If you are starting a plumbing business or already own a plumbing company that you’re looking to help grow and make more efficient, one of the best places to start is with the finances. In order to improve cash flow, you need to establish cost controls. A business prepaid card can be very helpful in this process. All purchases made on cards are recorded and this information can be pulled into useful reports. Here are some ways to use that information to become more profitable:
Create a detailed budget – Look over expenses to find recurring costs, whether they are fixed or variable. By looking at the expenditures from the last year, you can make estimates and come up with a reliable budget. How much to do you spend on pipes and fixtures? What about travel expenses? Knowing this lets you plan ahead and gives you the information you need when looking for ways to trim costs.
Find the outliers –
Using your card transaction history, analyze your expenses by type to see when supplies have cost more or less than expected. For instance, if you see that plumbing supplies like valves and fittings cost more on one side of town than the other, it may be worthwhile to purchase items at the cheaper store and bring them to job sites near the more expensive store.
Keep good books –
While you are focused on building a client base and completing plumbing jobs, it can be difficult to also devote the time to accurate bookkeeping. However, lapses in bookkeeping now can cost you money at tax time. When you use a business pre paid card all the purchases are automatically recorded, so you can easily have complete accounting records.
Toffer Grant is PEX's Founder and CEO. He founded PEX in 2006 as a prepaid card solution for small businesses. His background in the prepaid industry began at Clarity Payment Solutions, where he initiated 65 prepaid card programs in consumer, corporate, and emerging verticals of the prepaid card industry.