Management: When Will a New Construction Business Start Seeing Profit?

Having a proactive accountant can help significantly.

February 02, 2015

A popular theory is that “it takes a business three to five years before it profits.” Does this apply to the remodeling and construction industry too? Shawn McCadden shares his thoughts.

“The answer depends on how you define profit,” McCadden says. It isn’t only defined by how much money is left in the bank at the end of the year. “I suggest as the business owner you can view it any way you want, but the government will still be taxing you and your business,” he adds.

So giving enough attention to these tax considerations is important, as well as how much you charge for your services to pay off the investments you have made – such as equipment, marketing materials, and so on.

 “That said, there are a lot of great reasons to have a proactive accountant helping you and your business,” McCadden says, “instead of a historian-type accountant who only files your taxes for you when everything is already said and done for the year.”

Read more on The Design/Builder’s Blog.

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