Age of Costs in Excess of Billings
Cash Conversion Period
Average Age of Accounts Payable
Average Age of Billings in Excess of Costs and Estimated Earnings
Cash Demand Period
Profitability Ratio Analysis
Sales Performance
Gross Profit Margin
Net Profit Margin
WORKING CAPITAL
MANAGEMENT
Working With Solvency Ratios
The Problem of Too Much Working Capital
The Problem of Insufficient Working Capital
How to Increase Your Working Capital
Sources of Capital
Leasing Vs. Purchasing
Working Capital Quiz
DAY THREE
CASH FLOW ANALYSIS
The Cash Flow Cycle
Cash Conversion Period
Working With Efficiency Ratios
Projecting Cash Flow
Budgeting and cash Flow Planning
Credit and Collections
21 Ideas To Increase Cash Flow
VARIABLE MARGIN
DECISION MAKING
The Cost Structure
Separating the Costs
Determining Break Even Sales
Effects on Break Even
Changing the Volume of Work
Changing the Price
Fixed Costs and Profit
Variable Costs and Profit
Multiple Changes
Quiz
DAY FOUR
BUDGETING AND
FORECASTING
The Operating Budget
Techniques for Budgeting the Income Statement
Budgeting for Return on Investment (ROI)
INCREASING FIELD
PRODUCTIVITY
Technician Compensation Plans
Inventory Management
Reducing Warranty and Callbacks
Computerization
Flat Rate Pricing
SUMMATION
Small Business Financial Status Checklist
Where to Go From Here
