In the December 2017 Snapshot Survey, we asked contractors all about financial structure to get an idea of what's working in the industry and what's not. Here's one survey question and its results from the summary report.
Question: Does your company have a detailed annual budget?
The annual budget is a centerpiece of nearly any company, including those in home services. Yet just 58% of surveyed companies have one, against 42% that do not.
While some startup contracting companies backburner things like annual budgets because they think their company is too small or too new to need one, the truth is that a detailed budget is always important. It will help add stability and financial security to a company; making scheduling overhead and variable costs much simpler and more predictable; it will more clearly layout organizational structure; and, among other things, it will make profitability and success far more likely.
Simply put, 100% of companies should have a detailed annual budget – and ideally one that’s broken down by department.
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