I've only been in business (legally, with local business tax license, c-10 license, FEID, etc) since Dec. '10, and Im having a hard time getting into a comfortable groove with handling money after the job is done. I have one guy working for me now, so suffice it to say, I'm small scale, for now.
My wife and I have no business experience and to be honest are pretty bad with (personal) money management. I'm doing much better with my business (sole prop.), using quickbooks, keeping track of all expenses, etc. However, right now I am making less than when I worked for a larger company. Thats ok though, for now, because even in this crap economy in the most business unfriendly state in the country, i am still making a profit.
So, here's how I do it. I take the total income from a job, subtract materials and labor, and then owner draw 60% of the remaining amount. So, on a $1,000 job, with $250 in labor and material, I pay us $450 of the remaining $750.
How do you guys do it? Am I way off?
My wife and I have no business experience and to be honest are pretty bad with (personal) money management. I'm doing much better with my business (sole prop.), using quickbooks, keeping track of all expenses, etc. However, right now I am making less than when I worked for a larger company. Thats ok though, for now, because even in this crap economy in the most business unfriendly state in the country, i am still making a profit.
So, here's how I do it. I take the total income from a job, subtract materials and labor, and then owner draw 60% of the remaining amount. So, on a $1,000 job, with $250 in labor and material, I pay us $450 of the remaining $750.
How do you guys do it? Am I way off?