Budgeting in QuickBooks Online (QBO) and in GG Pro offer two approaches to setting goals that we can evaluate throughout the season. Both budgeting methods offer benefits, and this month’s article will help you decide which works best for your business.
“Goals allow you to control the direction of change in your favor.” – Brian Tracy
This year began with a heavy snow season that put many of you behind on spring cleanups and getting the maintenance started. The shortage of qualified labor was a challenge that made it difficult to service new and existing customers. Hurricane Florence led to record-setting rainfall in the East that made it impossible to keep up with maintenance and project work. Weather conditions, labor problems, and other changes affect us and our competitors in the same ways. How can we give ourselves an advantage in times of certain change? Budgeting is one powerful tool that we can use to create a roadmap; monitor our progress; and adjust our course throughout the year to influence change in our favor.
Budgeting in QBO and GGPro both offer these benefits:
- Set targets for revenue, COGS, fixed expenses, gross margins, and net margins.
- Determine operational priorities such as improving efficiency; reducing material costs; or growing revenues in specific service lines.
- Review budgeted versus actual results and make operational corrections to stay on course.
- Have peace of mind that hitting your goals daily, weekly, and monthly will lead to a profitable year.
Budgeting in QBO allows you to plan revenue and cost projections by month and compare budgeted versus actual results in a timely fashion. Comparing your numbers with industry benchmarks helps you spot trends that indicate if you are on pace to hit your goals or need to make operational changes. Evaluating the budget each month is critical, so you can make timely decisions.
Budgeting in GGPro provides the basis of accurate estimating. It includes all revenue, COGS, fixed expenses, debt service, and owner withdrawal projections.
GG Pro allows franchisees to become effective managers of employee productivity while improving their ability to accurately estimate jobs. The Mobile App is a simple tool crew leaders can use in the field to track employee hours worked, indirect time, and materials used for projects. Franchisees are using this information to improve profitability in three major ways:
- Reduce indirect time from 30% to less than 20% within weeks of implementation.
- Adjust labor hour projections for future estimates based on past employee performance. This ensures franchisees will be better positioned to complete profitable work at competitive price points.
- Hold employees accountable to minimize indirect time.
- Use the Crew Daily Report to compare budgeted versus actual time per visit and adjust schedules as necessary to complete maintenance and project work.
The IT Department and Home Office are creating training webinars and videos to help franchisees learn GG Pro Time and Mobile App. Franchise Consultants will send invitations to these webinars and franchisees will be able to access training through Fran Connect.
Please contact your Franchise Consultant to learn how you can fully utilize these GGPro tools to set yourself up for a profitable 2019.