by Bailey Shelton

Here’s why you should be thinking about next April while you budget out July.

From an outside perspective, the homebuilding industry in Central Indiana is experiencing profit at every turn. The state is short of about 30,000 homes, and the average cost of a new build is more than double what it was 8 years ago. But seasoned builders know with higher home prices comes the potential for bigger losses if costs and margins aren’t kept under control.

That’s where Jon Markee and his team at MyBuilderCPA shine brightest. As early as their initial client onboarding, the experts at MyBuilderCPA can start offering solutions to your business’ trickiest pain points.

“Even if you are building on speculation, you’re going to have a home buyer that’s only comparing your home to others in the area, never mind what the materials might have cost. In their mind that’s what it’s going to be worth. And so if you don’t manage your costs properly, it’s really easy to build a house that costs more than what the market will pay,” says Markee, CEO of MyBuilderCPA.

Among home industry CPAs, spend management is the hot new service of the moment. Increased material costs and supply chain disruptions combine with a worker shortage to make balancing books seem more like a juggling act.

Although there’s space in the market for builders to grow their business over the next twenty years, that kind of long term sustained business only happens when builders plan for their future. Good spend management means fewer unexpected expenses during tax season, and more budget to reinvest in your company.

Some recommendations from a seasoned expert: your business should be using some form of expense management software. A few of the most popular options include Jobtrend, Adaptive, and Buildertrend.

A CPA can also help with understanding new agreements that come through your business. It’s important on projects to not only understand the upfront costs, but also who potentially foots the bill when unexpected expenses arise. For a fixed bid, the builder might be bearing the brunt of that cost, but for cost plus or other agreements, this might not be the case.

If you notice that your salary comes up short time and again regardless of markup, you might be missing some hidden expenses that are cutting into your bottom line. These issues, while serious, are commonplace.

Markee recommends assessing your recurring subscriptions and canceling anything that you don’t use anymore. Business owners might be signed up for duplicate services like Office and GSuite without even recognizing they’re being charged twice.

“I always attack the highest profit loss first,” says Markee. “People don’t usually come to us if there’s no room for improvement.”

Proper bookkeeping is essential to every business, but even the most confident home builder can fall prey to missed expenses and incorrect profit margins. Think about the goals you have for the next year of your business. Then, think about the next five years, and the next ten. What needs to happen financially for you to get your business where you want it to be?

The benefits of proper spend management mean business owners have the power to choose how their business will invest in its own future. MyBuilderCPA works with business owners to provide the best advice possible. Their onboarding process involves a discussion about long term goals and current pain points. What’s working, and what’s not. They also audit your current records for any outstanding expenses.

To unlock the potential of your home building business, contact for an initial consultation.