Thursday 27 February 2020

Track the Kinds and Sources of Money Your Business Earns
Track the Kinds and Sources of Money Your Business Earns

Posted by at 10:32 AM

Track the Kinds and Sources of Money Your Business Earns

It's important that you track the KINDS of money you make.

  • Water Mitigation Money
  • Mold Remediation Money
  • Fire Cleanup Money
  • Rebuild Money

Track your KINDS of money gives an accurate picture of how you are doing. This is essential information regarding your overall sales and marketing health.

Also, track the SOURCES of the money you make.

  • TPAs
  • Agents
  • Internet
  • Plumbers

How are your SOURCES producing? Is one Source delivering more or less than before, and what is causing that?

In Quickbooks, your Profit & Loss Income accounts should look like this:

  • Water Mitigation
  • TPAs
  • Agents
  • Internet
  • Plumbers
  • Rebuild
  • TPAs
  • Agents
  • Internet
  • Plumbers

Income should be booked by it's Kind, and it's Source. You should know at a glance how well each Kind of work and each Source of work is performing for your business.

If a Kind is underperforming, you can more easily determine which Source is the problem. If you are growing in a Kind of revenue, the Sources will tell you where and why.

As always, do less of what harms you and more of what helps you. But first, you have to determine which is which.