Page 7 — Method

Electrician marketing tips: 8 ways to get more customers

Field Services, Small Business / By Ryan Flanigan

Struggling to bring in new customers as an electrician? Discover 8 effective marketing tips for electrical contractors in this blog.

Electrician marketing tips: 8 ways to get more customers Read More »

Targeted marketing strategies are essential for electricians looking to expand their customer base.

Effective marketing lets electricians highlight their unique skills and services, making it easier to attract new clients and stand out from the competition.

With the right marketing plan, electricians can:

Convert inquiries into sales faster and more reliably.
Leverage positive reviews to drive trust.
Boost their online presence and draw in more business.

Why is marketing important for electrical contractors?

The electrical contracting industry is fiercely competitive, making it crucial for contractors to develop effective marketing strategies to stand out. By investing in targeted marketing, you can:

Enhance your visibility.
Attract a wider audience.
Ultimately grow your business.

Professional marketing strategies directly contribute to business growth in the electrical sector. Electricians who engage with followers online, promote special offers, and advertise on relevant platforms can expect to see an increase in client inquiries and job bookings.

Top marketing tips for electrical contractors

Implementing a diverse range of marketing strategies can yield significant benefits for electrical contractors. Here are the top eight things you need to consider.

Highlight your expertise

As you plan your marketing strategy, think of all the ways you can highlight your skillset and experience. Make sure you:

Showcase certifications, special projects, and years of experience on your marketing platforms.
Create a professional portfolio that includes photos and descriptions of completed projects.
Collect testimonials and case studies as proof of expertise.

Optimize for local SEO

SEO stands for search engine optimization, which is how platforms like Google prioritize your website content over your competitors.

Don’t have a website yet? Make one, then come back to this blog. According to our research, 97% of people turn to online searches to learn more about a local business.

Local SEO is crucial for electricians aiming to improve their visibility in specific geographic areas. By optimizing your presence on search engines and leveraging your Google Business Profile (formerly Google My Business), you can attract more local traffic.

To optimize for local SEO, you should:

Include relevant keywords on your electrician website.
Ensure your business profile is updated for search and reviewing purposes.
List your business in local directories.
Collect customer reviews to enhance your online presence.
Create different forms of content such as blogs, guides, and videos.
Optimize your website for mobile users to improve search results.

Not to mention, over 90% of customers read reviews before buying products or hiring services — so it’s crucial to generate positive reviews wherever you can.

Offer expert advice

Becoming a known electrical expert is an ongoing process, but working towards that reputation helps you engage followers and establish your brand as an authority in the field.

For example, setting up a blog or FAQ section on your site lets you share valuable knowledge with your audience and assures them that you know your stuff.

Additional examples include:

Create how-to videos and electrical safety tips.
Post updates on new industry trends and innovations.
Share useful electrical tips on social media platforms.

With an expert reputation, your word-of-mouth referrals increase, which means more business opportunities for you.

Need an easier way to keep your QuickBooks data up-to-date?

Try Method’s two-way sync

Network with other electricians or electrical contractors

Networking with other contractors in your field offers numerous benefits, including mutual referrals and joint marketing ventures.

Electricians can connect through platforms like:

Social media (namely LinkedIn).
Online forums and communities.
Local trade associations.
Industry-specific events.

Offer incentives and discounts to your customers

Your leads are significantly more likely to bite when you offer them something. You can:

Provide discounts for first-time customers.
Offer referral benefits to existing clients.
Create seasonal promotions to attract more business.

Communicating these offers effectively through email marketing, social media, and your website ensures that your target audience is aware of these promotions and can easily act on them.

Invest in online ads and paid promotions

While they can get costly, leveraging online ads and paid promotions is a strong way to generate business and get a near-immediate ROI.

Examples include:

Google Ads.
Facebook Ads.
Instagram sponsored posts.
PPC (pay-per-click) campaigns.

Businesses that invest in Google Ads and social media marketing generally see a measurable boost in traffic and inquiries. On average, advertisers make $2 in revenue for every $1 spent on Google Ads.

Remember that setting appropriate budgets and measuring the return on investment for paid campaigns is crucial for maximizing the effectiveness of your advertising efforts.

Dominate local marketing

When it comes to hiring electricians, people like to look at options that are close to home. To maximize your visibility in this sense, it’s a great idea to:

Sponsor local events and community projects.
Advertise in local newspapers and magazines.
Partner with local businesses for cross-promotions.

A strong local presence, both online and offline, is vital for becoming the go-to electrician in your area.

Electrical contractor scheduling software

Using scheduling software can significantly improve customer experience and efficiency. Popular options include Method:Field Services, ServiceTitan, Jobber, and Housecall Pro. See more about Method:Field Services below.

78% of consumers state their purchases are influenced by posts on the social media pages of brands, but which one (or ones) should you use? To extend your reach as far as possible, the more the merrier.

Electricians often find success on Facebook and Instagram due to their visual nature and large user base. LinkedIn and X (Twitter) are not as big, but tend to be more business-focused, making them a great place to find new prospects.

For best results on these platforms, consider:

Posting project images and client testimonials.
Running targeted ads to reach specific demographics.
Engaging with followers through live Q&A sessions.

Marketing tips for electrical contractors: Key takeaways

In a nutshell, here are the eight key electrician marketing tips to grow your customer base and your business:

Highlight your expertise, skills, and experience.
Implement a website with local SEO strategies to enhance visibility.
Generate positive reviews and word-of-mouth referrals by becoming an expert.
Network with other contractors for referrals and partnerships.
Offer incentives and discounts to entice new customers.
Budget for online advertising and paid promotions to extend your digital reach.
Invest in offline marketing to dominate your local scene.
Use scheduling software like Method to scale without issues.

Electrician marketing tips: Frequently asked questions

How profitable is running an electrical business?

Running an electrical business can be highly profitable, depending on factors like market demand, pricing strategy, and operational efficiency. Electricians who effectively manage their marketing strategy, especially regarding customer service and lead generation, can see substantial earnings — generally achieving a gross profit margin of around 65 – 67%.

How can I stay up-to-date with the latest marketing trends and tools in the electrical industry?

You can stay informed about new marketing trends and tools by subscribing to industry newsletters like EDN’s, attending trade shows, and participating in online forums.

What is the target market for electricians?

The typical clientele for electrical services includes homeowners, small businesses, and commercial property managers. Effective marketing campaigns should showcase your expertise and reliability to target these demographics.

Ready to focus on electrical work instead of admin work? Try Method:Field Services.

The benefits of payment gateways for your business

Sales, Small Business / By Ryan Flanigan

Learn how payment gateways can enhance your business by providing secure transactions and improving customer trust in this blog.

The benefits of payment gateways for your business Read More »

Managing payments can often feel complicated and time-consuming. With Method, you can simplify how you handle payment information and credit card transactions in order to manage payments more effectively. Here’s how Method’s payment solution can help your business:

1. Real-time QuickBooks sync

Method integrates directly with QuickBooks, meaning every payment you process is instantly synced. No need for double data entry — your payment information is always accurate and up-to-date in real-time.

2. Multiple payment gateway options

Method gives you the flexibility to accept payments through a variety of gateways, including PayPal, Stripe, and Square. This means your customers can choose their preferred payment method, making it easier for them to pay and for you to manage payments.

Partners of payment gateways integration

3. Secure and compliant transactions

Security is critical when dealing with credit card information. Method’s payment gateways are PCI DSS compliant, ensuring every transaction is protected by top-level security standards. This helps you manage payments confidently, knowing they’re safe and compliant.

4. Easy payments through customer portals

With Method’s customer portals, your clients can view their transactions and pay at their convenience. This self-service option makes managing payments smoother and faster, improving the overall experience for your customers.

Customer view of a personalized Method portal.

5. Better cash flow

A streamlined payment process means fewer delays and faster payments, helping you keep your cash flow steady. This makes it easier for you to manage payments and keep your business running smoothly.

6. Comprehensive reporting

Method offers detailed reporting on your payment transactions, giving you insights into your payment processes. You can track trends, monitor performance, and make informed decisions to improve your business operations.

Conclusion: Simplify your payment management

Method makes managing payments easy and efficient. By integrating payment gateways into your workflow, you can focus more on growing your business and less on the complications of payment management.

Method CRM lets you run your business, your way.

Watch it in action

Why integrated payments are essential to grow your business

Sales, Small Business / By Ryan Flanigan

Explore the importance of Method’s integrated payments for business growth. Learn how to simplify transactions and improve satisfaction.

Why integrated payments are essential to grow your business Read More »

When running a business, every second counts — especially when it comes to getting paid. Delays in payments can slow down your cash flow, disrupt operations, and even stall business growth. That’s why integrated payments are so important.

How Method’s integrated payments make a difference

Method makes it simple to accept payments by connecting directly with QuickBooks. With payment gateways like PayPal, Stripe, and Square, you can choose the best option for your business. This flexibility saves time and helps reduce processing costs.

Why integrated payments matter

Get paid faster: Waiting for payments can be frustrating, especially when your cash flow is at stake. Integrated payments help you accept payment quicker, keeping things running smoothly.
Flexibility to choose: Every business has unique payment needs. Method lets you pick from multiple payment gateways, whether it’s PayPal, Stripe, or Square. This makes it easier to serve more customers and never miss a sale due to limited payment options.
Secure payments: With cyber threats on the rise, securing credit card information is crucial. Method’s built-in security features ensure your transactions are safe and compliant with industry standards. You can accept payments confidently, knowing your business and customer data are protected.

Make payments easier for you and your customers

Integrating payments with Method is more than just convenience. It’s about managing payments efficiently and securely. By keeping everything in one place, you reduce administrative work and free up more time to focus on growing your business.

Conclusion

Don’t let outdated payment systems slow you down. Integrated payments with Method help you get paid faster, more securely, and more efficiently. Improve your payment process today and see how it can benefit your business and your customers.

Online payments, automated leads, and customer management?

See how Method does it all

12 best Salesforce alternatives for 2025

CRM / By Ryan Flanigan

Salesforce is a popular CRM, but that doesn’t mean it’s the right fit for you. Check out the best Salesforce alternatives in this blog.

12 best Salesforce alternatives for 2025 Read More »

Salesforce is the world’s leading cloud-based CRM platform, but that doesn’t mean it’s a perfect solution for everyone.

If you’ve landed on this blog, you’re likely feeling that Salesforce isn’t quite the right fit — whether it’s the cost, complexity, or something else entirely.

Don’t worry, you’ve got options. In fact, we’re about to walk you through the 12 best Salesforce alternatives for 2025.

What is a CRM?

Before we jump into the best Salesforce alternatives, let’s start with the basics: CRM stands for customer relationship management.

Think of it as the ultimate organizational tool for sales, customer support, and marketing teams. Key functions include:

Lead and customer management.
Integrations (email, calendar, accounting software).
Reporting and analytics.
Sales pipeline management.
Administrative and marketing workflow automation.
Customer service tools.
Mobile access.

A CRM helps you keep track of everything in one place, automating tasks and freeing up your team to do what they do best.

Salesforce: Why or why not?

Image credit: PCMag

Salesforce is often seen as the giant in the CRM world. But it’s crucial to recognize that it primarily targets large businesses and enterprises, particularly those with over 1,000 employees. So while it’s packed with features, let’s be real: Salesforce is not for everyone — especially small-to-midsized businesses.

Pros of Salesforce:

Salesforce users most appreciate the platform because of its:

Rich feature set with tools for collaboration, automation, and business management.
Strong integration potential.
Diverse industries served, including professional services, manufacturing, and finance.
Advanced insights through Einstein Analytics.
Cloud-based for easy access.
Robust security measures.

Cons of Salesforce:

While Salesforce is great for businesses with the resources to dedicate to its ongoing usage and maintenance, it comes with several downsides:

High cost.
Steep learning curve.
Overcomplicated for smaller businesses.
Time-consuming implementation.
Potential feature overload.
Requires dedicated maintenance team.
Performance issues in complex setups.

The sheer number of tools can feel overwhelming, and unless you have a team dedicated to mastering the platform, you may end up paying for features you don’t need or know how to use. Plus, Salesforce comes with a hefty price tag, which makes it less appealing for smaller businesses or those just starting out.

Now, if you’re thinking, “That’s not really what I need,” you’re in the right place. Let’s get into the best alternatives to Salesforce.

Need an easier way to keep your QuickBooks data up-to-date?

Try Method’s two-way sync

Best Salesforce alternatives and competitors

1. Method CRM

Out of all the best Salesforce alternatives, Method is the #1 CRM for QuickBooks and Xero users. The platform is highly customizable, yet user-friendly, making it the perfect solution for your unique needs and workflows.

Method features

Automated lead capture using web-to-lead forms.
Seamless syncing of data to and from QuickBooks or Xero.
24/7 customer self-service portals for access to documentation and paying invoices.
A complete view of each customer, including purchase history and interactions.
Unlimited customization to mold the platform to your business.
Drag-and-drop tools for workflow automation.
Automated follow-ups and reminders to keep everything on track.

Method limitations

Method works best if you are a QuickBooks or Xero user.
The platform is currently only available in English.

Method pricing

Method CRM has three pricing plans:

Contact Management: $25 per user per month.
CRM Pro: $44 per user per month.
CRM Enterprise: $74 per user per month.

Method CRM offers a free trial with no credit card required. Get started today!

2. Zendesk

Screenshot of the Zendesk Sell dashboard,

Image credit: Mopinion

Primarily recognized for its customer service tools, Zendesk provides a user-friendly platform that focuses on improving support efficiency and customer satisfaction.

Zendesk features

Powerful service tools like quick and easy support tickets.
Multi-channel support across email, phone, chat, social media.
Centralized hub for customer profiles and interaction history.
Collaboration features between agents and across departments.
Growing knowledge base for self-service.
Provides advanced analytics and reporting.
Integrates with 1,500+ apps through the Zendesk Marketplace.

Zendesk limitations

Lacks advanced CRM functionalities compared to dedicated CRM platforms.
Pricing jumps up quickly as you add more features and users.
May be overkill for very small teams with basic support needs.
Requires some setup and configuration to unlock full potential.
AI and automation features are limited on lower-tier plans.

Zendesk pricing

Zendesk offers several pricing plans:

Build your own: Starts at $19 per month per agent.
Suite Team: $55 per month per agent.
Suite Growth: $89 per month per agent.
Suite Professional: $115 per month per agent.
Suite Enterprise: Contact their sales team directly.

Zendesk also offers a 14-day free trial.

3. Microsoft Dynamics 365 Business Central

Image credit: ADMN

Next up on our list of the best Salesforce alternatives is Microsoft Dynamics 365. This comprehensive CRM and ERP solution provides businesses with sales, marketing, and customer service tools for an all-in-one system.

Microsoft Dynamics features

Native integrations with other Microsoft products like Office 365 and Teams.
AI-driven insights for smarter decision-making.
Robust sales and marketing tools.
Advanced reporting and analytics capabilities for performance tracking.
Customizable app modules for a tailored business solution.
Omnichannel engagement tools to support customer interactions via multiple channels.
Mobile access enables on-the-go updates and management.

Microsoft Dynamics limitations

Complex, time-consuming setup process.
Requires a larger budget than other options on this list.
Steep learning curve that may require training.
Reported customization challenges and external integration issues.
Limited out-of-the-box reporting and analytics.

Microsoft Dynamics pricing

Microsoft Dynamics 365 Business Central offers two core pricing plans:

Essentials: $70 per user per month.
Premium: $100 per user per month.

You can also add team members to these packages at $8 per user per month, where they get limited access to read data, make approvals, and create or update select information. The platform also offers a 30-day free trial.

4. Zoho CRM

Image credit: Discover CRM

Zoho CRM is a cost-effective solution tailored for small to medium-sized businesses. Its flexibility positions it as one of the best Salesforce alternatives for businesses looking for an affordable CRM solution.

Zoho features

Easy-to-use interface with several integrations.
Customizable dashboards and reports.
Automation tools to reduce manual admin tasks.
An AI-driven assistant, Zia, for predictive analytics and lead scoring.
Collaboration features for team coordination and project management.
Mobile access for on-the-go management of customer relationships.

Zoho limitations

Lacks depth in analytics, customization, and automation compared to some competitors.
Customer support can be inconsistent, leading to varying user experiences.
May require additional training for users to fully utilize its capabilities.
Some integrations may incur additional costs or require separate licenses.
Performance can be affected when handling large volumes of data.

Zoho pricing

Zoho CRM offers a limited free version for up to 3 users, and offers four paid plans:

Standard: $20 per user per month.
Professional: $35 per user per month.
Enterprise: $50 per user per month.
Ultimate: $65 per user per month.

If you decide to purchase an annual subscription, Zoho also offers a 20-30% discount depending on your plan.

5. HubSpot CRM

A screenshot of HubSpot CRM contacts page showing customer information

Image credit: PCMag

HubSpot CRM is a user-friendly powerful system with an integrated content management system. Users appreciate HubSpot for its various “hubs” that give them the flexibility to select only the hubs they need, ensuring they pay solely for the services they use.

HubSpot CRM features:

Free plan to start that allows up to 1,000,000 contacts.
Easy document uploading and access.
Email tracking and alerts.
Strong integration capabilities.
Contact task management.
Performance metrics and reporting.

HubSpot CRM limitations:

Free version has very limited features, especially for customization.
Costs rise quickly as you add more features and “hubs.”
The pricing model gets confusing for new users.
Customer support response times can be lengthy.
Pricing is based on the number of contacts, which is costly for businesses with large contact lists that only need basic features.

HubSpot CRM pricing:

Hubspot offers a free, limited plan for up to 2 users and three core paid plans:

Starter Customer Platform: $20 per user per month. There is a 25% discount for annual subscriptions.
Professional Customer Platform: $1,300 per month for up to 5 users. Additional seats start at $45 per month each. There is a slight discount for annual subscriptions.
Enterprise Customer Platform: Starts at $4,300 per month for up to 7 users. Additional seats start at $75 per month each.

Method CRM lets you run your business, your way.

Watch it in action

6. Pipedrive

Image credit: Pipedrive

Known for its intuitive interface, Pipedrive offers a sales-focused CRM that helps teams manage leads and deals effectively, cementing its place among the best Salesforce alternatives for smaller businesses.

Pipedrive features

Visual dashboards for tracking progress.
Customizable sales pipelines tailored to unique processes.
Activity-based selling approach to drive deals towards completion.
Integrations with over 500 applications for enhanced functionality.
Smart Contact Data for your leads.
Lead generation tools, including the LeadBooster add-on.
Mobile app.

Pipedrive limitations:

Limited customer support tools.
Basic features may not meet the needs of complex sales processes.
Pricing escalates quickly with advanced features.
Some users report that Pipedrive’s customer service is lacking.
Limited customization options in lower-tier plans.
Performance issues when handling large volumes of data.

Pipedrive pricing:

Pipedrive offers five pricing plans:

Essential: $24 per seat per month.
Advanced: $44 per seat per month.
Professional: $64 per seat per month.
Power: $79 per seat per month.
Enterprise: $129 per seat per month.

Pipedrive offers an annual discount of 18-42% depending on your chosen plan. There is also a free 14-day trial available.

7. SugarCRM

Image credit: Medium

SugarCRM is known for being a flexible platform with extensive customization and integration options. As one of the best Salesforce alternatives, it helps users manage customer relationships while adapting to their specific processes.

SugarCRM features:

High level of customization.
Strong focus on sales and marketing automation.
AI-driven analytics and insights with extensive reports and dashboards.
Mobile CRM app for on-the-go access.
Multilingual and multicurrency support.
Integration with popular third-party applications.
Some project management features for team collaboration.

SugarCRM limitations:

User interface and basic functionality can feel outdated.
High cost and steep learning curve compared to competitors.
Limited out-of-the-box customer support tools.
Occasional performance issues with large datasets.
Inconsistent customer support experiences reported.
Customization is complex and time-consuming.

SugarCRM pricing:

SugarCRM offers four pricing models:

Essentials: $19 per user per month, billed annually, with a 3-user minimum and 9-user maximum.
Standard: $59 per user per month, billed annually, with a 10-user minimum.
Advanced: $85 per user per month, billed annually, with a 10-user minimum.
Premier: $135 per user per month, billed annually, with a 10-user minimum.

SugarCRM also offers a 7-day free trial.

8. Insightly CRM

Image credit: Insightly

Combining project management with CRM capabilities, Insightly is ideal for small-to-midsized businesses that need both customer relationship management and project tracking in one central, user-friendly platform.

Insightly features:

Project and task management tools built directly into the CRM.
Customizable fields and layouts for tailored data entry.
Smooth integration with popular third-party applications.
Email tracking and communication history for contacts.
Reporting and analytics tools for performance insights.
Mobile app for managing projects and contacts on the go.
Workflow automation for repetitive tasks.

Insightly limitations:

Lacks more advanced features for complex project management needs.
Limited customer support options.
Performance issues when handling extensive data sets.
Customization options are limited in lower-tier plans.
Inconsistent user experiences with the mobile app.
Reporting capabilities are not as robust as those in other CRMs.

Insightly pricing:

Insightly CRM offers three pricing plans:

Plus: $29 per user per month.
Professional: $49 per user per month.
Enterprise: $99 per user per month.

Insightly’s plans are all billed annually. For the Plus and Professional packages, a free 14-day trial is available.

9. Bitrix24

Image credit: Bitrix24

Bitrix24 offers a free or low-cost solution that integrates CRM with collaboration tools. Its affordability and versatility make it one of the best Salesforce alternatives for small businesses looking to drive team productivity.

Bitrix24 features:

Free version with solid features.
Built-in collaboration tools like chats and file sharing.
Strong project and task management capabilities.
Document management system for storing and sharing files.
Mobile app.
Email marketing tools for reaching customers.
Customizable workflows to automate processes.

Bitrix24 limitations:

User interface and customization options can be overwhelming.
Limited integrations with third-party apps.
Performance issues reported with large teams or data sets.
Customer support can be slow or inconsistent.
Limited reporting capabilities.
Basic functionality may not address your unique business processes.
Customization options can be complex and time-consuming.

Bitrix24 pricing:

Bitrix24 offers a free basic plan with unlimited users and 5GB of storage. There are four paid plans available:

Basic: $61 per organization per month, which includes 24GB of storage and 5 users.
Standard: $124 per organization per month, which includes 100GB of storage and 50 users.
Professional: $249 per organization per month, which includes 1,024GB of storage and 100 users.
Enterprise: $499 per organization per month, which includes 3TB of storage and 250 users.

Bitrix24 also offers an annual subscription discount of up to 20%, depending on your chosen plan. A 15-day free trial is available.

10. Oracle NetSuite CRM

Screenshot of an Oracle NetSuite CRM dashboard.

Image credit: NetSuite

Part of the comprehensive NetSuite cloud suite, this CRM solution provides a 360-degree view of customers with integrated ERP functionalities, making it one of the best Salesforce alternatives for larger organizations seeking robust financial and operational management.

Oracle NetSuite features:

Deep reporting and analytics capabilities.
Fully integrated with Oracle’s ERP.
Sales force and marketing automation.
Customer service management tools for handling support requests.
Partner relationship management for managing partner interactions.
Customizable dashboards for personalized insights.

Oracle NetSuite limitations:

Expensive and complex.
Requires a dedicated IT team for management.
Steep learning curve for new users.
Limited flexibility in lower-tier plans.
Some features may require additional licensing costs.
Integration challenges with certain third-party applications.
User interface can feel cluttered or overwhelming at times.

Oracle NetSuite pricing:

Oracle NetSuite CRM does not have pricing information available on their website. You must contact their sales team to get a quote for your business.

11. Copper

Image credit: Salesdorado

Built specifically for Google Workspace users, Copper is an easy-to-use Salesforce alternative that integrates with Gmail and other Google apps for teams to be able to manage customer relationships directly within their existing workflows.

Copper features:

Natively integrated with Google Workspace.
Email tracking for monitoring communications with leads.
Customizable reporting for tailored insights.
Mobile app to manage tasks and communications.
Automatic data capture to reduce manual entry efforts.
Collaboration and communication tools.

Copper limitations:

Fewer features compared to larger CRMs.
Customer support isn’t always responsive.
Copper is best for Gmail users.
Learning curve with the user interface and advanced functionalities.
Limited customization options in lower-tier plans.
Integration challenges with some non-Google applications.
Pricing can escalate quickly with additional features or users.

Copper pricing:

Copper offers four pricing plans:

Starter: $12 per seat per month.
Basic: $29 per seat per month.
Professional: $69 per seat per month.
Business: $134 per seat per month.

If you pay for an annual subscription, you can also get up to 26% off depending on your chosen plan. Copper also offers a 14-day free trial.

12. Keap

Image credit: Keap

Formerly known as Infusionsoft, Keap combines CRM with marketing automation features tailored for small businesses, helping them manage their sales processes while nurturing leads through targeted campaigns.

Keap features:

Simple, drag-and-drop workflows.
Sales pipeline management for tracking deals.
Automated follow-ups to nurture leads.
Integration with popular third-party applications.
Reporting tools for analyzing business performance.
Mobile app for managing tasks and communications on the go.
E-commerce capabilities for managing online sales.

Keap limitations:

Limited customization options.
Costly if you have many required contacts or users.
Customer support can be inconsistent or slow to respond.
Performance issues reported with larger data sets.
Fewer automation features compared to larger CRMs.
Integration challenges with certain specialized tools.

Keap pricing:

Keap charges based on your number of required contacts and users. Plans have a minimum of 2 users and 1,500 contacts — pricing starts at $299 per month with a 17% discount if you pay annually.

How to choose the right CRM for you

Out of all these best Salesforce alternatives, here’s how to find the perfect CRM solution for your unique business needs:

Assess your goals and software requirements.
Compare features, functionality, and pricing.
Review customer feedback and case studies.
Test with free trials or demos.
Plan for implementation and training.

Get everything you need to run your business in one place.

See what’s possible

Wrap-up: Best Salesforce alternatives

No matter your business size or needs, there’s a CRM out there that can work for you. The key is finding one that aligns with your goals, is easy to use, and doesn’t break the bank. Overall, your twelve best Salesforce alternatives are:

Method CRM.
Zendesk.
Microsoft Dynamics 365.
Zoho CRM.
HubSpot CRM.
Pipedrive.
SugarCRM.
Insightly.
Bitrix24.
Oracle NetSuite CRM.
Copper.
Keap.

If you use QuickBooks or Xero, your choice is a no-brainer. Method syncs with your accounting software both ways to keep your financial data secure and your lead and customer data available to everyone who needs it.

Try Method free for 14 days.

Best Salesforce alternatives FAQs

Is CRM software only for large businesses?

No, businesses of all sizes can benefit from a CRM. Many options cater directly to small businesses to help them grow while staying organized.

Is there a better CRM than Salesforce?

“Better” depends on your needs. For some businesses, Method CRM’s customizability or HubSpot’s free plan may be a better fit than Salesforce.

Can small businesses use CRM?

Yes, small businesses benefit greatly from a CRM, especially as they begin to scale. CRM software helps even the smallest organizations manage customer relationships efficiently.

What are the benefits of a CRM?

A CRM system provides several benefits, including better customer service, increased sales, greater customer retention, detailed analytics, and enhanced team productivity and efficiency.

5 best electrician apps that will save you time and effort

Field Services / By Ryan Flanigan

Explore the 5 best electrician apps to manage your work more efficiently, from scheduling and invoicing to lead and customer management.

5 best electrician apps that will save you time and effort Read More »

Let’s face it — running an electrical business involves juggling jobs, paperwork, and customer demands all day long.

But what if there was a way to make your life easier and your business run smoother? That’s the exact question that has produced the best apps for electricians over the years.

In this article, we’ll show you how these apps can transform your electrical business from good to great — and the five best options for setting your career as an electrician up for success.

Benefits of electrician apps

Electrician apps aren’t just fancy gadgets. Here are just a few reasons why you need to get on board:

Increased efficiency: Say goodbye to administrative hell. Many of these apps automate everything from scheduling to invoicing, so you can focus on what matters: getting the job done.
Stronger customer service: Happy customers mean more business. With real-time updates and seamless communication, your clients will be singing your praises.
Centralized information: All your important documents, customer details, and project updates exist in one place. You can monitor progress at a glance and access what you need when you need it.
Better time tracking and expense management: Keep tabs on your hours and expenses effortlessly. With built-in tracking features, you can see where your time goes and manage your budget effectively.
Increased profitability: The best electrician apps help boost your bottom line. Less time spent on repetitive tasks means more time for billable work — which means more revenue.

What are electrician apps used for?

Electrician apps are your secret weapon for tackling the daily grind of electrical work. They’re not just nice-to-haves — they’re must-haves, especially as you scale.

The best electrician apps offer these key features:

Job scheduling.
Lead and customer management.
Estimate and invoice generation.
Project management tools.
Marketing and administrative automation.

QuickBooks can’t do everything, so let Method:Field Services help.

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Top 5 apps for electrical contractors

This section serves as a guide to the most useful apps for electrical contractors, highlighting how these tools enhance business operations. Keep your specific needs in mind while exploring each app to find the best fit for your company.

Method:Field Services

Especially when it comes to efficient lead and customer information management for QuickBooks and Xero users, Method is the top electrical contractor CRM.

Some of its best features for electricians include:

Automatic, customizable quotes and invoicing.
A two-way sync with your accounting software that updates in real time.
Unlimited customization to address your unique contracting needs and get data-driven insights.
A mobile app to stay connected to your data, even when you’re on the go.

Method also provides a 360-degree lead and customer view, giving you access to complete histories and preferences for personalized service.

Plus, with automated follow-ups, you can set it and forget it — Method sends appointment reminders and thank-you notes automatically. Not to mention, your clients can also enjoy a self-service portal to:

Access their information.
E-sign documents.
View estimates.
Pay invoices online.

Keep in mind that while Method works on its own, it’s significantly more powerful if you integrate it with QuickBooks or Xero accounting software.

Housecall Pro

Image credit: Capterra

Housecall Pro is packed with features that assist with field service management, helping electricians optimize their daily operations. With this platform, you can:

Automate invoice generation.
Track inventory and equipment.
Manage customer information securely.

What’s more, Housecall Pro lets you streamline job scheduling to easily assign techs, update arrival windows, and even accept online bookings.

That said, Housecall Pro also has its drawbacks, such as limited native integration capabilities, a complex pricing structure that can be challenging to navigate, and being less customizable than some alternative solutions.

FieldEdge

Image credit: Software Advice

FieldEdge is a versatile software system that specializes in serving the following industries:

Electrical work.
HVAC.
Plumbing.
Locksmith services.
Appliance repair companies.

This platform simplifies the invoicing process for electrical projects, making it easier for electricians to handle their finances — with dedicated tools for:

Automated invoice generation.
Payment tracking.
Expense management.

FieldEdge is great for managing customer appointments and field operations, but some note limitations in reporting capabilities and QuickBooks integration.

Service Fusion

Image credit: Software Pundit

Service Fusion is a robust field service management software that packs a punch for home service industries. It’s designed to tackle the day-to-day operational hurdles faced by HVAC, plumbing, and electrical service businesses.

This platform helps you cut through the clutter and focus on delivering top-notch service with features like:

Smart scheduling.
Real-time dispatching.
Automated invoicing.

Service Fusion offers a variety of field service management features tailored for electrical contractors that include:

Dispatch management.
Real-time updates.
Communication tools for team coordination.

Despite these strengths, many users express the need for improvements to address the platform’s lack of intuitiveness. They also point out limitations in syncing with multiple charts of accounts in QuickBooks.

ClockShark

Image credit: ClockShark

ClockShark provides tools geared towards improving business operations for electricians. It’s known for its unique tracking tools and crew scheduling that help manage jobs and teams efficiently.

Its key features include:

GPS tracking to monitor team locations in real-time, updating every 15-20 minutes when clocked in.
Time tracking that enables mobile clock-in/out, eliminating paper timesheets and improving payroll accuracy.
Job site management that facilitates tracking of multiple job sites, worker assignments, and real-time progress monitoring.

While ClockShark offers many benefits, it’s worth noting one limitation: some users find that its reporting functionality could be more comprehensive. It gets a bit challenging to generate certain types of custom reports or analyze data in the depth they require.

See how Method makes running your business easier.

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Why consider an electrical contractor software?

Using specialized software in the electrical industry offers several strategic advantages. Let’s look into some of the top benefits.

Simplify project management

Electrician apps enhance project management from initiation to completion by providing a suite of tools that provide clarity to your team and improve overall efficiency. Examples include:

Task scheduling.
Progress tracking.
Resource management.

Improve invoicing efficiency

Automated invoicing features significantly impact an electrician’s workflow, reducing errors and ensuring timely payments. Key features to look out for are:

Automatic invoice generation.
Payment reminders.
Expense tracking.

Accurate reporting

Dynamic, data-driven reports are crucial for business decision-making and performance analysis. The best electrician apps generate major insights through:

Financial reports.
Job completion reports.
Performance metrics.

Improve scheduling and dispatching

These apps also help you efficiently schedule jobs and dispatch your team by providing real-time updates, route tracking, and communication tools. Make sure to prioritize:

Real-time scheduling.
Dispatch management.
Mobile job tracking.

Foster communication

The best electrician apps also leverage native or integrated communication tools to better maintain customer relationships and drive team coordination. Keep an eye out for tools with:

Chat functions.
Automatic notifications.
Real-time status updates.

Key takeaways

By reading this blog, it’s clear that you’re focused on growing as an electrical contractor and working smarter, not harder — that’s great.

What you need to remember are these two key points:

The best electrician apps make it easier for electrical contractors like you by enhancing efficiency, profitability, customer service, and more.
Method, Housecall Pro, FieldEdge, Service Fusion, and ClockShark are your best options, offering unique features tailored for electricians.

Ultimately, with so many options out there, the right fit for you depends on your specific needs and processes as an electrical contractor. Consider demoing or trying out these tools before making a commitment.

Ready to give it a shot? Method offers a 14-day free trial — no credit card required.

Best electrician apps FAQs

Are there any electrician apps that work offline?

Yes, there are several electrician apps that work offline to an extent, which is crucial for electricians working in remote or unstable internet zones.

Housecall Pro, for example, provides offline access to essential features to ensure continuous productivity. Users can access stored job data, including customer information, job history, and notes, as long as they have previously opened the job while connected to the internet.

Can electrician apps integrate with other apps I use for work?

Apps that integrate seamlessly with other tools and software are crucial for electricians who rely on other applications, like accounting software.

If you use QuickBooks or Xero, Method is the perfect tool for you with its instant, bidirectional sync — where all changes on one end immediately reflect on the other. Plus, the platform also offers powerful:

Email integration.
Google Calendar integration.
API access.

What is a good app for electricians to manage their schedules efficiently?

Method:Field Services is a great schedule management tool for electrical contractors. It provides scheduling and dispatching tools, real-time job tracking, route optimization, and a mobile app so you always stay informed.

QuickBooks add-ons for manufacturing: What to know

Manufacturing, QuickBooks / By Ryan Flanigan

Explore QuickBooks add-ons for manufacturing in this blog. Learn what they are, why they’re important, and a couple of your best options.

QuickBooks add-ons for manufacturing: What to know Read More »

For new and growing manufacturing businesses, QuickBooks is often the go-to software for accounting and financial management needs.

However, as manufacturers reach certain growth milestones, they start requiring more specialized software to manage key aspects of their operations, including:

Inventory management.
Sales.
Customer support.
Human resources — and more.

At the same time, leveraging QuickBooks data to drive other business functions — while feeding information back — helps keep your finances aligned with growth. This reduces the risk of:

Information gaps.
Manual data entry errors.
Inefficient bottlenecks.

That’s why it’s beneficial to explore how you can extend QuickBooks for other parts of your manufacturing business through add-ons and apps. Read on for more details.

Can you use QuickBooks for manufacturing?

While QuickBooks offers some inventory management tools like tracking raw materials, managing customer communications, and pricing inventory, it has limitations for manufacturers. It’s primarily designed to manage the financial side of your business.

However, QuickBooks isn’t an optimal solution on its own when it comes to more product-oriented tasks like:

Work-in-process (WIP) inventory tracking.
Bills of materials.
Production planning and scheduling.
Managing complex operations.

QuickBooks Online’s manufacturing capabilities

QuickBooks Online provides a solid foundation for financial management, but its manufacturing-specific features are limited. While it offers basic inventory management capabilities like tracking raw materials and finished goods, growing businesses with complex processes may find QuickBooks Online insufficient.

For example, QuickBooks Online can track individual component items but can’t convert these into finished items automatically. This requires manual reconciliation of component stock reductions and finished product stock increases. Additionally, QuickBooks Online may experience performance issues when handling large volumes of data as operations scale.

QuickBooks Enterprise’s manufacturing capabilities

QuickBooks Enterprise offers more industry-specific features for manufacturers compared to QuickBooks Online. These include:

Deeper inventory management.
Bill of materials cost tracking.
Job costing.
Multi-location support.
Custom price levels for different customers.

QuickBooks Enterprise also provides pre-loaded reporting templates for better production line visibility, such as:

Inventory Valuation Summary Report.
Inventory Stock Status by Item Report.
Assembly Shortage by Item Report.

While QuickBooks Enterprise offers more manufacturing-specific capabilities than QuickBooks Online, it still has limitations and a steeper learning curve. Its core strength remains in accounting and financial management rather than optimizing manufacturing processes.

Sick of missing invoices and other data in QuickBooks?

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How to get more out of QuickBooks for manufacturers

To maximize the value of QuickBooks for manufacturing businesses, consider integrating compatible third-party apps that support wider business processes. Two key areas to focus on are to:

Use a QuickBooks MRP

A QuickBooks material requirements planning (MRP) suite lets you oversee your entire manufacturing process, from inventory management to production management and warehousing. Unlike QuickBooks alone, an MRP is purpose-built for manufacturing tasks and can account for specific challenges you’ll face as you scale.

Add a QuickBooks CRM

A customer relationship management (CRM) system houses information on current and potential customers, supporting front office teams in driving sales and growth. The right CRM will integrate with your QuickBooks account, connecting financial data to help make informed decisions on pricing, market targeting, and sales process optimization.

Top QuickBooks add-ons for manufacturing

Katana MRP

Image credit: Katana

Katana is a popular manufacturing and inventory management software that integrates seamlessly with QuickBooks. It offers features like:

Real-time inventory management.
Production planning and scheduling.
Purchasing and supplier management.
Integrations with e-commerce platforms.

Pricing

Katana MRP offers three subscription options:

Starter: $179 per month billed annually.
Standard: $359 per month billed annually.
Professional: $799 per month billed annually.

Method CRM

Method is a highly customizable CRM that works perfectly with QuickBooks for manufacturing businesses. Key features include:

A two-way instant QuickBooks sync.
100% customizable workflows and automation.
Out-of-the-box customer portal.
Advanced reporting and analytics tools.

Pricing

Method CRM offers three subscription plans:

Contact Management: $25 per user per month.
CRM Pro: $44 per user per month.
CRM Enterprise: $74 per user per month.

Each plan offers varying functionalities and capabilities, depending on the stage your business is in and its unique needs. Method also offers a free trial with no credit card required.

Wish you could get more from QuickBooks? Method makes it possible.

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Wrap-up: QuickBooks add-ons for manufacturing

For manufacturers requiring advanced functionalities that fall outside the scope of finance — such as production scheduling, detailed bills of materials, and comprehensive reporting — QuickBooks may not be enough.

To bridge these gaps, manufacturers can benefit significantly from integrating specialized add-ons like Katana MRP and Method CRM. Katana MRP enhances inventory tracking and production planning, while Method CRM facilitates customer relationship management and saves time with features like its two-way QuickBooks sync and customizable workflows.

As you explore your options, it’s essential to evaluate the specific needs of your manufacturing operations and consider how these add-ons can enhance them. When you leverage the right tools, you can build a software system that both saves time and cuts costs.

Extend the limits of QuickBooks. Try Method for free.

Understanding cycle inventory and how to manage it

Manufacturing / By Bilal Khan

Managing cycle inventory is a key part of inventory management. It helps you fill customer orders and keep production running smoothly.

Understanding cycle inventory and how to manage it Read More »

Managing cycle inventory is a key part of inventory management. It helps you fill customer orders and keep production running smoothly.

Overall, your goal is to maintain an optimal cycle inventory level. Doing so will help you avoid costly problems, like stockouts, dead stock, and out-of-date inventory.

What is cycle inventory?

Cycle inventory, also known as cycle stock, is the inventory needed to keep production running and customer orders filled. It usually includes raw materials used in manufacturing and finished goods ready for shipment. Basically, it’s the inventory needed to meet your minimum production requirements.

To calculate cycle stock, you need to factor in:

Manufacturing lead time demand

The amount of time it takes to get an item from the supplier or for raw materials to reach the production line.

Production quantity

The number of units manufactured in each production run.

Why is cycle inventory important?

Good cycle inventory practices protect you from stockouts, which is when inventory runs out and you’re unable to fulfill customer orders on time.

Stockouts can lead to several problems, such as:

Lost sales

If you can’t deliver customers the products they want, they’ll look to your competitors, leading to lost revenue for your business.

Damaged reputation

Stockouts can damage your credibility and show that you can’t meet customer demand. Worse, customers might avoid buying from you even after your stock levels are back up.

Inefficient production

If your raw materials or subassemblies inventory levels are weak, you could suffer from production stoppages.

What influences cycle inventory levels?

Many factors that influence cycle inventory levels. Generally, these factors can be both external (like customer and supplier issues) and internal (production timelines, etc).

The most likely factors you’ll come across are:

Demand

The most important factor in forecasting cycle inventory is customer demand. If you’re seeing more demand, you need higher stock levels to meet customer orders without delay.

On the other hand, catching declining customer demand is also important. You don’t want to enter a sales cycle with excess stock, which costs you extra money to hold.

Order costs

This is the cost of ordering your cycle inventory. Imagine you’re a bakery. If the prices of flour, sugar, and eggs go up, then the cost of your cakes (the ‘inventory’) will rise too. Likewise, the cost of fuel, electricity, and many other factors can feed into your order costs.

Supplier lead time

This is the time it takes for your vendor to deliver the things you need for your product. Going back to the bakery example, if it takes a longer time for a farm to send you eggs or milk, then you’ll need to order further in advance. Otherwise, you might have a shortage of raw materials, which can lead to a stockout of cakes.

Production Quantity

If you’re able to manufacture something at a higher rate in each production run, then you might not need to worry about holding a small inventory. Generally, you’d expect to refill your inventory levels quicker with faster production.

Production Lead Time

If your production process takes more time, then you’d need to order raw materials further out in advance. So, you might want to keep higher levels of cycle stock of raw materials to prevent any production interruptions.

Seasonal Changes

Seasonal changes in demand can impact cycle inventory levels. For example, a business selling winter coats would need higher stock levels in the months leading up to winter.

Holding Costs

These are the costs of storing raw materials or goods, such as leasing warehousing space, taking out insurance, paying salaries, and handling materials.

Some businesses prefer keeping their holding costs low by keeping their cycle inventory levels low. Others might have to deal with those costs because their production processes take more time, or their suppliers have trouble delivering on time.

Product Cost

The cost of your product can impact your cycle inventory in a few ways. For example, if raw material prices go up, you might opt to raise prices on your customers. But doing so can push some customers away and lower demand. So, in those situations, you might look at reducing the cycle inventory of your final product and lean on higher pricing to keep ROI up.

Discounts

Discounts can impact your cycle inventory in multiple ways. Let’s say a supplier cuts the price of some raw materials, you might take advantage of the lower pricing and buy more materials. This can lead to larger amounts of inventory for those materials.

On the other side, you might have excess stock of a certain product, so you could discount it as a way of clearing inventory.

What is inventory cycle time?

The inventory cycle time is the number of days, weeks, or months it takes from receiving raw materials and shipping the final product. This phase is also known as “work in process” (WIP).

Cycle inventory formula

The most common way to calculate cycle inventory levels is using the Economic Order Quantity (EOQ) formula: EOQ = √[2(DK/H)]

Here’s what each value represents:

D is the annual demand of the product in units.
K is the fixed cost per order.
H is the annual carrying cost per unit.

To keep it simple, imagine you’re a store that sells, on average, 1250 cakes a day. It costs you $100 every time someone places an order, and the cake has a carrying cost of $1 a day.

The EOQ here would be the square root of 2(1250 x 100)/1, which equals around 500. So, the optimal number of cakes your store should order each time from the oven (whether it’s your own oven or another supplier) is 500. That means you’d make two and a half cake orders of that size a day (2.5).

Benefits of strong cycle inventory management

Getting cycle inventory management right is important as it ties into a lot of important growth indicators for your business, such as:

Avoiding stockouts

You want to ensure that you have enough of the right inventory on hand to fill customer orders without any delays or backorders. Stockouts can lead to a drop in cash flow.

Avoiding overstocking

Good cycle inventory management also protects you from holding too much inventory, which can lead to higher holding costs.

Raising customer satisfaction

When you have enough of the right products on hand, you’ll prevent delays in filling customer orders. This leads to happier and more loyal customers.

Improving cash flow

Building on the previous point, having enough products on hand to fulfill orders also keeps your cash flow healthy, leading to more revenue.

Determining safety stock

Good cycle inventory management also helps you calculate how much stock you need to keep in reserve in case of major interruptions, like a supplier closing.

Keeping your business growth engine running

When you have your cycle inventory levels under control, you can give your sales, marketing, and other front office teams the confidence they need to push. They’ll know that getting new customers will drive quicker revenue because you can reliably fulfill orders.

What causes cycle inventory problems? How do you solve them?

The tough thing about cycle inventory levels is that the factors affecting it are both within and beyond the production line. So, focusing on just one part of the equation – like inventory management – without looking at customer relationships and sales will give you an incomplete picture.

Rapid changes in customer demand

Unexpected spikes and drops in customer demand can make it harder to forecast the right inventory cycle levels.

One way to reduce this risk is by connecting your inventory tracking with your front office, like sales and customer service teams. You can get early visibility of customer demand trends.

Lack of accurate forecasting

Building off the last point. When your forecasting is off, you’ll be at higher risk of getting your cycle inventory levels wrong. You might end up with either a stockout or overstock situation.

This is where connecting your inventory management to sales and customer service in your forecasting software will help.

Not accounting for supplier lead times

You’ll have an intuitive sense of supplier lead times when you’re working with a few vendors. But as your business grows, you might be tapping into many different suppliers, at which point you’ll need to automate the tracking process.

One way to do that is by using software that tracks the information in your purchase orders to them and their invoices to you. Over time, you can catch trends in lead time, especially during seasonal months (like winter) or in response to certain issues (like rising gas prices).

Production issues

This can happen from both internal and external factors. Your production site may suffer from faulty equipment or an electricity shortage, for example. Other times, your suppliers might have shipped your raw materials too late.

In such situations you’ll want to respond rapidly. CRM software helps you drive communications quicker. You can get a call for repairing or replacing equipment sooner, or if a supplier fails, find an alternate vendor faster.

Summary: Cycle inventory tips

By this point, you likely sensed the importance of software. As your business operations grow, you’ll deal with more suppliers, more customer issues, and more bad surprises.

When you reach that point, knowing what’s happening on the sales side is important, it directly ties back to your inventory. You need 360-degree visibility, more employees involved in tracking and communicating, and reports to show where costs are rising or falling.

You can do this with a combination of manufacturing CRM software and inventory management software. But before you make a call on which ones to get, it’d be a good idea to explore all of your options. Check out the guides below for more information:

Cycle inventory FAQs

Cycle stock vs. Safety stock

Cycle stock and safety stock are crucial components of inventory management:

Cycle Stock: It is the inventory expected to be sold based on demand forecasts.
Safety Stock: It is extra or buffer stock maintained to meet excess demand or guard against delays from suppliers or unforeseen problems.

Cycle inventory vs. Cycle count

Cycle inventory and cycle count are not the same:

Cycle Inventory: Refers to the inventory needed to meet regular demand.
Cycle Count: Is the practice of performing regular stocktakes to maintain accurate stock levels. It involves counting a sample of inventory regularly to project the total inventory.

What is work in process (WIP) and how to use it

Construction, Manufacturing / By Ryan Flanigan

Work in process (WIP) is the story of what’s happening between your raw materials at the start of production, and finished goods at the end.

What is work in process (WIP) and how to use it Read More »

Understanding work in process (WIP) is key for every growing manufacturing company.

Think of WIP as the story explaining what’s happening between your raw materials at the starting point of your production process, and the finished goods at the end of it.

WIP is the value of whatever’s sitting in the middle. It helps you understand the real financial health of your business, and it uncovers problems and opportunities in your processes.

What is work in process (WIP)?

Work in process basically refers to unfinished products, or goods that are still in the production line.

Think of a lamp. When you start producing it, you have the raw or primary materials, such as plastics and metals. Then, at the end, you have a lamp, and that lamp has a price or value.

But what about that thing between the raw materials and the final product?

Just because your lamp isn’t finished yet, it doesn’t mean it lacks value. Not only did the raw materials necessary cost money, but so did the labor, energy, and factory equipment.

This unfinished lamp is, basically, an item under WIP, which is then listed on your balance sheet.

It includes the cost of the materials, direct labor, and any overhead (like the cost of factory gear) expenses. Some might also refer to WIP as “goods in process.”

As you might guess from the example, WIP is often used by companies with standardized and repetitive production cycles.

They focus on smaller products with higher production quantities, and typically treat WIP as short-term assets with quick completion and selling times.

Why is WIP important?

When your raw inputs enter the manufacturing process, they actually gain value because of the labor and overhead costs (from factory equipment, for example) that goes into them.

WIP is key for tracking that value, and when you do so, you build a WIP inventory.

WIP might seem like overkill for simpler products, but in today’s world, more manufacturers are actually dealing with complex workflows.

A car manufacturer, for example, deals with both raw materials and manufactured goods (called sub-assemblies).

With more manufacturers dealing with these complicated multi-layer production processes, WIP is key in explaining the story between just the raw materials and the final product.

With those insights at hand, manufacturers can use WIP to:

Eliminate production bottlenecks

High WIP levels can be a sign of bottlenecks in your production process, leading to delays and slower output. You can use WIP information to start identifying where those bottlenecks are and, in turn, remove them to produce and deliver faster.

Lower costs and raise margins

Large WIP volumes could eat up resources and drive up storage costs. But as you start cutting bottlenecks in the process, you can start freeing yourself of those added costs. This could help you cut production expenses, reduce waste, and make better use of our resources.

Allocate resources better

WIP inventory information gives you an idea of how your raw materials, labor, and facilities are being used.

You might find that there are bottlenecks because one part of the process wasn’t getting enough attention, while another part was getting too much. With your WIP information, you can shift things around and achieve better overall results.

Improve quality assurance

Keeping an eye on WIP information also helps you catch quality problems. For example, there could be delays in one part of the process due to lower quality work earlier on.

You can use the WIP inventory information to investigate, find, and solve those issues. Not only could this lead to better quality work, but even a higher production output.

Make customers happier

Dealing with high WIP levels could help you produce things faster at a higher quality and, in turn, deliver them to customers earlier.

Provide better financial reporting

Finally, WIP information ties back to your bottom line. It gives you visibility into the total value of your output, not just in terms of raw materials and finished goods, but everything in between too.

This can help with forecasting, seeing if you’re able to meet customer demand, predict problems like excess inventory, and other issues.

How to Calculate WIP

There are three main parts in a WIP formula, which are:

Beginning WIP inventory value: This is the WIP inventory at the end of your previous accounting cycle.
Production cost: This is the cost of the labor (including wages, benefits, etc), materials (be it raw or sub-assemblies), and overhead (indirect costs, like the factory equipment, facility costs, maintenance, etc.) during the current accounting cycle.
Cost of manufactured goods (COGM): This is the cost of the finished or completed goods. COGM is subtracted in the formula because it represents the goods leaving or transferring out of WIP inventory and into the finished goods inventory.

Work in Process formula

The formula to calculate the WIP is the following:

Ending WIP Inventory = (Beginning WIP Inventory Value + Production Cost) – COGM

How to interpret WIP

High WIP Levels

High WIP inventory values could indicate a high level of production activity or a backlog of orders yet to be fulfilled. It can be a positive revenue sign for the long-term.

However, at the same time, WIP also flags potential issues in your production process, such as bottlenecks or delays. If unresolved, these issues could lead to higher holding costs or possible cash flow problems down the line.

Low WIP Levels

Low WIP levels tell you that few items are in an unfinished state at the end of each accounting cycle, which could be a sign of efficient production practices. On the other hand, it could also be a sign of under-used production capacity.

How to track WIP inventory

By this point, you’ll have a good idea of what goes into a WIP calculation, but how do you get the actual information? Well, for that task, you have two main options:

1. Manual techniques

For smaller companies, a spreadsheet with columns specifying details like item information, quantity, material and production costs, production stage, and target completion date is the starting point. It’s simple and low cost to set up.

2. Automated software

As your operations grow in scale and complexity, manually filling and tracking spreadsheets can become error-prone. When you reach this point, you should invest in software that will automate your inventory management and production management tasks.

How to use WIP to improve production and inventory

If you’re finding that you have higher than expected or acceptable WIP inventory levels, then the following tactics could help bring it under control.

Look for potential bottlenecks

Bottles are among the likeliest causes of high WIP inventories. Somewhere along your chain, there is something slowing your production output. These bottlenecks could be (among others) faulty equipment, inefficient processes, or lack of staff training.

Consider industry-standard manufacturing processes

To help solve for bottlenecks, you could look at implementing industry-standard manufacturing processes, like lean manufacturing/just-in-time manufacturing.

Improve production scheduling

Using a manufacturing resource planning (MRP) suite can help you plan and schedule your production tasks in ways that minimize downtime, improve visibility, ensure on-time delivery, better manage resources, and align with order requirements.

Pay attention to other parts of your business

While your inventory is the main reference point for understanding your WIP levels, it’s not the only piece of the puzzle.

For example, a high WIP level due to delays could impact customers who are expecting their orders to be fulfilled by a certain time. You might even be running into production delays due to faster than planned sales cycles.

Next steps: invest in the right software

From the tips above, you can gather that many parts of your wider business (like sales and customer support) can impact WIP. So, as you grow, it’d be a good idea to track these other factors. But to track these other parts, you need different types of manufacturing software.

See our guides for more tips on perfecting your inventory management!

How to get a Maryland general contractor license

Construction, Field Services / By Ryan Flanigan

Discover everything you need to know about obtaining a Maryland general contractor license, including state requirements and key steps.

How to get a Maryland general contractor license Read More »

Obtaining a general contractor license in Maryland is a crucial step for anyone looking to establish a successful contracting business in the state.

This blog aims to simplify the licensing process by providing essential information and clear steps for new applicants and existing contractors alike.

Whether you’re applying for your first license or renewing an existing one, this guide provides the necessary steps and information to ensure you meet all state regulations.

Do you need a contractor license for every type of construction work in Maryland?

In Maryland, not all construction work requires a general contractor license, but many types of work do require proper licensing. The licensing requirements vary depending on the type of work being performed.

For example, contractors performing home improvement work on residential properties with three or fewer units must obtain a Home Improvement Contractor License from the Maryland Home Improvement Commission (MHIC). While no state license is required for new home construction, registration with the Home Builder Registration Unit is mandatory.

Licensing for commercial work is typically handled at the city or county level. Contractors need to contact the Clerk of the Circuit Court in their respective county or Baltimore City for specific requirements.

Certain specialty trades require specific licenses. For example, the Maryland Department of Labor, Licensing, and Regulation (DLLR) provides licenses for:

Master, journeyman, or apprentice electricians.
Master or journeyman plumbers
Master, limited, or journeyman HVAC work.

Some minor repairs and painting work may not require a license, but it’s always best to check with local authorities to ensure compliance.

It’s important to note that even if a specific type of work doesn’t require a license, obtaining one can still be beneficial. Licensed contractors often have an advantage in terms of credibility, consumer confidence, and access to insurance and bonding.

The importance of licensing for general contractors in Maryland

Operating without a proper general contractor license in Maryland can lead to severe legal consequences and business risks. Contractors who fail to comply with licensing regulations may face fines, legal action, and loss of credibility with existing and potential clients.

Additionally, unlicensed contractors may not be eligible for certain legal protections, which leaves them vulnerable to disputes and financial losses.

In the same vein, holding a general contractor license offers several advantages, including:

Access to larger and more lucrative projects.
Compliance with state and local regulations.
Increased trust and reputation in the industry.

What are the local Maryland general contractor license requirements?

In Maryland, there is no specific “general contractor” license at the state level. Instead, contractors must obtain appropriate licenses based on the type of work they perform.

For residential projects, a Home Improvement Contractor License is required from the Maryland Home Improvement Commission (MHIC). For commercial work, licensing is typically managed at the local level, with requirements varying by county or city.

While it is true that local jurisdictions, such as Baltimore, Montgomery County, and Anne Arundel County, may have additional requirements like permits, inspections, or local business licenses, these specifics can differ widely. So, it is essential for contractors to consult both state and local authorities to ensure compliance with all applicable licensing regulations.

That said, as a general rule, applicants must meet specific prerequisites, including education, experience, and necessary documentation. These requirements ensure that contractors are qualified and capable of performing high-quality work while adhering to state regulations.

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Steps to obtain a Maryland general contractor license

Complete the experience or education requirement

To obtain a general contractor license in Maryland, you must provide proof of at least two years of experience in home improvement, construction, or relevant education. This can include:

Hands-on work experience in the construction industry.
Completion of state-approved educational programs or courses.
Apprenticeships in relevant trades.

Here are some recognized programs or institutions to choose from:

Maryland Department of Labor-approved courses.
Accredited trade schools.
Formal apprenticeship programs.

Pass the licensing exam

The licensing examination in Maryland covers various topics, including construction law, building codes, and safety regulations.

The test is administered by PSI Exams and typically includes multiple-choice questions and practical assessments. The exam:

Consists of 55 questions.
Requires a passing score of at least 70% (39/55).
Is open-book.

Here are some practical tips for exam preparation:

Use official study guides and materials provided by PSI/
Consider taking online practice tests or preparatory classes.
Use official study guides and materials.
Attend review courses or workshops.
Practice with sample exam questions.

Licensing costs depend on the specific exam you take, but the initial cost for a Home Improvement License is around $370, which includes the application fee.

Provide corporate representation proof

If representing a corporation, you must submit:

Articles of incorporation.
Certificate of status (also known as “good standing”)

For other business structures, provide appropriate documentation such as:

Partnership agreements.
LLC formation documents.

Provide trade name certificate

If you’re operating under a trade name, submitting a trade name certificate is crucial for business identification. To obtain this certificate in Maryland:

Apply at the Maryland Department of Assessments and Taxation.
Pay the associated filing fee of $25.
Receive approval and the certificate.

Provide credit report

A credit report is required to evaluate financial solvency and reliability. Requesting a credit report involves:

Contacting a recognized credit bureau.
Reviewing the report for accuracy.
Addressing any negative entries.

To demonstrate economic responsibility, it may also be helpful to attach financial statements and bank statements to your application.

Get liability insurance

Liability insurance safeguards your business and meets state regulations. The minimum coverage requirements include general liability insurance of at least $50,000.

However, it’s also beneficial to invest in:

Workers’ compensation insurance.
Coverage for property damage and bodily injuries.

Key takeaways

Obtaining a general contractor license in Maryland is essential for anyone looking to operate legally and successfully in the construction industry.

Remember to:

Understand and meet all Maryland licensing requirements.
Follow the necessary steps to obtain and renew your license.
Maintain compliance with state regulations to protect your business and clients.

By following the steps in this article, you can confidently navigate the Maryland general contractor license process and establish a reputable contracting business.

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Maryland general contractor license FAQs

What is the purpose of the Maryland Home Improvement Commission (MHIC) license bond?

The MHIC license bond protects consumers and enhances a contractor’s credibility by ensuring that contractors comply with state regulations and fulfill their contractual obligations. In Maryland, the bond is only required if the contractor cannot meet the net-worth requirement of $30,000

How can having a surety bond benefit me as a contractor in Maryland?

Securing a surety bond:

Provides financial protection.
Boosts your reputation.
Instills confidence in clients and business partners.

How long does a general contractor license last?

A general contractor license in Maryland typically lasts for two years. The renewal process involves submitting a renewal application, paying the renewal fee, and completing any required continuing education.

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Manufacturing COGS: Everything you need to know

Manufacturing / By Ryan Flanigan

Explore the essentials of manufacturing COGS, including how to calculate it, the ways it informs profitability, and its relationship to COGM.

Manufacturing COGS: Everything you need to know Read More »

For manufacturers, understanding the concept of COGS is crucial for business success. But what is COGS?

COGS, or the cost of goods sold, is more than just a financial metric — it’s a powerful tool that provides deep insights into your operational efficiency and profitability.

By accurately tracking and analyzing the direct costs associated with producing goods, manufacturers can make informed decisions on:

Pricing.
Production processes.
Inventory management.

In this guide, you’ll delve into manufacturing COGS to get a thorough understanding of why it’s important and how to calculate it for your own operations.

Let’s get started.

What is cost of goods sold?

COGS (cost of goods sold) represents the direct total costs incurred when producing goods. This includes the cost of materials used to create the product and the direct labor costs involved in production.

COGS is a crucial metric for most businesses as it directly impacts profitability and is essential for financial reporting and tax purposes.

Why is the cost of goods sold in manufacturing important?

COGS is vital in manufacturing as it directly impacts your:

Profitability.
Pricing.
Tax compliance.
Inventory management.

By subtracting COGS from revenue, you can determine your gross profit, a key indicator of your business’ financial health. As a result, you can set the most competitive prices to ensure optimal profitability.

Also, COGS plays a crucial role in inventory management. By analyzing COGS in relation to your inventory levels, you can improve inventory turnover and efficiency to reduce your carrying costs and boost cash flow.

Not to mention, accurate COGS calculations are essential for tax reporting and optimizing deductions.

Basic COGS formula

The basic formula for calculating COGS is:

COGS = Beginning inventory + Purchases – Ending inventory

This formula is most effective when inventory constitutes the majority of your COGS. For service-based businesses or those with high labor needs, calculating the cost may require you to include additional factors.

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Drivers for cost of goods sold

Materials costing

Materials costing includes the cost of raw materials used in production. This encompasses:

Direct materials: Primary components used in the product.
Indirect materials: Supplies used in production but not directly part of the final product.

Operations costing

Operations costing involves two main categories:

Direct labor: Wages of workers directly involved in production.
Manufacturing overhead: Indirect costs such as factory rent, utilities, and depreciation of equipment.

Inventory valuation

Inventory valuation methods can significantly impact your COGS calculations. Common methods include:

FIFO (First-In, First-Out): Assumes oldest inventory is sold first.
LIFO (Last-In, First-Out): Assumes newest inventory is sold first.
Average cost: Uses your average inventory cost across all items.

Note that your method of choice affects your reported COGS and, consequently, profit margins.

What is COGM?

Cost of goods manufactured (COGM) represents the total cost of manufacturing products and transferring them into finished goods inventory. It includes:

Direct material cost.
All labor expenses.
Manufacturing overhead costs.

COGM vs. COGS

While related, COGM and COGS are distinct. COGM is used to calculate your ending work-in-process (WIP) inventory and is an input for determining COGS.

The biggest difference between them is that:

COGM focuses on production costs for a specific period.
COGS represents the cost of goods actually sold during that period.

Total manufacturing cost (TMC) and its differences

Like COGM, your total manufacturing cost (TMC) includes all costs associated with production. The key difference between TMC and COGM is that TMC doesn’t account for changes in work-in-process inventory.

How to calculate the cost of goods manufactured

The COGM calculation is typically used for a specific accounting period, such as a month or a year. Its basic formula is:

Beginning WIP (work-in-process) inventory + Total manufacturing costs – Ending WIP inventory

You can break this out a little further with this formula:

Beginning WIP inventory + Direct materials + Direct labor + Manufacturing overhead – Ending WIP Inventory

Your beginning inventory represents your total cost value of work-in-process (WIP) inventory at the start of the accounting period.

If you don’t have an ending inventory, it means all products started during the period were completed, and your ending WIP inventory would be zero. If you’re calculating COGM with an unknown ending inventory, you can estimate your historical percentage and apply that to your starting inventory.

Example calculation of cost of goods manufactured (COGM)

Let’s consider a furniture manufacturer with the following data:

Beginning WIP inventory: $10,000
Direct materials: $100,000
Direct labor: $50,000
Manufacturing overhead: $60,000
Ending WIP inventory: $30,000

COGM = $10,000 + $100,000 + $50,000 + $60,000 – $30,000

So, for this example, the manufacturer’s COGM would be $190,000.

Linking COGM to COGS

Once you’ve calculated your COGM, you can incorporate it into your finished goods inventory metric. Here’s the formula to calculate COGS using COGM:

COGS = Beginning finished goods inventory + COGM – Ending finished goods inventory

Your manufacturing COGS is much easier to calculate once you have your COGM, and it decreases the risk of oversight. Breaking down your COGS calculation into smaller parts is a smart way to ensure that your costs and inventory accounted are accurate.

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How to avoid challenges in calculating cost of goods sold

Here are five ways to avoid challenges when calculating manufacturing COGS:

Maintain accurate inventory records through automatic and manual checks.
Consistently apply inventory valuation methods across all manufacturing processes.
Regularly reconcile inventory counts with financial records.
Use appropriate accounting software for tracking costs, like QuickBooks.
Stay informed about industry-specific accounting standards.

Key takeaways

Overall, a thorough understanding of cost of goods sold (COGS) and its calculation is essential for manufacturers to make informed pricing decisions and drive overall business success.

Remember that:

The basic COGS formula is: Beginning inventory + Purchases – Ending inventory.
COGM focuses on production costs, while COGS represents the cost of goods sold.
Accurate inventory valuation and cost tracking are essential for correct COGS calculations.

Tracking COGS is only the first step. Once you know your costs, it’s time to understand how those costs of producing generate profits over time.

See how Method gives you key insights into your manufacturing business in real time.

Manufacturing COGS FAQs

Does COGS include the cost of goods manufactured?

Yes, COGS includes the cost of goods manufactured for products that were sold during the chosen period.

How can I track my COGS?

To track COGS, you should implement an effective inventory management system that accurately records purchases, production costs, and inventory levels throughout the accounting period.

Is COGS considered an expense?

Yes, COGS is considered an expense on your income statement. It’s subtracted from revenue to calculate gross profit.

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