Daniel, a CPA who works exclusively with painting businesses, and Richard Dunton, an enrolled agent, discuss the financial considerations for commercial painting as a way to smooth out seasonal dips in business. They explore the differences between direct B2B commercial relationships versus working under a general contractor, highlighting the challenges and opportunities of each approach.
• Two types of commercial painting: direct B2B relationships and working under general contractors
• Cash flow challenges in commercial painting compared to residential work
• The importance of managing accounts receivable and following up on payments
• Understanding AIA invoicing formats and progress payment schedules
• Special payroll requirements for government projects including prevailing wage certified payroll
• Using accrual basis accounting to properly match revenue with expenses
• The importance of reviewing both profit/loss statements and statements of cash flows
• Setting up financing and lines of credit before you actually need them
• Building relationships with banks when your financials look strongest
If you have any questions about this episode or ideas for future episodes, join the Facebook group "Grow Your Painting Business" - request access and we'll get you in to join the conversation.
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