Running my own renovations and construction projects can be a massive financial undertaking. It is a time and energy consuming task – renos are like a game of chess- you have to always be ready with your next move- they can also give you a big headache if you don’t keep your budget, billing and invoices organized. (Just like I used to say to my dad when I was a kid, chess gives me a headache.)
In this blog, I am going to share some of my tips for building a reno business with the help of QuickBooks. Whether it’s constructing an eco-friendly commercial building or flipping a house, QuickBooks and its digital ecosystem can help you stay organized and keep things moving efficiently. All you have to do is know how to make the most out of your tools.
BEFORE
AFTER
QuickBooks can help you run a more successful construction business by providing you with a consolidated view of your business and tools that make daily tasks more efficient. You can:
Easily invoice from any work site
Bring your bookkeeping on the go
See profitability by project
Work from any job site with the mobile app
Use QuickBooks Payroll and Time to help you track time and pay workers with ease
Allow me to elaborate on the benefits now:
After moving back to Nova Scotia as a single mom, looking to start my own career, I got involved in a family passion: renovating and flipping homes. But I am what you might call a slow flipper. I bought my home on Alderwood Drive in November of 2016 for 281k. The first part of my reno was fast and furious. I gutted the main floor, reconfigured the layout, moved the kitchen to the centre of the home and added an upstairs extension on the back of the house to allow for a principal bedroom with a walk-in closet and ensuite bathroom.
Before I knew it my renovation budget blew up from 100k to 130k to 160k. I was losing track of my receipts and having a hard time keeping track of my spending (and my crew's spending as well).
We moved into the house in May of 2017, but the renovations weren’t over. I had transformed a traditional colonial home into an open concept modern living space and now the fun was starting. I was about to unleash my love for DIY and start making things look pretty.
THE ALDERWOOD RENOVATION
But spending needed to be reeled in. So that spring I signed up for QuickBooks and linked it to my bank accounts and credit cards. So every expense could be matched with a receipt and kept track of.
I started using QuickBooks on my phone and my computer and reno life became manageable again.
Over the next 2 years, I moved on to other renovations. Taking on clients in commercial spaces, vacation rentals, and cottages. My business was growing and so was my need to invoice. Seeing incoming payments over outgoing expenditures was a thrill, and invoicing over QuickBooks meant I didn’t have to be sitting at a desk to send off a quick bill. I was able to send invoices from job sites, pulled over in the car, at a school playground or even while resting on the beach.
ATTIC RENOVATION
In 2020, I was back to renovating my house again, this time the attic. I put my design and carpentry skills to work making the most out of the sloped ceilings and creating an additional bunk room and kids play space. This time my spending was a lot more reasonable, and I was able to keep track of everything. Which was especially important as it was my first big film production with NSBI funding. That meant we had to be extra diligent with payroll, invoices, receipts and expenses.
The entire attic renovation only took 11k out of my bank account, and my real estate agents told me I added about 100k in value to the house!
BACDKYARD RENOVATION
By the summer of 2020 my backyard renovation was complete, and I decided to list my house on the Halifax market. By this point I am about 467k into this house, and when it went up for 699k on a Thursday night, my neighbours thought I was crazy. No way you will get that much for a house on this street.
That weekend was full of viewings and by Monday at noon when the offers started rolling in, it was clear that my huge reno risks had paid off!
My house closed in November 2020 for 787k! And every penny went straight back into my new property and new renovation.
As with anyone in the home renovation or construction industry, I need software that will keep my reports and projects organized. QuickBooks Online has all the features I need to stay on-top of all my financial records associated with renovating homes.
After multiple renovations and selling and buying homes with QuickBooks as my go-to tool, I feel like I can tackle the complications of job costing, tracking expenses and cash flow, along with invoicing and managing my budgets. With QuickBooks accounting software, I have a greater understanding of what my risk is, and surely my reward as well!