In the heat of day-to-day operations, it's common for contractors to put financial management on the back burner. However, neglecting the books can have far-reaching consequences beyond dollars and cents. In this episode, Ruth King, well known as the “Profit and Wealth Guru”, joins Khalil and Martin to discuss profitability and the role of accurate and timely bookkeeping in making informed business decisions.Time Stamps01:38 - Luca Pacioli & Bookkeeping04:26 - The Role of Bookkeeping to Contractors07:44 - Ruth's Entrepreneurial Journey and Business Ventures10:21 - The Role of Bookkeeping in Detecting Fraud15:12 - Revenue Generation15:38 - The Importance of Billable Hours in Construction18:08 - Calculating Billable Hours25:14 - Warning Signs of a Cash Flow Crunch27:45 - Challenges in Managing Inventory & Deposits31:21 - Understanding Deposits and Inventory Management35:23 - The Importance of Hiring Qualified Bookkeepers37:12 - How to Get Out of a Cash Flow Crunch39:37 - The Financially Fit Business40:40 - Signs of Financial Statement Inaccuracies42:03 - Using Software in Financial Management46:41 - The Foundational Role of Books50:28 - More from Ruth King52:17 - OutroQuotable Moments from the Show"In our industry, in construction, we generate revenue through billable hours. If you do not have a billable hour, you don't have revenue." - Ruth King"Decreasing current ratio should be the greatest warning sign to you that there is a problem with productivity. There's a problem with profitability. Figure it out or get help. One of the two." - Ruth King"It's [Bookkeeping] actually easier to do than all the technical stuff you learned. Period. It's just we weren't trained in it. We weren't taught it. We didn't take it in school." - Ruth King"I've been in business for 50 years now and I have never seen a business thrive without books. Ever." - Martin HollandReady to take your contracting business to the next level? Subscribe to The Cashflow Contractor today and get instant access to the FREE Ultimate Buyer's Guide for Contractors!Don't miss out on essential insights, tips, and strategies to boost your profits and streamline your operations. Subscribe now and download your exclusive guide to securing more clients and maximizing your earnings.ResourcesAIPB Bookkeeping Hiring TestNeed Marketing Help? We Recommend BenaliNeed Help with podcast production? We recommend DemandcastMore from Ruth KingRuth King’s WebsiteFinancially Fit Business Program Email Ruth KingContractor Cents PodcastMore from Martintheprofitproblem.comannealbc.com   Email MartinMeet With MartinLinkedInFacebookInstagramMore from Khalilbenali.com Email KhalilMeet With KhalilLinkedInFacebookInstagramMore from The Cashflow ContractorSubscribe to our YouTube channelFollow On Social: LinkedIn, Facebook, Instagram, X(formerly Twitter)Visit our websiteEmail The Cashflow Contractor