Restoration logo
search
cart
facebook twitter linkedin youtube
  • Sign In
  • Create Account
  • Sign Out
  • My Account
Restoration logo
  • NEWS
  • PRODUCTS
    • New Products & Technologies
    • Submit Your Product
    • Interactive Product Spotlights
  • CATASTROPHE
    • Hurricane
  • TOPICS
    • Architecture
    • Cleaning & Sanitation
    • Contamination
    • Contractor Safety
    • Contents
    • Fire & Smoke
    • Mold
    • Odor
    • Recon & Reno
    • Water
  • EDUCATION
    • Training & Education
    • Business Management
    • Insurance/Legal Matters
    • KnowHow.
    • Podcasts
    • Webinars
    • Whitepapers
    • Industry Events
    • Sponsor Insights
  • VIDEOS
    • Ask the Expert
    • Ask Annissa
    • Marketing Monday
    • Tech Tip Tuesday
  • BUYER'S GUIDE
  • THE EXPERIENCE
    • Convention & Trade Show
  • ABOUT
    • Contact
    • Advertise
  • SIGN UP
Insurance/Legal Matters in RestorationManaging Your Restoration Business

Keep Tabs on the Taxman in 2011

By Les Cunningham
March 25, 2011


A lot of people are busy getting their taxes ready in order to get them filed on time. The problem is that a lot of owners are deciding how to handle their business tax situation way past the point where they could have really had a meaningful impact on what they will have to pay.

In my continuing quest to help you turn your company into the most profitable machine possible, here are 10 suggestions that I believe will drastically affect the taxes that you will pay next year. The order can be adjusted based on your perception of what is most important to you, so consider:

1. Get Out and Get Business

You, as the owner, need to spend up to 80% of your time going out and securing business for your company. The owner is the best salesperson a company has. No one has as much skin in the game, and no one has worked as hard to get the company where it is today. No one has as much to lose: no one in the company mortgages their home, their lifestyle, their assets and the future education of their kids. If you succeed, it’s going to be good; if you fail, you will spend the rest of your life repaying the debts incurred.

2. Recognize the Need to Hire

The owner starts the company and in the beginning does all of the sales (and often, the spouse does the bulk of the administration, in between running the home life with growing kids). The owner does all of the work needed to produce the job. As the company grows – if it grows – the owner needs to hire people to help with some of the work.

Because the owner has done most of the jobs in the company, he or she is able to mentor new company members in the goings on with regard to procedures, attitudes and culture.

3. Get a Second Opinion

Estimates need to be reviewed by a second set of eyes. Before an estimate is presented to the potential buyer, a second person should check for such items as math errors, missing items and be able to answer ‘yes’ when asked, “Does the estimate also indicate what you will not do? Does the estimate make sense to all concerned in the job process?”

4. Keep Track of Your People

All employees of the company need to turn in a timecard daily. The individual’s card needs to identify the task(s) performed and the time it took to do them. This data needs to be used to determine if the employee is doing what needs doing, and doing it as efficiently and as effectively as possible.

5. Let Technology Help You Get Organized

All purchases need to be done using a purchase order system that works with your accounting software. A purchase order system will allow the company to compare estimate amounts to what is actually being spent.

6. Establish Accountability

You need to have a weekly production meeting that compares all job costs that have been estimated to what the actual costs are coming in at. At that meeting, if a job came in on budget, praise your people. If the job was under time and under budget, or over time and over budget, determine why and make sure that it does not happen again.

7. Keep Your Growth Headed in the Right Direction

You need to have a weekly business development meeting to compare what was planned for the week and what actually happened. Business development people are the most difficult individuals to hold accountable. Usually, the reason is that there is not a written estimate of what has been agreed to by all individuals involved in business development. This key point is critical to all parties knowing what is expected of them, thereby allowing them to be evaluated on how well they are doing their job.

8. Put Everyone on the Same Page

The owner and the company team needs to agree what the goal(s) are for 2011, delegate who is responsible for getting the goal(s) done, and make sure that all team members are in the game.

9. Get Regular Accounts From Accounting

The accounting person needs to determine a monthly Work In Progress (WIP) report. This report also goes by the name of the “Over and Under” billing report. In a nutshell, it will tell you how much work has been done and how much work has been paid for. This report is critical to evaluating what the monthly Income Statement and Balance Sheet means and what it does not mean.

10. Grade Yourself

The owner is responsible for the company’s performance. The owner’s report card is the monthly Income Statement and Balance Sheet for the company. If it shows that the company is on budget, the owner did a good job. If it is not on budget, then it indicates that the owner has work to do.
KEYWORDS: restoration business profitability restoration services

Share This Story

Looking for a reprint of this article?
From high-res PDFs to custom plaques, order your copy today!

Les Cunningham, CGC,CR,CCR,CGRa, is president and CEO of Business Networks, Inc. He is a restoration industry expert and can be reached at 1-800-525-1009, ext. 14 or e-mail him at Les@BusinessNetworks.com

Recommended Content

JOIN TODAY
To unlock your recommendations.

Already have an account? Sign In

  • Digital view of the United States with a Hurricane and coding

    Is Your Restoration Technology Ready for the Upcoming Hurricane Season?

    Here’s how restoration contractors can prepare their...
    Preparing to Respond: Hurricanes
    By: Taylor Carmichael
  • Business team analyzing financial data on digital tablets during a meeting

    7 Trends Influencing the Restoration Industry in 2026

    With market uncertainty, workforce transitions, new...
    Managing Your Restoration Business
    By: Oscar Collins
  • mold remediation

    Fighting Mold and Bacteria Damage

    Successful mold remediation can be multidisciplinary,...
    Contamination Restoration & Remediation​
    By: Josh Woolen
You must login or register in order to post a comment.

Report Abusive Comment

Manage My Account
  • Newsletters
  • Online Registration
  • Subscription Customer Service
  • Manage My Preferences

More Videos

Sponsored Content

Sponsored Content is a special paid section where industry companies provide high quality, objective, non-commercial content around topics of interest to the Restoration & Remediation audience. All Sponsored Content is supplied by the advertising company and any opinions expressed in this article are those of the author and not necessarily reflect the views of Restoration & Remediation or its parent company, BNP Media. Interested in participating in our Sponsored Content section? Contact your local rep!

close
  • restoration technician working a water damage project
    Sponsored byCotality

    Schedule smarter with DASH’s mobile restoration job management

Popular Stories

Restoration Jobsite Table before and after organization.

The New Profit War: How Restorers Will Compete in the Age of Managed Repair Programs

Restoration Golf League Full Color Logo

Restoration Golf League Announces 2026 Event Lineup and Celebrates Recent Champions

temporary containment barrier constructed with white polyethylene sheeting

Improving Negative-Pressure Containment for Biological Contaminants

Register for Webinar - Connecting the Field, Office and Carriers: How to Streamline Claims with Better Data and Communication

Events

May 19, 2026

Hurricane Response: What’s Changed, Who’s at Risk, and How to Scale Without Breaking

This webinar is part of the Preparing to Respond: Hurricanes series.  

Hurricane season isn’t what it used to be, and neither is disaster response. In this webinar, an expert‑led panel will break down what’s changed for hurricane response, and how restorers can scale responsibly without sacrificing their safety, retention, or profitability.

June 16, 2026

Connecting the Field, Office, and Carriers: How to Streamline Claims with Better Data and Communication

The modern claims ecosystem depends on seamless integration between the field, office, and carrier. Learn how a unified “golden thread” of communication transforms fragmented workflows into a transparent, high-performance process.

September 9, 2026

The Experience Convention and Trade Show

The Experience Convention & Trade Show logoThe Experience Convention and Trade Show unites the cleaning, restoration, inspection, indoor air quality, and HVAC industries through hands-on education, live demonstrations, and high-impact networking. Attendees gain practical skills, business insight, and connections that elevate industry standards and drive growth.

View All Submit An Event

Poll

Priorities for Hurricane Preparedness

What area does your team prioritize first before hurricane season?
View Results Poll Archive

Products

The Cleaning, Restoration, Inspection, and Safety Glossary

The Cleaning, Restoration, Inspection, and Safety Glossary

The Cleaning, Restoration, Inspection, and Safety Glossary.

See More Products
Hurricane Month - How Restoration Professionals Can Prepare Before the Storm

Related Articles

  • Keep an Eye on the Basket

    See More
  • ligno bw kit

    Lignomat Package Helps Contractors Keep Tabs on Moisture & Humidity in Materials

    See More
  • Growing Your Company Profit in 2011

    See More

Related Products

See More Products
  • secrets-of-insurance-game.jpg

    Secrets of the Insurance Game

  • Water in Buildings: An Architect's Guide to Moisture and Mold

  • COVER pdf.jpg

    How to Get More Restoration Jobs in 14 Days... (ebook)

See More Products

Related Directories

  • One Claim Solution

    OCS is the clear leader in claims billing, with $500M+ collected for our contractor customers. We get you paid faster than industry average and at higher amounts. And we don’t do long-term contracts because our value is clear - you make more, even after our fee, every month.
×

Stay ahead of the curve with our newsletters.

Get the latest industry updates tailored your way.

JOIN TODAY!
  • RESOURCES
    • Advertise
    • Contact Us
    • Directories
    • Store
    • Want More
    • Submit a Press Release
  • SIGN UP TODAY
    • Create Account
    • Newsletters
    • Customer Service
    • Manage Preferences
  • SERVICES
    • Reprints
    • Marketing Services
    • Market Research
    • List Rental
    • Survey/Respondent Access
  • STAY CONNECTED
    • LinkedIn
    • Facebook
    • Instagram
    • YouTube
    • X (Twitter)
  • PRIVACY
    • PRIVACY POLICY
    • TERMS & CONDITIONS
    • DO NOT SELL MY PERSONAL INFORMATION
    • PRIVACY REQUEST
    • ACCESSIBILITY

Copyright ©2026. All Rights Reserved BNP Media, Inc. and BNP Media II, LLC.

Design, CMS, Hosting & Web Development :: ePublishing