Are You Using Your Financials Like a CPA Would?

"The advantage of connecting with a contractor in a different area of the country is you aren't competing and you aren't going to be stepping on each other's toes, so there really should be no reluctance on either part to reveal or discuss information," Green says.

Green and Carr stress that collecting, organizing, and analyzing a contractor's financials is an essential step toward a thriving, growing, and profitable business. Financials provide the detail contractors need to make the best decisions for the profitability of their operation. But by collecting them you can determine if there has been a change in what it costs your company to do business—or possibly what you are charging for your work. By identifying these changes you can better determine how to react to your market to improve your business and, ultimately, your bottom line.