As a certified public accountant in the turf industry, Dan Gordon sees one big mistake over and over again: operating without a budget. “Most companies don’t do them,” he says.
Gordon’s New Jersey-based company, Turf Books, provides accounting, bookkeeping and information services to lawn and landscape professionals. They work with lawn and pest control companies, consulting and providing financial services.
Another cardinal sin Gordon sees is an owner setting unrealistic goals. “You can say, ‘I want to grow 100 percent next year,” he says. “If you’ve got 100 customers, is it likely that you’re going to add 100 customers next year? Hope is not a strategy so it’s more setting goals and using the facts you have,” he says. “Once you have those realistic goals, it’s about figuring out what it’s going to take to achieve those goals – getting that work serviced, paid, all of the office work.”
But Gordon didn’t start out looking at the books. In the late 80s and early 90s, Gordon worked in the field as the founder of his own pest control and lawn care company. He sold the company and became chief financial officer and consultant, working in the industry for over 15 years. And for the last 15 years, he has been providing tax, bookkeeping and accounting services to lawn and landscape companies.
Budget benefits.
A proper budget doesn’t just help you keep track of money flowing in and out; it can help you grow your business to its fullest potential. “Calculated, controlled growth will increase the value of your business as well as your profitability,” Gordon says. “It’s a detailed plan of what needs to be executed if it’s going to work.” Other benefits include accountability, predictability and the security of knowing exactly what you’ve got and where you want to go.
Gordon’s workshop, Financial Budgeting or the Land Care Company – What are your 2015 Goals? will give attendees a hands-on look at what a good budget looks like and give the tools for a successful 2015 budget. “It’s a new way to look at your business,” he says.
In the session, Gordon will show some of the budgets he has worked on as examples of proper bookkeeping and will put together a dummy budget to show the proper process and what to take into account.
He’ll also go into depth on two key concepts: benchmarks and key performance indicators. Benchmarks are how a business has performed compared to another business while key performance indicators are used to measure progress toward the business’s goals. Gordon will show attendees how to calculate and use both.
Financial Budgeting for the Land Care Company - What are your 2015 goals? is 1-2:30 p.m. Oct. 23. To register, click here.