NPMCA — National Pavement Maintenance Contractors Association

Free NPMCA course · 9 lessons

Business Finance 101: Run It Clean

Free lessons for new contractors: separate the money, keep books a banker can read, job costing, pricing from your own costs, quarterly taxes, payroll and getting paid.

A person writes in a notebook beside a laptop and a calculator

Photo: Mikhail Nilov / Pexels, Pexels License

Lessons

  1. B101.1
  2. B101.2
  3. B101.3
  4. B101.4
  5. B101.5
  6. B101.6
  7. B101.7
  8. B101.8
  9. B101.9

Course final

Take the course final

Up to 20 questions from this course's lesson checks, scored when you finish. Pass with 80% to earn the course badge and a certificate of completion. Retakes are unlimited. It needs a free NPMCA account.

Go to the course final →

Course wrap-up

Your capstone Move

Build your clean-books system: one page, or one folder, that shows how money moves through your business, from the estimate to the deposit to the tax payment. Pull it together from the nine Moves, then check yourself:

  • Separate business accounts are open (operating, tax and reserve, plus payroll if you have employees), and your own pay goes out on set days.
  • The books close by the 15th of every month, with every account reconciled.
  • Your last job has a profit replay that counts labor burden, equipment and overhead.
  • Your overhead per productive day is figured, and your next estimate shows the pricing floor.
  • The tax account gets its share of every deposit, and the estimated tax dates and every payroll deposit date are on one calendar.
  • Written payment terms, with any lien notice your state requires, go out with every job.

What's next

Business Finance 102: Bank-Ready. It turns your clean books into the file a bank, an equipment lender or a bonding company wants to see, starting with a 13-week cash forecast that plans for winter.

Listen next

Contractor Success Forum for separate cash accounts and reading your numbers, and The Cost Codes Show for job costing and payroll.