Knowing the True Cost of Employees and the Importance of Developing Solid Accounting Routines.

Audio Transcription

Knowing the True Cost of Employees and the Importance of Developing Solid Accounting Routines.

It’s time to take a look under your financials with Paul Hood. So don’t be asking me why welcome back Hood Nation! Welcome back to the business coach conversation! Welcome back 1170 folks welcome back Oklahoma, welcome back anybody, who’s feeling great today in the 91824 area code on my phone, welcome to you as well. We are so excited to be here with you today for another Edition. Another Edition another memorable event hear a look under the hood with Paul Hood Tulsa’s number one CPA, Paul Hood. How are you doing? I am outstanding play, I’m so excited to be here with you. You know just being around. You is just just just excites and and makes me want to make more money and try to help more people are on our radio show. We do the Thrive time show from 12 to 2. I always say it’s ecstasy, when Z is next to me. You know and I feel like I just what I want to start to say to you. You are looking and smelling like a million bucks, I mean it is just said: it’s amazing play not that close. I’M sorry, I’m a long line of snippers. We all have a very sensitive sense of smell and smell is something that we care about, and I tell you what I got. Two listeners are smelling terrific and I won’t spend too much the show talking about it, but I will talk about this is this is what I want you to do? You want to start this year off at you want to end this December, where you enter into the new year, feeling fresh, smelling good. Knowing that you have your financial house in order and one of the things were a lot of listeners, I get it wrong before they meet with you and they have a small business in. According to the SBA, the small business administration and a Forbes a little over 6 out of 10 jobs that are created every year from small business. So what are small businesses are out there and they don’t know the true cost of employees before sitting down with you. So here’s a scenario they hire a guy for an hour and they say I pay the guy an hour and I pay him a little bonus. Little spiff a little boom every time that he sets an appointment for me while cold cocks. I pay him an hour and per appointment. He sets, and so I’m only out, you know an hour plus per appointment, but they’re not factoring in the true cost of an employee. What are the true costs of employees? What clay the true cost can be a lot of things.

It’S it’s. You got multiple taxes, you got payroll taxes, you’ve got the cost of training them. You have the cost of of you know when they take off, you have the cost of them sitting and being on Facebook, while they’re supposed to be working, you have the cost of waste and and everything else that you know it’s when you lose an employee, all The time that you’ve invested into him, he can come back and threes. This is important is, is a besides taxes. Employees often times of your number one expensive, they’re, probably number to expense, and when we talk about we’re, wanting to be proactive and be deliberate and we want it put 30 % minimum to the bottom line. You have to identify what cause we have to cover and some of those cost to fix. Some of them are variable, and you know the employees. Besides, income taxes is really the first place. We start not Eric chop. You are a business coach, which means that you sit down and you work with business owners that are kind of financially stuck many times. I don’t know how to scale it. You know that they finally mailing it, but they don’t know how to scale it in other markets. If you have to speculate from your experience, what percentage of the time do employees do? Employers not know the real cost of their employees almost every time? It’S not only that they don’t realize the actual cost of or how much money they’re making on their product or service or off of their employees while they’re at work. So they don’t know the cost of one of they don’t know what they’re making. On the other side – and it’s super helpful to sit down with somebody like Paul who can cut a break this down for you and show it to you. I’Ve worked with business coach clients have been in business for 20 years and we sit down and break down there per product or per service profit and cost in there like we had no idea, we were only making this much are. We were actually making this super excited. So it’s super valuable to sit down with somebody like him and what sound does a donkey, make chump sound effects, and I never want to. I never want to have a show go by where you’re not making those animal sound effects of love it. So here it is about the Rooster Day Parade in Broken Arrow and.. It’S a parade in in the ideas you’d be another source floats. There’S people dressed up when their uniforms are usually a marching band or something and Eric chop used to manage what I would call the jackass parade, because you managed a bunch of you manage a construction crew ever worked on a construction crew. You know what I’m listening to the show right now and you’re offended by what I just said. Then we need to get together. We can meet if you’re, bigger than me I’ll. Let you know what I can see your point, trucks and Grill, and I can tell you who I worked on was called Lund poured walls and my boss was awesome and you talk about micromanaging. This guy was on us. Let me tell you what everybody on the team the moment that he left the job site would begin doing nothing again, and so he made his money by micromanaging the job site. Can you talk to me about the dangers if you are a contractor of not knowing the true cost of employees, not working like Paul said being on Facebook? There yeah, you have a certain budget at a certain time frame. You have to get projects done. In foremost case and I’m bigger jobs, there’s actually what they called delayed damage. So if your employees are not being efficient, they can actually start charging you money per day that you go over your contract. I can’t find my nail gun so I’m going to go talk to the Lowe’s I’ll, probably get you guys some donuts while I’m out what can I take something? That’S for real. You would not believe how many grown men sleep in porta potties at work on construction sites. Are you serious?

Where is Robert? Where is he going to have to go bang on the bodies like get out of there tonight as a 17 year old kid? That’S hilarious story from the construction crew that I worked on sit down and you would you would sit down with him put an employer with a business owner, help them know this, but my boss, Peter he knew how much money it should cost to pour the basement Of a home in Minnesota report basement so huge 10ft concrete walls. You bring out the aluminum forms for the basement of akathisia, six or seven thousand square foot in massive house, and then a big cement truck would come in there and he knew what it would cost to do. The cost per square foot or whatever of the concrete. He knew that and he also knew what we were going to do. If you ever left the job site, and so one of the things that he would do is he would he would leave the job site and you can come back an hour later and he knew that we were already going to be behind just buy. As a result of him leaving – and he was the only guy – I’ve ever worked with the construction. That was like that when he actually knew what we were doing when you left, we knew that when we left, we weren’t doing anything because he knows numbers, but if he didn’t know his numbers, I guarantee cuz. He has to come back and ask you if you guys, would you get done while I was gone? Usually we had a guy in our team Ricky who just make up stories that have no point. Where Drew he’s a man. I got a ton done. While you were gone, what I did is I totally: we got a huge amount of rebar cut and he’s able, where is the rebar, stop lying to me? Okay, what is it in construction? It doesn’t know their numbers. How dangerous is that it’s extremely dangerous and the problem is, is sometimes business owners are you don’t have great plans and great ideas and they’re great technicians, but maybe they’re not that that micromanager style and so the way you overcome, that is through systems and processes, and Maybe things I can send it base pay for their employees and in those kind of things that we can help you develop along with. If you up a business coach can really help you to identify some of those things because the deal is this is their life, but it’s the only life they they know and they they they they we are at Hood. Cps.Com have worked with 100 different contractors in so we can take ideas that we’ve learned from other people best practices you and let you know what you you have to develop. Those business coach process of system and incentive-based pay is a huge huge thing. I tell you that, if I’m not sure about sleeping in a porta potty, if somebody can’t be motivated based on the smell to get out of that thing, maybe money on motivated to get out of that thing we used to have. This is who we were supposed to be at the Cenex, the local gas station, dassel Cokato Minnesota supposed to be there at 5 a.m. to leave. We get in the truck the F 250 and we drive out to the construction site. We would have to wake him up cuz. He would be sleeping in his truck completely high as a kite or drunk as a skunk. Every single time you got to get up. Alright man sounds familiar, say out of 10 guys on the crew. Four of them are like that. Why do people? Why do business owners that put in 110 % put up with that kind of stuff in it is because they think this is well? I just can’t find good employees and they’re just not out there with her, not looking. People tend to hire, try to hire when they have an opening. Instead of constantly interviewing to replace you know the the beat level sea level, employees biblical with a lot of people, have it read Matthew 5:10. Lately that says a blessed are those who are persecuted because of their righteousness. Basically, if you hold people accountable, someone’s not going to like you, so just go ahead and accept that deal with that Colin Powell, four-star general. He said it went so he once upon a time he wrote one of his books. He says: good leadership requires pissing off somebody before noon everyday. You know that so you got a hold your team accountable, but listen to show right now and I do not know the true cost of employees and I want to meet with you. I know I do. I want to meet with you one of the steps, one step, one, what step 2 and you get a free have to take your inner eye care of thin Santa ho ho ho gluten-free Santa break it down. Not this Santa give me that pecan pie website to put cps.com that’s Hood h, o o d c Pas. Com and put your contact information and we’ll set it up. You get a free hour of time, will discuss anything, bring your numbers 3! You going to take advantage of it was also giving away a copy of Warren Buffett’s book the snowball, and he talks about success, and – and you know what the really like, what I figured, what I’ve seen in my life is. The major key to success is who you hang out with. Who do you listen to who’s, giving you advice. What business code you have somebody that’s successful! That’S telling teaching you how to be successful and the first step is go to hood cps.com. It’S also. I would encourage people to give them business coach and go to the my workshop. You ever thought of Workshop about is 7 month. Was sponsoring this month’s event December 8th and 9th? We still have 4 tickets left, I believe for tickets. Left everybody wants to book your ticket to the next event. I believe it’s going to be February, so right, bro be our next event there. So if you haven’t gone to thrive time, show. Common book, your tickets today and also because you’re a sponsor the tickets now or just so, you have your tickets booking today at Thrive time show.. I think there’s somebody out there who sang themselves right now, they’re saying just go to the website, seems like a lot of work coming to have to go all the way on the internet and, like click a button, and then you have to sign up for something. I mean just seems like a lot of work. I mean why do I have to do all that work going to hood cps.com and fill out the form I can eat it? For me, oh well, that lets sounds like somebody’s, not really serious about being successful. That’S probably don’t want to do that. The next thing pulled everyone needs to do when you help business owners.

Do they need to develop their accounting routines, they need to develop a routine, a rhythm of a system for doing their accounting on a weekly basis. Somebody says to my account: why does somebody have to have a weekly accounting routine, successful in anything you have to have a plan, you have to spell it out and write it out and have a very prescriber suppose Site for Sore Eyes times when you going to Do things and a we can help you develop those things? When are you going to review your numbers? When are you going to balance your checkbook? When are you going to talk to your bookkeeper? When are you going to meet with your accountant and be proactive and plan for taxes? When are you going to look at and and change Direction with your business and again that the longer the target out there, the more dramatically change your order, if the house, until the the quicker that’s shorter than the Perry’s in between planning the battery, so you’ve got To write those things down and you can have specific times places and people they’re going to be involved to to adjust these numbers. When we come back to the break Eric chop, one of the business coaches from the Thrive Time, Business coaching experience, he is got some. Some deep thought every once awhile he gets into the deep end of the pool and you you we don’t my scuba gear, I’m ready he’s got the scuba gear, ready he’s going to break down some of the things he’s learned as a business coach to help you Out there with your accounting, but I would encourage everybody right now during the break to get a hood CPAs, that’s hood cpa.com and to schedule your one-on-one consultation with Paul Hood. You get a free copy of Warren Buffett’s Snowball, the only authorized biography the guys ever produced the only one to get it free at Hood cbs.com and a one-hour consultation with the man, the myth, the legend, the gluten-free Santa of Tulsa who’s, giving Tulsa a free copy Of Warren Buffett’s book snowball schedule, your consultation, have you ever found yourself running out of money before the end of the month? Are you saving enough for retirement? Are you getting ahead financially Tulsa? If you need to look under your hood, you come to the right place. It’S a look under the hood with Tulsa’s number one CPA in every way, St Town welcome back to the profound get down known as hooded CPAs. Look under the hood where every single weekend we join with you to take a look kind of scary, but a look under your financial Hood to make sure you are headed the right direction. Now, before we went to the break Eric chubby business coach with the Thrive time show program that aired everyday from 12 to 2 during your afternoon Monday through Friday, call Eric Chubb. You had an epiphany, you wanted to share with the listeners and who am I to withhold money from the listeners I mean I realize I’m sort of it. You know I’m working on being a nicer guy. Will your job is to set the Epiphany, free and you’re doing really good at the whole thing, and one thing that I see with business owners. A lot is that they’re very busy right so they’re trying to find things they can delegate trying to find ways to save time. But what you cannot do – and we see happen all the time – is that you delegate off and all of your numbers, your payroll. Your accounts payable, accounts, receivable and you don’t look at it for 3 or 4 months or somebody’s doing your bookkeeping for you. It is so important to block out time to talk to those people and actually review those numbers, because you will get screwed at some point. If you do not, we see it all the time, so I just wanted to bring that up. Make sure that when you delegate out these things, you have to follow up with those people, so it was listening and if he’s, if he’s wanting to be screwed, he just love this old house. He loves screwing. You love screws here when you don’t want to look at your financials right, because if you want to be screwed like Bob Vila, This is a real situation. Is a real situation happen? This is a real situation. I was asked to go speak here for a local medical clinic. This just happened over the Thanksgiving holiday time to speak for the team right before Thanksgiving and do you know what happened with their collections for medical appointment and they say Hey.

You know it’s good to see how you’re doing are you paying on insurance today or using insurance is paying cash to go? Pay insurance? Okay, great, so you have to voice the insurance company sent him. The stuff and insurance companies are going to work. If you work for the insurance company – and you want to call in and argue with me, that’s great – I’ve got a lot of down time. I have time for you, we can argue for hours, but your job. You know your job is this. Your job is to fight every claim. Your job is to sit there and go didn’t I you’re like a goalie, I rejected rauschendorfer shut you down in your face to shut down anybody. So what happens? If you file it, the insurance company will then usually email or fax back. Something saying rejected due to you know, and it’s always the you didn’t fill out something right. It’S always that you didn’t fill out one little box right and check the box person who is in charge of accounting or in our billing people is, it was, was a pacifist to every single time the insurance company would say denied she would just say, Okay and She wasn’t telling anybody and she got put into that position 45 days ago, true story, and so the guy he’s a doctor in town very respected guy who his want to savings. The end of the world, because we have basically not made any money at all. For the last 60 days – and I said I know because you put a pacifist in charge of your building – I mean you have that’s a successful strategy. I mean that I endorse that. No more! I see this all of the time. I want you to know that I’m kind of a benevolent dictator I do have had to run some successful companies, and I said you warned her and he said it was just before Thanksgiving sweetheart with music. Are you kidding me, I’m like? No just do it get it going. That’S what had to happen because this person was not  business coach Billy, I’m being serious and you’re a terrible person you had for can’t firing. Someone before I did, because this person was Paul. You can’t do it get your accounting all right. That’S exactly right, and it did you use the words the words profound get down in reference to accounting and financial planning. Oh, and I think of all the times, I think about you and it lyrical Miracles begin to enter into my Cranium. That is like the title of a book waiting to happen. It’S really hard for me not to run all the time when talking about you, I love that I wrote that down, I’m stealing that yeah, you know what we do is what we do is we help businesses and individuals to avoid the cash flow killers in and That is a huge huge thing is: is people don’t like to do their accounting and sometimes and a lot of times they delegated and the people that delegated to don’t have the same interest? They are, you know, it’s not their money that they’re losing, and you know you have to be. You have to be proactive in be delivered in that area, that you know why people don’t like doing their accounting. Why is that? Because the entrepreneurial mindset, the the the Viking, the inner person in you that that person says let’s go, let’s do this at Kool-Aid man, it’s needed to start a business is the exact opposite of the accounting. Send a text, hey everybody! Why don’t we come on down and it’s looks like we’re, making any money and see what happens? If he’s entrepreneurs go out there and have this wagon and are going to haul grain with the wagon? I do that got a huge Wagon Train super fast. It’S gas-powered! It’S a V12. It’S a witch unbelievable going down the road hauling grain at 97 miles an hour. It’S like a Steve, Currington Lamborghini, so you’re going so fast, but the problem is there’s a thing called that wind is a thing called resistance. There’S all sorts of physics! Won’T work here, but it’s blowing out of your vehicle and actually get the branch location ATB. You might want to enclose it. You might want to drive less fast you might want to, but they entrepreneur mindset is just like: let’s go faster. If I think it’s all. If you listen to the show today and you’re somebody who’s, an entrepreneur, you’re, probably delegating your accounting to somebody who isn’t really taking it seriously or if you’re somebody who has an accounting mind. You probably are struggling with marketing and sales. It was a business coach. What kind of like the mediator our job is to help the entrepreneur get that accounting they need or help the accountant they come at more of the accounting mindset to get the marketing you need and that’s why we got reservation. We recommend Hood CPAs and that’s why we teamed up to do with the workshops. Workbook Paul mean you’re. A sponsor of the Thrive time show workshops it’s fun to see. The different personalities could usually have for the room. Is the aggressive entrepreneur going 90 miles an hour? Losing all the grade and the other half of the room is going to miles an hour going to rain is coming out at all tonight, we’re going to die before you get it there. You have to go fast right. Well, I’m pushing and pushing the grain truck myself, so it none of it will spilled Yoshi! That’S my plan for Tulare. I want it want to talk about hear. The final area is self evaluation time when they made, but we will meet with you as a as in for the first consultation typically went to a meets with the hood CPAs team. What percentage of the time do you get the feeling? This is the first time they thought about their Accounting in a proactive weight reduction working on the business and not just in it. Well, it’s almost 1 % of time, because you, a hundred percent most most people most in the end. It’S the reason that most businesses fail. Small business fails because the business owner is a is a great technician in there not trained. I got dreams, they got, you know they got a new product. Are they got a new service, but they don’t know how? To put it together, I mean it’s kind of like we had to help him figure out how to put that trailer hitch on that Lamborghini. It was not an easy thing, not an easy thing, to Hitch a grain truck to a Lamborghini. He had a dream: a dream to pull grain trailers with his Lamborghini and we had to help him out with that and you know so. If the hoodcps.com it don’t matter to me, we where you’re at you just got to come with your dreaming and the word our job is to help you solidify in and put it back, because you didn’t buy your gold, your in-game. What’S the end game and then how do we get there? How do we get to to the point so that you’re not wasting all this time now Jack Welch, the CEO of GE, who grew the company by 4000, sent during his tenure? He has a notable quotable that makes my brain explodable what he says. He says he says reality as it is not as it was or as you wish it to be, and that really is what the meeting with you is going to be. It’S it’s. It’S a little bit of a blasty blast from the truth. Karen, you know what people leave feeling whole. They don’t leave feeling full of holes. You! You really do coach people up when you don’t talk down to him. If somebody doesn’t go to hoodcps.com right now. I have the website carpal tunnel suck it up. Buddy go to hood CPAs.. I wasn’t talking to you business coach Siri, that’s what she doesn’t do anything unless you’re yelling. That way doesn’t do involuntary motions. So it’s probably a good idea.

That’S just me talking to Siri. That’S not me talking to you aggressively common, you schedule your one-on-one consultation you’re, going to get a free copy of Warren Buffett’s book Snowball, the only authorized biography the man has ever allowed and you’re going to get a one-hour consultation with Paul Hood himself, a value so Break it down, how do you coach people up? How do people leave feeling hole and not for the way we do that Clay is? Is we start with where they want to go like it like we’ve been talking about? Is you got it then, and then you design the plan backwards until we’re not we’re not condescending or not? Judging, you know, we have come people come in and say I want to be a multi-millionaire. I have people come in and say I want to live frugally, but I want to give money away, so we start with their, why? Why are they showing up everyday and then it’s our job to take our knowledge or experience the things that we’ve done with the accounting and then design the systems and processes to take that dream that that pie in the sky that that that goal to where they Want to go and then actually quantify the steps and help that Emma Campbell to get there and it’s it’s kind of like you mentioned Jack Welch, and he also had a quote. That said, you can only live life, Ford and understand it backwards, and so the problem is as most people with their businesses, it’s all backwards. There’S no Ford and so Jack Welch says you got to look forward. You got to be proactive and that’s what we do and unfortunately, a majority of the business advisors are not doing that play now, and the thing is I went in the other day to talk to Paul about this, and in this is something we talked about a Lot is it away? What is the best way? We can truly help all of the listeners and plus I just got to do a one-on-one consultation, because when I do, I can find out where people are at and I can help them get to where they want to go. And I know he’s passionate about and he’s helped so many of the listeners, but you got to go to hood CPAs today and schedule that consultation. What’S a CPA he’s not complex of the man, the myth, the wizard that is Paul Hood with hood CPAs, will see you next week here on a look under the hood with Paul Hood CPA.