A lot of restoration companies refer to “return on investment” as the amount of money they made on a specific job after all expenses were paid. While this is a great way to report on profitability at the job level, it’s a good idea to go a bit further and determine where your company is spending good dollars and bad dollars in terms of marketing, time, and division. By integrating your restoration management software with your accounting software, you’re able to determine the ROI for referral sources, marketing campaigns, employees, etc.
Know which division is paying your bills:
If you were asked to run a report of your gross profit on mitigation jobs in August that were a referred by ABC property management vs. reconstruction jobs in September that were referred by your General Manager’s Grandmother, could you? If the answer is no, you are not alone. Many restoration contractors have a very broad view of their companies’ financial stability and are not sure which division could use a little work.
Know who is sending you your jobs:
I’m sure you would agree that there is no such thing as a job without a referral source. Do you have any safeguards in place that will alert you when a job is entered into your system without a referral source? Maybe you can report on the number of jobs that each referral source has sent you MTD, QTD, and YTD. Can you break those numbers down further and determine if they are sending you quality jobs? How large are the jobs? What is the GP of each job? How much money are you spending on this person and how much are you getting back? If you’re not answering positively to all of these questions, your business could be much more profitable that it is now.
Know the power of data and the ability to accurately report on it:
We are in an age of information and many large companies have realized the power of data. If we only knew what we know now, we’d start a company in our garage based on data and name it something silly like Google.
It’s never too late to get with the program, start using data to properly manage your business, and gain some foresight into what the future holds for your company. Restoration Management software solutions like DASH allow you to accurately report on data with a variety of built in reports and its custom report builder. This functionality coupled with the integration with many accounting software packages makes DASH a very powerful tool for all restoration contractors.