Ryan Otto recently joined Paul Samman, host of the Business Success Tips podcast and founder of Contractor Staffing Source, for a practical conversation about what contractors and small business owners get wrong with their finances and how to fix it.
The Three Things Accent Does
Ryan broke it down simply: Accent Financial Services focuses on three major areas for small business owners:
- Accounting work - day-to-day financial operations and reporting
- Business support work - fractional CFO services, business advisory, and growth strategy
- Tax work - tax preparation and proactive tax strategy
The goal is to be a one-stop shop, helping business owners from the moment they start their company all the way through scaling it.
The Problem Most Contractors Share
Paul highlighted a pattern he sees constantly: contractors hire a cheap bookkeeper who does not understand construction. They see their accountant once a year at tax time and are shocked by what they owe. They have no weekly or monthly tracking, and they cannot tell which jobs are making money and which ones are losing it.
Ryan confirmed this is not just a contractor problem, it is a small business problem across the board. Business owners get so wrapped up in running the operation that the financial side falls behind.
Why Bookkeeping Comes First
Before you can make any decision about cash, you need to know how the business is operating. Ryan stressed that basic bookkeeping is the foundation:
- Can you take on the next job?
- How much of it can you float before getting paid?
- Do you need to charge upfront because you do not have the capital?
Without clean books, every one of those decisions is a guess.
Cash Flow, Job Costing, and the QuickBooks Question
Paul pointed out that most contractors do not have a cash flow projection, do not do weekly job costing, and do not track profitability by job. He also noted that QuickBooks Online is not the best tool for weekly job costing.
Ryan agreed. While QuickBooks is great for monthly financials, job costing in construction often requires specialized tools like JobTread or BuilderTrend. Trying to do weekly job costing in QuickBooks is like hitting a nail with a screwdriver. It can work, but it is not the right instrument.
The Danger of Overextending
The biggest mistake Ryan sees with contractors is overextending - taking on jobs and floating costs for 45 days or more before getting paid. This forces business owners to rely on lines of credit just to stay afloat.
His advice: always charge a deposit upfront. You should be working on the client's money, not your own. If your accounts receivable is going up while your cash is going down, you are heading for trouble.
Business Expense vs. Personal Expense
Paul asked about the gray area between business and personal expenses. Ryan's answer was clear: the IRS standard is whether something is necessary and ordinary in the pursuit of income.
- Dinner with your project manager to discuss a job? That is a business expense.
- A family vacation? That is not, unless your family is literally your board of directors and you are holding a strategy session.
The key question: is this necessary for the company to make money, and is it ordinary for your industry?
Understanding Your Three Financial Reports
Ryan emphasized that every business owner needs to understand three reports:
- Profit and Loss (P&L) - most people sort of understand this one
- Balance Sheet - most people do not really understand it
- Cash Flow Statement - most people have never put one together
Without all three, you are flying blind.
The Integrated Approach: Bookkeeper, CFO, and Tax Strategist in One Place
Paul noted that most contractors have a bookkeeper, a CFO, and a tax person who are all disjointed and not talking to each other. The information is not as valuable because there is no communication.
Ryan's team solves this by doing all three under one roof. They also offer a client command center - a portal where clients can see all the work being done, view financials, and get insights into their business in real time.
What It Costs
Ryan shared ballpark pricing:
- Bookkeeping and financial reports: $500/month
- One-off financial performance meeting: $300
- Full CFO services: starting at $950/month
That means for less than $1,500/month, a contractor can have an integrated bookkeeper, fractional CFO, and tax strategist all working together.
Get in Touch
Ryan's message to contractors: we know your industry, and we would love to help. Reach out at accentfinance.net or book a discovery call to get started.