Live & Learn: Leave it to the pros

Steve SchraderA  mistake Steve Schrader made more than two decades ago still has an effect on his company.

Schrader, president of Bio Green, a Virginia-based lawn care and landscape provider started off focused primarily on residential properties. His partners did the company’s books and taxes in-house, believing they were fully capable of handling these administrative tasks on their own. “We pretty much operated out of cardboard boxes and files, but we thought we had everything down,” he says.

Unfortunately, that wasn’t the case. “Today, more than 20 years later, we’re still shoring up the underpinnings of the company because of it. Things aren’t as solid as they should be,” he says.

After six or seven years in business, the company was growing but there wasn’t much to show for it. That’s when Schrader got serious about finding a good accountant. Shortly after, he also hired a part-time bookkeeper. But even after bringing in this new employee he was reluctant to relinquish total control of the company’s payroll. That changed when his new bookkeeper asked if she could handle billing for the sprinkler department, which Schrader says was failing to perform to expectations.

The company had been focused on the lawn care side of the business. “But with my bookkeeper taking over, within two years (lawn care) was making as much as the (irrigation) installs,” Schrader says. “I made her full-time and now I rely heavily on her for her expertise.”

Today, Schrader, whose business brought in $3.4 million in revenue last year, doesn’t make a move without consulting his bookkeeper, accountant, and even his litigation and tax attorneys. He just wishes he had these professionals on board with him from the get-go. “It’s frustrating to look at all the money that was lost or unaccounted for,” he says. “We paid too much in taxes and made other mistakes that lost us money.”

Many owners believe the expense of bringing in these business professionals isn’t worth it, especially considering they won’t always be needed. Schrader disagrees. “If you know a truck can handle 350 lawns but you have 450 lawns, you’re going to buy another truck to grow your business – even though it will sit sometimes. You should look at these professionals the same way. They are another tool in your belt. Even though there will be times when they are unused, they are worth the cost in growing your business. If you find professionals that have your best interest at heart, you will save so much money that it will easily make up for the cost of hiring them.”

Schrader adds that having hired professionals to handle finances has freed up his time. It’s a fact other business owners should consider. “If you’re a good landscaper, but you’re also managing the financial side of your business, then you are torn between two time-consuming jobs,” he says. “You need to be out in the field, training guys and ordering materials, but all the while pulling at your sleeve and taking away your attention is the fact that the checkbook is off by $50 or that Mrs. Smith owes you a lot of money. Hiring a professional to handle that – and one who really excels at it – not only frees up your time but benefits your business.” For Bio Green, one of the benefits has been a high credit rating. “Today we have a great track record of making payments because I have someone in charge of that now,” Schrader says.

Learning the importance of having a bookkeeper and other professionals on staff was a painful but critical lesson, Schrader says.

“There’s no question that your business will grow much faster if you have financial professionals looking out for you,” he says.  
 

The author is a freelance writer based in Royersford, Pa.