---
title: Purpose of Accounting and Financial Management For Contractors
description: A fundamental goal of any growing business is to maximize and protect the profits. This is called financial management
image: https://www.shawnmccadden.com/hs-fs/file-15774480-jpg/images/maximizing_profits-wr.jpg
---

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# The Design Builder's Blog

## [Purpose of Accounting and Financial Management For Contractors](https://www.shawnmccadden.com/the-design-builders-blog/bid/85323/Purpose-of-Accounting-and-Financial-Management-For-Contractors)

Posted by [Shawn McCadden](https://www.shawnmccadden.com/the-design-builders-blog/author/shawn-mccadden) on Wed, Dec 26,2012 @ 06:00 AM

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## **Purpose of Accounting and Financial Management For Contractors**

![Financial Management For Contractors](https://www.shawnmccadden.com/hs-fs/file-15774480-jpg/images/maximizing_profits-wr.jpg?width=242&height=181&name=maximizing_profits-wr.jpg)

 

A fundamental goal of any growing business is to **maximize and protect the profits**.  By understanding the profit process - that is how to define it, create it, and measure it - a business owner or manager will come to better understand **how fragile profits can be** and the importance **financial management** plays in protecting it.   For many Remodelers first getting into the business, myself included, financial management skills were not necessarily part of our educational background.   However, our lack of knowledge on the subject would be a weak excuse to give our family for not being financially successful.

**[Try This Self Quiz To See If A Properly Setup Financial System Can Help You](https://www.shawnmccadden.com/the-design-builders-blog/bid/85077/Self-Quiz-To-See-If-A-Properly-Setup-Financial-System-Can-Help-You)**

### **Profitability is ultimately the responsibility of the business owner**

![Accounting For Contractors](https://www.shawnmccadden.com/hs-fs/file-15732715-jpg/images/business_owner_with_sign-wr.jpg?width=213&height=141&name=business_owner_with_sign-wr.jpg)There is way too much to learn about accounting and financing to cover or explain in this short blog article.  I suppose that is why it is actually a career for some people.  That’s why there are accountants, business consultants and financial advisors. For a business owner though, **understanding and overseeing the process are the bare minimums**.  The ultimate success and profitability of your company is typically not left to someone else; it’s the owner’s responsibility.  In order to identify what business owners need to do, I find have found it helpful to show my [**consulting and coaching**](https://www.shawnmccadden.com/what-i-do/consulting-and-mentoring/) clients a path for how it should happen. 

 

### **A simple path could be as follows**

 

### **Is your accountant a historian?**

[![Choosing an accountant](https://www.shawnmccadden.com/hs-fs/file-16141331-jpg/images/worlds_greatest_historian_mug-wr.jpg?width=175&height=175&name=worlds_greatest_historian_mug-wr.jpg)](http://www.zazzle.com/the_worlds_greatest_historian_mug-168182316345009706)With much to be learned, be sure you find the right accountant to partner with.  Do you want a historian who will collect your information and report to the government what happened while you were working?   Or, do you want a proactive partner helping you to create and protect your profits?  I tell my clients to seek referrals for someone who can answer their many questions and perhaps helps them create and understand the accounting reports needed to track business performance. 

 

### **Keep in mind this harsh truth...**

**If you still have a historian, it’s not his or her fault!**

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