Getting It All Together: How Organized Are You?
By Rob Jafek | Boomerang Capital
You’ve thought about New Year’s resolutions. Perhaps you are considering a resolution that will bear long-term benefits and improve your investment portfolio. Here’s a no-brainer that will indubitably bear some positive results to your bottom line, and perhaps your sanity - improve your business recordkeeping! There are some very simple, practical things you can do to improve your business practices which in turn can reap some real financial benefits.
If you’re already good at it, you know the benefits. For the rest of us, here’s a quick review of the benefits of good recordkeeping:
Benefits of Solid Recordkeeping
Staying on Budget – Peter Drucker, the classic philosopher of all things business, famously stated: “You cannot manage what you do not measure.” Record-keeping is the way you ‘keep score’ on your project. This should track along two metrics: time (use a calendar) and money (see below for ideas). And this is not only for your use: keeping track of all the subs and contractors can help keep them accountable with proof of agreements, quotes, and contracts, and in the event of a problem, you will be all set with evidence in case of disputes over work quality or scope.
Easier sales – Yes, easier sales. Having proof of work done will give prospective buyers comfort in the type and magnitude of work done. It’s one thing to say the roof was replaced, but another level entirely to show proof with receipts. A buyer would have to be impressed when manuals and warranties were on top of the new appliances. Documentation of improvements can be valuable when selling a property, as it proves the quality and scope of work completed and well-kept records demonstrate professionalism and attention to detail to potential buyers. All of this may help you sell faster and at a higher price or at least close a bit of the gap between new homes and those that have had value added.
Ensures Compliance – Buyers may not be the only ones interested in what you’ve done. Receipts are frequently required when major work is done, and you are going for your certificate of occupancy; this is certainly the case with most electrical. Proof will make tax calculations easier and any other investors, including banks, will either require it or be deeply comforted by it (i.e., want to participate in your next project).
Tips for Successful Recordkeeping
How do you get this done? You really don’t have to over-complicate it. Categorize expenses by room, stage of the project, or contractor, but start by creating categories. Store it all in a dedicated file box or some other way so it is all in one place - the dashboard of your truck doesn’t count. You can use physical files with labeled folders or binders with dividers for each category. Or you can use digital files and store electronic copies of all documents in well-organized folders. Then, don’t forget to keep consistent naming conventions, which will make finding documents easier (e.g., "Invoice_Plumber_01-15-2025").
A simple spreadsheet can help too: track expenses (dates, amounts, vendors, and descriptions); task completion (start and finish dates for each phase), and notes (any issues or decisions made along the way). Using a spreadsheet can also allow you to track budget versus actuals.
There are, of course, specialized project management apps that are easy to pick up (some have a free version) such as Trello, Asana, and Monday.com. These all take slightly different approaches, but they all help track and coordinate tasks. Whereas Google Drive, Dropbox, or OneDrive can help store scanned documents, photos, and plans. Is receipt tracking not your thing? There’s software for that too, such as Bill.com, Expensify, CamScanner, and Shoeboxed. There are some great all-in-one packages being developed for this application such as emendo.ai.
If nothing else, keeping track of things will help you. Organized records reduce the likelihood of surprises or forgotten details, and your confidence will increase with a clear picture of the project, leading to better decision-making.