RIA Update: Accounting and Financial Management Guidelines Ready for Industry
The Restoration Industry Association (RIA) is committed to improving member businesses through education, networking and training. The Association’s Accounting and Financial Management Guidelines (AFMG) was developed to provide restoration contractors with a practical understanding of day-to-day accounting and financial management as it applies to operating a restoration business.
AFMG is a 56-page document written for the professional restorer and is organized from business conception to management of accounting and financial matters in an established restoration enterprise. Many of the important financial aspects of running a restoration business are addressed. AFMG was written by restorers for restorers and underwent a series of reviews by industry peers. It has something for every level of business and will be immediately beneficial.
One feature of the AFMG are regular comments from a restorer’s perspective with industry best practices and how to turn some advanced concepts into common sense. Here is an example of one of those perspectives:
Today, many insurance carriers withhold payments until a job is complete and a Certificate of Completion has been signed. Experience shows that policyholders can drag their feet when it comes time to sign off on the job – especially after a few weeks have passed since the completion of the work and the contractor interaction is no longer a priority for them. Unfortunately, the restoration company is left paying the bills for the job and not receiving payment without a lot of effort. There may not be an easy answer to this challenge, but I’d recommend that your project manager or supervisor is onsite for the last day of work for a final walk through with the client, secure a signature, and present a warranty certificate.
The AFMG guidelines assist with start-ups, business expansion, turn-arounds, development of new service lines and new markets, forecasting, estimating, budgeting and tax planning. Valuable information is conveyed in areas of overhead and profit, qualifying accounting personnel and selecting accounting service providers. The explanations, definitions and discussions provide contractors with tools for better business decisions.
RIA is grateful to members of the AFMG Task Force for their contribution to the guidelines, either by their participation as task force members and by their substantial contribution of expertise in specific areas. RIA also acknowledges the contribution of members of the Industry Peer Review Group for their feedback on the guidelines. The Accounting and Financial Management Guidelines will be made available to the industry at the RIA online store at www.restorationindustry.org and members will benefit from a steep discount. Those with questions are invited to email firstname.lastname@example.org