Explore every episode of Contractor Success Map with Randal DeHart | Contractor Bookkeeping And Accounting Services
Dive into the complete episode list for Contractor Success Map with Randal DeHart | Contractor Bookkeeping And Accounting Services. Each episode is cataloged with detailed descriptions, making it easy to find and explore specific topics. Keep track of all episodes from your favorite podcast and never miss a moment of insightful content.
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02 Oct 2015
0130: Success Tips For New Contractor Startups
00:24:31
This Podcast Is Episode Number 0130 And It Will Be About Tips For New Contractor Startups
So You Are Starting A Construction Company. Perhaps yours will be building houses, a handyman business or a specialty contracting company like a plumber, electrician, HVAC, concrete or Landscape Company. Whatever it is congratulations you have or will be taking a big step toward being the Master of Your Own Destiny!
Two Paths Are Open In Front Of You
One Leads To Pain And Misery (P.A.M.)
The Other One Leads To Success And Happiness (M.A.P.)
P.A.M. = Production Accounting Marketing = Pain And Misery
This Is The Most Popular - and yet the hardest and least profitable way to operate a construction company. Contractors thinking and doing what they did while working for somebody else instead of thinking and doing what a business person does.
Production First
This Is The Most Popular - and yet the hardest and least profitable way to operate a construction company. Contractors thinking and doing what they did while working for somebody else instead of thinking and doing what a business person does.
Production is the first thing they think about and do and it happens when a contractor has one or two jobs from friends and relatives. They do what they have always done....they put their tool bags on and go to work!
There is a perception - They have very little or no overhead and since they want to make a name for themselves they work real cheap.
Some contractors - Refuse to markup materials or sub-contractor invoices because they want to save their customers money. Everybody needs to benefit from all transactions to keep things fair. If the contractor spends time, effort and expertise they deserve to be paid.
Some Big Hearted - Good Natured Contractors labor under the illusion that if they work real hard and keep their prices low their business will magically prosper. The reality is they own a JOB, with little or no health insurance, no retirement fund and no benefits!
Accounting Second When Tax Forms - Nasty letters, assorted mail and phone calls from the State Department of Revenue, Workers Compensation, Employment Security Department and the IRS 940 and 941 notices pile up you will start thinking about your bookkeeping problem.
Bounce Some Checks - Pay bank fees and pay returned check fees to the stores. Go to another bank and repeat the process twice more.
The Bookkeeping Path - Do-It-Yourself / Get Stuck / Take QuickBooks Class / Still Stuck / Hire Cheap Bookkeeper / Lose Sleep / Get Aggravated / Fix The Aggravation and put a Bookkeeping system in place and start making money!
Marketing Last When The Low Hanging Fruit - Friends and relatives with "honey-Do-Projects" are done they wait for referrals to come rolling in and yet for some unknown reason the phone hardly ever rings.
When The Phone Rings - It is a "Customer" Not a "Client". There is a HUGE difference between them. A "Customer" is looking for an "honest contractor" also known as someone who works for less than dirt wages and will throw in lots of extras at NO CHARGE!
Business Cards - Are printed and words like "Quality" "Best" "Low Prices" which means nothing because Quality and speed are the standard operating procedure now.
The question is what makes this company different from all the other contractors? What is their USP (Unique Selling Proposition)?
M.A.P. = Marketing Accounting Production = Success And Happiness
This Is The Least Popular - and yet the most profitable way to operate a construction company. Contractors thinking and acting like a business person. Marketing First
> 20% of your customers normally generate 80% of your net profit. > 20% of the goods or services you sell contribute 80% of your revenue > 20% or 2 out of 10 of your staff create 80% of the value for your customers.
The frightening consequence of the 80/20 rule is that 8 out of 10 hours we spend at work drive almost no value to the bottom line and the biggest drain is trying to save money doing our own contractor bookkeeping services instead of reviewing the Key Performance Indicator (KPI) Reports. Especially now when they can be accessed 24/7 without opening QuickBooks for Contractors.
By generating daily reports that uncover the best customers, jobs, services, or products, you will soon see how you can refocus your internal efforts on doing more good work.
This is the great contribution a company receives from good QuickBooks® data and from using QuickBooks® the ‘right-way’.
What are you good at and what do they love to pay you money to do for them? What jobs have you done that made a positive difference in people lives? What projects did you have so much fun doing that time seemed to fly by?
Take the information - Outlined above and write a story to describe the people you enjoy working for because they are your "Prime Customers" and they are your target market.
Document - The demographic and psychographic profiles of the people you enjoy working for and why.
Develop Your Business Plan - Using the Eleven Steps Program and pay close attention to the marketing section because that is where you will decide what niche of the construction market you will dominate. Know that in time your company will become legendary to such a degree you clients will be raving fans and referrals will be part of your marketing strategy. Nordstrom has been very successful at this and it would be wise to learn from the leaders.
Learn To Read Your Financial Reports - We can guide you on which reports to pay attention too and why certain reports can make you more money than other ones. Learn More about the KPI Reports Here
Production Last The Final Stage - To launching your successful construction firm. This is where all your hard work pays off.
At this point you have some basic operation manuals in place for your field and office employees. It is the document that answers the same questions you will be asked 100's of times. It is the Wikipedia of your company. "This is Who We Are And This Is How Things Are Done Here".
Now You Have - A road map to success and all you have left is to assemble the tools, equipment, employees and setup your trucks and/or vans and go to work!
I trust this podcast helps you understand that outsourcing your contractors bookkeeping services to us is about more than just “doing the bookkeeping”; it is about taking holistic approach to your entire construction company and helping support you as a contractor and as a person.
We Remove Contractor's Unique Paperwork Frustrations
We understand the good, bad and the ugly about owning and operating construction companies because we have had several of them and we sincerely care about you and your construction company!
That is all I have for now and if you have listened this far please do me the honor of commenting and rating podcast www.FastEasyAccounting.com/podcast Tell me what you liked, did not like, tell it as you see it because your feedback is crucial and I thank you in advance.
You Deserve To Be Wealthy, Because You Bring Value To Other People's Lives!
This is one more example of how Fast Easy Accounting is helping construction company owners across the USA including Alaska and Hawaii put more money in the bank to operate and grow your construction company. Construction accounting is not rocket science; it is a lot harder than that and a lot more valuable to construction contractors like you so stop missing out and call Sharie 206-361-3950 or email sharie@fasteasyaccounting.com
Thinking About Outsourcing Your Contractors Bookkeeping Services?
In closing, I want to caution you that we may or may not be a good fit for your contracting company. This guide will help you learn what to look for in outsourced construction accounting.
Thank you very much and I hope you understand we really do care about you and all contractors regardless of whether or not you ever hire our services. Bye for now until our next episode here on the Contractors Success MAP Podcast.
0131: How High Profit Jobs Send Contractors Into Bankruptcy
00:19:15
This Podcast Is Episode Number 0131 And It Will Be About How High Profit Jobs Send Contractors Into Bankruptcy
You have what appears to be a high profit job and now you are thinking you have it made and I hope you are right!
The problem is high profit jobs have a way of turning into low or no profit jobs and in some cases they can bankrupt your construction company because you bid the project using whatever model you are accustomed to using and in the end you wind up with cash flow problems.
Construction company owners who understand Construction Psychology and the need for Business Process Management (BPM) System also know the importance of being process dependent, not people dependent. One will bankrupt you and the other will make you wealthy.
A lot of problems can be traced back to the "Halo Effect" which happens when a contractor thinks "We are so good at (fill in the blank) we should expand into (fill in the blank). They have the attitude "I am going after Moby Dick in a row boat with tartar sauce!"
The most common situation is when a residential remodel contractor who has built a reputation and a substantial company generating profits of 15% or more decides to start building custom homes. Or the opposite a home builder who decides to branch out into residential remodeling.
Home Builder Doing A Residential Remodel
The processes, tools, equipment, materials, skills and invoicing procedures required to modify a home with people living in it are completely different from building a house from the ground up.
New construction workers are more like cave men with a brute force mentality. Every problem has one answer "Brute Force". If something doesn't fit or will not work the way they want it to they use more brute force until it does.
The same goes with managing sub-contractors and suppliers. I know because I spent a few years being one of them and in my 20's it was great fun!
The home builder bids a residential remodel project using the same square foot costs they have always used in building houses and discovers quickly the true meaning of "Hidden Costs".
These costs arrive in the form of dry rot, cracked foundations, broken plumbing, bad wiring, worn out HVAC and other unpleasant surprises.
Homeowners living in the house while the remodel is happening and do not ever want to be without water, lights, heat and privacy and they don't have a clue how much debris, dust and noise is involved in a remodel.
When it comes to change orders that is something most home builders do not understand. They don't have a process for tracking them let alone pricing and getting paid for doing them. Homeowners want to believe everything is included in the original contract price including the little extras they think of along the way.
Most trade contractors and subcontractors who work on residential remodel projects do understand change orders and they know how to apply pressure to the builder to get paid. Too often this is the main reason home builders go bankrupt is cash flow issues.
Residential Remodel Contractor Building A Home
The processes, tools, equipment, materials, skills and invoicing procedures required to build a house from the ground up are completely different from modify a home with people living in it.
Residential remodel construction workers are more like cowboys herding cats.
They understand brute force will not work but patience, planning and being respectful does. I spent a few years in residential remodeling and it did not take long to learn that new construction behavior does not work in residential remodeling.
The remodel contractor uses a form of "Cost Plus" or "Not To Exceed" to provide the homeowner with scope of work and a contract price the bank needs in order to finance the construction.
That process can work for a residential remodel because the house is already in place which helps define the size and scope of the project.
The size and scope of the homeowner's dream house is limited only by what the building codes will allow.
When the labor, material, other costs and subcontractor bills start piling up the remodel contractor asks for a construction draw and is told the bank needs a Pay Application filled out and submitted.
Then it will take a while for the bank inspector to review the project and approve the draw.
This is when the remodel contractor figures out they are providing all the labor, material, other costs and subcontractor expense up front and getting paid only when and if the building inspectors, architect, bank and the client agree to the draw request.
The Solution
In order for your construction company to survive and thrive in any economy you must pick a niche market and develop your Strategic Business Process Management System (BPM) with definite written goals of what you want to accomplish and how much money you want to earn from it.
Once you have picked your construction specialty stick with it no matter what and in the end you will have the best chance of making a lot of money and retiring wealthy. All contractors who try to do the right thing deserve to be wealthy because they bring value to other people's lives.
If you need a construction accounting services who understands you and your industry we would like the opportunity to chat with you. We can be reached at 206-361-3950 or by email sharie@fasteasyaccounting.com
I trust this podcast helps you understand that outsourcing your contractors bookkeeping services to us is about more than just “doing the bookkeeping”; it is about taking holistic approach to your entire construction company and helping support you as a contractor and as a person.
We Remove Contractor's Unique Paperwork Frustrations
We understand the good, bad and the ugly about owning and operating construction companies because we have had several of them and we sincerely care about you and your construction company!
That is all I have for now and if you have listened this far please do me the honor of commenting and rating podcast www.FastEasyAccounting.com/podcast Tell me what you liked, did not like, tell it as you see it because your feedback is crucial and I thank you in advance.
You Deserve To Be Wealthy, Because You Bring Value To Other People's Lives!
This is one more example of how Fast Easy Accounting is helping construction company owners across the USA including Alaska and Hawaii put more money in the bank to operate and grow your construction company. Construction accounting is not rocket science; it is a lot harder than that and a lot more valuable to construction contractors like you so stop missing out and call Sharie 206-361-3950 or email sharie@fasteasyaccounting.com
Thinking About Outsourcing Your Contractors Bookkeeping Services?
In closing, I want to caution you that we may or may not be a good fit for your contracting company. This guide will help you learn what to look for in outsourced construction accounting.
Thank you very much and I hope you understand we really do care about you and all contractors regardless of whether or not you ever hire our services. Bye for now until our next episode here on the Contractors Success MAP Podcast.
This Podcast Is Episode Number 490, And It's About How To Raise Your Prices: Value Over Price
As prices continue to rise, you've likely noticed that your cost of doing business has increased as well. After all, the main point of any business is to make money, and you can't do that if you're no longer breaking even.
It's inevitable in every industry – you must raise your prices to continue making a profit. Many factors decide how much to charge, all of which are dynamic. The rising cost of goods, inflation, and a changing market are just a few reasons why any small business has to reevaluate its rates regularly to stay competitive (and to stay in business).
If you're overworked and overbooked, you're undercharging. People know your worth and are fighting for your time. It's time to increase your prices!
Although there's a lot to consider when raising your rates, make a point to reevaluate every six months. Here are some tips on how to increase your prices and how to tell your customers.
Accept that you have to do it
It's a daunting task to consider raising your prices, as the danger of losing customers will be front of mind.
But the bottom line is this: you cannot deliver quality service if you're not charging enough. It's that simple.
If you're spinning your wheels trying to make up for the difference, you'll lose customers anyway. You won't be able to deliver the excellent service you're known for if you're constantly overworked trying to find profits elsewhere.
Raising your prices is part of doing business. It doesn't make good financial sense to swallow the cost to appease your customers. With that in mind, know that you're doing the right thing for yourself and your clients.
Understand what's costing you more
At least once per year, consider what your business costs. Check which products or services are making money and which aren't. Then take it a step further and pinpoint the breakeven position for each area.
You will then be able to decide how much more you need to make to be profitable and comfortable. Evaluate all avenues – supplies, staff wages, bills, rent and utilities, training, etc. Doing this regularly lets you see which areas cost you more over time. Those that cost you more will likely benefit from a price increase.
Decide your approach
A blanket increase would make sense if costs went up across the board. However, if you find that only some of your services now cost more to operate, it might be a good idea to increase only those prices. Your customers will appreciate only the necessary cost increases being passed on.
Gauge the satisfaction level of your current customers
If you know that your clients are happy and believe they're getting excellent service, they will be happy to continue paying for that. They won't bat an eye when you inform them of your increase.
But, if they're not currently satisfied, a price increase will be an excellent excuse for them to leave. This isn't necessarily a bad thing–some of the lost profits from those customers leaving will be made up by the price increase to other customers. And clients that aren't happy could become long-term headaches for your company.
Give a lot of warning
If you offer subscription programs (such as system inspections and routine maintenance for homeowners), email your client base three months before your planned increase to let them know your plans. State the reasons for you're raising your prices now.
Emphasize that this change is necessary to continue delivering the high-quality service they're used to. Giving enough notice to your clients, so they have time to react and prepare shows you respect them.
Send a personal message to long-time clients or ones that hold significant accounts. This shows them that you care about their reaction and gives you a chance to listen to their concerns.
Keep the communication lines clear
Most clients will be OK with your price increase. Some will likely have questions, concerns, or even complaints. Focus on answering their questions.
This isn't a hard sell – it's a discussion. Because you've done your research, your increase is completely justified. As you take the time to chat with your clients, they will come to understand this. Remember, you aren't asking their permission to increase your prices. You're letting them know of the decision to do so.
Communicate your value
Don't be shy about bringing up what you've delivered in the past. By reminding them of the great service you've provided already, they're likely to come around.
It's a great idea to provide options if they're still hesitant, but don't give away more than you can. For example, you could offer to keep their prices the same but trim the services included for that price. You can find a middle ground that works for both of you – alleviating their cost and your workload.
Final thoughts
Once you've researched and informed everyone, go ahead confidently with your price increase. You'll find that you can keep your customer base while keeping up with the increased cost of doing business. By doing so, you'll be able to continue providing your clients with excellent service.
If you're already in regular contact with your clients, the conversation around rising prices will be much less awkward. Remember, the price is how much your clients are paying for your service, but the value has no monetary measurement; it's what the consumer believes your services are worth, and you are worth it. Contractors like you deserve to be wealthy because you bring value to other people's lives.
About The Author:
Sharie DeHart, QPA is the co-founder of Business Consulting And Accounting in Lynnwood, Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations and offers insights on how to manage the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. Call 1-800-361-1770 or sharie@fasteasyaccounting.com
21 Jun 2024
581: The Importance Of Having A Contingency Plan For Construction Contractors
00:12:22
This Podcast Is Episode 581, And It's About The Importance Of Having A Contingency Plan For Construction Contractors
In the construction industry, unexpected challenges can arise at any moment. Numerous factors, from material delays to unforeseen weather conditions, can disrupt project timelines and budgets.
From terrorism to fire, from extreme weather or earthquakes to cyber-attacks – how would your business cope if it was affected? Would your staff know what to do? Would you be able to keep working?
That's why a contingency plan is crucial for construction contractors. It is not just a precaution but a necessity. Small construction businesses need to be prepared for a range of scenarios. Your company could avoid significant setbacks or closure with a solid contingency plan.
Why contingency planning is crucial
Contingency planning involves foreseeing potential risks and developing a strategic approach to mitigate their impact. For small business owners, this means safeguarding their assets, ensuring business continuity, and protecting their staff and customers.
A well-thought-out plan can differentiate between a temporary disruption and a permanent shutdown. It helps contractors mitigate risks and minimize the impact of unexpected events on their projects.
Here are a few reasons why having a contingency plan is essential for construction contractors:
1. Risk Management: A contingency plan enables contractors to identify potential risks and develop strategies to address them. By proactively planning for various scenarios, contractors can better protect their projects from cost overruns and delays.
2. Budget Protection: Unforeseen events can quickly eat into a project's budget. A contingency plan allows contractors to set aside funds specifically for addressing unexpected expenses, ensuring that the project stays on track financially.
3. Schedule Flexibility: Delays are not uncommon in the construction industry. A contingency plan allows contractors to adapt to unexpected schedule changes without derailing the project timeline.
4. Client Confidence: Clients appreciate contractors prepared for the unexpected. Demonstrating that you have a contingency plan can instill confidence in your clients and reassure them that you can manage unforeseen challenges.
5. Competitive Advantage: Navigating unexpected obstacles efficiently sets contractors apart in a competitive industry. A well-executed contingency plan can demonstrate a contractor's professionalism and commitment to delivering results, giving them a competitive edge in the market.
Emerging issues and regulation changes
Ever-evolving regulations demand greater transparency and accountability from small businesses. This is particularly relevant in preventing and addressing financial fraud, which remains a substantial risk. The increased scrutiny from regulatory bodies means companies must have robust monitoring systems and response strategies. Failure to comply not only puts your financial standing in jeopardy but also your business's reputation.
Practical steps to develop your contingency plan
Risk assessment:Identify all potential risks that could impact your business. This includes everything from natural disasters and cyber-attacks to key personnel suddenly becoming unavailable. Rank these risks based on their likelihood and potential impact.
Document everything:Put together an operational guide for your business, outlining everything you would need to know to keep it running, such as who your suppliers are, how and when they are paid, and everything else that happens on a daily/weekly/monthly basis. As part of the same process, outline the roles and responsibilities of every senior staff member and scope out the daily and weekly tasks so a replacement could easily assume those responsibilities.
Communication plan:Develop a communication plan to keep employees informed during and after a crisis. Consider using multiple channels such as email, phone calls, and social media to reach out to employees and customers.
Develop response strategies:For each identified risk, develop a response strategy. This could involve establishing a crisis management team, setting up temporary operational sites, or creating data backup protocols. Ensure these strategies are detailed and cover all critical aspects of your business operations.
Regular review and testing:A contingency plan is only effective if it's current and functional. Review and update your plan regularly, especially after significant changes in your business environment. Conduct drills and simulations to test your team's readiness and the effectiveness of your response strategies. Your contingency plan should be a living document that evolves with your business.
Construction Client's Story (edited for brevity):
On Sunday, July 27, 2008, around 6:30 p.m., my girlfriend and I had just returned from an overnight hiking trip.
When we arrived home, we discovered that we had been robbed. We immediately called 911.
As we walked through the house, we discovered that our computer and many other valuables were gone. The computer had all the company business on it.
QuickBooks, invoices, all the subcontractors' info, and everything to keep the company books. We were at a loss for what to do. But as luck would have it, we had Randal DeHart as our accountant. He had all our info on a backup system somewhere on a huge server.
So we called Randal to let him know that we would get a new computer as soon as the insurance company paid us.
Randal called us the next day, July 28, 2008, and told us to come to his office. To our surprise, he had gone to Office Depot, purchased a new computer, loaded it with QuickBooks, and restored all our business information.
We are so appreciative that Randal had our backs. We had told him that we would pay him for the computer as soon as possible, but you know what he said,
No thanks are necessary; if we just pay forward, that's all he asked."
How's that for a Good Accountant?
Also, as a reminder that could be helpful in your planning:
QuickBooks plans to stop selling several versions to new U.S. subscribers. The deadline to purchase new subscriptions to the listed products has been extended from July 31, 2024, to Sept. 30, 2024.
QuickBooks Desktop Pro Plus
QuickBooks Desktop Premier Plus
QuickBooks Desktop Mac Plus
QuickBooks Desktop Enhanced Payroll
We do our best to inform you of your options based on your construction company's needs and ensure you are alerted to fundamental software changes that may affect your construction business now or in the future. Although extended, we recommend checking and upgrading immediately to avoid service disruptions and workflow interruptions. Please plan accordingly or reach out if you need help.
Final thoughts
As a business owner, a lot of critical information exists only in your head. As the founder, you always know what's happening and how to do things, but what would happen if you weren't there?
Developing a contingency plan is not just good practice; it's a critical component of your business strategy. By taking proactive steps today, you can secure the future of your small business.
Plus, having a plan gives you peace of mind that everything could continue in your absence or without crucial team members. It also makes for a better-run and more organized business. Forcing yourself to have everything documented centrally builds a greater awareness of roles and responsibilities across the organization while making holidays less challenging!
We could be a part of your contingency plan; let me know how I could help with yours.
PS
We offer free resources to help you save time and money that you can download and print now.
About The Author:
Sharie DeHart, QPA, co-founded Business Consulting And Accounting in Lynnwood, Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations. She offers insights on managing the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. Call 1-800-361-1770 or sharie@fasteasyaccounting.com
23 Oct 2015
0135: The Answer For Contractors Who Hate Bookkeeping
00:20:07
This Podcast Is Episode Number 0135 And It Will Be About About Contractors Who Hate Bookkeeping
Would You Rather Walk Barefoot Across Hot Coals Than Do Paperwork?
If this describes you just know you are not alone. Most contractors would rather do anything including work in the rain, sleet, hail or windstorm than do the bookkeeping.
You started your construction or contracting company, house building firm, handyman business or your specialty contracting company to build, remodel, repair homes, commercial spaces and other structures not be a desk jockey!
Did someone say you need to do all the bookkeeping in order to be a successful contractor? If so ask yourself are they a successful contractor? Chances are they're not!
Successful contractors outsource their bookkeeping to a construction accounting service and spend their valuable time reading and understanding what the Financial and Job Costing Reports are telling them so they can make informed decisions.
Bohunk Bob (Not His Real Name) Is A Typical Contractor Who Is Sick And Tired Of:
Working long hours in all kinds of weather in wet clothes, using broken tools and worn out equipment.
Dealing with hard-nosed, cheap, ungrateful customers who want more, pay less and pay late, if at all.
Putting up with whining, sniveling, lazy employees who arrive late and leave early to make up for it.
Suppliers and vendors who move slower than molasses in the dead of winter, at night, on a frozen lake in a blizzard.
Feeling like he is running on an endless treadmill and getting nowhere fast.
In trouble with the Internal Revenue Service, Employment Security or Sales Tax agency.
Trying to convince the bank to loan him money to take some of the financial pressure off or expand his business.
And a thousand and one other problems and pressures that are driving him crazy.
The Common Thread Weaved Into The Fabric Of His Nightmare Is Paperwork And Bookkeeping.
Some of the best contractors, home builders, residential remodelors, specialty contractors and handymen are the worst at taming paperwork. They may as well be herding balloons on a windy day!
The answer is simple:
Working long hours is a sign your doing everything yourself instead of doing what you do best and outsource the rest.
Trying to convince the bank to loan him money means not having a Board of Advisers.
And a thousand and one other problems and pressures that are driving him crazy.
IF YOU KNOW THE ANSWERS THE QUESTIONS WILL NOT BOTHER YOU - Randalism
When you're driving you don't need to know how the truck was put together; you just need Five Key Performance Indicators: 1. Speedometer 2. Tachometer 3. Fuel Supply 4. Oil Pressure 5. Water Temperature
For your contracting company you don't need to know construction accounting you need Five Key Performance Indicators: 1. Cash On Hand 2. Cash To Come In 3. Cash To Go Out 4. Profit & Loss 5. Balance Sheet
You are all about getting things done, not running on an endless treadmill of mundane; mind numbing, paper heading and pencil pushing geek work. If someone told you that in order to own and operate a successful construction and contracting company you had do all of the paper work they were wrong.
Your Contractors Bookkeeping Has To Get Done But You Don't Have To Do It!
I trust this podcast helps you understand that outsourcing your contractors bookkeeping services to us is about more than just “doing the bookkeeping”; it is about taking holistic approach to your entire construction company and helping support you as a contractor and as a person.
We Remove Contractor's Unique Paperwork Frustrations
We understand the good, bad and the ugly about owning and operating construction companies because we have had several of them and we sincerely care about you and your construction company!
That is all I have for now and if you have listened this far please do me the honor of commenting and rating podcast www.FastEasyAccounting.com/podcast Tell me what you liked, did not like, tell it as you see it because your feedback is crucial and I thank you in advance.
You Deserve To Be Wealthy, Because You Bring Value To Other People's Lives!
This is one more example of how Fast Easy Accounting is helping construction company owners across the USA including Alaska and Hawaii put more money in the bank to operate and grow your construction company. Construction accounting is not rocket science; it is a lot harder than that and a lot more valuable to construction contractors like you so stop missing out and call Sharie 206-361-3950 or email sharie@fasteasyaccounting.com
Thinking About Outsourcing Your Contractors Bookkeeping Services?
In closing, I want to caution you that we may or may not be a good fit for your contracting company. This guide will help you learn what to look for in outsourced construction accounting.
Thank you very much and I hope you understand we really do care about you and all contractors regardless of whether or not you ever hire our services. Bye for now until our next episode here on the Contractors Success MAP Podcast.
442: Set And Manage Remodeling Client Expectations Without Hiring More People
00:08:04
This Podcast Is Episode Number 442, And It's About Four Things To Consider Before Expanding Your Service Offerings
Balancing customer experience and setting client expectations against your time and budget is a difficult task. It would be best if you had excellent planning, efficient project managing, and perhaps the right amount of staff working to keep customers happy, but not so many people that workers are standing around looking for things to do.
If your customers have long wait times, that's good news for you initially—it means your business is popular. The bad news is that homeowners won't wait around forever for you to fix your time management issues. If they like your services, they'll be a bit forgiving, but too many long waits will send them to your competition.
For instance, when a homeowner decides to remodel their living space, they dream about how it will look and feel when it is done, but they have no idea what an emotional roller coaster is in store.
Surprises were great when you were a child because you were conditioned to believe that surprises meant you would get something good! As adults, you have been conditioned that surprises are not always pleasant. Highly profitable remodel contractors understand this and have processes in place to deal with it.
Fear on both sides
Contractors without financial reporting systems they can trust to generate accurate Key Performance Indicators and Reliable Job Cost Reports do not know if they are making or losing money from day to day, which leads to doubt, which leads to stress, and the result is they tend to work faster and harder. Their frantic behavior raises everyone's stress level.
Contractors in this situation tend to feel like they are driving down the freeway at midnight, wearing a blindfold hoping for the best, and fearing the worst.
A Comprehensive Bookkeeping and financial reporting system can reduce or remove the feeling of being out of control.
Fast Easy Accounting Sample Pay Application We Prepare For Our Clients Using QuickBooks Reports
It needs to be in place before starting any remodeling project. It will save you and your remodel client much grief, and your cash flow and profits will soar. We work with contractors like you to develop strategies to deal with these issues and more.
Homeowners expecting their house to be improved suddenly find themselves under siege from a group of cavemen who are ripping and tearing their living quarters apart, and they panic. Some homeowners will tell you they are miserable; some will say nothing, having decided to get even with you once the job is done by withholding final payment! Some consider calling 9-1-1, but they don't because they would be laughed at and perhaps irritate the contractor.
Under-promise and over-deliver
At some point, your remodeling business will be so busy that customers will be stuck waiting for service. In those cases, under promise and overdeliver. If you know something will take five days, tell the customer it will take a week. Customers are happier if something takes less time than expected than if it takes more.
This tactic also buys you time in case of unexpected delays. The worst thing in this situation is that you have to tell customers their wait will be longer repeatedly. That frustrates them and makes them less likely to come back.
Final thoughts
Line-ups and wait times are inevitable, but they don't necessarily mean you need to hire more employees. There are solutions available to you that enhance the customer experience without you hiring more people.
It is your responsibility as a contractor to understand the fears and concerns of your client and have a communication plan in place as part of the overall project plan.
About The Author:
Sharie DeHart, QPA, is the co-founder of Business Consulting And Accounting in Lynnwood, Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations and offers insights on how to manage the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. Call 1-800-361-1770 or sharie@fasteasyaccounting.com
20 Aug 2021
433: Why Smart Construction Business Owners Never Stop Marketing
00:08:28
This Podcast Is Episode Number 433, And It's About Why Smart Construction Business Owners Never Stop Marketing
One classic mistake construction business owners make when money gets tight is stopping marketing or cutting their budgets. At first glance, it seems logical to cut down your expenses during harsh economic conditions. However, in reality, it's the opposite of what you should do.
When your construction company is struggling, cutting your marketing budget will further hurt your business. During this time, you should go the extra mile to be at the forefront of the minds of your clients and prospects. With an effective marketing strategy, you should be able to increase sales.
However, if you need to tighten your belt, here are some steps you can take instead of putting a pause on your marketing efforts.
1. Be strategic about how you spend your money.
First of all, don't waste money. This sounds simple, but in reality, many construction business owners are not mindful of their spending. Be strategic in your spending, and don't throw money in areas that won't contribute to your business growth. For instance, if your data suggests that the returns are higher from your digital marketing efforts compared to print ads, you might want to dedicate your resources more online.
2. Invest in action campaigns.
Are you launching a new service or running a discount promotion? Invest in an active campaign that will provide your target market with all the information they need and prompt them to act. Ensure that you share all the details such as your website, exact location, operating hours, or a discount code for their purchases.
3. Communicate with your target market.
Ensure that your messaging is not only engaging but crystal clear and concise. Whether you want them to sign up for a newsletter, request information, or grab a special offer, your messaging must be clear. The call-to-action in your campaigns must also be solid and powerful to create the desired action.
4. Social Media channels are free.
Your social media presence makes your company accessible to your prospective clients. It promotes awareness and increases web traffic.
Consider your persona and research what platform will serve you best.
If you're not confident and savvy, I suggest going through social media sites to check where your competitors are and how they interact with their patrons. Pick three platforms to start with and download their mobile apps. Share bite-size information and good, quality photos to attract potential clients.
Since people retain more information when a post is paired with a relevant image, let's focus on photos:
Behind the scenes
Team/crew
Office events
Quotes
Industry insights
Local gatherings
Community Events you're sponsoring/attending
Random tip
Latest industry news
Company sales and promotions (this could seem "salesy" but works great when done right and timed-appropriately)
Keep in mind that consistency is key. Interact with your audience and always be authentic.
5. Discuss with your marketing partner/staff and rethink your marketing strategy.
You may be working on a thousand other things right now, but you have to make time to discuss with your marketing partner or staff and rethink your strategy. Producing great results is not always about marketing; instead, you have to focus on doing better. Stop and think about your messaging, frequency, timing, channels you tap into, and other factors to get the best results.
Final Thoughts
These could be intimidating at first due to a lack of experience or being preoccupied with finishing projects. Don't feel defeated; understand that your strategies need to evolve and expand for your company to prosper as a construction business owner. Be an active listener to the online community you built, and chances are you'll get high-quality leads from them.
Times may be challenging right now, but try your best to stay the course and use this as an opportunity to strengthen your relationship with your customers and prospects. Just because you're on a tight budget doesn't mean you have to stop marketing and give up the chance to boost sales.
Always have a monitoring method if your marketing is working or not—otherwise, you can't refine and improve your marketing strategies and budget (for paid ones) unless you measure the results.
About The Author:
Sharie DeHart, QPA, is the co-founder of Business Consulting And Accounting in Lynnwood, Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations and offers insights on how to manage the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. Call 1-800-361-1770 or sharie@fasteasyaccounting.com
01 Nov 2024
600: Proven Practices To Combat Procrastination In Construction
00:11:33
This Podcast Is Episode 600, And It's About Proven Practices To Combat Procrastination In Construction
Procrastination can be a formidable foe for small business owners. With endless responsibilities, it's easy to fall into the trap of putting off important tasks for later.
The fast-paced construction world can lead to missed deadlines, increased costs, and frustrated clients. Delayed decisions and unfinished tasks not only affect timelines but can also impact budgets and client satisfaction.
Here are some effective techniques tailored for construction professionals to help combat procrastination and boost productivity.
1. Eat the frog first
Have you ever heard of the saying "Eat the frog first"? It's a productivity hack inspired by Mark Twain's advice to tackle your most challenging task—the "frog"—first thing in the morning. Once that daunting task is out, everything else seems like a breeze. Studies have shown that people perform better and more efficiently in the morning, making it the perfect time to focus on demanding tasks.
Start by identifying your daily "frog" and making it your priority each morning. Feeling accomplished early in the day sets a positive tone. It can motivate you to tackle less demanding tasks without delay.
Not all tasks carry the same weight. Like the Eisenhower Matrix, this technique distinguishes between urgent and essential tasks. Focus on high-impact tasks that contribute significantly to project completion. Creating to-do lists that rank tasks can offer a clear path forward and help maintain focus.
"Eat a live frog first thing in the morning, and nothing worse will happen to you the rest of the day."
2. Break tasks into smaller steps
Large tasks can be daunting and lead to procrastination. However, breaking them down into smaller, more manageable steps can provide relief. For instance, instead of a daunting 'launch a new marketing campaign,' start with 'research target audience' or 'draft email copy.' This approach makes tasks seem less overwhelming and gives you a sense of progress as you complete each step.
Breaking larger projects into smaller tasks with specific deadlines not only makes the workload seem less challenging to tackle but also allows for measurable progress. Use project management tools to track deadlines and milestones, keeping the team informed and motivated.
Combine this with time blocking, a powerful technique that involves dedicating specific blocks of time to particular tasks. This structured approach reduces distractions and helps maintain flow. Consider blocking out uninterrupted time for critical tasks such as planning, meetings, or site visits to keep the momentum going. Remember, every small step takes you closer to your ultimate goal.
3. Set specific deadlines
Setting a specific deadline—even for tasks without an inherent timeframe—can significantly reduce the tendency to procrastinate. This practice, based on Parkinson's Law, states that work expands to fill the time available for completion. Establishing a firm deadline creates a sense of urgency that propels you into action, putting you in control of your time. Be realistic, but also push yourself to stick to these deadlines.
Establish a routine of reviewing progress daily or weekly. This practice can keep goals in sight and allows for adjustments as needed. Reflect on accomplishments and identify areas needing more attention. Use tools like calendars or project management apps to keep track of due dates and ensure accountability.
4. Create a distraction-free workspace
A cluttered desk or constant notifications can be significant roadblocks to productivity. Designate a workspace that reduces distractions and fosters focus. This might mean tidying up your desk, using noise-canceling headphones (during desk work), or setting specific times to check emails and social media. A study in the Harvard Business Review revealed that employees working in clean environments were more productive and less susceptible to procrastination. Take control of your surroundings to create an atmosphere conducive to deep work.
The physical work environment dramatically influences productivity. Ensure that job sites and offices are organized and free of distractions. Proper tools, equipment, and resources should be readily available. A clean, organized workspace can significantly enhance focus and drive productivity.
5. Reward yourself for completing tasks
Positive reinforcement is a powerful motivator. When you complete a task—especially one you've been dreading-reward yourself. This could be a short break, a treat, or simply the satisfaction of checking it off your to-do list. By associating task completion with positive outcomes, you train your brain to view tasks as opportunities for reward rather than stress, fostering a sense of accomplishment and motivation. Over time, this can reduce procrastination and enhance productivity.
Cultivating a positive work culture can significantly impact motivation and productivity. Recognize achievements, no matter how small, to foster a sense of accomplishment among your team. Celebrate successes at various project stages to boost morale and keep everyone engaged. Consider implementing a rewards program to meet deadlines consistently.
Root causes
Sometimes, procrastination stems from deeper issues, such as fear of failure or lack of interest. Take time to identify these underlying causes within yourself or your team. Open discussions can lead to solutions that address concerns, paving the way for more proactive behavior.
As a leader, it's essential to model the behavior you want to see in your team. Show your commitment to deadlines and proactive task management. When team members see leadership prioritizing timely completion, they'll likely follow suit.
Final thoughts
The construction industry is notorious for unexpected changes. Remaining flexible in your approach allows you to adapt to new challenges without derailing your progress. Embrace changes as part of the process, recalibrating your goals and tasks as needed.
We're here to help you achieve your goals efficiently and effectively. We can assist you in leveraging construction management software to streamline processes. By automating routine operations, you free up time to focus on more critical aspects of the project.
Remember, overcoming procrastination isn't just about discipline but finding what works for you. The key is not just eliminating procrastination but also fostering a culture of accountability and efficiency. Implement these strategies today to transform how you work and succeed as a construction business owner.
About The Author:
Sharie DeHart, QPA, is the co-founder of Business Consulting And Accounting in Lynnwood, Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations and offers insights on managing the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. Call 1-800-361-1770 or sharie@fasteasyaccounting.com
10 Jan 2020
0349: Home Maintenance And Repair Service Company Automation And Technology
00:09:42
This Podcast Is Episode Number 0349, And It's About Home Maintenance And Repair Service Company Automation And Technology
The daily processes and transactions involved in operating a home maintenance and repair service business can mean long hours of repetitive tasks and occasional oversights due to human nature. These days, you can use technology to take care of almost any issue facing your business.
Automating these tasks can result in significant savings in resources and eliminate mistakes caused by human error. The key, however, is to know which tasks should be automated and which ones warrant staff intervention and guidance. Let's take a look at some of them.
Lead Capturing, Nurturing, and Scoring
Automating your lead development process can do wonders for your service-based company's conversion rates. Both hot and cold leads require attention and targeted engagement to convert into paying customers. Using automation software can help sales reps to guide prospects to end of the sales cycle strategically, and it can also direct you towards the leads that will convert the fastest.
Engaging New Contacts
Entrepreneurs like you meet new contacts all the time. Whether it's a potential business partner or prospective client, automating your engagement with them can help you forge a solid rapport after your initial contact. Several CRM options will allow you to group contacts by event, type, company, and location, amongst other settings, to ensure that your business card collections don't go to waste.
Personal Direct Mail
Outreach efforts with a personal touch tend to garner higher engagement rates, which explains why businesses send out birthday cards, calendars, seasonal greetings, and other materials to customers. With the right software, you can set up automated, sequenced events to gather customer personal data and incorporate it into specific marketing activities.
Hiring Processes
Automating your hiring process is one of the best things that you can do for your business. Everything from receiving applications and interviewing to setting up drug tests and completing new-hire paperwork can quickly be done with automation. First, outline what your hiring process looks like. Next, determine staff member roles and duties within your operation. And lastly, establish time frames that each activity should fall within. There are tons of HR software programs that can make automating your hiring process a breeze.
Word-of-mouth marketing
Numerous marketing studies show that consumers are more likely to buy from companies if a friend has referred them. Encourage customers to give referrals about your services by simply asking for them. There are several ways to automate this, including adding referral mentions to discount offerings, a website page, and email outreach campaigns.
The Benefits Of Technology
If you have a task that you don't like to do, there's an app or software program to take care of it for you. It might take a few moments of your time to learn and understand how the software or app works, but doing so will save you valuable time and precious energy. It will also free you up to spend time on the tasks you love to do, not on all the paperwork and record-keeping that go along with running a business.
Here are some programs that we use to make our clients' home maintenance and repair service business easier to manage:
Like many construction business owners, you probably didn't dream of owning your own business so that you could manage a paper trail and oversee cash flow. You likely have very little interest in following up on unpaid invoices or spending time paying bills. That's where Xero comes in. Xero takes care of accounting for your small business.
You can create and track invoices and purchase orders, manage sales and purchases, and set up scheduled bill payments. You can even reconcile bank transactions any time from a computer, tablet, or smartphone and have up-to-date financial information about your business. If you have employees, you can track payroll and manage time and money spent on projects.
Xero offers easier business financial management without the headaches.
If you hate taking time away from your clients and work projects so you can manage your paperwork, Receipt Bank has what you need. Receipt Bank is a technology platform that construction business owners can use to manage their vital business documents. Anything necessary that relates to your business - such as receipts, invoices, and other documents - you simply capture on your mobile phone, through email, or scan on your computer, and upload it to the platform.
Receipt Bank then takes the information and displays it for you so you can download it or send it to connected accounting software. It can also categorize your expenses for you. It requires some time to set up manually, but once your account is set up, Receipt Bank will save you vast amounts of time.
Hubdoc takes care of data entry, such as entering all your bills, invoices, and other paperwork for you. Hubdoc allows you to take pictures of your paperwork, link it to your account, and develop usable data. It automatically fetches your bills and syncs with your accounting programs. You can even give your accountant access to the program so they can stay on top of your finances as well.
If you love the idea of simplifying your home maintenance and repair service business and avoiding masses of paper everywhere, Hubdoc can help you.
Getting timecards into QuickBooks and processing payroll can be a big hassle for your construction company. Timecards come in late, causing a payment to be under enormous pressure to meet direct deposit deadlines is a tremendous feat on its own.
Tracking employee bonuses, reimbursements, and garnishments take time and money and can cost your company some severe fines, penalties, and lost productivity if you weren't able to handle it correctly. Manual time cards are painful, and we have found the best time card calculator using TSheets.
Final thoughts
There's no question that these types of apps and software platforms can make business owners' lives easier. Most business owners didn't start their business so they could be surrounded by paperwork and endless record-keeping tasks. Choosing a platform that meets your company's needs will free up time and energy to focus on the things you love to do. Set aside a week or two to take a look at any processes that can be automated within your business. Automating repetitive and tedious tasks can aid you in uncovering hidden cost-savers and potential sales opportunities for your Home Maintenance And Repair Service Company.
About The Author:
Sharie DeHart, QPA is the co-founder of Business Consulting And Accounting in Lynnwood, Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations and offers insights on how to manage the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. Call 1-800-361-1770 or sharie@fasteasyaccounting.com
15 Jun 2018
0273: Home Pro Success Helps Contractors Generate High Quality Leads
00:38:56
This Podcast Is Episode Number 0273, And It Will Be AboutHome Pro Success Helps Contractors Generate High Quality Leads
Home Pro Success And How They Help Contractors Generate Leads
Leads, Leads, and more Leads! That is what contractors want! You post it on hundreds of forums, you talk about at the business network events with your friendly competitors.
Facebook is one of the hottest places to generate leads for your construction contracting company. It works for Handyman, Trade Contractors, General Contractors, Remodel Contractors, and home builders.
I had the pleasure to interview Corey Philip, founder of HomeProSuccess and he shared some tips and tricks to help contractor like you get more qualified leads.
1. Keep It Simple Because Simple Works.
Corey is a huge fan of data, without over complicating it because too much data slows down the buying process. He would rather keep everything simple and consistent, and he applies that to everything in his business from operations to accounting, and marketing.
2. Nobody Wants To Hear From Salespeople.
Nobody wakes up one morning as says “I want to be contacted by someone who will sell me something because I do not get enough opportunities to buy stuff I do not need, with money I do not have to impress people I do not like. Old school sales tactics do not work any longer and when someone is persuaded to sign up for something he or she is rarely ‘sold’ and tend to be the customers from deep in the center of the earth where it is said to be a dry heat. Corey prefers to educate you on his entire process and show you how Home Pro Success earns their reputation by letting customers choose them.
3. Knowing Your Cost Per Lead Is The Secret.
Getting more bang for your buck by knowing where and how to advertise is the difference between poor contractors barely getting by and rich, wealthy contractors.
You need a good solid Contractor Accounting System to know where your marketing dollars are most effective. Do you think you may be spending too much money on advertising, you’re not alone. Most contractors and home service business owners waste hundreds or even thousands of dollars on marketing schemes designed by somebody pretending to be skilled.
To develop a marketing system of your own that keeps your sales pipeline full, you need to know your cost per lead (per source). If you are spending 15% – 20% of their advertising you are spending too much!
4. Your Website Needs To Breathe.
Are you reading about how much business you can get online by hiring ‘website guy’ and six months later the website hasn’t generated any new business? Did you think “this website idea is a joke, it doesn’t work” or “the design must be terrible.” I have a Newsflash it’s neither one.
The design doesn’t matter as much as you think. Websites are a vital part of your Contractor home service business, but your website needs to breathe.
When you look at some of the websites of home service companies like Handyman, Painters, Electricians, Remodel Contractors, and Landscapers you will see most of them are tombstones marking a place where a vibrant live website once lived and breathed. The sites are not updated. No fresh blog content, no recent pictures, no eye-catching videos, just dead boring copy.
With billions of people on the internet, you can understand the importance of the contractor like you to have an effective web presence.
CONCLUSION:
Contractors and Home Service Business Owners, let’s talk about that elephant in the room. You know how difficult it is to run, and grow a contracting company where you send people to your customer's homes and businesses, in your company trucks, with your company name, to complete services. That's why Corey created this Facebook group. Exclusively For Contractors & Home Service Business Owners. To Join Click Here (It's 100% Free). Verified Owners Only.
The Information Shown Below Is From Fast Easy Accounting
Download The Contractors APP Now!
Access code: FEAHEROS
The QR Code Below Will Go
Apple Or Android Store
Whichever One
You Need
Simply scan the QR code below or search for ‘MyAccountants’ in the App Store and enter the Access code: FEAHEROS to utilize the powerful App features and capabilities, and benefit from having our Construction Accounting App at your fingertips, 24/7.
Access code: FEAHEROS
Or click to download the Contractors APP now from the App or Android store
I trust this podcast helps you understand that outsourcing your contractor's bookkeeping services to us is about more than just “doing the bookkeeping”; it is about taking a holistic approach to your entire construction company and helping support you as a contractor and as a person.
We Remove Contractor's Unique Paperwork Frustrations
We understand the good, bad and the ugly about owning and operating construction companies because we have had several of them and we sincerely care about you and your construction company!
That is all I have for now, and if you have listened to this far please do me the honor of commenting and rating the Podcast www.FastEasyAccounting.com/podcast Tell me what you liked, did not like, tell it as you see it because your feedback is crucial and I thank you in advance.
You Deserve To Be Wealthy Because You Bring Value To Other People's Lives!
This Is One more example of how Fast Easy Accounting is helping construction company owners across the USA including Alaska and Hawaii put more money in the bank to operate and grow your construction company. Construction accounting is not rocket science; it is a lot harder than that, and a lot more valuable to construction contractors like you so stop missing out and call Sharie 206-361-3950 or email sharie@fasteasyaccounting.com
Contractor Bookkeeping Done For You!
Thinking About Outsourcing Your Contractors Bookkeeping Services?
Thank you very much, and I hope you understand we do care about you and all contractors regardless of whether or not you ever hire our services. Bye for now until our next episode here on the Contractors Success MAP Podcast.
Most Contractors Setup QuickBooks Desktop Version In One Of Three Ways:
#1 EZ Step Interview inside QuickBooks Setup #2 Asked Their Tax Accountant To Setup QuickBooks #3 They Attended A How To Setup QuickBooks Class Or Seminar
And QuickBooks Does Not Work The Way They Want It Too!
0170: Ten Construction Tools You Can Fit in Your Pocket
00:25:05
This Podcast Is Episode Number 0170 And It Will Be About Ten Construction Tools You Can Fit in Your Pocket
Today's Guest Article Is From Simon Worsfold A Copywriter At TSheets
There are some tools that apps will never replace. Hammers for example. But smartphones are making lighter work for many in construction and the industry has definitely switched on to their potential. According to at least two recent surveys, one by On Center and the other by JBKnowledge, four out of five construction workers are now using apps on the job site.
From punch lists to project management, there’s a huge range of construction apps out there now and to help you choose the best of them, TSheets has recently announced a new “Top Ten Construction Apps” awards.
The winners fall into ten categories: Safety, Estimates & Bids, Measurements, Time Tracking, Photo Annotation, Task Management, Blueprints, Project Management, Reporting, and Communication. There’s also a Virtual Toolbox category with recommendations for a high-exposure safety app called Fall Safety as well as practical tools for roofing and carpentry.
But the big winners in the awards are apps that specialize in calculating and sharing critical information such as measurements, blueprints, and reports, and many of them are either free or have free trial versions that give you a chance to try them out yourself. Interested in adding some new apps to your toolbelt? Head over to TSheets’ website now to find out who won.
Save Time and Money on the Job Site
The experts have weighed in, the reviews have been tallied, and your peers in the field have cast their votes.
These are the top 10 apps for the construction industry in 2016—able to accomplish everything from bidding to time tracking to calculations and measurements for contractors and mobile workers.
How can these apps improve your business?
Keep reading below to learn what makes each of these construction apps #1 in their area of specialty, and how they can revolutionize communication, collaboration, and profitability for you and your crew. Read customer reviews, pros and cons, business benefits, and more.
This is technology that will help you do your job—not replace it. The future of construction is bright for contractors and crews with their feet on the ground and these best-of-breed apps in hand. ___________________________________________________________________ Best App for Safety SafeSite
What if you could save lives and save paper at the same time? With SafeSite, you can. The app was developed by construction professionals, for construction professionals and aims to decrease the number of workplace injuries while increasing productivity, reducing paperwork, and keeping everything organized in one handy app.
SafeSite is a digital solution that allows field workers to upload checklists, conduct safety inspections, and export completed forms with accuracy and speed—all while ensuring compliance. Using the mobile app, you can log safety hazards and observations on the spot and automatically notify responsible parties for a solution. Safesite will track and log the progress of each resolution along the way.
Features · Report safety hazards on the spot, then assign follow-up actions and deadlines · Create custom inspections, checklists, and forms · Share reports and from the field instantly to internal and external parties—saving time and paper! · Generate daily and weekly automated safety reports for effortless compliance · Upload pictures to communicate quickly and effectively with everyone involved—no matter when or where · Create plant and equipment profiles, and complete scheduled inspections against them ___________________________________________________________________ Best App For Estimates And Bids Job Flex
Being able to quickly and easily create estimates for customers using an estimating app is critical. The difference between gaining a new client and losing a potential job often hinges on how quickly and professionally you can turn that estimate around.
With JobFLEX, there's no tech savvy needed. Deliver estimates on the spot, with or without a cellular connection. Create and edit customizable forms, then just drag and drop line item costs, materials, and photos. When you're finished, preview, email or print the estimate with one tap.
Features · Create estimates with or without Wi-Fi/a cell signal · Easily build editable materials list · Include photos in estimates for reference and a professional touch · Use customizable formats for each estimate · Preview, email, or print estimates with just a tap · Get access to free, unlimited support ___________________________________________________________________ Best App For Calculations And Measurement Construction Master Pro
The fewer things you have to carry with you on the job, or when scoping out a new bid, the better. So why carry an extra calculator when you could just bring your phone? Whether you're laying stairs, determining how much drywall you need, or completing the right angle calculations when framing a roof, CM Pro is an intuitive, comprehensive alternative to a handheld construction calculator.
Features · Created by Calculated, Inc., the standard in handheld construction calculators · Calculate dimensional math and conversions · Includes right-angle tools, compound miters, and costs per unit · Use customizable formats for each estimate · Easily convert between all standard measuring formats · Includes a trigonometry mode · User guides in both Spanish and English ___________________________________________________________________ Best App For Time Tracking And Scheduling TSheets
One of the most daunting (and time-consuming) aspects of running a construction company is staying on top of back-office tasks, like scheduling and payroll. Tracking your employees' hours and building a schedule in the cloud with TSheets—instead of old school with spreadsheets or paper—will save you time, money, and sanity.
TSheets' intuitive, easy-to-use app allows your employees to track their time right from their phones—or you can choose to clock in an entire crew at once, with the handy Crew App feature. From the administrator's dashboard, you'll also see where crew members are in real time through gps and and the Who's Working view.
Features · Stay in the loop with notifications sent if employees don't clock into a job as scheduled, or approach overtime limits · Save 2-8% on gross payroll costs, and eliminate manual time entry · Improves employee accountability and accuracy of hours · Features In-app scheduling so employees can easily clock in and out of assigned jobs · Works as a viable alternative to geofencing, with GPS tracking · Mobile management options for workers on the go or at multiple job sites ___________________________________________________________________ Best App For Photo Annotation Photo Measures
Photo Measures is an innovative app that enables anyone from construction contractors to homeowners to record, save, and share measurements and dimensions—by directly annotating their own photos. Say sayonara to napkin sketches and illegible numbers, Photo Measures makes it easy to see and remember the exact measurements—any time, any place—no matter who took them. Never wonder, "Will this fit?" or "How much paint do we need?" again.
Features · Zoom in and out for greater precision · Easily edit measurements and add comments · Export high resolution photos to email or save in your photo library · Take photos on the spot or import photos from your phone (any size will work!) · Organize recorded photos into folders directly from the app · Record unlimited measurements on unlimited photos ___________________________________________________________________ Best App For Task Management Fieldwire
There are plenty of task management apps out there—in fact, sorting through all of them can be a day's work in and of itself. But Fieldwire is a task management app made specifically for the construction industry is another matter.
Fieldwire is a task management app built by construction professionals, for construction professionals, and lets project leaders, foremen, and superintendents delegate jobs and tasks quickly and easily, whether they're out in the field or back in the office. Create tasks tied to blueprints, job sites, or projects, and categorize tasks by job type (such as carpentry or electrical). You can also specify a deadline, priority level, related tasks, manpower, a checklist, photos, plus any notes you want to add.
Features · Create punch lists right on your drawings and blueprints to put tasks in context. · Alert workers of assigned jobs by email or app message. · See instantly which tasks are complete or overdue. · Navigate quickly through your task lists by location or priority. · Add detail to your tasks by uploading photos, PDFs, and other attachments · Create daily reports to highlight progress and any outstanding jobs. · Share up-to-date technical drawings with whoever needs them. ___________________________________________________________________ Best App For Construction Plans And Blueprints PlanGrid
No more bulky paper copies to search through or costly reprints to run. No more emergencies when spilled coffee or illegible writing mean backtracking and guesswork.
With PlanGrid, you get a portable blueprint creation tool and library that puts all your technical drawings right in your pocket. Designed for construction managers, architects, engineers, contractors, and home builders, PlanGrid keeps everyone on your project on the same page by syncing a master set of drawings, notes, and photos to your phone, tablet, or computer.
Features · Take all your blueprints with you wherever you go. · Share plans, drawings, and notes instantly with whoever needs them. · Add personal or public notes straight onto your plans. · Make and send requests for information (RFIs) on any project. ___________________________________________________________________ Best App For Project Management Co-Construct
Ever wish you had an extra project manager on site to help you evaluate, bid out, and complete a project? Now you have one in your pocket. Co-Construct is a project management tool for home builders and remodelers that stores all the information you need to build or remodel a home.
The app can be used at every stage of a project's lifecycle, from the initial bidding process through to completion and beyond. Use it to create project estimates and proposals, invite and manage bids from subcontractors, store all your plans and specifications, track project costs, schedule and manage jobs on the worksite, create and manage change orders, update your accounting data, and manage punch list items on completed projects that are still under warranty.
Features · Reduces paperwork at every stage of your project: from proposal to completion. · Improves communication with your clients and subcontractors. · Includes bid management, cost management, and labor management tools. · Syncs with QuickBooks to create invoices and cost forecasts. · Allows you to manage all your projects from a single dashboard. ___________________________________________________________________ Best App For Reporting Raken
Reports should help you analyze, streamline, document, and identify problems in your construction business—not slow it down. Raken is a daily reporting tool for construction managers, superintendents, and foremen that speeds up the reporting process when filing incident reports, work logs, and to-do lists—and it can all be done right from the job site.
Simply type your reports straight into your phone or tablet or let the app do it for you by recording voice memos for the app to transcribe. When your report is complete, the app will create a signed PDF with all your notes and photos on it which you can share with whoever needs it
Features · Create daily, time-stamped work reports out in the field. · Type reports, or record voice memos for the app to transcribe · Record climatic information and any time lost to bad weather. · Attach photos, videos, and audio files to any notes you make. · Create an instant PDF copy of your report to share by email. ___________________________________________________________________ Best App For Communication BuilderTREND
Keeping everyone on the same page and in the know is hard. But streamlined, effective, real-time communication means fewer errors, a better experience for your employees and customers and a better reputation.
BuilderTREND was created especially for the construction workspace to connect everyone involved in a project (from the builder, to the contractor, to the customer) with every single detail—every step of the way. It features automatic updates and real-time notifications that allow builders to manage projects, collaborate, and communicate with subcontractors, vendors, project managers, and customers.
Features · Easily document and share job logs from the field—record notes using voice to text (or your keyboard), and add a progress photo each step of the way · Assign to-do items to yourself, your workers, or your associates · Share and annotate photos and blueprints right from the job site · Use in-app messaging (fast, easy, and organized) to communicate quickly; search by topic, leave a comment, and restrict who can (or can't) see your response · Coordinate with subcontractors and trade partners—send big requests and purchase orders straight from your mobile device · Track and accept online payments ___________________________________________________________________
About The Author:
Simon Worsfold is a copywriter at TSheets, a top-rated time tracking app that helps hundreds of thousands of employees to track their time simply and accurately every day. Originally from Surrey in south east England, Simon now lives and works in Boise, Idaho.
Simon Worsfold Copywriter | 888.836.2720 TSheets.com | 923 S. Bridgeway Place | Eagle, ID 8361
I trust this podcast helps you understand that outsourcing your contractors bookkeeping services to us is about more than just “doing the bookkeeping”; it is about taking holistic approach to your entire construction company and helping support you as a contractor and as a person.
We Remove Contractor's Unique Paperwork Frustrations
We understand the good, bad and the ugly about owning and operating construction companies because we have had several of them and we sincerely care about you and your construction company!
That is all I have for now and if you have listened this far please do me the honor of commenting and rating podcast www.FastEasyAccounting.com/podcast Tell me what you liked, did not like, tell it as you see it because your feedback is crucial and I thank you in advance.
You Deserve To Be Wealthy, Because You Bring Value To Other People's Lives!
This is one more example of how Fast Easy Accounting is helping construction company owners across the USA including Alaska and Hawaii put more money in the bank to operate and grow your construction company. Construction accounting is not rocket science; it is a lot harder than that and a lot more valuable to construction contractors like you so stop missing out and call Sharie 206-361-3950 or email sharie@fasteasyaccounting.com
Thinking About Outsourcing Your Contractors Bookkeeping Services?
Thank you very much and I hope you understand we really do care about you and all contractors regardless of whether or not you ever hire our services. Bye for now until our next episode here on the Contractors Success MAP Podcast.
0416: If My Construction Business Is Making A Profit Where Is The Cash
00:07:56
This Podcast Is Episode Number 416, And It's About If My Construction Business Is Making A Profit Where Is The Cash
Some construction business owners find themselves in the difficult position of running a business that appears to be profitable but still having no money in the bank. It's a critical situation to address. After all, a lack of adequate cash flow is one of the leading causes of small construction business failure.
Here are three reasons why profitable construction businesses have little money in the bank and what company owners can do to handle these tricky situations.
1. Using business money for personal reasons
Owners may be using their business bank account as a personal bank account, withdrawing the money as they see fit. Of course, business owners need to earn a living. Instead of using the business account as a personal account, you should give yourself a wage and transfer that from the business account to your personal account at set intervals. If your personal money runs out, you can't go back to the business account for more money until your next withdrawal date.
Regular use of the business account, even for relatively small amounts, adds up and can have a drastic effect on your business's cash flow.
2. Not collecting payments
Construction businesses need to make money, and they do so when customers pay their bills. Not sending out invoices promptly, not following up when customers fail to pay, and not conducting adequate credit checks on customers all put cash flow in jeopardy.
It's best for contractors like you to send out invoices with clear payment terms and follow up immediately if customers violate those. You can also put procedures in place to avoid customers who are unlikely to pay for work done or mitigate the damage if clients attempt to get away without paying. Requiring deposits, for example, are a great way to manage both cash flow and customers.
When doing a construction project, do not be a banker! Invoice early and often and get change orders signed.
There Is A Hall Of Justice, But There Is No Hall Of Fairness
No law says there have to be change orders. A lawyer may enforce a verbal contract; however, for contractors, unless you have something in writing, it is my opinion that construction contracts are fixed in stone. If a deal states, "I will pay you $X to do Y scope of work," your customer cannot force you to do more, and you cannot do less than agreed.
Change orders can protect you and your client. Change orders give contractors leverage because you can refuse to make the change unless you are paid.
3. Not preparing for tax season
Many small construction business owners see taxes as something they can worry about later. Then tax season rolls around, and they don't have enough money set aside to pay the collector. In some cases, a construction business may have suddenly had a significant profit increase but have not increased the amount set aside for taxes.
Treat your taxes as a regular expense. Set money aside each month to pay taxes. Suppose there is a drastic increase in profits, set aside even more money. Being prepared is far better than being caught with too little.
Final thoughts
There are steps you, as a construction business owner, can take to ensure that your business makes a profit and has money in the bank. First, you should learn how to read and understand your balance sheet and Key Performance Indicators (KPIs). These show how much money is coming in and where it's going. It also highlights which customers aren't paying their bills.
Contractors should also avoid using the business bank account for personal expenses. Instead, you should pull a set amount of funds to your personal account and limit your personal expenses to that amount.
Finally, you must understand your liabilities. Liabilities affect how much cash is available for your business, and even minor penalties add up quickly. Know how much is owed, how much is paid monthly and when those bills are due.
By keeping track of the money coming into your construction business, where it goes, and when it leaves, you can get a better handle on ensuring your business not only makes a profit but has money in the bank.
Got a question? Let's talk.
About The Author:
Sharie DeHart, QPA, is the co-founder of Business Consulting And Accounting in Lynnwood, Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations and offers insights on how to manage the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. Call 1-800-361-1770 or sharie@fasteasyaccounting.com
15 Mar 2019
0306: How To Manage Late Payments For Builders, An Expert Guide
00:07:11
This Podcast Is Episode Number 0306, And It Will Be About How To Manage Late Payments For Builders, An Expert Guide
One major headache for builders are the late payments of invoices. Builders seldom get the payment for their completed construction work at the right time and date. Professionals have recorded multiple payment cases and the slow paying issues are at the top of it. The unacceptable idea is that contractors seem like the last person to receive the reward for their hard work. Can you imagine finishing a building work without receiving a penny? Disappointing, isn't it?
Cash flow is king! Numerous startup builder companies are depending on paid invoices of clients. These payments are the bloodline of the entire business. Therefore, unpaid invoices can affect the production of work.
If you feel like your client is giving you a hard time with obtaining the payment, check out the following ways to secure the deal.
1. Review the signed construction contract
First, always remember not to settle with a simple handshake. Reviewing your signed construction contracts keeps you on track. With all the construction statements and clauses, you can be aware of where to stand in terms of payment. A contract makes your legal rights secured. It also helps you in various ways especially dealing with slow-paying clients.
In addition, it is better to discuss your concerns with the client. This is the easiest and effective way to deal with late issues for contractors. Asked the reasons why you are still not receiving the paid invoices in a proper manner. Payment can be an awkward topic but you should speak up.
2. Put late payment fees in payment terms
Having a construction contract that sealed the oral agreement is important because this can guarantee efficient payment terms and project management. One way to secure the payment for your work is to add a late payment fee in your contract.
Stating the fees in payment terms is a must. At your meeting and planning stages, it is better to mention the fee because it can avoid building disputes. Several builders add at least 2% penalty if one fails to pay within 30 calendar days. Some add 3% for 60 days.
But you can always make your own terms at the special conditions part. All is depending on your negotiation with the client.
3. Good communication is the answer
Construction is a temporary endeavor. You will have to work with the people you just have met for days. Having a clear and open communication is always the best way to deal with it since this can lead to a harmonious client-builder relationship. Always be vocal with contractors whenever you see something you don't like or different from the plans.
4. Settle with a fixed payment schedule
Construction is a complex process as it demands patience, hard work and investment. The client and builder themselves have other things to be mindful of, hence establishing a fixed payment schedule can lessen the stress. A payment schedule is an actual date for claiming and releasing the payment.
5. Taking the situation to court
Taking legal action is your last resort. If you think your client is ripping you off, it is time to take the situation to court. This is not just a waste of money and time. You just need to consider the idea that you could get the payment plus the compensation. The compensation is for all the troubles that have caused you for not paying on time.
The effects of late payments in construction projects
The small-scale construction businesses have a huge part in the industry as a whole. They occupy a massive chunk in the field. And if, for instance, most of these businesses have gone bankrupt, then, the construction world will suffer a significant loss. Planning your business growth can be easy if you are on top of your cash flow problems because you can put your attention to expansion and variations in revenues.
Similarly, issues with payments can affect the work deadline. It can impede the productivity of work and the contractors’ ability to perform and accomplish work on a schedule. The project success can be at risk too. Therefore, we can all say that payment is a joint responsibility of the client and builder. For instance, if a builder fails to notify the client and gives the billing statement, there is no actual reason to pay up. However, if a client neglects and refuses to pay, he/she is probably not satisfied with the work result.
Focusing on your cash flow
Therefore, the main focus of builders should be on establishing a stable cash flow. Late payments are sometimes unpreventable. Make sure that the payments from clients are not the only amount running your business. Learn how to market your building services and implementing good project management. By doing this you can identify the factors affecting your business and prevent possible future failures.
About The Author:
John Dela Cruz is the Principal Construction Lawyer of Contracts Specialist, Founder, and CEO of Small Builders Construction Software based in Sydney, Australia, and an industry influencer. He has been helping multiple homeowners, builders, and other tradesmen across the field for almost 10 years. He holds several industry management roles including Divisional President and Councillor at Master Builders Association NSW.
13 Mar 2015
0102: Contractors Success Map Top Ten Myths Of Construction Bookkeeping
00:25:23
This Podcast Is Episode Number 0102 And It Will Be About The Top Ten Myths Of Construction Bookkeeping
Over The Past Few Decades We Have Heard And Read Some Really Good
Construction Bookkeeping Myths And Legends And Here Are A Few
#10 "I thought the QuickBooks website said that QuickBooks was easy to setup and use"
#09 "Since it has Quick in the name then of course QuickBooks is easy, why else would they do that?"
#08 "I know how to write checks and balance my bank statement so how hard can it be to use QuickBooks"
#07 "I attended a full day QuickBooks class and got this pretty paper certificate that says I know QuickBooks"
#06 "I've been doing bookkeeping for over twenty years and you can't teach me nothing I don't already know"
#05 "I have worked at a bank for over ten years and seen hundreds of financial statements so I can use QuickBooks"
#04 "I am a C.P.A. and I know everthing about accounting, so doing the bookkeeping for a contractor child's play"
#03 "I have lots of experience because the last four contractors I did bookkeeping for all filed for bankruptcy"
#02 "I took an accounting course in college so doing the bookkeeping for a construction company can't be that hard"
#01 "I have a degree in accounting which I have never used, but I can do contractor bookkeeping how hard can it be?"
We have heard hundreds more similar to the ones shown above; however, these are the top ten from number ten who will do the least damage to number one who will, has and does the most damage of all. As Daniel J. Boorstin said "The greatest enemy of knowledge is not ignorance, it is the illusion of knowledge."
I find the more I learn about construction accounting the more there is about that I don't know. This is why everyone working here at Fast Easy Accounting are continually learning and updating our skills. And that is why we specialize in contractor bookkeeping services and only allow a few highly qualified business owners who are not directly involved in construction to be a part of this exclusive club.
Do we cost more than most other bookkeepers and bookkeeping firms? That depends on what you want. If you want to spend as little as possible on your contractor bookkeeping services search Craigslist they have hundreds of them. I know this because we fix a lot of their QuickBooks setup messes.
If you want to hire a bookkeper employee consider
these three important things:
#1 - It will cost more than you think and you will still need outside accounting help!
#2 - Bookkeeper embezzlement is on the rise!
#3 - You need to invest at least $10,000 in hardware and software or you will pay for it in bookkeeper labor!
the graphic below which shows that an in-house bookkeeper paid $15.00 an hour will end up costing you $25.29 per hour! And in most cases we can do the job for less money, faster and more accurately with a team of people, each one specializing in different areas of construction accounting and contractor bookkeeping services.
#1 - Fully Burdened Bookkeeper Cost
Simply means what it will cost you to hire someone including the company portion of the payroll taxes and all those little costs that only an accountant like me would think about. The example below shows a part-time in-house bookkeeper at $15.00 an hour working 10 hours a week. Notice this poor soul does not have any benefits at all and they still cost the company $25.29 per hour! For more on this please visit www.FastEasyAccounting.com/bc
These costs do not include heavy training for your bookkeeper; read The Nine Steps for more information on this.
The two happiest days in a construction company owner's life is the day he hires a bookkeeper and the day he outsources his bookkeeping.
Generally speaking we know from our research a typical contractor with 2-4 employees and annual sales of $500,000 will need at least a part-time bookkeeper for 10 hours a week and they will try to get away with only paying them $15.00 an hour plus overhead and it will cost their construction company approximately $13,000 - $15,000 a year and most of the time they will still overpay their taxes, have bad or non-existent financial and Job Costing Reports.
But you’d still need an in-house bookkeeper, right? Well… perhaps not. See, outsourcing is often interesting in that, while you still need administrative resources, they can be less skilled. They don’t need to have any contractors bookkeeping service skills to pick up the mail, make bank deposits, print checks, which can be done on your local computer even with QuickBooks Desktop version in the cloud. It’s likely a part-time office assistant could do that in addition to other duties and errands.
#2 - Bookkeeper Embezzlement Is On The Rise
Due to the ever increasing belief in "redistrubution of the wealth", the ever increaseing rise of "entitlement mentality" and general feeling that workers are being taken advantage of by their bosses and business owners a lot more office employees are stealing more than ever, and it will only get worse.
The least costly embezzlement is that on average office workers are spending two hours a day on personal errands, phone calls, Facebook, twitter, youtube, personal email, cyber shopping and other social media and at $25.29 per hour it costs construction company owners like you $50.58 a day! If your contracting company earns 10% net profit, which is over four times the national average, that means you must sell, produce work and collect $505.80 a day to make up for the loss!
Every Ten Minutes Your Bookkeeper Is Costing You $4.21
The most costly embezzlement could destroy your business and personal finances. There are Twenty One Signs Of Bookkeeper Embezzlement and if you have an in house bookkeeper you need to study them carefully and be on gaurd against all of them. Click here to learn more. You may be surprised to learn who the biggest most frequent offenders are and how easily they avoid prosecution.
#3 - Invest At Least $10,000 In Hardware And Software
1.Desk, Chair and starter pack of office supplies = $1,200 +/-
2.High-speed desktop computer with lots of power custom built = $2,000 +/-
3.Minnimum two computer monitors with high resolution = $1,000 +/-
4.Computer network system (hardwired and wireless capable) = $2,000
5.Laserjet Printer = $500 +/-
6.Highspeed Scanner = $500 +/-
7.QuickBooks for Contractors software = $350 +/-
8.Microsoft Office Professional Software = $500 +/-
9.Acrobat Pro Software = $450 +/-
10.Other assorted software = $1,500 +/-
You do not have to invest anything more than a few dollars and get the cheapest hardware and software you can find and you will save money in the short run; however, in the long run it will cost you dearly. If you bookkeeper wastes a two hours a day trying to get cheap worn out office equipment to do your contractor bookkeeping could cost your contracting company $3,287.16 a year!
At 10% Profit You Need $32,871.60 More Sales
To Maintain Your Profit Margin!
In Some Cases - We can do more work for less money by providing you with real construction bookkeeping and accounting + payroll processing + monthly and quarterly tax reports + year end W-2, W-3 + profit and growth management consulting + financial and job costing reports + paperless data storage and more at a lower overall cost and as an added bonus show you how to make more money than you are now!
I trust this podcast helps you understand that outsourcing your contractors bookkeeping services to us is about more than just “doing the bookkeeping”; it is about taking holistic approach to your entire construction company and helping support you as a contractor and as a person.
We Remove Contractor's Unique Paperwork Frustrations
We understand the good, bad and the ugly about owning and operating construction companies because we have had several of them and we sincerely care about you and your construction company!
That is all I have for now and if you have listened this far please do me the honor of commenting and rating podcast www.FastEasyAccounting.com/podcast Tell me what you liked, did not like, tell it as you see it because your feedback is crucial and I thank you in advance.
You Deserve To Be Wealthy, Because You Bring Value To Other People's Lives!
This is one more example of how Fast Easy Accounting is helping construction company owners across the USA including Alaska and Hawaii put more money in the bank to operate and grow your construction company. Construction accounting is not rocket science; it is a lot harder than that and a lot more valuable to construction contractors like you so stop missing out and call Sharie 206-361-3950 or email sharie@fasteasyaccounting.com
Thinking About Outsourcing Your Contractors Bookkeeping Services?
In closing, I want to caution you that we may or may not be a good fit for your contracting company. This guide will help you learn what to look for in outsourced construction accounting.
Thank you very much and I hope you understand we really do care about you and all contractors regardless of whether or not you ever hire our services. Bye for now until our next episode here on the Contractors Success MAP Podcast.
Hiring A Bookkeeper For Your Contracting Company Is Nothing Like Hiring A Construction Worker
Would it be a fair statement to say you know what to ask when hiring a construction worker for your contracting company?
If you need a Licensed Journeyman, you know what to ask for and you know what to expect.
If you need an apprentice, you know what to look for and what to expect. In most cases, you take over where their parents left off; however, that is a topic for another podcast.
The first thing you need to be aware of is not all accounting is the same. Just because someone is skilled in framing spec houses does not mean they can suddenly install expensive wood trim and perform finish carpentry in the home of your most valuable client and the reverse is true as well isn't it?
Just because a bookkeeper can perform regular bookkeeping duties does not mean they can perform construction accounting duties.
Regular bookkeeping is similar to production framing in a tract home development.
Construction bookkeeping is similar to building custom home for a demanding client.
One is fast and furious and requires very little skill and training and the other is slow and deliberate and requires immense skill and training. Don’t put your contracting company in the wrong hands, get all the facts then decide.
0233: Contractors Struggle To Save Paperwork Needed For Taxes
00:21:51
This Podcast Is Episode Number 0233 And It Will Be AboutContractors Struggle To Save Paperwork Needed For Taxes
Tax Time! Corporate Income Tax Returns are due to the IRS by September 15th for S-Corp and LLC’s filing as an S-Corp
Other types of corporations may be in a fiscal year with varied due dates.
The only exception is any emergency extensions granted due to hurricanes (Harvey) or others.
Personal Income Tax Returns are due to the IRS by October 15th which falls on the weekend and extended to Monday, October 16th.
Keeping Paper Documents is necessary. Most contractors go from one extreme to the other. One extreme is saving everything for decades, and the other is tossing everything out.
What To Save?
What To Toss Out?
We no longer need to print and save every document in file folders and keep adding new file cabinets.
Happiness is every document that can be retrieved electronically at any time in the future.
Sharie's Seven Paper Tips...
Sharie’s Paper Tip 101 Save your receipts. If you have it in paper Get a file box and toss in all the gas, food, misc receipts paid by credit card. Make a note on the receipt. You have the receipt for backup. I remember a story where someone needed to prove where they were. Charges on the credit card statement weren't enough.
Sharie’s Paper Tip 201 Make individual file folders for your state taxes, quarterly payroll reports, W-2’s, 1099’s. Other helpful folders are for your Bond, Liability Insurance, Worker’s Comp Insurance, Tools, Office Equipment and Cell Phones. All the statements you may need to reference over and over again and Receipts with extended warranties.
Sharie’s Paper Tip 301 Print a copy of the Contract with your client (electronic signatures is fantastic) use a service that will time and date stamp in case you have an issues. Contracts are great in case of dispute. If all goes well, then The Signed Contract is just another piece of paper. I have heard stories of customers altering the contract, and the contractor did not double check. Magically things happen with software. Be sure what the client signs are the same copy of the contract you sent them and expected to be signed.
Sharie’s Paper Tip 401 Take credit cards. Use multiple services if that is what is available. If you use a service to send your contracts for signature and they have a Merchant Services; then sign up for it. Everything that happens seamlessly is the best. Approval Now + Authorization of Payment means you have real money (their money) to start the job.
OPM (means using Other Peoples Money – meaning you are using the Client’s money to start, continue and finish the job). Build in the Merchant Services Fee into your pricing. Cost of doing business.
Many contractors lost money on Groupon Coupons as customers only would do the One or Two Rooms as was prepaid on the coupon. (Example Carpet Cleaning – Drywall Patching)
Sharie’s Paper Tip 501 Use an invoice built on Excel. Word is pretty and is needed for all the descriptions. But to properly get the money, you expect to be paid Contractors need a form that adds up the money. Do not call all the payments a Job Deposit all the way from beginning to end. Call it a Statement, Progress Invoice, once work is approved it is no longer an Estimate or a Work Order. If you are in a sales tax state (Washington State) and need to collect sales tax; then be sure to add sales tax to every invoice.
Customers have selective memory. Be sure to use “Plus Applicable Sales Tax” on the Estimate, Contact and all future billings. If sales tax increases you need to be able to pass the increases on to the customer.
Sharie’s Tip 601 Contractors who are doing remodel projects like to have job costing. To achieve basic job costing reports the accounting software needs to know what job the expenses should apply to.
Many contractors will create a single file folder and drop all of the individual receipts in it. This is handy if they have outsourced their bookkeeping and needed to give their bookkeeping to others to enter into an accounting software (QuickBooks)
One simple way to add more detail for bookkeeping is to have accounts with the primary supplier. The person at the counter will ask you if you have a PO (Purchase Order). Purchase Order does not need to be complicated. Job Name and Job Address. Why both name and address?
Because the name that pays the bill may not be the same as the Nick Name that you know your client as. Examples: Bob, Bobby, Rob, Robby, Robert or Bill, Billy, Will, William may be the same person to you but not to the bank, credit card company.
Always exciting when Spouse, Family member or good friend helps pay your invoice. From Accounting side; next week, next month, next year will you remember which job the individual receipts are tied to?
Sharie’s Tip 701 For larger projects – file folder for each invoice especially if you are billing Time & Material or Cost Plus. Keep good records; customers will randomly want to confirm the cost of some or all of the items.
Does your customer want copies of all receipts?
Does your customer want to nit pick the price of each 2x4, cost of temp? Service and every dump fee?
Does your customer Agree Verbally To Change Orders but give excuses when asked to confirm changes on paper or by email?
Does your customer hide when you ask for payment?
To be better able to assist, we have added our FastEasyAccountingStore.com for the convenience of clients who want to do their bookkeeping and need additional Chart of Accounts and Items Lists to make their QuickBooks File work more efficiently. Option available for Contractors using QuickBooks Desktop (US Version) using our server and continue to do their bookkeeping.
Contractors who want more hands on help to Set Up QuickBooks and want to consider Outsourced Accounting Services using QuickBooks Desktop (access optional) We have a process that begins with chatting about your needs, how and what you are currently doing with your bookkeeping.
Clients range from Brand New Contractor to Seasoned Contractor whether you are currently using Shoe Box, Excel Sheets, QuickBooks Desktop, QuickBooks Online or nothing at all we can help.
Sharie DeHart, QPA is the co-founder of Business Consulting And Accounting in Lynnwood Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations and offers insights on how to manage the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. http://www.fasteasyaccounting.com/sharie-dehart/ 206-361-3950 or sharie@fasteasyaccounting.com
I trust this podcast helps you understand that outsourcing your contractor's bookkeeping services to us is about more than just “doing the bookkeeping”; it is about taking a holistic approach to your entire construction company and helping support you as a contractor and as a person.
We Remove Contractor's Unique Paperwork Frustrations
We understand the good, bad and the ugly about owning and operating construction companies because we have had several of them and we sincerely care about you and your construction company!
That is all I have for now, and if you have listened to this far please do me the honor of commenting and rating podcast www.FastEasyAccounting.com/podcast Tell me what you liked, did not like, tell it as you see it because your feedback is crucial and I thank you in advance.
You Deserve To Be Wealthy Because You Bring Value To Other People's Lives!
This Is One more example of how Fast Easy Accounting is helping construction company owners across the USA including Alaska and Hawaii put more money in the bank to operate and grow your construction company. Construction accounting is not rocket science; it is a lot harder than that, and a lot more valuable to construction contractors like you so stop missing out and call Sharie 206-361-3950 or email sharie@fasteasyaccounting.com
Contractor Bookkeeping Done For You!
Thinking About Outsourcing Your Contractors Bookkeeping Services?
Thank you very much, and I hope you understand we do care about you and all contractors regardless of whether or not you ever hire our services. Bye for now until our next episode here on the Contractors Success MAP Podcast.
Sharie DeHart, QPA is the co-founder of Business Consulting And Accounting in Lynnwood Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations and offers insights on how to manage the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. http://www.fasteasyaccounting.com/sharie-dehart/ 206-361-3950 or sharie@fasteasyaccounting.com
Most Contractors Setup QuickBooks Desktop Version In One Of Three Ways:
#1 EZ Step Interview inside QuickBooks Setup #2 Asked Their Tax Accountant To Setup QuickBooks #3 They Attended A How To Setup QuickBooks Class Or Seminar
And QuickBooks Does Not Work The Way They Want It Too!
All Contractors will experience embezzlement at some point in their business life if they stay in it long enough. How much money will be lost is easy to predict.
Group #01 - Contractors Who Have Experienced Embezzlement
> Immediately outsource the bookkeeping chores to a reliable trustworthy Contractors Bookkeeping Service > The owner pays the bills every Friday and we can help by: > Getting all the bills, invoices, bank statement, payroll checks, etc. into QuickBooks so you know what to pay > Reconcile all of the bank and credit card statements > Process payroll and you review payroll and authorize payment > Process monthly and quarterly tax returns which you review and authorize payment > Enter and reconcile the vendor charges and statements which you review and authorize payment > Common vendor statement errors we catch: > Mistakes at order desk > Missed invoices and credit slips > Bills sent to wrong contractor
Group #02 - Contractors Who Have Not Experienced Embezzlement
Contractors who want someone to provide Contractor Bookkeeping Services and pay the bills are practically waving a Red Flag and holding a sign that says "I’m stupid pay my bills and embezzle as much of my money as you want!!
Well meaning, yet somewhat lazy Contractors ask if paying their bills is part of our Outsourced Contractor Bookkeeping Services and the answer is NO! We never, ever like to say NO unless it is absolutely necessary.
Small construction companies with annual sales volume under $5,000,000 can not afford to put in place the proper checks and balances or hire the services of an in-house Chief Financial Officer (C.F.O.). Even when it is time to hire someone to "Pay The Bills".
Just expect sooner or later embezzlement will occur because you will try to get by without putting the best practices of money management in place until after you loose a small fortune.
When Do Most People Buy A Burgler Alarm? After Being Robbed, Not Before!
Whenever you think it is a good idea to give your in-house bookkeeper or any Outsourced Contractor Bookkeeping Service full unrestricted access your online bank account, savings account, payroll account or credit card so they can save you time by paying your bills take two aspirin and lay down for a nap.
When you wake up if you still feel it is a good idea, think again and review the list of the twenty one signs of bookkeeper embezzlement
A Google Search - Of Construction Bookkeeper Embezzlement will generate thousands of hits and most of it could have been avoided if the construction owner had known about and followed a few simple guidelines.
#02 - Understand The Employee Theft 10-10-80 Rule - Discovered over many years of experience and first hand observation by auditors, accountants, fraud examiners, anyone involved in detecting employee theft.
Ten Percent - Of all employees including bookkeepers will steal in a variety of ways from office supplies, petty cash, graft, kickbacks and payoffs from your suppliers, vendors and sub-contractors and even hundreds of thousands or even millions of dollars. They will do it regardless of how many security systems are in place because they lack integrity and have an "taker's" entitlement paradigm that states: "It Is Better To Take Than To Make". They cannot be stopped, only caught! And only then if you have systems in place and if you can convince the criminal justice system to take action, good luck with that!
Ten Percent - Of all employees including bookkeepers will never steal because they have integrity and a "Producer's" paradigm that states: "It Is Better To Make Than To Take". In the end these are the people who will add so much value to your company you cannot help but reward them with more money, benefits and recognition. Because if you do not they will be recruited by your competitors. This is another example of Leveling, click here to learn more.
Eighty Percent - Of all employees including bookkeepers will steal if they feel certain they can get away with it and if circumstances allow for it due to weak integrity and a sense of "Redistributing The Wealth, But Not The Work Or The Responsibility"
#03 - Your Bookkeeper - Asks for signature authority on your checking / savings / payroll accounts
#04 - Your Bookkeeper - Has a lifestyle that seems above what they are earning
#05 - Your Bookkeeper - Takes Records Home to work on or they want to work in the office when no one is around (Fraudulent activities are easier when nobody is around).
#06 - Your Bookkeeper - Refuses to take a vacation.
#07 - Your Bookkeeper - Gets defensive when you or your CPA asks questions.
#08 - Your Bookkeeper - Has access to your credit/debit cards.
#09 - Your Bookkeeper - Receives mail-order packages at work.
#10 - Your Bookkeeper - Has QuickBooks in a complete mess and you cannot understand any of it.
#11 - You Bookkeeper - Tries to explain away delinquency tax notices.
#12 - Your Bookkeeper - Insists on picking up the daily mail.
#13 - Your Bookkeeper - Is the primary contact for your company's banks, auditors, creditors, etc.
#14 - Your Bookkeeper - Misplaces payroll receipts, deposit records, supplier letters and estimates.
#15 - Your Bookkeeper - Makes the bank deposits and they seem to be too small.
#16 - Your Bookkeeper - Show signs of a drinking, drug, or gambling problem or family financial problems.
#17 - Your Bookkeeper - Suggested they could save money by getting rid of the outside accounting firm.
#18 - Your Bookkeeper - Gets angry when you ask for a QuickBooks report
#19 - Your Bookkeeper - Tries to blame the previous Bookkeeper or outside accounting firm for messy QuickBooks
#20 - Your Bookkeeper - Does not get along well with other employees and staff members.
#21 - Paying bills with Cashiers Checks - When you look it up on the internet it will only show as a withdrawal
There Are More Warning Signs - To be aware of and action steps you can take.
> They Do Not Collect your money, make bank deposits or pay any bills or taxes. > They Do The Bookkeeping including Payroll Processing, Quarterly Tax Reports, Invoicing, Pay Applications, and bank reconciliations and provide you with online access to your QuickBooks For Contractors and a separate 24/7 web based financial reporting tool so you can generate Job Costing and Financial reports anytime you want too.
I trust this podcast helps you understand that outsourcing your contractors bookkeeping services to us is about more than just “doing the bookkeeping”; it is about taking holistic approach to your entire construction company and helping support you as a contractor and as a person.
We Remove Contractor's Unique Paperwork Frustrations
We understand the good, bad and the ugly about owning and operating construction companies because we have had several of them and we sincerely care about you and your construction company!
That is all I have for now and if you have listened this far please do me the honor of commenting and rating podcast www.FastEasyAccounting.com/podcast Tell me what you liked, did not like, tell it as you see it because your feedback is crucial and I thank you in advance.
You Deserve To Be Wealthy, Because You Bring Value To Other People's Lives!
This is one more example of how Fast Easy Accounting is helping construction company owners across the USA including Alaska and Hawaii put more money in the bank to operate and grow your construction company. Construction accounting is not rocket science; it is a lot harder than that and a lot more valuable to construction contractors like you so stop missing out and call Sharie 206-361-3950 or email sharie@fasteasyaccounting.com
Thinking About Outsourcing Your Contractors Bookkeeping Services?
In closing, I want to caution you that we may or may not be a good fit for your contracting company. This guide will help you learn what to look for in outsourced construction accounting.
Thank you very much and I hope you understand we really do care about you and all contractors regardless of whether or not you ever hire our services. Bye for now until our next episode here on the Contractors Success MAP Podcast.
588: Financial Statements Demystified: A Practical Guide For Contractors
00:11:54
This Podcast Is Episode 588, And It's About Financial Statements Demystified: A Practical Guide For Contractors
Understanding financial statements might sound daunting, but small business owners like you must stay on top of your game. Each financial report offers unique insights into your company's economic status.
As a construction contractor, your financial statements provide valuable insights into your company's financial health and are essential for making informed decisions. Let's look at the critical components of financial statements and why they matter to construction contractors.
1. Balance sheet
The balance sheet is a snapshot of your company's financial position at a specific time. It includes your assets, liabilities, and equity. For construction contractors, the balance sheet reflects the value of equipment, property, other assets, any outstanding debts, and your company's net worth. Monitoring your balance sheet helps you track your company's financial stability and wealth.
Assessing net worth:By understanding your assets and liabilities, you can easily calculate your company's net worth.
Financial stability:The balance sheet helps you gauge whether your business is financially stable or if it's relying too much on borrowed funds.
Practical tip:
Regularly review your balance sheet to make informed decisions about investing and financing to foster growth. If you notice a high level of liabilities compared to assets, consider strategies to reduce debt.
2. Income statement
The income statement, also known as the profit and loss statement, provides an overview of your company's revenues, expenses, and profits over a specific period. As a contractor, your income statement reflects your revenue from completed projects and your operational costs, such as materials, labor, and overhead (LMOS). Analyzing your income statement helps you assess the profitability of your projects and identify areas where you can improve efficiency.
Operational efficiency:By reviewing your income statement, you can identify how efficiently your business operates.
Profitability:It shows your ability to generate profit by increasing revenue or reducing costs.
Practical tip:
Keep an eye on revenue and expense trends. If operating expenses are consistently rising, it may be time to reevaluate your cost management strategies.
3. Cash flow statement
The cash flow statement details how cash enters and leaves your business. It is divided into three sections—operating, investing, and financing activities—showing how well your company manages its money.
Due to the industry's cyclical nature, managing cash flow is especially critical for construction contractors. Your cash flow statement helps you monitor the timing of your receivables and payables, ensuring sufficient liquidity to cover ongoing expenses and take on new projects.
Liquidity:It helps you understand your company's ability to meet short-term obligations.
Expense management:By tracking cash flows, you can make more informed decisions about spending and saving.
Practical tip:
Pay close attention to operations cash flow. If you consistently see negative cash flow, it's a sign that you need to improve your operational efficiency or adjust pricing strategies.
4. Statement of changes in equity
This lesser-known but important report details the changes in the equity section of your balance sheet over a specific period. It includes contributions from shareholders and retained earnings.
Why it matters
Investment decisions:Helps investors understand how their investments are performing.
Retention strategy:Shows how profits are being reinvested into the business.
Practical tip:
Use this statement to communicate with potential investors. Highlight how you reinvest profits to fuel growth, showcasing your commitment to long-term success.
5. Financial ratios
Financial ratios are derived from your financial statements and provide deeper insights into your company's performance. Key ratios include profitability, liquidity, efficiency, and solvency ratios.
Quick insights:Ratios offer a quick snapshot of your business health.
Benchmarking:Compare your ratios with industry standards to see how your business stacks up.
Practical tip:
Calculate the current ratio (current assets divided by current liabilities) to assess your short-term financial health. A ratio above 1 indicates good liquidity.
6. Notes to the financial statements
These notes provide additional context, explaining the methods used in preparing the financial statements and offering detailed breakdowns of certain items.
Transparency:Enhances the transparency of your financial reporting.
Clarity: Helps stakeholders understand the numbers better, leading to more informed decisions.
Practical tip:
Ensure the notes are detailed and precise. Transparency builds trust with investors and other stakeholders, making them more likely to support your business.
Why Financial Statements Matter
Understanding how to read financial statements as a construction contractor can provide several key advantages:
Firstly, it allows you to assess the economic health of your construction business. Understanding your company's financial position enables you to make informed decisions about investments, expansion, and resource allocation.
Secondly, financial statements provide valuable insights for stakeholders, such as investors, lenders, and sureties. Maintaining accurate and transparent financial statements can enhance credibility and facilitate access to capital for future projects and growth opportunities.
Lastly, understanding your financial statements can help you identify areas for improvement and implement strategies to enhance profitability and operational efficiency. Whether reducing costs, optimizing cash flow, or diversifying your service offerings, your financial statements guide strategic planning and performance evaluation.
Remember that it can also aid in compliance and tax planning. Being aware of your financial position can help ensure that you are meeting regulatory requirements and assist you in making tax-efficient decisions.
In Conclusion
Reading and understanding financial statements is a valuable skill for construction contractors. It provides a clear picture of your business's economic standing and enables informed decision-making.
Each report offers valuable information, whether evaluating your net worth through the balance sheet, assessing profitability via the income statement, or managing liquidity with the cash flow statement.
Ready to take control of your financial health? If you need advice or assistance, contact our team. We're here to help.
PS
We offer free resources to help you save time and money that you can download and print now.
About The Author:
Sharie DeHart, QPA, co-founded Business Consulting And Accounting in Lynnwood, Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations. She offers insights on managing the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. Call 1-800-361-1770 or sharie@fasteasyaccounting.com
27 Mar 2020
0360: 7 Ways To Improve Construction Workplace Productivity
00:06:56
This Podcast Is Episode Number 0360, And It's About 7 Ways To Improve Construction Workplace Productivity
The success of any business, large or small, depends considerably on nurturing an efficient, productive workplace.
Some contractors and construction company ownersbelieve in maximizing production by driving everyone from the laborers to the Project Managers to work harder, longer, faster, hustle, and run. And if they are giving less than 110% to the company, they are not doing enough.
While improving employee productivity should always be a priority when the ultimate goal is a sustainable and profitable business, the process is easier said than done.
Below are some of the most effective methods of managing a productive, happy workplace while increasing output:
Establish Accountability
Productivity depends on every employee's understanding that the jobs they do come with specific responsibilities, and that their actions have consequences. Employees that lack accountability are more likely to slack off, procrastinate, or blame others for their shortcomings. Establishing accountability from the beginning results in higher-quality work output and an increased focus on informed, efficient action.
Avoid Micromanagement
There is no denying that management is crucial, but too much of a good thing can have adverse effects on productivity. Excessive micromanaging creates employees that feel as if they are not trusted and that their decision-making processes are not valued. Instead of encouraging employees to put forth their best efforts, micromanaging results in an eventual dependence that can sink productivity levels.
Recognize Success
Just as employees must be held accountable for their actions, they should also be recognized for their success. Even small efforts, such as verbal recognition or occasional awards, can encourage employees and make them feel like their hard work is being rewarded. For businesses that can afford it, more substantial rewards, such as holiday parties, improve morale, and create camaraderie in the office, all of which lead to happier, more productive employees.
Break Out Of Ruts
While it is generally advisable to assign tasks based on an employee's particular competencies, keep in mind that doing the same tasks repeatedly over an extended period can make even a skilled employee feel as if their work has become monotonous. If possible, it may be useful to expose employees to other tasks and also other departments. This renews motivation, offers new skills to learn and apply, and grants the employee a broader understanding of how the company operates.
Cut Down On Meetings
Often meetings serve as nothing more than temporary breaks from productive work. If a session does not have a specific purpose, an organized agenda, and a plan of action, it will probably only function to diminish productivity. Meetings can be a great way to share ideas and establish goals, but don't let them get in the way of delivering actual results.
Embrace Technology
While many workplaces still see new technology as unnecessary or even distracting, the simple truth is that they can have a significant positive impact on productivity. Updated hardware, software, and machinery ensure that work can be performed in less time and with minimal error. While it may not seem like a big deal, even minor issues such as temporary connectivity problems or hardware breakdowns can quickly add up through the course of a fiscal year.
Think Outside The Box
Studies have revealed several productivity-boosting techniques that may seem counter-intuitive at first glance. While social media has been criticized in workplace settings, data shows that allowing occasional breaks to access such sites can boost workplace productivity by nearly 10%. Likewise, allowing employees to listen to music while working - when it doesn't interfere with the job, of course - can also improve efficiency. Providing such perks can pay off tremendously if it means happier, more motivated employees.
Final thoughts
Balancing the needs of a business is never an easy job, but a focus on increased productivity can have a positive impact on nearly every other facet of the workplace. By using the techniques above, it is possible to eliminate unnecessary pitfalls and ensure that employees are personally invested in efficient, quality work output.
About The Author:
Sharie DeHart, QPA is the co-founder of Business Consulting And Accounting in Lynnwood, Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations and offers insights on how to manage the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. Call 1-800-361-1770 or sharie@fasteasyaccounting.com
04 Oct 2024
596: Overcoming Solo Contractor Challenges: How MAP Can Simplify Operations
00:14:14
This Podcast Is Episode 596, And It's About Overcoming Solo Contractor Challenges: How MAP Can Simplify Operations
Does this sound like you? Maybe you started your company with a few friends and relatives as your earliest clients, and you thought your overhead expenses would be low since you worked out of your home. You made a decent living for yourself, hired a few sub-contractors per project, paid your suppliers, and earned a profit—at least that is what your tax preparer said.
Things begin to change, and the reality of the construction industry begins to dawn on you. Those early customers who were your friends because you could get faucets, fixtures, and materials at wholesale prices now tell you they were happy with your work. They want your construction company to do all their future work (and refer you to their closest neighborhood friends) as long as your price is lower than the other bids they are getting.
Yes, this kind of business builds your integrity, but at the same time, you are dirt-poor. Why? Because as a construction company owner, you now have overhead no matter what business entity you operate. It's not just office overhead; you have field overhead, too.
Office overhead includes expenses like shop rent, office rent, standard area management fees, bookkeeping, insurance audits, quarterly tax returns, office payroll, utilities, a computer, an administrative assistant, insurance, contributions, associations dues, etc. Field overhead includes tools and equipment, cell phone liability insurance, contributions, and more.
This is not even an extensive list, but you have to manage all these things simultaneously to keep your company going and your prices competitive.
Starting a construction business can be both challenging and rewarding. If you're considering venturing into this industry, whether you've just started or are just emerging, it's essential to have a strategic plan in place to manage your business effectively. Here are some key steps to help you manage your construction business successfully from the outset.
1. Develop a Solid Business Plan: Before diving into the world of construction, it's crucial to have a comprehensive business plan that outlines your goals, target market, financial projections, and marketing strategies. A well-thought-out business plan will serve as a roadmap for your company's growth and help you secure funding if needed.
2. Obtain the Necessary Licenses and Permits: Compliance with local, state, and federal regulations is vital. Make sure to obtain all the required licenses and permits to operate legally. This may include contractor licenses, building permits, and adherence to zoning regulations.
3. Build a Strong Financial Foundation: Managing the finances of your construction business is critical to its success. Set up a separate business bank account, track all expenses and income, and consider hiring a professional accountant to manage your books. Additionally, secure adequate insurance coverage to protect your business from potential risks.
4. Invest in Quality Equipment and Tools: Invest in reliable construction equipment and tools to deliver high-quality work. Whether it's heavy machinery, power tools, or safety gear, having the right equipment is essential for efficiency and safety on the job site.
5. Establish a Network of Reliable Suppliers and Subcontractors: Building solid relationships with suppliers and subcontractors iskeyto ensuring a smooth construction process. Look for reputable suppliers who can provide quality materials at competitiveprices and subcontractors who have a track record of delivering exceptional work.
6. Focus on Safety and Compliance: Prioritize safety on your job sites by implementing proper safety protocols and providing ongoing employee training. Additionally, staycurrentwith industry regulations and standards to ensure compliance with all safety and building codes.
7. Implement Efficient Project Management: Effective project management is crucial for delivering projects on time and within budget. Use project management software to streamline communication, track progress, and manage resources effectively.
8. Marketing and Branding: A strong brand presence is essential for attracting clients in the competitive construction industry. Invest in professional branding, create a user-friendly website, and leverage social media platforms to showcase your work and connect with potential clients.
9. Prioritize Customer Satisfaction: Building a positive reputation in the construction industry relies heavily on delivering exceptional customer service. Focus on understanding your client's needs andexpectations and consistently strive to exceed them.
10. Stay Informed and Adapt: The construction industry is constantly evolving, so it's crucial to stay informed about new technologies, trends, and best practices. By adapting to market changes and continuously seeking growth and improvement opportunities, you can stay ahead of the curve and ensure the success of your business.
As the sole owner, you have the freedom to make decisions and steer the direction of your business. This sense of control and empowerment is a significant advantage, but it also means you bear the full responsibility for its success or failure.
Simply put, to navigate this path successfully, you must focus on several key areas to ensure the growth and sustainability of your construction business:
Marketing - Accounting - Production
Marketing
Building a solid network of clients, suppliers, and industry contacts is invaluable as a sole proprietor. Utilize social media, industry events, and local business networks to promote your services and build relationships within the construction community. This network can provide support, advice, and potential business opportunities, helping you navigate the challenges of running a construction business.
Consider specializing in a particular type of construction work or offering unique services that set you apart. Whether eco-friendly remodeling, custom carpentry, or historic restoration, having a niche can attract a specific clientele.
Accounting
Separating personal and business finances is essential to maintaining clarity and accuracy. Setting up a dedicated business bank account and diligently tracking all income and expenses will help you stay on top of your finances and make informed decisions.
Additionally, establishing a solid accounting system is vital. Keeping detailed records of all financial transactions, including invoices, receipts, and expenses, will not only help you maintain compliance with tax regulations but also provide valuable insights into your business's financial health.
Production
As the face of your business, delivering high-quality work and exceptional customer service will help you build a strong reputation and generate positive word-of-mouth referrals.
Stay informed about licensing, permits, and safety regulations relevant to your construction business. Remaining compliant not only ensures the smooth operation of your business but also helps you avoid potential legal issues.
Final thoughts
While you may possess exceptional skills in your craft, managing the business side of things effectively is crucial for long-term success. Investing in professional development and staying updated with industry trends and best practices is vital for long-term success. Continuing education, obtaining relevant certifications, and keeping abreast of technological advancements in the construction sector will give you a competitive edge in the market.
Success in the construction industry goes beyond technical skills. It also requires strong business acumen and a dedication to professionalism. You can build a thriving and reputable construction business with the right approach.
Remember, you don't have to go through this alone. Going solo means you do what you do best and can outsource the rest, like your bookkeeping, for instance.We look forward to hearing from you.
About The Author:
Sharie DeHart, QPA, is the co-founder of Business Consulting And Accounting in Lynnwood, Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations and offers insights on managing the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. Call 1-800-361-1770 or sharie@fasteasyaccounting.com
23 Oct 2020
0390: Contractors Need KPI, Not Get-Me-By
00:11:58
This Podcast Is Episode Number 0390, And It's About Contractors Need KPI, Not Get-Me-By
Being in your own business can be the best time in your life. Alternatively, the worst time! No one starts a business, especially a contracting business, and have it rolling perfectly with a profit every step of the way. Between regulations, economic uncertainty, and other outside forces; always a learning curve.
Picking a Get-Me-By Contractor's Bookkeeping Solution in many cases is using an Excel Spreadsheet and a shoebox, file folders all dumped into a file box and looking at the Online Banking once in a while. This accounting method is the "I still got money, so I must be okay."
When you use today's Job Deposit To Pay For the material, labor, and subcontractors from the last job, it is also known as "Rob Peter To Pay Paul." Cash flow is never a problem until the sales stop; then it doesn't matter if it is the economy (your customers get laid off), domino effect (their customer didn't pay them), or you are unable to work due to being hurt on the job or get sick (flu or more serious illness).
Problems Arise When You Want To Do Any One Of The Following:
Get a Line of Credit at the bank to expand or buy equipment
Attempt to get a commercial lease for equipment
Setup a 30 Day account at a major supplier
Buy a new vehicle for personal or for the company
Buy a new house or Refinance existing home
Answer questions on Liability Insurance Audit
The Insurance Audit
The insurance company may want copies of quarterly and monthly tax reports. The Low Premium is based on "low sales" and "low payroll"; at audit time, it is the adjustment in the "Actual" Premium. If all the numbers are equal or less, there is not usually a credit. To verify income, Insurance companies will want to see copies of State Revenue Reports and payroll reports.
State Agencies May Want To Do An Audit On Your Business
Some states suggest you get a "Voluntary Review." Depending on the auditor, this may go smoothly. In other cases, it can turn into a full-blown audit. The audit can have a date range of several years, not just the current or previous year. In addition to Quarterly Tax Returns, you, the contractor can be asked to provide the Check Register, Customer Invoices, Employee Timecards and Paystubs, plus the State Revenue and State and Federal Payroll reports. In other words, they want everything to cross-check what you told one agency over another. State agencies are looking at your customer and vendor list to add to their companies' plans to go after next.
Banks Want Detailed And Summary Financial Statements
Bank wants current and Year to date financial statements and previous Year's tax Federal Tax Returns. In most cases, the loan officer will ask for the application, and financials be provided even when they know that the bank is not lending to anyone for whatever you are asking for. (Example: Working Capital). See Unique Construction Company Financing Secrets Revealed.
The Application Process Can Be Many Pages Long
And they can feel very intrusive. Before you invest time and energy - verify the bank is lending to contractors. Then ask if the bank is lending for Working Capital, Vehicles, Equipment, or Whatever you need the loan for. What is the debt to income ratios and more? Don't Be Afraid To Ask: What is the bank looking for to say YES!
Tax Accountant Uses Your "Get-Me-By Documents."
When your Construction Company is small, you may find a tax accountant willing to take your "Get Me By Documents" and do a workaround to file your taxes. Don't expect them to do that Year, After Year, After Year when suddenly you have grown to make over $100,000 in sales and above. They have the reasonable expectation that you are getting it together, and if you don't, then the burden of finding all of your deductions is not on others. Every missed receipt may be a business deduction missed and causing you, the contractor, to pay more taxes than necessary.
Get You By Contractor's Bookkeeping Can Be Easily Solved
We have clients who are Brand New Companies: Weekend Warriors, Handyman, Trade Contractors, and General Contractors. In this economy, many seasoned contractors had larger companies and are now starting over. The staff that used to be there and the specialty software to run their business is gone. QuickBooks Desktop is an excellent program to meet the needs of Contactors.
The Five KPI (Key Performance Reports)
You could spend all of your time seeing a report in QuickBooks and trying to find the way to populate numbers in the report.
Many reports are designed for specific things. Take, for example, the view of the Home Page. Just because the feature is on the Home Page in QuickBooks does not mean it is useful for every contractor.
1. Cash
How much cash is in the bank? Why - because you have bills to pay, material to purchase, and upcoming expenses.
2. Accounts Receivable
How much work have I completed and billed the customer? Contractors get confused and think that the signed contract is for "X Amount," Therefore, they have that much coming before the job starts.
3. Accounts Payable
What bills do I have coming up? Accounts Payable is where you track all your supplier invoices and match your subcontractor bills' month-end statement. It is not the place to track your monthly payments to your credit cards, payroll, or other tax payments to State and Federal Agencies. These items are in different areas as liabilities in your QuickBooks file.
Please Note: All transactions on your credit cards need to be entered into QuickBooks (not just the month in balance with payment due).
4. Profit and Loss
Profit and Loss track your income and expenses and reflect the Gross Profit and Net Profit of the business. This report is date specific.
Please Note: Expenses are broken down between the Cost of Goods Sold (direct costs to jobs) and Expenses (which tend to be overhead related). QuickBooks, by default, is on the accrual method. Reports are converted to the Cash Method for Sales Tax and Federal and State Income Tax Reports.
5. Balance Sheet
The Balance Sheet is tracking the overall health of the company. Assets include Cash, Accounts Receivable, Undeposited Funds, and Inventory. Yes – the Government treats those piles, boxes, and pallets of unsold material as an asset. (Which increases profit).
Unless you have magical skills, it is impossible to trade that box of treasures for a gas tank, lunch, bag of groceries. Having a good relationship with your suppliers is critical. Suitable suppliers will encourage the return of material. Even with a restocking charge – Cash is more useful.
Final thoughts
QuickBooks can be set up to do many things. QuickBooks can have as much detail or as little detail as the user wants or needs. It can be used as an electronic checkbook to a simple accounting program with reports. The goal is to have access to useful information you can read and interpret before making any decisions.
Making decisions and being adaptable happens every day when you are in business. We understand Contractors and Construction Accounting from your side; what you need and why you need it! Why, because we have been there. We can't think from any position than from management.
When you are ready – We are here to help.
About The Author:
Sharie DeHart, QPA is the co-founder of Business Consulting And Accounting in Lynnwood, Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations and offers insights on how to manage the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. Call 1-800-361-1770 or sharie@fasteasyaccounting.com
18 May 2018
0269: Facebook & Twitter Marketing - Sword for Small Contractors in Ranking Battle!
00:07:58
This Podcast Is Episode Number 0269, And It Will Be About Facebook & Twitter Marketing - Sword for Small Contractors in Ranking Battle!
It is incredible to see how the Social Media is affecting the organic rankings generated by search Engines. Social Media is accepted as one of the factors/parameters when considering ranking of the page.
It allows small size companies to reach large target audience using Facebook Marketing and Twitter Marketing. Combine these giants with your excellent quality content, and you are ready to make a mark on your competitors.
The reason I say Social Media can prove to a sword Companies is you can directly meet and interact with your target audience. It is always great if you have direct interaction with your audience as it would help you to convince them as they are your potential customers.
Facebook Marketing is helpful, and it can prove the best option for a start-up to create a brand for itself. Everyone is aware how important it is that your brand gets recognized by your audience. Many companies tend to hire a Social Media Manager for creating an impression on the audience.
As in the case of small companies they actually can start on their own as they have a little market presence. So the Risk factors involved in creating a Brand Name is very less as very few people know about them.
Landing Page of Facebook can be a great way for introducing to the Online Marketing stage. Twitter has almost taken the online reach by storm from its introduction. Using Twitter Marketing efficient can help you to get the direct conversion from the audience to Customers.
Twitter has a very active search, so you search for people with common interests. Facebook Page for a brand or Twitter account will fail to make an impact if it is not backed with killer content. Content plays a significant role in speaking about your brand and at the same time not sounding too promotional.
The material on Social Media Junctions ideally should be to the point and should discuss topics more genuinely. For taking full advantage of social media scene, it is preferable that you hire a person or team which provide good Content Writing Services.
These services are always valuable regarding money and time. Content is the heart of a venture regarding webpage, Facebook page or Twitter account.
Another efficient way to get better reach and more traffic to your website are Article Submissions. These articles writing Services are typically provided by an agency that provides web Content writing services.
Original Article always stands out and holds the key to giving an edge over other. Now as you to make an impact on Online Marketing area and achieve better Rankings.
She is an experienced and reliable academic writer with impeccable proficiencies in writing professionally sounding and acceptable academic works including articles, research papers, research proposals, literature reviews and other relevant academic papers.
Carol graduated from the philological faculty with honors, professionally engaged in journalism, and writes articles on various topics. She studies business on specialized courses and successfully implements knowledge in projects.
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Apple Or Android Store
Whichever One
You Need
Simply scan the QR code below or search for ‘MyAccountants’ in the App Store and enter the Access code: FEAHEROS to utilize the powerful App features and capabilities, and benefit from having our Construction Accounting App at your fingertips, 24/7.
Access code: FEAHEROS
Or click to download the Contractors APP now from the App or Android store
I trust this podcast helps you understand that outsourcing your contractor's bookkeeping services to us is about more than just “doing the bookkeeping”; it is about taking a holistic approach to your entire construction company and helping support you as a contractor and as a person.
We Remove Contractor's Unique Paperwork Frustrations
We understand the good, bad and the ugly about owning and operating construction companies because we have had several of them and we sincerely care about you and your construction company!
That is all I have for now, and if you have listened to this far please do me the honor of commenting and rating the Podcast www.FastEasyAccounting.com/podcast Tell me what you liked, did not like, tell it as you see it because your feedback is crucial and I thank you in advance.
You Deserve To Be Wealthy Because You Bring Value To Other People's Lives!
This Is One more example of how Fast Easy Accounting is helping construction company owners across the USA including Alaska and Hawaii put more money in the bank to operate and grow your construction company. Construction accounting is not rocket science; it is a lot harder than that, and a lot more valuable to construction contractors like you so stop missing out and call Sharie 206-361-3950 or email sharie@fasteasyaccounting.com
Contractor Bookkeeping Done For You!
Thinking About Outsourcing Your Contractors Bookkeeping Services?
Thank you very much, and I hope you understand we do care about you and all contractors regardless of whether or not you ever hire our services. Bye for now until our next episode here on the Contractors Success MAP Podcast.
Most Contractors Setup QuickBooks Desktop Version In One Of Three Ways:
#1 EZ Step Interview inside QuickBooks Setup #2 Asked Their Tax Accountant To Setup QuickBooks #3 They Attended A How To Setup QuickBooks Class Or Seminar
And QuickBooks Does Not Work The Way They Want It Too!
458: Different Skill Sets Of A Construction Company's Financial Team
00:10:12
This Podcast Is Episode Number 458, And It's About Different Skill Sets Of A Construction Company's Financial Team
As your construction business grows, it's essential to have trusted financial professionals managing your books and providing strategic financial advice.
After all, the busier you get, the more complex financial management becomes - and the less time you'll have to maintain your books and try to make sense of all the data.
However, many construction business owners are not sure of the differences between a construction bookkeeper, a construction accountant, a financial planner, and a Certified Public Accountant (CPA) - or whether hiring one or all of them makes the most sense.
Keep in mind that each branch of accounting serves a different function similar to how it works in construction. There are framers, rough carpenters, and finish carpenters, and all three work with lumber, yet in most cases, the skill sets to do everything are rarely found in the same person.
An established, growth-focused construction company will employ the services of both an accountant and bookkeeper. The two professionals ensure that business financials are updated and accurate and that financial health is carefully monitored.
If you're still in the early days of your business, you might choose to do the bookkeeping yourself or hire a bookkeeper for a couple of hours a month until it makes sense to bring someone on full time. An accountant, however, should be a key player on your team from day one.
Construction Bookkeeper
The primary role is to handle a company's day-to-day financial management. A bookkeeper will take care of the small but essential details necessary for providing an accurate picture of where a business stands at any given moment.
In addition to a bookkeeper's main job – making sure every financial transaction is accurately recorded in the general ledger – they may also hand over other critical tasks like invoicing, paying suppliers and vendors, and processing payroll.
Ideally, a construction company's books are updated at the end of each business day, so you always have an accurate account of your sales, expenses, and the bottom line. However, if your business is still in its early stages, without much financial activity or the funds to hire a bookkeeper, you should aim to reconcile your accounts at least once a week.
Construction Accountant
Your accountant is responsible for keeping accurate financial records, making summaries, and undertaking analyses of your financial transactions. Depending on their role or specialty, they may also undertake auditing, inventory accounting, and economic forecasting.
They'll also help ensure your business is compliant with tax regulations and may advise you on critical financial issues related to your construction business, such as decreasing costs, setting prices or wages, managing expenses, and budgeting. Additionally, they can help you determine the best way to set up your business, how to increase your returns after-tax, and how to grow your construction company.
Further areas accountants can help you include
Payroll
Lowering your tax burden
Preparing business plans
Forensic accounting
Selling, buying, or merging a business
Financial planner
Financial planners advise you on your wealth management. Typically, they are specialists in tax planning, managing your portfolio, or retirement planning. They may also advise you on solving your debt or building your long-term wealth.
People who have specific financial goals in mind can turn to a financial planner to develop the best path forward to achieve those goals and improve their financial wellbeing.
Specifically, financial planners can help you with
Philanthropic strategies
Retirement planning
Investing
Estate planning
Budgeting
Inheritance tax planning
Cash flow modeling
Portfolio construction.
Certified Public Accountant
The CPA's primary function is to prepare the annual tax return, perform audits, and prepare Certified Financial Statements for bank loans when a construction contractor requires them before issuing a construction bond. Keep in mind that most Certified Public Accountant accounting specialists can do all accounting for most standard businesses that only need regular accounting but not construction accounting. Construction company owners who think it's costly to hire a construction accountant and would instead only seek a CPA's help might be in for more business damage in the long run.
Which services do you need and when?
If you run a construction business, it's a good idea to have a construction bookkeeper for your bookkeeping and a CPA for your tax needs. A construction accountant and a financial planner on your team will also help set you up for success, lessen your risks and develop strategies to enable you to thrive financially. Often, accountants will know of good financial planners to bring onto your team, and vice versa.
If you feel you can only hire one, that one will be based on your specific needs. If you're working towards long-term wealth or other financial goals, considering investing, or concerned about setting up your estate, talk to a financial planner. If your needs have more to do with running a business, daily transactional economic activities, or dealing with your taxes, a construction accounting specialist can help you.
Develop relationships
In an ideal situation, you'd have both a construction accountant and a financial planner on your team. Keep in mind that to help you to their best abilities, they need to know you, your plans, and your challenges. By developing a solid relationship with both and being open and transparent about your financial situation and any issues you face, you can better enable both to help guide you toward success.
Final thoughts
When it comes to managing your finances, these professionals can help you understand your numbers and ensure you have a plan to get to where you want to be. They all play an essential role in your financial success.
There are areas where they are similar, of course, as they can help you determine if your financial plans are feasible and can provide you with important strategies for managing your money. And while they can both advise you, neither can make decisions for you.
A trustworthy bookkeeper's services are essential for a thriving business, and hiring an accountant specializing in the construction industry can do so much more than handle your taxes. Think of your accountant as a trusted business partner - someone whose services you rely on year-round for advice on how to increase profitability as you take steps to achieve your business goals.
About The Author:
Sharie DeHart, QPA is the co-founder of Business Consulting And Accounting in Lynnwood, Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations and offers insights on how to manage the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. Call 1-800-361-1770 or sharie@fasteasyaccounting.com
05 Apr 2019
0309: Profit Draining Invoice Errors Contractors Make Without Realizing It
00:06:07
This Podcast Is Episode Number 0309, And It Will Be About Profit Draining Invoice Errors Contractors Make Without Realizing It
Creating an invoice for the entire project seems like it is the simplest way to track payments and have the current balance. The harsh reality is that if all of the work is NOT done, accounts receivable is reflecting a balance due that is NOT REAL. Without proper tracking and matching of income and expenses, most construction companies never know if they made a profit until the job is over.
However, due to your work’s nature, as construction contractors provide services on a per-job operation, issuing invoices make it all the more challenging and difficult than it has to be. The good news is that it doesn't have to stay that way. Consider the following invoicing errors contractors make and take actionable steps on how to avert them.
Format
You and your entire staff need to stick to a single standard invoice template that everyone will use throughout the job transaction. Not only will this make your paperwork look professional, having a uniform appearance gives your company credibility and integrity. Your client will appreciate how clear and straightforward it is to understand and check the payment details. A confused client will ask more questions that could’ve been avoided if accounts are itemized and charges are explained.
Procedure
Terms and conditions of payment should be discussed before starting a project. When a system is in place, it seems effortless to remind a client regarding prompt disbursement of money. Whether you incentivize with discounts for early payment or penalize for paying late, it all starts with formal documentation as agreed upon by both parties. Relying on good faith alone won’t pay your bills especially when you’ve completed your service on time.
Date/Department
Knowing when and where to send the invoice is an essential part of the procedure that changes with each job you take. Eliminate any confusion right from the start by taking note of the payment terms you’ve made, the company name, department, or contact information you are directing your invoices to.
Filing
Failure to back up and save copies of invoices invites trouble and disaster. Maintaining an accurate and up-to-date record of issued and paid bills will keep you from stress in the future. Use a numbering system to track and manage your invoices efficiently, this will save you time when you need it in case of customer disputes, pending accounts, and sending duplicates.
Employee
Human error, though inevitable, could at least be avoided in this case. Take time to develop specific rules and documentation for you and your employees to follow when invoicing a client. Investing a few hours learning accounting software is never a bad idea. You can start by asking your construction accountant to provide you and your crew with training and best practices so that everyone can deliver paperwork in accordance to your company’s standard.
Conclusion:
As a reminder, billing your clients is dependent upon your signed contract and sending invoices is based on the details of this agreement. Preventing these errors will undoubtedly help in speeding up the process of you getting paid and more so, getting paid on time. If you don’t know what to do or how to start, I recommend our Contractor Bookkeeping Review and Consultation with Randal. It is one of the most sought out services we provide and have helped many small construction business owners across the United States.
We are here to Help “A Little or A Lot” depending on your needs.
About The Author:
Sharie DeHart, QPA is the co-founder of Business Consulting And Accounting in Lynnwood, Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations and offers insights on how to manage the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. Call 206-361-3950 or sharie.com
29 Apr 2022
469: Five Effective Ways To Find New Construction Clients
00:08:26
This Podcast Is Episode Number 466, And It's About Five Effective Ways To Find New Construction Clients
If you want your business to continue growing and thriving, you'll need to find ways to bring in new clients.
Before the internet was commercially available, there were just as many experts advising contractors about the layout and design of yellow page ads and which books to spend money on. I say spend money because that is what it was and is now.
Many of us who owned and operated construction companies spent thousands of dollars on these experts and, based on their recommendations, spent tens of thousands of dollars annually in full-page yellow page ads as close to the first position as possible.
Nowadays, instead of yellow pages people, I see many well-intentioned people with their minds and hearts in the right place that have a lot of really great ideas on what works and fails in social media. I certainly don't know what works for every contractor; however, I know that every construction company is unique, and what works for your competitor may not work for you.
Spending money is easy; investing money takes work.
Here are five ways you can find new clients for your construction business.
1. Set aside time for marketing
Regardless of whether marketing is your preferred activity, you need to set aside time for it. It's easy to put marketing at the bottom of your priority list, but it makes it more difficult for you to bring in new clients. If you set aside a certain amount of time every week, or even every day–ideally at around the same time or week–you'll be more consistent and successful with your efforts.
Have a list of marketing goals, such as "post three times on social media this week" or "write two blog posts this month," and spend your time working towards those goals.
2. Ask your clients for referrals
Get comfortable asking your happy customers for referrals. Your happy clients are a fantastic source of new leads. They're satisfied with your work, and they can tell their friends and colleagues about how you helped them.
You can do so
face-to-face, for example, at a meeting where you've just given them great news or a fantastic outcome,
through email using a pre-written template that talks about how much you enjoy working with them and how you want more clients like them, or
on social media, where you put out a general call to your happy followers to share your business with others.
3. Join social media groups
Many social media networks enable groups where you can talk to people in your communities. Although you can use the group to pitch your services and directly ask for leads, a better method is to use the forums to educate people and highlight your expertise without selling. People will begin to look to you when they want advice and insights and ultimately turn to you when they need your services.
4. Genuinely get to know people
Sometimes the best way to get a client is simply by talking to new people. Make it a habit of being curious about the people around you. Ask them questions to get to know them, rather than selling to them. Learn about their passions, pain points, and the things they need help with. Then assist them. Showing genuine interest in others makes them feel valued, builds your relationship, and fosters trust. From there, it's easy for them to decide to work with you.
5. Form a partnership
It doesn't have to be a formal business partnership, but reach out to businesses in complementary industries to suggest a referral relationship in which you refer relevant clients to each other. You could also agree to partner up on specific projects. For example, a kitchen remodeler and a flooring contractor could refer clients to each other or work together on projects requiring both skills.
Final thoughts
New clients are vital for growing your business. By being strategic, purposeful, and genuine, you can easily find new clients.
We encourage you to develop your own marketing tracking system, and perhaps you will discover what works best for your construction company and, as a result, increase your sales bottom line profits.
About The Author:
Sharie DeHart, QPA is the co-founder of Business Consulting And Accounting in Lynnwood, Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations and offers insights on how to manage the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. Call 1-800-361-1770 or sharie@fasteasyaccounting.com
22 Apr 2016
0161: Construction Workers Are Not Created Equal
00:18:00
This Podcast Is Episode
Number 0161 And It Will Be About Construction Workers Are Not
Created Equal
There Are Three
Unique Types Of Construction
Workers
Construction Is A Wonderful Profession for
anyone with the grit to take it on and master it. And it is getting
better every day in every way mostly because of the recession that
began in 2008. The economic downturn put enormous pressure on all
Construction Companies to innovate and change or go out of
business!
Construction Is No Place For Weak-Willed
Wanna-Bees;however, it is the only
place for men and women with grit, determination and a burning
desire to believe they can achieve greatness and a legacy of
service to all of humanity in the cause of preserving and
maintaining civilization through construction.
Contractors Need Workers that are right
for your particular situation and you need to know the differences
between construction workers so you can attract, hire and retain
the best ones to help your Construction Company grow and
prosper.
If You
Are A Home Builder
You Need
"Cavemen And Cavewomen"
#01 - New
Construction Workers Are Cavemen (And darn good
people!)
Phase One - The Awareness A young man or
woman gets becomes aware of the urge to build something,
remodel something or simply play with construction tools and
equipment. So they ask questions, do research online or
perhaps make application at a construction firm.
Phase Two - They Get Hired The young man
or woman is hired by a New Construction
Company and starts at the bottom, literally as an
apprentice and learns by experience and in some cases it is
supplemented with night school.
Phase Three - They Become Cave Men &
Women the Apprentice has
learned all the lessons and developed the skills to become
a Journeyman Construction Technician
Their Skill Sets Include:
Brute Force- Always use brute force and
if that doesn't work use more brute force and be quick about
it....we're burning daylight!
Dress Code- Tattoos, torn shirt, filthy coat,
scruffy jeans, greasy dirty boots with heavy thick tread that
picks up everything you step on.
Vocabulary- All the four letter words combined
with every insult every hurled, mixed together in new and
interesting combinations.
Attitude- I not paid to think! Can't somebody
else do that? It is not my fault! That was broke when I got
here!
If You
Remodel People's Homes
You Need
"Cowboy Construction Workers"
#02 -
Remodel Construction Workers Are Cowboys (And darn good
people!)
Phase One - The Awareness After a while in
new construction the physical intensity begins taking its toll on
the body and they cannot compete with the younger kids that are
always coming into the trades. They consider a slower pace of work
where their skills and experience are more in demand;
remodeling.
Phase Two - They Get Hired They are hired
by a construction company that does residential remodeling or
commercial tenant improvement work.
Phase Three - They Become Cowboys and
Cowgirls The technician has learned all the
lessons and developed the skills to become a first class remodel
technician
Their Skill Sets Include:
Brute Force- Sometimes brute force works
and if not stop and think until you find a better way.
Dress Code-
Clean shirt, coat, jeans, boots
with soles that will not pick up everything you step
on.
Vocabulary- Few if any of the four letter
words. Limited insults and quietly spoken to co-workers and
other construction trades.
Attitude- I am paid to think. I take
responsibility to make the experience as pleasant as possible
for the customer. If something is broke I figure
out how to get it fixed.
If You Are A
Service And Repair Contractor
You Need "Shoe
Salesmen"
#03 - Service And Repair,
Handymen, Construction Workers Are Shoe Salesmen (And darn
good people!)
Phase One - The Awareness After a few
years in remodel the body rebels again and it is time to move
to the next stop, service and repair or handyman.
Phase Two - They Get Hired They are hired
by a company or start their own business.
Phase Three - They Become Shoe
Salesmen having experience in all areas of
construction they have what appears to be X-Ray vision because they
know what is behind the walls, under the floor and on top of the
ceiling
Their Skill Sets Include:
Gentle Persuasion With a Touch of Brute Force-
They work where people are living or at someone's busy office
so brute force is not the first option.
Dress Code- Professional logo's on clean
shirt and coat. Work pants or crisp jeans, nice shoes
with shoe covers.
Vocabulary- Language that could be spoken in
church or to their grandmother. No four letter words!
Attitude- I am paid to think and be of
service in the best way I know how!
There is a lot more to this subject,
marketing, strategy, back office setup which I may
cover on another article later. The key take away is to
understand that just because someone is good at one part of
construction does not mean they will be good at another part.
Before hiring a construction worker ask what they specialize in
and only consider construction workers that specialize in the work
you need done.
Unfortunately, in any downturn in the economy or slowdown in the
work and some contractors take on work in areas they are
not setup to manage and complete.
Each area New Construction, Remodel, Service has a completely
different set of skills, tools; expertise and back office support
that is needed to do the work and keep customers happy.
In the 25+ years I have been involved in construction most of
the problems, heartache and headache can be traced back to a
contractor that was out of his or her expertise.
I have Progressed Through All Three Construction
Worker Paths And Ended Up Back At Square One As The
Contractors Accountant which why I speak with authority on this
subject.
I trust this podcast helps you understand that outsourcing your
contractors bookkeeping services to us is about more than just
“doing the bookkeeping”; it is about taking holistic approach to
your entire construction company and helping support you as a
contractor and as a person.
We Remove Contractor's
Unique Paperwork Frustrations
We understand the good, bad and the ugly about owning and
operating construction companies because we have had several of
them and we sincerely care about you and your construction
company!
That is all I have for now and if you have listened this far
please do me the honor of commenting and rating
podcast www.FastEasyAccounting.com/podcast Tell me what
you liked, did not like, tell it as you see it because your
feedback is crucial and I thank you in advance.
You Deserve To Be
Wealthy, Because You Bring Value To Other People's
Lives!
This is one more example of how Fast Easy
Accounting is helping construction company owners across
the USA including Alaska and Hawaii put more money in the bank to
operate and grow your construction company. Construction accounting
is not rocket science; it is a lot harder than that and a lot more
valuable to construction contractors like you so stop missing out
and call Sharie 206-361-3950 or email sharie@fasteasyaccounting.com
Thinking
About Outsourcing Your Contractors Bookkeeping
Services?
Thank you very much and I hope you understand we really do care
about you and all contractors regardless of whether or not you ever
hire our services.
Bye for now until our next episode here on the Contractors Success
MAP Podcast.
0353: Six Effective Ways To Save Money As A Construction Business Owner
00:10:03
This Podcast Is Episode Number 0353, And It's About Six Effective Ways To Save Money As A Construction Business Owner
We are always looking for ways construction contractors like you save time and money. These tips will help you make a noticeable difference to your bottom line.
Reduce staff costs
Without a doubt, having someone to help deal with routine tasks can significantly improve productivity. The rub is that hired help is often too expensive for small business owners.
Internships can be a real win-win: a student gets hands-on experience assisting you with marketing, accounting, or administrative work, and you get time-saving help for free.
Think thin
Small business owners are often advised to trim down their offerings to a niche market. You can save money by applying that same thinking to how you do it in your construction business.
For instance, subcontracting can allow a service-based business owner to keep a narrow focus on the work they do while attracting more customers. Taking on more work and paying someone to do it at a lower rate than you charge your clients will increase capacity and your bottom line – while maintaining your focus on what you do best.
Network more
Forget expensive print ads and direct mail campaigns. You can save a ton of money getting the word out about your business by connecting directly with your target market:
Co-host an event with a business owner whose customers will be interested in what you do.
Connect with your local Chamber of Commerce.
Attend business networking referral events.
Run a contest on social media.
Sponsor a community fundraiser.
Networking at trade shows and industry events is another excellent way to meet potential partners and customers, without breaking the bank on costly advertising fees.
Embrace "co-opetition"
Often construction businesses buy in bulk to save money. Unfortunately, purchasing in volume can backfire if you're struggling to maintain positive cash flow, and the cheap supplies you bought never get used.
A better strategy is only to buy what you need and to share costs with other small business owners. Co-opetition is becoming a buzzword for a good reason. Forming alliances with businesses can lead to lucrative partnerships while collectively saving everyone some cash.
Save time with technology
If you haven't yet leaped, adopt cloud-based software to improve operational efficiency. Try free collaboration tools like Google Drive – also a great way to cut down on the cost of paper. Use virtual meeting technology to save a small fortune on travel costs when connecting with vendors in different time zones. And do a free trial of accounting software to see how automating routine tasks like invoicing, and payroll can improve accuracy and free up hours from your schedule.
Hire an accountant
Many construction business owners think they're saving money by handling their financials themselves. While it's a real asset to learn bookkeeping basics, cash flow management, and your tax obligations, hiring an accountant to oversee your finances has many benefits.
Leaving your books to a pro will free up time so you can focus on serving your clients and implementing plans for growth. Here are a few ways an accounting professional can help you save money that you can reinvest back in your business.
1. Finding money
There's no one more suited to discovering "found" money than an accounting professional. Hire an accountant to sort your books and systemize your bookkeeping; better record keeping is the easiest way to allow you to quickly see – on a monthly, weekly, or daily basis – where your money is going so you can cut costs. Keeping your accounts up to date will also help you understand which of your business investments yield the highest returns so you can be more strategic about spending.
An accountant can spot trends that you can take advantage of to earn greater profits – and even find savings with vendors, staff, and operating expenses. Hiring someone to manage your accounts will also reduce the costly errors that are commonplace when business owners try to track their expenses manually.
2. Avoiding tax penalties
Your accountant may be your trusted advisor when it comes to staying up to date with the latest regulations for small business taxes. They can also provide you with expert advice on how to maximize your benefits and minimize your taxes each year.
Please don't underestimate the cost savings of hiring someone to complete your tax forms correctly and submit them on time. Penalties for small businesses who neglect to file their taxes on time – or at all – can quickly add up; the longer you wait to file, the more interest you'll be charged and the likelihood you'll incur additional penalties. A business that is already struggling may not be able to pay a tax fine and find themselves closing their doors. If your construction business is ever audited, having an accountant on board will let you rest easy, knowing you won't be hit with a penalty for errors or omissions.
Your accountant possesses business knowledge that can help you make more informed decisions. Rely on your accountant for advice when you draft or revise your business plan; those key insights on assessing profitability will help you move your business in the right direction – and avoid wasting time and money on strategies with a lesser chance of success.
Look to your accountant to help you determine your most valuable clients, how much money you need to invest in a growth plan, and which marketing strategies yield the best ROI. Having someone you can rely on to guide you on setting targets and monitor your progress is an invaluable asset that can help you not only save money but earn higher profits.
The bottom line? Your accountant can do much more for you than simple bookkeeping or ensuring you're on the right side of the tax authorities. Hire a construction business accountant, and you'll be doing a lot to help increase your chances for long term growth and success.
Final tips
Review your construction business expenses regularly to track rising costs and to find more ways to reduce unnecessary spending.Always pay vendors and lenders on time to dodge late fees, interest, and a poor credit rating.Shop around for the best deals on everything from software and financial services to office supplies and inventory.
What will you do differently to start cutting costs for your construction company today? We can help a little or a lot depending on your business needs. Please fill out the form on the right, send me an email, or call me at 1-800-361-1770 to schedule your free one-hour consultation.
P.S.
We are excited and honored that Randal is nominated as the 2020 Small Business Person Of The Year in our city. If you are on Alignable, I would appreciate it if you can connect with us and "like" our recommendation.
Sharie DeHart, QPA is the co-founder of Business Consulting And Accounting in Lynnwood, Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations and offers insights on how to manage the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. Call 1-800-361-1770 or sharie@fasteasyaccounting.com
24 Jan 2025
612: The Budget Blueprint: Project Cost Control For Contractors
00:12:48
This Podcast Is Episode 612, And It's About The Budget Blueprint: Project Cost Control For Contractors
Did you know that 39% of projects fail due to budget issues? For small businesses and entrepreneurs, the stakes couldn’t be higher. Managing a project budget is not just about numbers; it’s about ensuring your business is profitable. By understanding the essential steps of project budgeting, you can turn potential pitfalls into opportunities for success. Whether launching a new service or expanding your services, mastering project budgeting is invaluable for achieving your construction business goals.
Understanding Project Budgeting
Project budgeting is a crucial component of successful project management. At its core, a project budget is the total estimated cost of all the tasks, activities, and materials associated with a project. It serves as a roadmap for project managers, offering a framework for allocating resources and tracking expenses throughout the project lifecycle.
Budgeting is essential for several reasons. A well-prepared budget helps control costs, ensuring that project expenditures don’t exceed available funds. It also improves resource allocation by identifying potential bottlenecks and enabling more informed decision-making. Additionally, effective budgeting aids in risk management by setting aside contingency funds to cover unforeseen expenses, thereby reducing the likelihood of project failure.
Whether you're allocating funds for an internal project or you are working on a client project, here are the steps to create a basic project budget:
Creating a project budget involves several critical steps. Understanding and following these can significantly boost your chances of project success.
1. Identify project scope
The first step in budgeting is defining the project scope. This involves outlining the project’s objectives, deliverables, and timeline. A clear scope helps you identify the necessary resources and costs associated with the project, ensuring that all essential components are included in the budget.
Consider the tasks and activities required to achieve the project’s goals. Determine the personnel, equipment, and materials needed to complete the project. Establishing a clear understanding of the project’s scope lays the foundation for an accurate and comprehensive budget.
2. List all project costs
Once you’ve defined the project scope, the next step is to list all project costs. These costs can be classified as direct or indirect. Direct costs include materials, person-hours, and equipment required to complete the project. Indirect costs, on the other hand, include overhead expenses such as rent, utilities, and administrative expenses.
Be thorough in your cost estimation process. Use market prices, vendor quotes, and historical data from similar projects to ensure accuracy. It’s better to overestimate expenses than be caught off guard by unexpected costs later.
3. Estimate costs
Estimating project costs is a crucial aspect of budgeting. Several methods can be used to estimate costs, such as expert analysis, historical data, and three-point estimating. Expert analysis involves consulting with experienced professionals to obtain accurate cost estimates. Historical data analysis involves examining past projects to identify cost patterns and trends. Three-point estimating uses optimistic, pessimistic, and most likely cost scenarios to generate a more accurate estimate.
Employing these estimation techniques can help you develop a realistic budget that accounts for potential uncertainties and variances in project costs.
4. Create a budget timeline
A budget timeline allocates costs over the project’s duration, ensuring a balanced cash flow. It helps identify when specific expenses are expected to occur, allowing for better financial planning and management.
A well-structured budget timeline enables you to proactively address cash flow issues and allocate resources efficiently. It also clarifies how project costs will be distributed over time, reducing the risk of budget overruns.
5. Include contingency funds
Contingency funds are essential for addressing unexpected expenses that may arise during the project. Setting aside a portion of the budget for contingencies provides a financial safety net that allows you to manage unforeseen challenges without derailing the project.
Experts recommend allocating 10-20% of the project budget as contingency funds. This buffer helps cover unexpected costs while maintaining the project’s financial integrity.
Tools and techniques
Several tools and techniques can simplify the budgeting process and improve project management efficiency.
Budgeting software
Budgeting software can streamline budgeting by automating calculations, tracking expenses, and generating reports. These tools offer cost estimation, budget tracking, and financial forecasting features, enabling project managers to make informed decisions.
Popular budgeting software options include Microsoft Excel, Google Sheets, and targeted project management platforms. These tools provide flexibility and ease of use, making them suitable for businesses of all sizes.
Templates and spreadsheets
Templates and spreadsheets are practical tools for managing and tracking project costs. They provide a structured format for inputting expenses, ensuring all costs are accounted for. Templates can be tailored to suit specific project needs, while spreadsheets offer the flexibility to incorporate formulas and calculations.
Using templates and spreadsheets simplifies the budget creation process, allowing project managers to monitor and control costs effectively.
Common mistakes to avoid
Avoiding common budgeting mistakes is crucial for maintaining the project's financial health. Here are some pitfalls to watch out for:
1. Underestimating costs
Underestimating costs is a common mistake that can lead to budget overruns. To avoid this, ensure that all project components are thoroughly researched and accurately cost. Use historical data and expert analysis to refine cost estimates.
2. Ignoring contingency planning
Contingency planning is essential for managing unexpected expenses. Failure to allocate contingency funds can result in financial strain and project delays. Set aside a portion of the budget for contingencies to mitigate risks and maintain project stability.
3. Lack of updates
Regular budget updates and tracking are crucial for staying on course. Failing to monitor project expenses can lead to financial mismanagement and cost overruns. Implement a system for tracking expenses and updating the budget as needed.
Summing up
Effective project budgeting is essential to achieve project success. By understanding the fundamentals of budgeting and implementing best practices, you can allocate resources efficiently, manage risks, and ensure project profitability.
Engaging a construction bookkeeper can be a game-changer for your project budgeting process. A bookkeeper specializes in managing financial records and can help you maintain accurate financial oversight throughout your project. Construction projects can involve various tax considerations, including sales tax on materials, employment taxes, and potential deductions. A bookkeeper can help you navigate these complexities, ensuring that your project complies with tax regulations and maximizes available deductions. Proper tax planning can ultimately impact your overall project budget and profitability.
Talk to us for help with project budgeting – we’re here to help. Let's enhance the financial health of your project and mitigate risks associated with budget overruns.
About The Author:
Sharie DeHart, QPA, is the co-founder of Business Consulting And Accounting in Lynnwood, Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations and offers insights on managing the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. Call 1-800-361-1770 or sharie@fasteasyaccounting.com
11 Sep 2015
0127: Contractors Success Map Unique Strategies For Contractors Preparing To Meet Increasing Demand
00:22:37
This Podcast Is Episode Number 0127 And It Will Be About Unique Strategies For Contractors Preparing To Meet Increasing Demand
Having Lived Through Several, Recessions Beginning In The Mid 1960's I Sincerely Understand And Empathize With The Challenges That All Construction Owners, Workers And Support Staff Have Faced For The Past Several Years
The Good News Is Everything Is About To Change For The Better!
There is natural ebb and flow in the business cycle, which in normal times operates, somewhat predictable.
In normal times, contractors who pay close attention to their Five Key Performance Indicators financial reports and stay aware of the macro global economy and the micro local economy can plan ahead and earn a normal profit after paying the owners a reasonable salary.
The past several years starting in late 2008 have been anything but normal and frankly, we are having a tough time with the economic forecasts models we follow including our own internal ones.
Something similar occurred during the period of 1976 to 1980 and suddenly in early 1981 the national and global economy began to turn around and there was a severe shortage of contractors and qualified construction workers.
During the remainder of that, expansion and boom cycle many construction company owners made substantially high profits and the wise ones who thought ahead invested their windfall profits in real estate, stocks and other investment vehicles.
The good news is the Universe is always in balance and we could be nearing the beginning of a period of massive expansion the likes of which we have not witnessed since the end of World War II when the housing boom was explosive for the next 20 years.
Pent Up Demand For Construction Projects
Pent Up Demand #01 -Deferred maintenance. Many commercial property owners have been putting off sealing parking lots, painting, renovating and other general maintenance projects due to the lack of cash flow.
Pent Up Demand #02 -Drive the neighborhoods in your cities and towns all across the USA, Alaska and Hawaii and see for yourself how many houses have weathered "Blue Tarps" covering portions of the roofs which are leaking and need repair. If the homeowner is having trouble putting food on the table then a new roof is not a high priority, yet.
Pent Up Demand #03 -In the evening hours drive the residential neighborhoods in your target market and notice how many cars are parked in the driveways and surrounding areas. This indicates a lot of people are renting out rooms to help make their mortgage payments.
Pent Up Demand #04 -Visit the home improvement stores and observe the shift from six months ago when there were lots of lost and frustrated homeowners roaming the aisles searching for materials and tools for do-it-yourself projects and now there is an increasing number of contractors and handymen.
When You Have - A clearly defined and documented Business Strategy you will know what steps to take and when to take them. When you know the answers, the questions will not bother you! Just like when you took a test in school in your favorite subject, it was fast and easy!
When The Economy Is Expanding - Demand for construction rapidly and almost overnight outstrips supply because so many contractors gave up and left the industry.
Well Intentioned Yet Unseasoned Contractors - Seize the opportunity to grow their businesses rapidly by haphazardly bidding and winning projects without giving any thought to calculating their company Expansion Path Isoquants, infrastructure, logistical support, working capital requirements, Job Costs or Key Performance Indicators (KPI).
The Inevitable Chaos - Caused by too much work and not enough labor, material, other costs and subcontractors (LMOS) leads to the contractor becoming a pipe through which money flows with increasing velocity and not in a fun way.
This Is The Leading Cause For Large Contractors Going Bankrupt - The construction company starts small; the owner is a visionary who understands the "Tangible" side of the business. They know how to bid, sell, produce and manage the company as it grows to roughly $5,000,000 in annual sales without having a clearly defined Business Process Management System or Strategy.
When They Take Their Business - To the next level not having a strategy or as I refer to it the "Intangible" side of the management equation, they often end up going bankrupt, several times in most cases, before hiring us or someone else to help them put together a strategy that includes the "3 P's" Processes, Procedures and Policies. It has been said, "The same law that binds the ignorant frees the wise"
Proactive Construction Companies- Who invested time and money getting their Business Process Management systems in place use The 80 20 Rule to grab a nice big thick slice of Market Share Pie and laugh all the way to the bank!
I trust this podcast helps you understand that outsourcing your contractors bookkeeping services to us is about more than just “doing the bookkeeping”; it is about taking holistic approach to your entire construction company and helping support you as a contractor and as a person.
We Remove Contractor's Unique Paperwork Frustrations
We understand the good, bad and the ugly about owning and operating construction companies because we have had several of them and we sincerely care about you and your construction company!
That is all I have for now and if you have listened this far please do me the honor of commenting and rating podcast www.FastEasyAccounting.com/podcast Tell me what you liked, did not like, tell it as you see it because your feedback is crucial and I thank you in advance.
You Deserve To Be Wealthy, Because You Bring Value To Other People's Lives!
This is one more example of how Fast Easy Accounting is helping construction company owners across the USA including Alaska and Hawaii put more money in the bank to operate and grow your construction company. Construction accounting is not rocket science; it is a lot harder than that and a lot more valuable to construction contractors like you so stop missing out and call Sharie 206-361-3950 or email sharie@fasteasyaccounting.com
Thinking About Outsourcing Your Contractors Bookkeeping Services?
In closing, I want to caution you that we may or may not be a good fit for your contracting company. This guide will help you learn what to look for in outsourced construction accounting.
Thank you very much and I hope you understand we really do care about you and all contractors regardless of whether or not you ever hire our services. Bye for now until our next episode here on the Contractors Success MAP Podcast.
0143: Your Contractor Champion Advocate At Fast Easy Accounting
00:10:25
This Podcast Is Episode Number 0143 And It Will Be About Your Contractor Champion At Fast Easy Accounting
Contractor Champions at Fast Easy Accounting are like concierges at a five star hotel. You get all the services at a fraction of the cost.
Your Contractor Champion is someone with a deep background and first-hand experience in construction; having owned or operated a construction company with employees. Someone who understands your specific construction company, the type of work it does and how to make the best use of our contractors bookkeeping services system for you.
This person will be your guide, mentor and friend. They are your advocate to make certain you are provided the best possible service and they have the authority to assign resources in the event of an emergency construction accounting situation such as special reports, quarterly tax reports, insurance audits and complex payment applications.
They also monitor the quality and quantity of reports, emails, graphs and other data to make certain you are getting the right amount of information without overwhelming you with useless reports and notifications.
Your Contractor Champion's Primary Job Is:
Answering your phone calls and emails.
Your Advocate helping you get things done.
Seeing to your needs and keeping you happy.
Making sure you get what you want and need.
Removing your unique paperwork frustrations.
Keeping you away from the ornery Bookkeeping Department.
Overseeing your Payroll Processing.
Overseeing your Quarterly Tax preparation.
Helping you resolve issues with taxes and payroll.
Being there when you just need someone talk too.
High-Performance Construction Accounting Firm Back Office Is Like:
High pressure construction job site with impatient skilled workers.
Project Manager (Senior Construction Accountant) oversees everything.
Limited time to get work done and everybody moving at a very fast pace.
No time for polite conversation buffers like "Please" and "Thank You".
A place where outsiders are unwelcome because it could lead to trouble.
Being A Member Of The Fast Easy Accounting Team Means Having:
Never answering the phone and irritating a client.
Very thick skin and not easily offended.
The ability to tolerate strong language.
Well above average Intelligence Quotient (I.Q.).
Low or preferably no social skills.
Laser like focus on Construction Accounting.
Able to work and perform under extreme pressure.
Adaptable to an ever changing set of innovations.
Mastering their part of the 200+ software programs we use.
When Randal says "We can produce reasons or results, and reasons don't count!" he means it!
I trust this podcast helps you understand that outsourcing your contractors bookkeeping services to us is about more than just “doing the bookkeeping”; it is about taking holistic approach to your entire construction company and helping support you as a contractor and as a person.
We Remove Contractor's Unique Paperwork Frustrations
We understand the good, bad and the ugly about owning and operating construction companies because we have had several of them and we sincerely care about you and your construction company!
That is all I have for now and if you have listened this far please do me the honor of commenting and rating podcast www.FastEasyAccounting.com/podcast Tell me what you liked, did not like, tell it as you see it because your feedback is crucial and I thank you in advance.
You Deserve To Be Wealthy, Because You Bring Value To Other People's Lives!
This is one more example of how Fast Easy Accounting is helping construction company owners across the USA including Alaska and Hawaii put more money in the bank to operate and grow your construction company. Construction accounting is not rocket science; it is a lot harder than that and a lot more valuable to construction contractors like you so stop missing out and call Sharie 206-361-3950 or email sharie@fasteasyaccounting.com
Thinking About Outsourcing Your Contractors Bookkeeping Services?
Thank you very much and I hope you understand we really do care about you and all contractors regardless of whether or not you ever hire our services. Bye for now until our next episode here on the Contractors Success MAP Podcast.
0207: Contractor Vs. Tax Accountant View Of Financials
00:34:05
This Podcast Is Episode Number 0207 And It Will Be About Contractor Vs. Tax Accountant View Of Financials
Contractors View Of The Numbers And Tax Accountants View Are Different
Tax Accountants Review Financial Statements After The Year Has Ended
The Tax Accountant’s Role Is To Review The Previous Year Financial History based on the information provided create and file the Annual Federal Tax Return, Annual State Tax Return, and other Local or Payroll Returns. Washington State is a sales tax driven state. Other states have a State Income Tax, and others yet have a blend of both.
The Contractors Role Is To Review What Is Happening Now and make Strategic Decisions about what to know in order to have a brighter financial future. The best way to do that is to have QuickBooks Setup to deliver your 5 Key Performance Indicators (KPI) in 5 minutes a day at 5 pm or whatever time is best for you. We call them the 5 At 5 For 5, and we can set them up in your QuickBooks for you! Click here to learn more.
Every Construction Contractor Should Have A Tax Accountant Prepare And File Your Annual Tax Returns Congress passes a ton of laws which each one could have zillion pages with addendums and other attachments that will make all the individual bills even harder to understand. Tax Accountants need to keep track of all of these changes. Changes – Question is What impacts Yesterday, Today and Tomorrow. A single bill may include all three possibilities.
The condensed Version of the U.S. Master Tax Guide [year] (copies provided by your local Payroll Services) is very similar to size and font of the OSHA Book. In other words, the U.S. Master Tax Guide is “Fat” like how the telephone books used to be. When discussing the U.S. Master Tax Guide, it is a book and can be described as a “Thick Book With Very Tiny Print.”
Just The Book that everyone wants to read on a warm, cold, hot, sunny, rainy, cloudy Saturday afternoon. (Not - for those who might be missing my humor). I have copies of several years of U.S. Master Tax Guides, and every one of them is 1000 pages. Remember this is the condensed version referencing only the Most Common tax issues. I expect my Tax Accountant to know The Answer to everything that I may encounter and how to properly deal with it on my annual tax return.
Once The Tax Accountant Has Your Financial Statements It Is All “After The Fact” Accounting. The end of the year has passed. Many of us automatically file an extension so it may be closer to September so “The Past” really is the past. Way past time to say, I wish I had done this instead. You can say it – It just won’t change the outcome of previous decisions.
There are limited “things” the Tax Accountant can move, change or adjust. The year is over. The real question is “How Much Do I Have To Pay?” If you have paid into the Internal Revenue Service via W-2 or Estimated Taxes, hopefully, the amount due will be close to Zero.
Tax Accountants Are Busy, And Everyone Wants Their Returns Filed. Yes, you can be the first one on your block to get your taxes done but is that a good idea? In my opinion, as a business owner, you do not want your Tax Accountant to roar through your tax return, get it done quick, without really reviewing your individual circumstances. Side note, those with College Students on Financial Aid always need to have their returns completed early to meet the Federal Deadlines.
Everyone usually receives from their Tax Accountant a “Tax Booklet” with check sheets to help prepare for documents the Tax Accountant needs to complete the Annual Tax Return. Usually, this Tax Booklet is geared towards what the Tax Accountant needs to complete the Personal Return.
Tax Accountant is hoping everything is in the Business Financial Statements and there are just a few things left to do to be able to complete the annual Business Return.
Tax Accountants Are Paid To Fill Out Tax Returns Not Save You Money Or Mentor You
We Are Paid To Do Your Contractor Bookkeeping Your Profit And Growth Mentor
Tax Preparers Normally Only Do The Following:
· Figure Out The Vehicle and Equipment Depreciation · Look for missing expenses (usually not very hard) · Ask for Cash Receipts (only in passing) · Review Meals and Entertainment (big-ticket meals or excessive meals) · Review for items that are really Owner Draws, Loan to Members or Loans To Shareholders · Owner Equity put into the company (only if they see it) · Other Assets (Job Deposits | WIP) · Other Liabilities (Short or Long Term Notes) · Petty Cash (will ask if you have Cash On Hand) · Suspense (should be cleared out to Zero) · Ask My Accountant (need to have receipts and details to help identify who, what it is for) · Anything that looks Odd (Tax Accountant does not want an audit, so it is better you overpay taxes)
Tax Accountants Work With Messy And Incomplete Records To Do Their Job
They appreciate a good set of Financials from a Contractors Bookkeeping Services (Fast Easy Accounting). Sometimes Tax Accountants have to be the “Big Person” and refuse future service until the bookkeeping is in a more organized set of financials that they can use. The last thing a Tax Accountant wants is an audit.
Finally, the Tax Accountant is ready to start all over and review your Personal Income and Deductions, and then they are able to produce for you two Annual Tax Returns. Depends on the individual returns, and when you are filing whether you can file the returns electronically. Hopefully, you have paid enough in personally to be able to receive a refund.
Tax Accountants Rarely Have Time To Give You More Than The Basics toward Tax Planning beyond the different IRA’s and 401K’s. The Reality is that most of the time The Contractor is ready to leave because the whole process is similar to going to The Doctor. The entire experience of taxes leaves you the Contractor feeling exposed. You know that funny feeling where you have on “The Gown” and your blood pressure immediately rises when the doctor walks in and closes the door.
Contractors View of the Financial Statements
Contractors are just a little bit annoyed if they want real answers about their business and discover the Tax Accountant is really good at rolling up the numbers and having a Tidy Tax Return but most of them are clueless about construction.
The Contractor wonders why if they are both looking at the same numbers on the Financial Statements that the Tax Accountant cannot or will not be more helpful with answers needed in running their business.
The Short Answer Is There Is A Vast Difference Between Regular Accounting and Construction Accounting. Tax Accountants are a generalist and understand Regular Accounting. Tax Accountants have to be to be able to complete the maximum number of client’s tax return. In their world, the expenses are similar for all businesses. It starts out with Income – Expenses = Net Income or Net Loss. The bottom line number on a Schedule C is Net Income or Loss and is the same for all the businesses. S-Corps have its own return with the numbers passing through to your personal annual Tax Return.
My opinion is Tax Accountants like Personal Tax Returns better because they are like sweet, decadent desserts; whereas Contractor's Business Tax Returns are the vegetables (which is great if you love vegetables) because they have to deal with the Contract's Business Tax Return before they can get to the fun stuff. Or maybe it is just a business decision because everyone has a Personal Tax Return and only some of us have a Business Tax Return.
All phases of accounting and bookkeeping are a specialty including Tax Accounting, General Accounting, and Construction Accounting.
Generally, Contractors Are Not Trying To Play “Stump The Wizard” when they are asking the Tax Accountant questions about their Financial Statements. Many contractors will have their Tax Accountant prepare Payroll, Payroll Tax Reports, State and Local Tax Reports (sales tax). Does the Tax Accountant understand your business, even a little bit? If the Tax Accountant does not work with sales tax issues on a regular basis, the contractor may have to explain the rules that impact them to their Tax Accountant.
Each state is different is what and how they collect State and Local taxes. The most common thing is that “They Do.” The most basic question Contractors ask is “Am I Making Money Or Losing Money”? The next question is “Where Did I Make Money? It should be an easy question to answer. Unfortunately, when everyone is doing everything but tracking the paperwork and the money there are no answers to be found.
Without A System, It Is Impossible To Know If Your Employees Are Wasting Time And If Material Is Being Wasted
This does not mean having a drone flying overhead watching their every move to start with by asking 5 simple questions: 1. Do they have the Right Tools and Equipment? 2. Do they know your expectations? 3. Do they feel they are being paid fairly? 4. Are they a Willing Worker and doing the job? 5. Will they use an electronic Time Card? (T-Sheets)
Part of the role of Management is knowing “What 10 Minutes Waste Costs You”In Washington State, the Worker’s Compensation rate is set by the individual tasks and then calculated by the hours worked. Other states have similar ways to calculate Workers Compensation or Insurance. In most states, Laborers and Apprentices have the exact same Worker’s Compensation rate as the Lead Person on the job. Skill level is different, and the Contractor is always balancing the Cost of Wages against Value of The Skill of Each Worker.
Contractors are always faced with variables including costs that continue to rise after the bid has been accepted. One little hurricane can impact the cost of building material across the country. One little snow storm and delay truckers and the goods they carry. One little bit of sunshine is okay for days but months and months where is it not normal can be a huge deal. In Winter, you expect snow in the mountains to go skiing, rain in the Spring for flowers, the sun in the Summer to play, and a little frost in the Fall on the pumpkins.
With changing weather patterns, we all need to adapt. We are in the greater Puget Sound (Seattle area), and for years it was 350 days of rain, winter rain, spring rain, fall rain, maybe 15 days of summer. Today it snowed! Last week it snowed and the week before it snowed. Good News, the snow did not stay long and for the most part did not impact schools. At the same time, other places around the USA had different experiences.
Contractors Play A Type Of Sports Game Every Day Without The Rewards Of A Fat Guaranteed Contract. They go Up To Bat, Jump Through Hoops, Run Down The Field all in hopes of securing The Call, Creating The Bid, Closing The Sale, Preforming The Work, Getting Paid. Have a Life.
Contractors want to know “Are I Making Money” or “Losing Money” now “Which Job?” Should I be doing “More of This” and “Less of That?”
Sometimes is a little hard for The Contractor to be Happy and Full of Smiles when a project Goes Over Budget, you have Given Away Free Change Orders to Keep The Customer Happy and Discovered Material Is Way Over Budget.
If The Contractor has 30 day accounts the final bills are still coming in after the project is complete. If it is a Time and Material billing and the final invoice was created too soon; it is almost impossible to get additional funds from the customer. It is by exception, that additional funds can be collected and always get signed Change Orders and paid promptly over waiting to the end of the project.
Many times, Contractors think they have made money based on the fact that all the bills got paid and there was some money left over. With poor bookkeeping, it is hard to know because the checking account may be reflecting checks that have not cleared, deposits from the next job, personal funds deposited back into the account to cover last minutes’ expenses and forgotten.
Good Construction Bookkeeping is the solution A little bit of effort towards Job Costing can be very helpful in understanding the numbers. The Key is asking the Right Professional the right question. Tax Accountants understand how to roll all the numbers up from the different aspects of your personal and business life into a summary Tax Return for the Internal Revenue Service. Construction Accountants understands the numbers in your business and where to properly put them. Your Banker looks at both sets of numbers and decides if you are credit worthy for a loan. Get a Board of Advisors NOW!
The Contractor and Contractor’s Spouse look at the numbers and either Smile and say “WOW” or Frown and Say “Ouch” “Oh Crap” or something much more descriptive.
No matter which way the numbers are from Fantastic to In The Toilet The Next Step is Now What Do We Do?
We are here to help. Let’s Chat!
Wishing You The Best Every Day. Sincerely, Sharie DeHart Sharie 206-361-3950 sharie@fasteasyaccounting.com
I trust this podcast helps you understand that outsourcing your contractor's bookkeeping services to us is about more than just “doing the bookkeeping”; it is about taking a holistic approach to your entire construction company and helping support you as a contractor and as a person.
We Remove Contractor's Unique Paperwork Frustrations
We understand the good, bad and the ugly about owning and operating construction companies because we have had several of them and we sincerely care about you and your construction company!
That is all I have for now, and if you have listened to this far please do me the honor of commenting and rating podcast www.FastEasyAccounting.com/podcast Tell me what you liked, did not like, tell it as you see it because your feedback is crucial and I thank you in advance.
You Deserve To Be Wealthy Because You Bring Value To Other People's Lives!
One more example of how Fast Easy Accounting is helping construction company owners across the USA including Alaska and Hawaii put more money in the bank to operate and grow your construction company. Construction accounting is not rocket science; it is a lot harder than that, and a lot more valuable to construction contractors like you so stop missing out and call Sharie 206-361-3950 or email sharie@fasteasyaccounting.com
Thinking About Outsourcing Your Contractors Bookkeeping Services?
Most Contractors Setup QuickBooks Desktop Version In One Of Three Ways:
#1 EZ Step Interview inside QuickBooks Setup #2 Asked Their Tax Accountant To Setup QuickBooks #3 They Attended A How To Setup QuickBooks Class Or Seminar
And QuickBooks Does Not Work The Way They Want It Too!
452: Last-Minute Reminders Before The New Year Countdown
00:10:49
This Podcast Is Episode Number 452, And It's About Last-Minute Reminders Before The New Year Countdown
It’s been another excellent year for Fast Easy Accounting. We appreciate your support for those of you who have been with us through all these years; without our contractor clients, template customers, construction accounting academy students, email subscribers, podcast listeners, blog readers, and social media followers, we wouldn’t get to where we are today.
As we look back on our 2021, I hope your fondest memories will include the time you’ve spent with all the things you love and are passionate about. And because we love what we do and we are passionate about serving our contractor friends - for us, this year was all about empowering your contracting business by continually providing you with outstanding products, high-quality services, and dependable resources for your bookkeeping and accounting needs.
Year-End Review: Time flies when everyone is busy.
Start now - review your records for the following items:
Missing Federal Tax ID’s and requesting the W-9.
Have all your employees verify their pay stubs for the correct address.
Check Apartment numbers and zip codes. Have any of the neighborhoods been annexed into the city?
Year-End Accounting Clean Up
Your Tax Accountant will be sending your booklet with what they want for records.
What are the loose odds and ends missing for this year?
Do you have a formal Accounting System?
Do you need to clean up the Accounting beyond the last couple of months?
Do you have bank statements?
Can you find all your receipts?
Tax Accountants do “workarounds” to file your annual taxes. At some point, the Tax Accountant may refuse to clean up and deal with the Lack of Good Records or Messy Records. As the economy improves, tax accountants will have more clients who want their taxes done.
Helpful Reminders:
Be mindful of the paperwork that must be stamped on or before December 31st (today).
Payroll – Did you take any personal payroll (S-Corp)? If not, it may impact your personal deductions.
IRA - 401K - Making those final payments before midnight on December 31. (Do not wait until 11:59 PM) Some plans allow you to make payments until April 15th (double-check the dates– do not assume)
Income – Getting one last customer invoice and receiving the payment - last-minute purchases to count on 2021 taxes (expenses or larger item which qualifies for depreciation)
Do not expect to be able to file your annual taxes on January 1st (tomorrow).
Prepare W-2s and pass them out as soon as possible - remember to keep a copy.
W-2’s and 1099’s have a deadline of January 31st to be mailed out to your employees and 1099 contractors. Be proactive and send out W-9’s as soon as possible, thereby asking for a Federal Tax ID or Social Security Number now.
Think about your company tax filing status.
I recommend changing from a Sole Prop to an S-Corp. Setting up an S-Corp is done with the Secretary of State in your state. Note, a few states only accept forms from a third-party service. If you are currently an LLC, I recommend becoming an S-Corp. If not, change your tax filing status to be treated as an S-Corp. The form needed from the IRS is Form 2553. Unlike many State Agencies, the IRS does not charge to file their forms. You are asking the IRS to change how your company is treated. Why is this important? Because the IRS will only accept the form for the current year in January – February (pushing the deadline to March 15th is risky), the approval will be for the next year (starting in January 2023) instead of January 2022.
Late Penalties to State and Federal Government Agencies are increasing, and they are looking back at filing dates of past returns for additional fees. It’s costly to borrow money from the government. If you need it, it never hurts to ask for a payment plan.
Rule of Thumb When Asking: Be Nice, Be Polite. Ask for a payment plan to be extended for as long as possible and with as low as possible payments. Sometimes no matter how you ask – the person you are talking to is not helpful, but usually, if it is within the rules, they will help you out.
It all gets down to Time | Scope | Money
A good tax accountant can do Many Simple or Less Complicated Returns in the same amount of time it takes to do a Messy, Complex Business Return. More Tax Returns become more Complex than is necessary because the documents or lack of records make it messy and hard to deal with.
Your Reason To Turn It All Over To The Tax Accountant
It’s cheaper to have the Tax Accountant do it than hire a Bookkeeping Service, and I don’t want to do it myself because it’s Hard.
A tax accountant will assume you gave them everything you had. In reality, you gave The Tax Accountant only what You thought The Tax Accountant needed versus all of the records that might save you additional money in taxes.
A sound accounting system will help you make better decisions on what to buy and what type of jobs to accept. When did you afford to take payment plans from your clients? When is the need or ability to raise your prices? Only you can decide if the lack of good records was worth the low price.
Happy New Year – 2022 is just around the corner - Are you Ready?
About The Author:
Sharie DeHart, QPA is the co-founder of Business Consulting And Accounting in Lynnwood, Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations and offers insights on how to manage the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. Call 1-800-361-1770 or sharie@fasteasyaccounting.com
10 Nov 2023
549: Construction Company Budget Vs. Cash Flow
00:11:22
This Podcast Is Episode 549, And It's About Construction Company Budget Vs. Cash Flow
Finding some certainty can make all the difference in the unpredictable construction business world. While the future remains a mystery, budgeting and cash flow forecasting tools can significantly reduce uncertainty, allowing you to anticipate challenges, learn from past events, and enhance your ability to navigate your business.
Budget vs. Cash Flow: The Crucial Distinction
A common misconception is that a budget and cash flow are interchangeable. A budget is a projection of future possibilities, enabling you to consider various sales and expense scenarios. On the other hand, a cash flow provides a record of actual expenses and sales revenue that flow into and out of your business each month. Although they often deal with the same data, their applications differ.
Budget and cash flow are both essential concepts in construction management. However, they serve different purposes and are used in different ways. A budget is a financial plan that outlines expected income and expenses for a specific period. In construction, budgets are typically created for individual projects or a company. The purpose of a budget is to help managers plan and control expenses, set goals, and allocate resources. On the other hand, cash flow is a measure of the amount of cash coming in and going out of a business over a specific time.
In construction, cash flow is significant because it can be used to determine whether a project is financially feasible and whether there is enough cash on hand to pay for expenses. Budgets and cash flow are related but not the same thing. A budget is a plan, while cash flow measures actual cash transactions. A project can be under budget but still experience negative cash flow if expenses exceed income.
Conversely, a project can be over budget but have positive cash flow if income exceeds expenses.
You might budget $1,000/month for online costs, whereas in the cash flow, you'd record the actual amount spent. Despite their distinct uses, cash flow and budgeting are often maintained on the same spreadsheet or similar accounting software for ease of use and comparison.
The advantages of budgeting and cash flow forecasting
Incorporating budgeting and cash flow forecasting in your construction business has numerous benefits. They help predict and manage potential cash surpluses or shortages, plan for tax obligations, time new equipment purchases, determine when to buy in bulk, and even identify when you might need a small business loan or a line of credit.
Budgeting and cash flow forecasting are essential tools for any construction business. They provide a clear picture of the company's financial health and help identify potential problems before they occur. By creating a budget, companies can plan their finances more effectively, set realistic goals, and allocate resources to maximize profitability.
This is particularly important in the construction industry, where projects can be complex and costly. Cash flow forecasting is equally essential, enabling businesses to understand their cash position and ensure they have sufficient funds to meet their obligations. This is particularly critical in construction, where delays or unexpected expenses can quickly impact cash flow. By forecasting cash flow, businesses can plan for these contingencies and ensure they have the necessary funds available when they are needed.
One handy feature is the ability to track expenses and highlight any unusual cost increases or decreases. This allows you to take prompt action to address the issue. Additionally, these tools can help monitor sales levels and flag any underperforming areas of your business.
Practical tips for effective budgeting
Preparing an annual budget requires sufficient time – allocate at least two or three months for this process. Update your budget each month based on the actual cash flow. Remember that the sales forecast is often the most challenging part. If you're new to the construction business, examine separate estimates for different products or geographical areas and note any seasonal patterns in your company and industry.
Sensitivity analysis: a proactive approach
A sensitivity analysis, often called 'what if' scenarios, can help you understand how different outcomes affect business performance. This analysis allows you to review the effects of changes in your revenue or costs.
The power of regular updates
Regularly comparing your actual expenditure against your budget enhances your ability to predict future costs accurately. Reviewing and updating your budget and cash flow forecasts at least once a month or more frequently if your business environment changes quickly is good practice.
Having a construction accountant on board can be incredibly beneficial when managing finances in the construction industry. One of the critical advantages of having a construction accountant is their ability to help with budgeting and cash flow.
A construction accountant can assist with creating a budget that takes into account all of the costs associated with a construction project, from materials and labor to permits and fees. By having a detailed budget, contractors can better manage their cash flow and avoid surprises down the line.
Additionally, a construction accountant can provide ongoing financial analysis and reporting, allowing contractors to stay on top of their finances and make informed decisions about future projects and investments. With the help of a skilled construction accountant, contractors can better manage their finances and set themselves up for long-term success.
In summary
Budget and cash flow are essential in construction management but serve different purposes. A budget helps managers plan and control expenses, while cash flow helps determine whether a project is financially feasible and whether there is enough cash to pay for expenses.
Budgeting and cash flow forecasting are potent tools to help construction businesses like you manage your finances more effectively, plan for the future, maximize profitability, and guide your business decisions. However, their value lies in their regular review and updating, ensuring their figures remain current and reflect your construction business's financial health.
PS
We offer free resources to help you save time and money that you can download and print now.
About The Author:
Sharie DeHart, QPA, co-founded Business Consulting And Accounting in Lynnwood, Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations and offers insights on managing the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. Call 1-800-361-1770 or sharie@fasteasyaccounting.com
02 Sep 2022
487: Five Effective Ways To Retain Employees And Keep Your Company Healthy
00:08:31
This Podcast Is Episode Number 487, And It's About Five Effective Ways To Retain Employees And Keep Your Company Healthy
Traditionally, employers have relied on giving employees raises to retain their staff and reward them for being hard-working and loyal. Raises can get expensive, and there is often an upper limit for what you can offer regarding increasing salaries and wages.
Keeping your employees happy makes business sense. You want to keep your good employees, and it costs money to find, hire and train new staff. Beyond that, satisfied employees who feel valued are more motivated and productive.
Here are some ways to keep your employees happy that don't rely on higher salaries.
1. Pay for professional development
Good employees want to improve their skills and grow professionally. Often, other priorities get in the way of upgrading skills. Paying for professional development, for example, by having a fund people can access or by bringing in experts to run workshops, shows your staff you care enough to invest in them. Meanwhile, your construction business benefits by having staff trained on the newest procedures and technologies.
An employee's development plan is an action plan that focuses on helping staff improve their knowledge, capabilities, and skills in areas related to your business.
Creating such plans shows your staff you're invested in their future, which increases employee satisfaction. It helps them understand their role and gives them a framework for expanding their talents. It enables you to develop your staff, promoting from within and encouraging your employees to grow with your construction company.
2. Encourage work-life balance
Employees want a fulfilling life, but finding a balance between work and home isn't easy. Having an employer that encourages a work-life balance makes it more accessible. Avoid messaging (texting, phoning, or emailing) employees after work hours and clarify that people should enjoy their personal time. Encourage employees to take their sick leave and use their vacation days. Be a role model by striving for work-life balance yourself.
3. Be transparent
Being open and honest with your workers fosters a sense of trust and belonging among your staff. Have regular meetings where you discuss your organization's goals, strengths, and challenges and receive input and feedback from your team. This encourages engagement and shows your workers that their perspective is valuable.
4. Having a set of values that applies to your staff
Sometimes organizations create noble values that they apply to their customers but don't apply to their workers. Employees see clients and customers being treated well but then wonder why those values don't apply to them. Create a set of values that applies to your staff. Set out how you want your team to feel. Do you want them to feel valued? Supported? What does that look like in your organization?
5. Ask your staff what they need
It's challenging to come up with solutions that everyone will find meaningful. Ask your staff what would be valuable to them–and what would make them happy enough to stay. For example, they may be pleased with additional vacation days or more banked sick time. Listen to their suggestions and consider whether any options they mention could work for your organization.
Final thoughts
Nobody likes to feel like a cog in the machine. Anything could be going on behind closed doors. There are, of course, expectations to meet in every job. However, employers would do well to remember that everyone working for them has an entire life outside the company. A construction company that supports and shows compassion to its contractors is likelier to keep the good ones from burning out.
While increasing salary is one thing you can do to keep your employees happy, there are other things they may value that you can offer. Employee development plans are a great way to invest in your employees, keep them motivated, and help them acquire new skills that will help them in their careers. It also enables you to promote from within your construction company, saving you time and money in the long run.
About The Author:
Sharie DeHart, QPA is the co-founder of Business Consulting And Accounting in Lynnwood, Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations and offers insights on managing the remaining cash flow to operate and grow their construction company sales and profits to put more money in the bank. Call 1-800-361-1770 or sharie@fasteasyaccounting.com
06 Apr 2018
0263: Learn Construction Accounting Basics From The Contractors Accountant, Randal DeHart
00:18:55
This Podcast Is Episode Number 0263, And It Will Be About 0263: Learn Construction Accounting Basics From The Contractors Accountant, Randal DeHart
Are You A Handyman Contractor Struggling With Accounting?
Would You Like Learn Construction Accounting Basics From
The Contractors Accountant At A Fraction Of The Cost?
Course runs from April 23, 2018, to June 1, 2018. Master Accounting Basics: Contractor Edition will teach you important accounting principles including the 3 “O’s” of the balance sheet, the 5 secrets to make your handyman business more successful, tips for how to handle invoices, and so much more.
Join financial and QuickBooks expert Randal DeHart and learn how to determine your business’ financial success and how to grow your income.
Now you can unlock the door to developing a highly profitable contracting business with the Five Key Performance Indicators you’ll learn in this premium course:
Statement of cash flows
Accounts receivable
Accounts payable
The balance sheet
Profit and loss statement
Think of the Five Key Performance Indicators Like Your Truck Dashboard
In the Master Accounting Basics: Contractor Edition premium online course, Randal DeHart, leading expert in construction bookkeeping, teaches vital how-to information. You’ll learn the tips and tricks of the experts as he walks you step-by-step through reading and interpreting balance sheets, cash flow statements, and profit and loss statements. Randal will also guide you through setting up your own reports in QuickBooks. By the end of the 5 weeks you’ll have the skills to determine your company’s financial health, poses the knowledge to help your business grow, and be better prepared for future tax seasons.
Here's what you'll learn:
How to setup your financial statements in QuickBooks.
How to interpret and develop key reports including cashflow, accounts receivable, accounts payable, balance sheets, and P&L statements.
How to develop profit centers in your supplier accounts and credits cards.
The Five Key Performance Indicators you need to know, care about, and how to use them.
How to use accounting to make more profitable decisions for your jobs and your team.
And much more!
Here’s what you’ll get:
Individual attention from financial expert Randal DeHart to answer your specific questions.
Personal advice on using QuickBooks sheets for your business.
Bonus content and guidance added during the course catered to students’ questions.
Unlimited private message access to expert Randal DeHart.
Discussion board participation with fellow students and your instructor.
**The recommended software for this course is QuickBooks. However, this course builds solid foundations for accounting best practices that can be applied to any accounting software.
I look forward to meeting you in the class and rest assured we will have a lot of fun and pull back the curtain of mystery surrounding the basics of Construction Accounting.
This class is designed for small contracting companies with 1-20 employees including Handyman, General Contractors, and Trade Contractors.
You will gain a basic understanding of Construction Accounting from someone who has deep experience in Construction and Construction Accounting without all of pomp and circumstance of a boring formal presentation. See Construction Definitions and Randalisms for a taste of my teaching style.
Please Note: We will not be covering Work-In-Progress, Spec Home Building, Commercial Construction, or in-depth Job Costing. Those areas may be covered in future classes if we get enough interest.
Simply scan the QR code below or search for ‘MyAccountants’ in the App Store and enter the Access code: FEAHEROS to utilize the powerful App features and capabilities, and benefit from having our Construction Accounting App at your fingertips, 24/7.
Access code: FEAHEROS
Or click to download the Contractors APP now from the App or Android store
Randal DeHart, PMP, QPA is the co-founder of Business Consulting And Accounting in Lynnwood Washington. He is the leading expert in outsourced construction bookkeeping and accounting services for small construction companies across the USA. He is experienced as a Contractor, Project Management Professional, Construction Accountant, Intuit ProAdvisor, QuickBooks For Contractors Expert and Xero Accounting Specialist. This combination of experience and skill sets provides a unique perspective which allows him to see the world through the eyes of a contractor, Project Manager, Accountant, and construction accountant. This quadruple understanding is what sets him apart from other Intuit ProAdvisors and Xero accountants to the benefit of all of the construction contractors he serves across the USA. Visit http://www.fasteasyaccounting.com/randal-dehart/ to learn more.
Our Co-Founder Randal DeHart - Is a Certified PMP (Project Management Professional) with several years of construction project management experience. His expertise is construction accounting systems engineering and process development. His exhaustive study of several leading experts including the work of Dr. W. Edward Deming, Michael Gerber, Walter A. Shewhart, James Lewis and dozens of others was the foundation upon which our Construction Bookkeeping System is based and continues to evolve and improve. Check out our Contractor Success Map Podcast on iTunes and Follow Randal on Google+
We are here to Help “A Little or A Lot” depending on your needs.
I trust this podcast helps you understand that outsourcing your contractor's bookkeeping services to us is about more than just “doing the bookkeeping”; it is about taking a holistic approach to your entire construction company and helping support you as a contractor and as a person.
We Remove Contractor's Unique Paperwork Frustrations
We understand the good, bad and the ugly about owning and operating construction companies because we have had several of them and we sincerely care about you and your construction company!
That is all I have for now, and if you have listened to this far please do me the honor of commenting and rating the Podcast www.FastEasyAccounting.com/podcast Tell me what you liked, did not like, tell it as you see it because your feedback is crucial and I thank you in advance.
You Deserve To Be Wealthy Because You Bring Value To Other People's Lives!
This Is One more example of how Fast Easy Accounting is helping construction company owners across the USA including Alaska and Hawaii put more money in the bank to operate and grow your construction company. Construction accounting is not rocket science; it is a lot harder than that, and a lot more valuable to construction contractors like you so stop missing out and call Sharie 206-361-3950 or email sharie@fasteasyaccounting.com
Contractor Bookkeeping Done For You!
Thinking About Outsourcing Your Contractors Bookkeeping Services?
Thank you very much, and I hope you understand we do care about you and all contractors regardless of whether or not you ever hire our services. Bye for now until our next episode here on the Contractors Success MAP Podcast.
About The Author:
Randal DeHart, PMP, QPA is the co-founder of Business Consulting And Accounting in Lynnwood Washington. He is the leading expert in outsourced construction bookkeeping and accounting services for small construction companies across the USA. He is experienced as a Contractor, Project Management Professional, Construction Accountant, Intuit ProAdvisor, QuickBooks For Contractors Expert and Xero Accounting Specialist. This combination of experience and skill sets provides a unique perspective which allows him to see the world through the eyes of a contractor, Project Manager, Accountant, and construction accountant. This quadruple understanding is what sets him apart from other Intuit ProAdvisors and Xero accountants to the benefit of all of the construction contractors he serves across the USA. Visit http://www.fasteasyaccounting.com/randal-dehart/ to learn more.
Our Co-Founder Randal DeHart - Is a Certified PMP (Project Management Professional) with several years of construction project management experience. His expertise is construction accounting systems engineering and process development. His exhaustive study of several leading experts including the work of Dr. W. Edward Deming, Michael Gerber, Walter A. Shewhart, James Lewis and dozens of others was the foundation upon which our Construction Bookkeeping System is based and continues to evolve and improve. Check out our Contractor Success Map Podcast on iTunes and Follow Randal on Google+
Most Contractors Setup QuickBooks Desktop Version In One Of Three Ways:
#1 EZ Step Interview inside QuickBooks Setup #2 Asked Their Tax Accountant To Setup QuickBooks #3 They Attended A How To Setup QuickBooks Class Or Seminar
And QuickBooks Does Not Work The Way They Want It Too!
0155: Cheap Contractor Bookkeeping Is The Most Expensive Bookkeeping
00:29:33
This Podcast Is Episode Number 0155 And It Will Be About Cheap Contractor Bookkeeping Is The Most Expensive Bookkeeping
All Highly Successful Contractors Like Saving Money Where They Can But Not On Cheap Tools, Equipment, Material And Bookkeeping
Because That Always Costs Them Profit Dollars In The End:
Cheap tools break which slows the work down, increases labor costs and in the end costs more than quality tools.
Cheap equipment breaks down more often, increases labor costs and also costs more than quality equipment.
Cheap material is one of the causes for warranty work which drains profits and runs up labor and material costs.
Cheap Contractor Bookkeeping can cost more than the previous three combined because of what you don't see.
The Cost Of Cheap Tools, Equipment And Material
Cheap Tools And Equipment- Cost a lot of money that you cannot see; out-of-sight means out-of-mind.
When contractors like you invest in the best tools and equipment you can afford in the short and long run you will save money. Construction workers who take pride in their work will always produce better results faster with fewer repairs if they have quality tools and equipment. And they will tend to stay with your construction company longer which will help you earn more profits.
At 10% Profit You Need To Sell $15,544.20 More To Maintain Profit Margin
For Example - Your best construction worker asks for a tool which costs $1,200.00, will save ten minutes a day in labor and last three years the most common response is "We can't afford it...make do with what you have...it is a poor craftsman who blames his or her tools".
When someone suggests "buying a tool to save money" most contractors hear "spend my hard earned money". These knee-jerk reactions come directly from the part of our brain called the "amygdala". It is what causes us to react to circumstances rather than respond them. It is also known as the "Fight or Flight" decision center.
Break the cycle of "doing the same thing you have always done and getting the same thing you have always gotten" by simply "Stopping And Thinking". Cheap Contractor Bookkeeping
Until Your Construction Company - Reaches at least $5 million in annual sales you cannot afford to hire a qualified bookkeeper or construction accountant full-time to put on your accounting staff and don't be fooled; there is no such thing as a part-time qualified bookkeeper or construction accountant.
For Example - If you try to save money by hiring someone who says they have 10 years of experience ask one simple question:
How Much Money And Time Have You Invested Books, Classes And Seminars To Hone Your Construction Accounting Skills Or Even Regular Bookkeeping In The Past Ten Years And What Was The Last One You Attended?
Anytime a bookkeeper whom is interested in joining our team of Highly Qualified Professional Construction Bookkeepers and they tell me they have several years of experience I ask that question and in 98% of the time the answer none.
As you know the basics of just about trade from butcher, baker, candlestick maker, framer, plumber, electrician, HVAC, roofer, concrete finisher can be learned in six months. However it takes 10,000 hours of training and practice to begin to become skilled in construction bookkeeping or become a Journeyman in any construction trade and then a minimum of 100 hours a year to stay current with the trends in a given trade.
So let's look at the true cost of a bookkeeper with bad habits who is a Cheap Bookkeeper that you hired part time at $15.00 an hour for 10 hours a week thinking you will save money.
For A Rough True Cost Of Your Bookkeeper Double The Hourly Wage You Pay Them
Every Ten Minutes Your Bookkeeper Wastes Costs You Money! Every Ten Minutes A Day Of Unproductive Office Labor: Could Cost Your Company $273.93 Every Year At 10% Profit You Need $2,739.30 More Sales To Maintain Profit Margin
Everybody Loses When A Contractor
Goes Out Of Business Or Worse Yet Bankrupt!
It May Seem Harsh - In order to survive and thrive as a contractor you must make certain your employees are focused on their job during the time you are PAYING THEM TO WORK!
You must do whatever it takes to enforce the rules of engagement for producing results at your contracting company or be prepared to work for some other contractor and live under their rules.
In Some Cases - We can do more work for less money by providing you with real construction bookkeeping and accounting + payroll processing + monthly and quarterly tax reports + year end W-2, W-3 + profit and growth management consulting + financial and job costing reports + paperless data storage and more at a lower overall cost and as an added bonus show you how to make more money than you are now!
I trust this podcast helps you understand that outsourcing your contractors bookkeeping services to us is about more than just “doing the bookkeeping”; it is about taking holistic approach to your entire construction company and helping support you as a contractor and as a person.
We Remove Contractor's Unique Paperwork Frustrations
We understand the good, bad and the ugly about owning and operating construction companies because we have had several of them and we sincerely care about you and your construction company!
That is all I have for now and if you have listened this far please do me the honor of commenting and rating podcast www.FastEasyAccounting.com/podcast Tell me what you liked, did not like, tell it as you see it because your feedback is crucial and I thank you in advance.
You Deserve To Be Wealthy, Because You Bring Value To Other People's Lives!
This is one more example of how Fast Easy Accounting is helping construction company owners across the USA including Alaska and Hawaii put more money in the bank to operate and grow your construction company. Construction accounting is not rocket science; it is a lot harder than that and a lot more valuable to construction contractors like you so stop missing out and call Sharie 206-361-3950 or email sharie@fasteasyaccounting.com
Thinking About Outsourcing Your Contractors Bookkeeping Services?
0401: Hidden Costs When Choosing The Right Construction Accounting Software
00:11:31
This Podcast Is Episode Number 401, And It's About Hidden Costs When Choosing The Right Construction Accounting Software
Typically, in the first month of the year, many contractors with expensive high-end construction software are re-examining if QuickBooks for Contractors is all they need and if switching over to it makes sense.
I chat with Contractors every day. You tell me your stories - about your challenges in running a business, keeping up with the bookwork, estimating and bidding jobs, doing the work and collections from clients, and having or not having employees and paying their taxes.
Having used several high-end construction software programs costing over $60,000 and a few low-cost programs under $500 like QuickBooks and Peachtree, and some free online bookkeeping programs, I have concluded that for contractors with annual sales volume under $5,000,000, the only answer is QuickBooks For Contractors. For an in-depth comparison of QuickBooks versions, click here.
We started using QuickBooks when it was first released in the DOS version in the early 1990s and had been raving fans of it ever since. It's had problems and growing pains; however, Intuit, the parent company of QuickBooks, is right about finding and fixing the issues as evidenced by the number of contractors using it compared to their competitors.
What are the five things to consider?
1. Setup
This is the most critical and least understood part of the selection process. A correctly set up QuickBooks contractor file will do everything a contractor with less than $5,000,000 in sales will need, including generating reports for:
Monthly And Quarterly Tax Returns
Sales Tax Returns
Payroll Processing
Payroll Tax Returns, 941 and 940
Contractor Invoicing
Work In Progress (WIP) Reporting
Preparing Pay Application Invoicing For Remodel
Preparing Pay Applications For Tenant Improvement (TI)
Job Deposit Tracking
Retention Tracking
Insurance Audit Support Service
QuickBooks Financial Reports
Job Costing Reports
Five Key Performance Indicator Reports for monitoring your business
And more
Setup is the most expensive hidden cost of all. Anyone who suggests the average contractor can buy construction software and have it up and running in less than 200 hours in a span of several months is stretching the truth. There is a big difference between selling construction software and setting it up to use it.
QuickBooks Setup Has Three Main Phases: Chart of Accounts, Item List, Customers, Vendors, Employees, Payroll; Clean up the existing data; and input the behind transactions.
You can do it yourself = 200 hours x $10 an hour you could earn flipping burgers (opportunity cost) adds $2,000 to the value of the software.
In most cases, you can outsource the complicated and costly QuickBooks Setup and Job Costing Reports to us, get it done right in a fraction of the time and cost of any other option, and we can clean up QuickBooks existing data and input your back-work or as we call it QuickBooks Catch-Up.
From our extensive knowledge base of Construction Accountants and studying highly profitable contractor's QuickBooks setup files, we have developed a library of QuickBooks for contractor modules to build your custom QuickBooks Contractor files in a fraction of the time and at a lower cost. It has made us the leader in setup QuickBooks for Contractors.
2. Bloat
The more the software costs, the more bells and whistles it has or, as I like to say, "bloat." Software bloat in construction is deceiving because it looks like something you've got to have or you are missing out; the good news is you're not. It merely adds fluff and filler to jack up the price, just like college and university textbooks sold by the pound.
3. Construction Bookkeepers Talent Pool
The more expensive the construction software, the more dependent you will be on the developer for tech support and training.
When you pay $1,000 for two days of training for your bookkeeper and their time 16 hours x $25.29 = $404.64 plus lunch $10 x 2 = $20 and parking $10 x 2 = $20 for a total of $1,444.64, they have increased skill sets, and they will ask for a raise or seek employment elsewhere!
Everything in your construction company that makes money follows a process that is called "CONTROL." For example, building a new house is: Foundation | Framing | Mechanical | Roofing | Finish | Clean up. Everything in your construction company that costs money and does not follow a logical process is called "CHAOS."
Construction bookkeeping services is a system with a logical process, and when it is followed, you make money; when it is not, it costs you money.
5. Cloud-Based Construction Software
Cloud-Based Construction Software Is no longer a luxury reserved for enterprise-level contractors. Any contractor using QuickBooks Contractors desktop version can have it too.
We offer a way for you to access the full desktop version of QuickBooks Contractor with all of the built-in reports and the ability to print on your local desktop printer, email, or have documents linked to individual transactions.
You can do just about anything you are doing now with QuickBooks Contractor on your desktop except losing your data due to computer failure, weather, earthquake, flood, fire, or other disasters because it is on a secured cloud server with multiple redundant backups and power supplies.
You can even access your QuickBooks Contractor financial reports in the cloud without having to open QuickBooks.
Final thoughts
Consider these five hidden costs when choosing the right construction accounting software for your company. Have a recovery plan if the entire software crashes during updates/upgrades - this will even cost you more money.
The best finish carpentry tools in a golf professional's hands without proper carpentry training will not produce anything near to what a skilled finish carpenter can. The same can be said about the best construction business consulting and accounting tools in an experienced finish carpenter's hands. And I say that with respect and admiration for everyone in construction.
About The Author:
Sharie DeHart, QPA is the co-founder of Business Consulting And Accounting in Lynnwood, Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations and offers insights on how to manage the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. Call 1-800-361-1770 or sharie@fasteasyaccounting.com
01 Nov 2019
0339: 10 Hidden Construction Contract Traps And How To Avoid Them
00:10:51
This Podcast Is Episode Number 0339, And It Will Be About 10 Hidden Construction Contract Traps And How To Avoid Them
A new contractor meets an experienced customer, and money changes hands and not the way you expect it.
Typically, this is what happens when you first get started: You bid on a project, and you are the low bidder. You are given the client's standard contract, which contains the client's favorite set of commercial terms and conditions, to sign as a condition of getting the project. You close and sign the contract because you don't want to ask for changes in the terms or consult your construction attorney. You put the signed contract in your bottom desk drawer and pray hard nothing will happen during the project that will cause you ever to have to reread the contract.
Before it is too late, consider these traps to look out for:
1. Poorly defined scopes of work create claims and disputes.
2. The completion schedule is too short and exposes you to monetary damages for failure to finish on time.
3. Payment terms put you in never-ending negative cash flow by loaning the customer money at 0% and borrowing on your credit cards at 24%.
4. The customer keeps 5%-10% of the contract price as retention for up to a year or more after the entire project is finished, which could be all your profit in the project.
5. Indemnity clauses could make you financially responsible for bodily injury and property damage claims caused by customer negligence.
6. Indemnity clauses could make you pay the customer's attorney fees and costs.
7. Your insurance company may be required to provide additional insured coverage for the project giving the customer free insurance and full access to the policy coverage and limits.
8. Often the term and coverage of the warranty are beyond reasonable industry standards.
9. Dispute resolution clauses that require arbitration first and then litigation, probably the two worst ways ever invented to resolve disputes.
10. The client's pre-printed final waiver of lien document (necessary for the contractor to receive final payment) waives all contractor's rights to recover unpaid extra work and to pursue any claims that arose during the project.
Ways to avoid contract traps:
Your Construction Attorney - is your friend and ally and can save you a lot of grief. Most contracts are easy to read and understand.
Scope of Work - Description in the contract is of crucial importance and a well-defined scope of work with details that outlines specific action to be performed by you, the contractor. The scope of work needs also to define work that is excluded and all work to be done by others, including the owner, which may interface with the contractor's scope of work. Never worry about too much detail; that detail will significantly help with the avoidance or resolution of claims and disputes that may arise out of the scope of work.
Schedule And Gantt Chart - Make sure you have enough time in the schedule to perform the scope of work. Every minute spent developing your Work-Breakdown-Structure (WBS) is worth an hour or more in the time needed to do the job.
Add Contingency To Your Schedule - Minor delays, weather, equipment problems, etc. always happen. Do not expect the customer to be sympathetic and allow more time for delays. It is imperative if the contract has liquidated money penalty damages for late completion.
Payment Terms - Should need to add positive cash flow. Get cash coming in early and often. Paid when Paid and paid if paid terms are ridiculous, and we recommend not signing them ever! Clients who want these types of payment terms all have access to plenty of money and can pay you. Remember, cash is king!
Retention - Instead of retention being withheld from your progress payment invoices, consider providing a warranty guaranty instead, but check with your construction attorney first!
Indemnities - Can open the door to your cash reserves and everything you own, be careful! Indemnities typically cover claims for bodily injury, death of person, and property damage. The broad and intermediate form indemnities may require you to pay for bodily injury, death and property damage claims caused by the client, and you could be liable for the customer's attorney's fees and costs. Indemnity in contracts can be a dangerous risk transfer if enforced in a court of law could bankrupt your company for something you didn't do. Again your construction attorney is the person to ask, and don't be afraid to walk away from a project. Three types of indemnities:
Broad Form: A comprehensive form indemnity contractually obligates you, the contractor, to be responsible for claims arising out of any amount of the client's negligence, including his sole negligence. The 100% indemnity.
Intermediate Form: An intermediate form indemnity contractually obligates you, the contractor, to be responsible for claims arising out of the client's negligence, excluding only those claims arising out of the client's sole negligence — the 99.9% indemnity.
Limited Form: A limited form of indemnity contractually obligates both the contractor and the client to be responsible only to the extent they are negligent for a claim.
Additionally Insured - Is a typical requirement in a contract that means something like: "Contractor will name the customer as an additional insured on his General Liability Insurance policy." Understand that when you name your customer as an additional insured to your general liability insurance policy (bodily injury and property damage coverage), he receives full access to the policy monetary limits and coverage provided by the policy at no cost, FREE, $0.00! The customer may also collect the legal defense of a claim because of your general liability policy for FREE!
Warranty - Is a good thing because it shows your commitment to stand behind your work and fix or replace defective parts or workmanship. Standing behind your work with a good warranty will give you an excellent reputation. However, warranties don't have to go on forever, and you don't need to marry the project; one year is about right, and perhaps you could offer extended warranties as well. Your warranty should exclude things like normal wear and tear, corrosion, improper usage, etc. Make sure your warranty is specific as to what it includes and excludes, when it starts and when it ends.
Dispute Resolution -Well defined and documented dispute resolution clause in all your contracts that outlines the process to try and resolve disputes with negotiation as the starting place and if negotiation fails, then mediation. If that will not work, provide for a senior executive in each organization to try and resolve the dispute. If all else fails, arbitration or litigation is the end, and both parties will lose.
Lien Waiver - Do not ever give a lien waiver in advance of the check clearing the bank. All 50 states have lien laws that provide contractors with some limited protection against customers that refuse to pay. Make sure your construction attorney reviews the original contract looking for the customer's final lien wavier that could be hidden deep in the contract documents. Some final lien waivers also waive your rights to collect outstanding change orders or bodily injury or property damage claims against your employees or property caused by the negligence of the customer, so be careful.
In conclusion
We recommend seeking the advice of a qualified construction attorney to put together a contract that fits your specific needs. Your contracts need a well-defined scope of work, clear payment terms, a reasonable schedule, and a proper change order clause. No work should ever be performed based on verbal agreements. Get everything in writing, always, no exceptions.
About The Author:
Randal DeHart, PMP, QPA is the co-founder of Business Consulting And Accounting in Lynnwood Washington. He is the leading expert in outsourced construction bookkeeping and accounting services for small construction companies across the USA. He is experienced as a Contractor, Project Management Professional, Construction Accountant, Intuit ProAdvisor, and QuickBooks For Contractors Expert. This combination of experience and skill sets provides a unique perspective that allows him to see the world through the eyes of a contractor, Project Manager, Accountant, and Construction Accountant. This quadruple understanding is what sets him apart from other Intuit ProAdvisors and accountants to the benefit of all of the construction contractors he serves across the USA. Visit http://www.fasteasyaccounting.com/randal-dehart/ to learn more.
Our Co-Founder Randal DeHart - Is a Certified PMP (Project Management Professional) with several years of construction project management experience. His expertise is construction accounting systems engineering and process development. His exhaustive study of several leading experts including the work of Dr. W. Edward Deming, Michael Gerber, Walter A. Shewhart, James Lewis and dozens of others was the foundation upon which our Construction Bookkeeping System is based and continues to evolve and improve. Check out our Contractor Success Map Podcast on iTunes.
16 Sep 2016
0182: A Unique Faucet Of Qualified Leads Just For Contractors Like You
00:44:47
This Podcast Is Episode Number 0182 And It Will Be About A Unique Faucet Of Qualified Leads Just For Contractors Like You!
Today's Guest Article Is From Tomer Applebaum
Tomer was interviewed for the Contractors Success M.A.P. Podcast and was very generous with his time and provided some extremely valuable insights for how you can generate Job Leads as easy as turning on a faucet.
A Faucet of qualified leads
You are a master craftsman
You have spent years learning and plying your trade to get where you are. If you’re an electrician, you can run wires in your sleep. You don’t have to think about wiring the electric box, you know.. If you’re a plumber, you know just how much dope or tape to wrap for the seal to be tight. You don’t have to do it twice to prevent leaks. You do it right the 1st time.
Whatever your trade, whether you're a painter, a carpenter, a handyman, whatever it is, you know it well. You can serve people and help them. And now you’ve started a business…
Oh oh…
The number 1 challenge
As every new business owner knows, the 1st thing you need for your business is customers. Where are the customers? how to get to them to come knocking on the door? and even more importantly: where are the right customers?
This is a crucial element of your business. At first, you probably try to lowball a few people you know. kicking yourself when the expenses turn out to be higher than expected. An extra run to get parts perhaps, or an unforeseen complication. And now you’re not even sure you’re making any money on the job.
And even at a later stage of your business, when you’ve accumulated a few loyal customers, and word of mouth starts slowly kicking in. You find that… not all customers are ‘born equal’.
some customers, are easy to work with, easy to serve, and easy to collect payment from (a crucial part of any healthy business) but some… well, not so much.
What do you do?
Is it possible to eliminate this constant pain of wondering about whether you will have work next week? And whether your customers will be a good match to the service you provide?
Is it possible to be able to focus on delivering an excellent service, on getting the job done right, and knowing that the leads and customers will be there when you need them? Yes it is.
A useful trade that can serve you
I know you might be a bit skeptical, but bear with me a moment, you’ve spent years learning your trade until you became as good as you are, it took years of learning and practice, and making mistakes to become as good as you are at your trade. And as you know quite well not all customers understand and appreciate the effort and expertise you bring to the table.
Bear with me a moment and let me show you how my trade can serve you
What I do is I get you leads. Plain and simple. And not only do I bring you leads but I create a faucet of leads which you can turn on and off at will. If you have more work then you can handle, then you just turn off the faucet, if you have extra time on your hands, you simply turn the faucet back on. I do this solely on the internet, for 1 simple reason. It’s the best way to market your business.
The reason the internet is the best place to advertise your business
What is so special about digital advertising? Why is it better than print, TV, radio, street signs?
Well, I don’t want to be blunt about it, but unless you’re Coca Cola. Old advertising is DEAD.
The thing is, all of those ways of reaching potential customers are like a shotgun, like a loudspeaker. You’re just sending out your message (and Wasting your hard-earned advertising dollars) to e-v-e-r-y-b-o-d-y.
And you’re paying big bucks, to expose your message to all of these people who will Never buy from you!
Not everybody is your customer, so you shouldn’t pay to broadcast your message to everybody. Your ads should be delivered to your ideal potential customers.
Online It’s different
Facebook knows everything about your customers, and trust me your customers are there, there are more than 1,000,000,000 users on Facebook, (yes that’s over one BILLION) And using some specialized tools Facebook gives me. I can make sure your ad is seen, only by the people you want to see it.
When you advertise online you can (and should) tailor that ad for your ideal customer.
All of a sudden, instead of yelling at people scattershot, you’re offering them something of value, that they’re very likely to appreciate.
And how do I do this? What is this magical power?
No magic. This is my trade. I run a Digital marketing Agency. I provide you with a simple service.
I target your ideal customer and strike a conversation with him on your behalf, make sure he’s a valid potential customer of yours. I win his trust, and he gives his trust in your business in return, and you get his contact info.
And using some specialized tools. You can know down to the cent. How much each lead is costing you. It could be $10.00 it might be as cheap as $1.30!
Let me repeat that, you’re not getting just any random leads. Before we even start building you this stream of leads and customers we’re going to have a conversation, and really understand — who is your ideal customer? Who do you love working with most? who can you serve best?
And then we build a campaign, a faucet designed to makes sure you reach your ideal kinds of prospects.
A Faucet of qualified leads
You’re not going to spend a dime on random people who you cannot serve: If you’re focused on commercial we’ll advertise only to business owners, if you do residential, only homeowners. We’ll make sure the prospects live in the areas you serve, make sure we advertise to men or women or both according to which is the better prospect in your niche, we make sure our ads only reach people making an annual income that can afford your services, and we can even screen according to the customers interests if relevant.
Your ads will be reaching only the kinds of people which you want to reach, only those who are a good match for you.
Long story short: You need qualified leads, you need to know that money that the money you spend on advertising is coming back to you tenfold as paying customers. You need to Advertise online.
Thriving Craftsmen
What makes my advertising agency so special? Nothing really. There are a lot of digital marketing agencies out there. You are free to choose whoever you want. Heck you can even do this yourself. If you want I’ll even show you how to do it. But just do yourself a favor and start advertising Online.
The only thing that is unique to me. Is that I specialize in servicing craftsmen. Why? Damned if I know. I love you guys. I’ve been an electrician myself for years, and I just really love craftsmen, I really want you guys to succeed. I know, how much effort it takes to do what you do. I love the fact that you love your craft. I appreciate the skill and integrity and effort it takes to deliver what you deliver. I want you to thrive. You deserve to thrive.
That’s why I started my digital marketing agency ThrivingCraftsmen. I want Craftsmen to thrive.
And one more thing. My agency, ThrivingCraftsmen focuses on Direct Response advertising. That’s a big way of saying that I can tell you to the cent how much each lead cost you, and once we establish a long term relationship and do the math we can start calculating how much money you made per $ invested in advertising. The fluffy listing that you pay for each month — that you think is making money, you’re just not sure how much? we don’t do that. Random brand awareness stuff. Nope.
We get you qualified leads. Pure and simple. And we tell you how much each lead is costing you.
What this will look like
Imagine the following:
You’re booked for 2 weeks ahead. You turn off the advertising stream. You deliver your magic. Business slows down, you have some empty slots, you turn it back on. Boom, Leads walk in the door.
You want to go on vacation? Off season for your trade? No problem. Shut it down.
You never, ever, ever, have to worry about where the customers will come from. You sleep well, knowing that you will always have customers, you only need to focus on what you do best — delivering on the job.
Your business is thriving. You’re growing month to month. Now you can focus on some better challenges. Like hiring more qualified employees.
And by the way, as a side note, we can help you with that as well. Your ideal employees are on Facebook too! And we can help you find them, and hire them!
Final word.
You’re a craftsman, an artisan. You know your trade down cold, and you should be free to focus on that aspect of your business.
Let us handle the marketing aspect of your business for you. Let us deliver you as many qualified leads as you need. Focus on your trade. Deliver the awesome work you know how to do. What you do is awesome! It’s the foundation of our society. No disrespect to lawyers, accountants (sorry Randal) and such, but Without craftsmen like you society is literally moving back into caves.
You deserve to thrive
Yours truly, Tomer Applebaum
If you’re interested in learning more you’re welcome to register for our free live webinar. I will be going more in depth on how this works, and how you can easily start going in the right direction. There will also be a Q&A session where you can have all of your questions answered.
I trust this podcast helps you understand that outsourcing your contractors bookkeeping services to us is about more than just “doing the bookkeeping”; it is about taking holistic approach to your entire construction company and helping support you as a contractor and as a person.
We Remove Contractor's Unique Paperwork Frustrations
We understand the good, bad and the ugly about owning and operating construction companies because we have had several of them and we sincerely care about you and your construction company!
That is all I have for now and if you have listened this far please do me the honor of commenting and rating podcast www.FastEasyAccounting.com/podcast Tell me what you liked, did not like, tell it as you see it because your feedback is crucial and I thank you in advance.
You Deserve To Be Wealthy, Because You Bring Value To Other People's Lives!
This is one more example of how Fast Easy Accounting is helping construction company owners across the USA including Alaska and Hawaii put more money in the bank to operate and grow your construction company. Construction accounting is not rocket science; it is a lot harder than that and a lot more valuable to construction contractors like you so stop missing out and call Sharie 206-361-3950 or email sharie@fasteasyaccounting.com
Thinking About Outsourcing Your Contractors Bookkeeping Services?
Thank you very much and I hope you understand we really do care about you and all contractors regardless of whether or not you ever hire our services. Bye for now until our next episode here on the Contractors Success MAP Podcast.
The Information Shown Below Is From Fast Easy Accounting
OUTSOURCED ACCOUNTING FOR THE BUSY CONTRACTOR IN A MOBILE ENVIRONMENT
Download The Contractors APP Now!
Access code: FEAHEROS
The QR Code Below Will Go
Apple Or Android Store
Whichever One
You Need
Simply scan the QR code below or search for ‘MyAccountants’ in the App Store and enter the Access code: FEAHEROS to utilize the powerful App features and capabilities, and benefit from having our Construction Accounting App at your fingertips, 24/7.
Access code: FEAHEROS
Or click to download the Contractors APP now from the App or Android store
Randal DeHart, PMP, QPA is the co-founder of Business Consulting And Accounting in Lynnwood Washington. He is the leading expert in outsourced construction bookkeeping and accounting services for small construction companies across the USA. He is experienced as a Contractor, Project Management Professional, Construction Accountant, Intuit ProAdvisor, QuickBooks For Contractors Expert and Xero Accounting Specialist. This combination of experience and skill sets provides a unique perspective which allows him to see the world through the eyes of a contractor, Project Manager, Accountant, and construction accountant. This quadruple understanding is what sets him apart from other Intuit ProAdvisors and Xero accountants to the benefit of all of the construction contractors he serves across the USA. Visit http://www.fasteasyaccounting.com/randal-dehart/ to learn more.
Our Co-Founder Randal DeHart - Is a Certified PMP (Project Management Professional) with several years of construction project management experience. His expertise is construction accounting systems engineering and process development. His exhaustive study of several leading experts including the work of Dr. W. Edward Deming, Michael Gerber, Walter A. Shewhart, James Lewis and dozens of others was the foundation upon which our Construction Bookkeeping System is based and continues to evolve and improve. Check out our Contractor Success Map Podcast on iTunes and Follow Randal on Google+
We are here to Help “A Little or A Lot” depending on your needs.
I trust this podcast helps you understand that outsourcing your contractor's bookkeeping services to us is about more than just “doing the bookkeeping”; it is about taking a holistic approach to your entire construction company and helping support you as a contractor and as a person.
We Remove Contractor's Unique Paperwork Frustrations
We understand the good, bad and the ugly about owning and operating construction companies because we have had several of them and we sincerely care about you and your construction company!
That is all I have for now, and if you have listened to this far please do me the honor of commenting and rating the Podcast www.FastEasyAccounting.com/podcast Tell me what you liked, did not like, tell it as you see it because your feedback is crucial and I thank you in advance.
You Deserve To Be Wealthy Because You Bring Value To Other People's Lives!
This Is One more example of how Fast Easy Accounting is helping construction company owners across the USA including Alaska and Hawaii put more money in the bank to operate and grow your construction company. Construction accounting is not rocket science; it is a lot harder than that, and a lot more valuable to construction contractors like you so stop missing out and call Sharie 206-361-3950 or email sharie@fasteasyaccounting.com
Contractor Bookkeeping Done For You!
Thinking About Outsourcing Your Contractors Bookkeeping Services?
Thank you very much, and I hope you understand we do care about you and all contractors regardless of whether or not you ever hire our services. Bye for now until our next episode here on the Contractors Success MAP Podcast.
Most Contractors Setup QuickBooks Or Xero Online Accounting Using:
#1 EZ Step Interview inside QuickBooks Setup #2 Asked Their Tax Accountant To Setup QuickBooks #3 They Attended A How To Setup QuickBooks Class Or Seminar
And QuickBooks Does Not Work The Way They Want It Too!
Contractors_Success_MAP, Contractors_Success_Marketing_Accounting_Production, Contractor_Bookkeeping_Services, QuickBooks_For_Contractors, QuickBooks_For_Contractors,Contractors Success Map Corey Philp Home Pro Success Contractor Marketing Valve Stem Stra
29 Jan 2021
0404: The Reason Why Some Construction Projects Fail
00:08:42
This Podcast Is Episode Number 404, And It's About The Reason Why Some Construction Projects Fail
Estimating and submitting bids is one of the most stressful and nerve-wracking sides of your construction business. It is essential to keep in mind that "break-even" in the construction business is challenging to calculate because most projects are one-of-a-kind custom jobs. Proactive contractors have systems and cost libraries with pre-priced assemblies for bidding, which works in conjunction with Strategic Construction Accounting to provide management with progress invoicing, job costing, and job profitability.
With poor bookkeeping, misguided judgment, and clerical errors come bad decisions on what projects to bid on and not to bid on until eventually, you'll run out of time and money. This is why some construction projects fail or, worse, construction companies get bankrupt.
Whenever someone decides to have some work done, they get several bids from competing contractors because they heard someone say a long time ago.
There are two things to consider:
The Low Bidder
Good / Fast / Cheap- Choose Cheap & Fast or Cheap & Slow! Expect the project to be late and over budget!
Base costs- Taxes, fuel, cell phones, nails, glue, and small parts are the same for all contractors; no savings here.
Labor- Cheap labor makes mistakes and causes damage because they are learning, by experience, on your project!
Material- Price is King! So they buy and install cheap material!
Tools- Cheap tools take more time, and the finished product may be hard on the eyes, but they have to cut costs!
Trucks- Rickety old trucks and vans may break down, which means the job may take longer, but costs have to be cut!
Office- They work out of their house or truck; so-called no-overhead
Cheap Construction Manager- Biggest, "baddest" construction worker. Also, the bill collector. Also acting as a "Working Project Manager," which means the company is attempting to save money in the short run and lose money in the long term. Assembling parts and building something takes a "Tactile" mindset. Running a project is "Strategic." Put another way, no man can serve two masters as he will hate one and love the other, and the inevitable outcome is the Peter Principle, which leads to a construction train wreck.
Invoices- Make no sense, the total cost may exceed the bid, and you will pay the contractor to avoid violence!
Warranty- Cheap contractors cannot afford warranty work because they are "One-Hit-Wonders" never to return.
The Other Bidders
Good / Fast / Cheap- Choose Good & Fast or Good & Slow! Expect the project was done on time and on a budget!
Base costs- Taxes, fuel, cell phones, nails, glue, and small hardware are the same for all contractors.
Labor- Skilled labor costs more, produces more work faster with fewer mistakes, which means a quality project.
Material- Quality and reputation are King! Skilled labor can install quality material faster than cheap material.
Tools- Quality tools and equipment cost more and produce a product that is easy on the eyes and lasts longer.
Trucks- Reliable trucks and vans mean the job is done quicker and with fewer delivery issues.
Office- Skilled staff and office equipment provide for effective communication.
Qualified Construction Manager- Has a construction background and formal training in project management. Most professional construction companies with good reputations will have people with credentials like PMP (Project Management Professional) assigned to oversee projects.
Invoices- Are Pay Applications that make sense because they show a history of costs and payments made.
Warranty Work- This is a marketing cost because the first project is the beginning of a relationship.
Final thoughts
Never hire the lowest bidder. The sweetness of low price fades quickly while the bitterness of poor quality lingers on. When hiring a contractor, discard the low bidder because you will get what you pay for and sometimes less than what you paid for. See that you have enough time to review subcontractor pricing and make clarifications from the project manager, architect, or owner if there's anything you are unsure of. This is where writing down a list and checking it twice will come in handy.
About The Author:
Sharie DeHart, QPA, is the co-founder of Business Consulting And Accounting in Lynnwood, Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations and offers insights on how to manage the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. Call 1-800-361-1770 or sharie@fasteasyaccounting.com
01 Sep 2017
0232: Contractors Need These Key Resources To Run Their Company Smoothly
00:12:06
This Podcast Is Episode Number 0232 And It Will Be AboutContractors Need These Key Resources To Run Their Company Smoothly
Contractors Need Additional Resources To Smoothly Run Their Business
Running a Construction Business is part serious, part white knuckles, part smooth sailing with moments of fun. Because those moments of fun can be few and far between every Contractor needs to have a little humor. Try to see the glass is half full when it really feels like you are in “The Wizard of Oz, ” and instead of going to Kansas you went somewhere else less fun.
Streamline Your Contracting Company Operations With Our Free Checklist You are an intelligent Contractor which means you know how to operate your construction company, and the biggest barrier to your success is getting your employees to do what you want them to do when you want them to do it, and do it the way you know works best. https://www.fasteasyaccounting.com/contracting-company-operations-checklist
Free Construction Estimate Template You need this simple estimate because you can use it anytime, anywhere. It has lines for description, quantity, rate, and amount. It automatically subtotals the items, adds sale tax or markup (if you need it) and totals everything. https://www.fasteasyaccounting.com/free-construction-estimate-template
Free Invoice Template Built On Excel You need this simple invoice because you can use it anytime, anywhere. It has lines for description, quantity, rate, and amount. It automatically subtotals the items, calculates sales tax and totals everything for you! It is designed to record a payment and show balance due. With many invoice forms, it is too easy to have a payment be treated as a credit when it is not applied properly on the form. https://www.fasteasyaccounting.com/blog/bid/144649/free-contractor-invoice-template-on-excel
Free Construction Template Change Order Form For Contractors The purpose of the construction change order form is to help you make a prisoner on paper any conversations between your customer and you, the contractor, your project manager, superintendent, foreman, construction worker or anyone else who has conversations with your customer. https://www.fasteasyaccounting.com/free-construction-template-change-order-form-for-contractors
A lot of the money is made or lost on a job as shown in the profit and loss by job report can be traced back to how well construction change orders were handled. Customers remember and changes that reduce the amount they owe. Expect some memory loss about the additions that replaced them. https://www.fasteasyaccounting.com/free-construction-template-change-order-form-for-contractors
Free Contractors Application For Payment Sample For Construction Contractors Are You Having Problems Getting Paid On Large Projects? The problem is when you get beyond two invoices, add some job deposits and change orders the process gets real tricky because there is no "Magic Button" in QuickBooks for contractors that will generate an invoice that makes sense to your customer.https://www.fasteasyaccounting.com/free-contractors-application-for-payment-sample-0
Free Time Card Samples For Construction Contractors Employees need to fill out their time card daily for the most accuracy. The nature of employees it to fill their time card five minutes before they would like to collect their paycheck. See a variety of timecards that can be printed and manually filled out or are Excel and can be filled out on a computer.https://www.fasteasyaccounting.com/free-sample-time-card-calculator-downloads
Electronic Timecards Have your employees clock in and out using their cell phone. Recommend electronic time cards as the best way to not over handle the payroll information and have the information in a usable format for future reference. https://www.fasteasyaccounting.com/tsheets
This Is The Tip - Of The Iceberg. Everything we publish in our blog posts, articles in other websites, and anything you can find on the web is nothing compared to what is available to you as our client. We show only the basic tools to open your mind to the possibilities that are available to you. The best finish carpentry tools in the hands of a golf professional without proper carpentry training will not produce anything near to what a skilled finish carpenter can. The same can be said about the best construction business consulting and accounting tools in the hands of a skilled finish carpenter. And I say that with respect and admiration for everyone in construction.
If you are behind on your taxes and other bills. To get a line of credit, you need financials and you are receiving nasty phone calls and letters from Your Vendors and Government Agencies you may want to engage our services to do your bookkeeping. We try to keep the process as simple as possible.
We Do Not Close Sales, We Open Relationships Hard Ball closing is not my style. You are added to our marketing workflow and receive a series of emails, but I do not call so often that you dread taking my call. We have solutions when you are ready.
Safe Driving This Labor Day Weekend. PS. To everyone in the Houston Area. Thinking Happy Thoughts in your direction. Washington State has had a nice summer – Please start sending back our Seattle rain; we miss it.
Sharie DeHart, QPA is the co-founder of Business Consulting And Accounting in Lynnwood Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations and offers insights on how to manage the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. http://www.fasteasyaccounting.com/sharie-dehart/ 206-361-3950 or sharie@fasteasyaccounting.com
I trust this podcast helps you understand that outsourcing your contractor's bookkeeping services to us is about more than just “doing the bookkeeping”; it is about taking a holistic approach to your entire construction company and helping support you as a contractor and as a person.
We Remove Contractor's Unique Paperwork Frustrations
We understand the good, bad and the ugly about owning and operating construction companies because we have had several of them and we sincerely care about you and your construction company!
That is all I have for now, and if you have listened to this far please do me the honor of commenting and rating podcast www.FastEasyAccounting.com/podcast Tell me what you liked, did not like, tell it as you see it because your feedback is crucial and I thank you in advance.
You Deserve To Be Wealthy Because You Bring Value To Other People's Lives!
This Is One more example of how Fast Easy Accounting is helping construction company owners across the USA including Alaska and Hawaii put more money in the bank to operate and grow your construction company. Construction accounting is not rocket science; it is a lot harder than that, and a lot more valuable to construction contractors like you so stop missing out and call Sharie 206-361-3950 or email sharie@fasteasyaccounting.com
Contractor Bookkeeping Done For You!
Thinking About Outsourcing Your Contractors Bookkeeping Services?
Thank you very much, and I hope you understand we do care about you and all contractors regardless of whether or not you ever hire our services. Bye for now until our next episode here on the Contractors Success MAP Podcast.
Sharie DeHart, QPA is the co-founder of Business Consulting And Accounting in Lynnwood Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations and offers insights on how to manage the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. http://www.fasteasyaccounting.com/sharie-dehart/ 206-361-3950 or sharie@fasteasyaccounting.com
Most Contractors Setup QuickBooks Desktop Version In One Of Three Ways:
#1 EZ Step Interview inside QuickBooks Setup #2 Asked Their Tax Accountant To Setup QuickBooks #3 They Attended A How To Setup QuickBooks Class Or Seminar
And QuickBooks Does Not Work The Way They Want It Too!
His marketing podcast is unlike anything available elsewhere to contractors. He talks with marketing specialists across the board who give us concrete tips directed entirely towards the trades. Some of the topics they cover include Marketing, Sales Cycles, Pricing, Positioning, Branding and more.
Just about everything he talked about when I interviewed him included the good the bad and the boring. We discussed what has worked for Dave in his Painting and Real Estate Investment business and why it worked and why it might not have worked.
Dave went into extensive detail about why good marketing is the key to having a very profitable business. One of his quotes I really enjoyed is "Throwing good money into the black hole of advertising is not good marketing it is BAD advertising."
During this Podcast, he revealed the key differences and teaches the right questions to ask advertisers. Dave considers it a win if you cease thinking of your contracting company as commodity-based and switch to value-based. The only way to do that is to cherry-pick only the best "clients" and leave low value "customers" to your competition.
Customers Vs. Clients
Customers - Are disloyal price buyers who buy products and services with cost as their primary consideration.
Clients - Are loyal value buyers who purchase goods and services with suitability as their primary consideration.
Your Business Strategy - Will determine which group you want to serve and there is no right or wrong answer, just different approaches.
High Volume And Low Margin -Construction projects can generate the same net profit and cash flow as low volume and high margin projects.
Think - Long and hard about what you want your construction company reputation for serving the best clients and delivering high value.
The 80-20 Rule Combined With Business Process Management
Can Improve Your Life In Ways You Never Dreamed Possible!
20% Of The Construction Companies - Share the Top 80% of the profits which the owners and shareholders use to support lavish lifestyles because they know what to do when to do it and how to do it!
80% Of The Construction Companies - Share the Bottom 20% of the profits which the owners and shareholders use to support just above or just below average lifestyles because they don't know what to do, when to do it or how to do it!
Dave Nergi's Contracting Experiences And Life Lessons He Shared
Dave has been a painting contractor and entrepreneur for the last 28 years. He has successfully started and grown service-based businesses like his Elite Home and Property Services company in Clearwater, FL. Through hard work and marketing knowledge, Dave has left the day-to-day operations so he can help other contractors grow and succeed.
In 2001 Dave put his painting business aside due to the boom of the real estate market. He focused on buying and selling houses for the next 5 years, successfully “flipping” over 55 homes. He attributes his success at this endeavor entirely to his knowledge and background in marketing.
While other contractors scrambled to pick up crumbs then and in the following crash, Dave has been chugging away, providing a very nice life for his family and taking his wife (Valerie) on trips and generally enjoying his success.
I trust you will enjoy listening to this podcast and please feel free to contact Dave Nergi:
Randal DeHart, PMP, QPA is the co-founder of Business Consulting And Accounting in Lynnwood Washington. He is the leading expert in outsourced construction bookkeeping and accounting services for small construction companies across the USA. He is experienced as a Contractor, Project Management Professional, Construction Accountant, Intuit ProAdvisor, QuickBooks For Contractors Expert and Xero Accounting Specialist. This combination of experience and skill sets provides a unique perspective which allows him to see the world through the eyes of a contractor, Project Manager, Accountant, and construction accountant. This quadruple understanding is what sets him apart from other Intuit ProAdvisors and Xero accountants to the benefit of all of the construction contractors he serves across the USA. Visit http://www.fasteasyaccounting.com/randal-dehart/ to learn more.
Our Co-Founder Randal DeHart - Is a Certified PMP (Project Management Professional) with several years of construction project management experience. His expertise is construction accounting systems engineering and process development. His exhaustive study of several leading experts including the work of Dr. W. Edward Deming, Michael Gerber, Walter A. Shewhart, James Lewis and dozens of others was the foundation upon which our Construction Bookkeeping System is based and continues to evolve and improve. Check out our Contractor Success Map Podcast on iTunes and Follow Randal on Google+
We are here to Help “A Little or A Lot” depending on your needs.
I trust this podcast helps you understand that outsourcing your contractor's bookkeeping services to us is about more than just “doing the bookkeeping”; it is about taking a holistic approach to your entire construction company and helping support you as a contractor and as a person.
We Remove Contractor's Unique Paperwork Frustrations
We understand the good, bad and the ugly about owning and operating construction companies because we have had several of them and we sincerely care about you and your construction company!
That is all I have for now, and if you have listened to this far please do me the honor of commenting and rating the Podcast www.FastEasyAccounting.com/podcast Tell me what you liked, did not like, tell it as you see it because your feedback is crucial and I thank you in advance.
You Deserve To Be Wealthy Because You Bring Value To Other People's Lives!
This Is One more example of how Fast Easy Accounting is helping construction company owners across the USA including Alaska and Hawaii put more money in the bank to operate and grow your construction company. Construction accounting is not rocket science; it is a lot harder than that, and a lot more valuable to construction contractors like you so stop missing out and call Sharie 206-361-3950 or email sharie@fasteasyaccounting.com
Contractor Bookkeeping Done For You!
Thinking About Outsourcing Your Contractors Bookkeeping Services?
Thank you very much, and I hope you understand we do care about you and all contractors regardless of whether or not you ever hire our services. Bye for now until our next episode here on the Contractors Success MAP Podcast.
About The Author:
Randal DeHart, PMP, QPA is the co-founder of Business Consulting And Accounting in Lynnwood Washington. He is the leading expert in outsourced construction bookkeeping and accounting services for small construction companies across the USA. He is experienced as a Contractor, Project Management Professional, Construction Accountant, Intuit ProAdvisor, QuickBooks For Contractors Expert and Xero Accounting Specialist. This combination of experience and skill sets provides a unique perspective which allows him to see the world through the eyes of a contractor, Project Manager, Accountant, and construction accountant. This quadruple understanding is what sets him apart from other Intuit ProAdvisors and Xero accountants to the benefit of all of the construction contractors he serves across the USA. Visit http://www.fasteasyaccounting.com/randal-dehart/ to learn more.
Our Co-Founder Randal DeHart - Is a Certified PMP (Project Management Professional) with several years of construction project management experience. His expertise is construction accounting systems engineering and process development. His exhaustive study of several leading experts including the work of Dr. W. Edward Deming, Michael Gerber, Walter A. Shewhart, James Lewis and dozens of others was the foundation upon which our Construction Bookkeeping System is based and continues to evolve and improve. Check out our Contractor Success Map Podcast on iTunes and Follow Randal on Google+
Most Contractors Setup QuickBooks Desktop Version In One Of Three Ways:
#1 EZ Step Interview inside QuickBooks Setup #2 Asked Their Tax Accountant To Setup QuickBooks #3 They Attended A How To Setup QuickBooks Class Or Seminar
And QuickBooks Does Not Work The Way They Want It Too!
450: Four Practical Reasons To Switch To Cloud Based Accounting
00:09:33
This Podcast Is Episode Number 450, And It's About Four Practical Reasons To Switch To Cloud-Based Accounting
If you've been considering making a move to a cloud-based accounting system, you're not alone. Cloud technology has impacted many business functions, including efficiently managing your business's financial aspects.
Cloud-based accounting moves your accounting from being hosted on your computer's hard drive to an online platform. Cloud-based platforms like QuickBooks and Xero offer important features that save you time and money, freeing you to focus on other essential construction business activities.
Here are four reasons to switch to a cloud-based accounting system.
1. Efficient invoicing
If your business relies heavily on invoicing, an online accounting system like QuickBooks or Xero makes invoicing incredibly efficient. You can email invoices to clients directly through your software and track how long it's been since the invoice went out.
Clients pay you through a link attached to the invoice, making the payment process easier for them, which increases the likelihood they'll pay you sooner. If they pay through the system, your platform will automatically mark the invoice as paid. If their payment is late, the system alerts you.
Further, you can set up your software to send automatic reminders about late payments. Taxes are automatically calculated for you, and you can set up recurring invoices and retainers to further automate your invoicing.
2. Paperless accounting
Managing your accounting through a cloud-based system enables you to move away from paper accounting. You don't have to worry about where or how to store years of paperwork and files because everything is securely stored in the cloud. Likewise, you don't have to go through boxes of files to find a receipt from two years ago; you can simply access the information through your computer.
It's easy for you to share your records with your accountant, bookkeeper, or anyone else who may need to collaborate on your finances. You don't have to mail them physical copies of your financial transactions and statements; you can email them the information or give them access to your software.
3. Accessibility
With a cloud-based accounting system like QuickBooks or Xero, you don't have to be in the office in front of your computer to access your financial information. You can see your ledgers and reports from anywhere, on any device. If you want to work from home one day or at your job site the next, you can log in to your software from your smartphone to send invoices, check your reports, or manage expenses.
4. Accurate reporting
A critical component of running your construction business is reporting. Accurate reporting enables you to manage your finances better and understand your profitability. It's vital for making informed decisions about your business.
Cloud accounting provides you with accurate reporting at the click of a button. Using systems like QuickBooks or Xero, you can easily access profitability reports, income and expense reports, and year-end reports.
The information is available to you automatically--you don't have to spend hours in front of a calculator going through every invoice to see your numbers. Simply by keeping your records in a cloud-based system, you can quickly generate accurate reports.
Which QuickBooks remote access option is best for contractors like you?
We recommend QuickBooks online when
your company is run like a hobby
you do not need full QuickBooks
your sole focus is saving money
basic simple reports are all you need
you have three employees or less
you enjoy doing everything yourself
you have a lot of time to learn a software
We recommend QuickBooks Desktop Version Cloud Computing when
you want to earn a profit
you need Job Costing Reports and solid Financial Reports
you need the power of the full QuickBooks Desktop version
you are focused on saving money with innovations and cost control
you are open to implementing a Business Plan designed to increase sales
Xero Accounting Online works best when
you need to get paid faster and easier
you have simple jobs you invoice individually
you need to invoice customers at the job site
you need Key Performance Indicator Financial Reports
you want professional Construction Accounting at lower costs
Final thoughts
If you're hosting your accounting information on your computer hard drive, it's worth looking into cloud-based accounting to see if you can benefit from the switch. Given the ease of invoicing and accurate record-keeping, combined with the accessibility of a paperless system, you may find cloud-based accounting software is the right plan for you.
We offer both Xero Accounting Online and QuickBooks bookkeeping services for construction contractors and have found that the dividing line is how you get paid. Reach out if you need help with starting a Cloud-based accounting system for your construction company.
About The Author:
Sharie DeHart, QPA is the co-founder of Business Consulting And Accounting in Lynnwood, Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations and offers insights on how to manage the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. Call 1-800-361-1770 or sharie@fasteasyaccounting.com
17 Oct 2014
0081: Contractors Success Map Bookkeeping Services For Contractors Using QuickBooks
00:14:20
This Podcast Is Episode Number 0081 And It Will Be About Bookkeeping Services For Contractors Using QuickBooks
If You Own A Construction Company - Then you understand that Bookkeeping is just one of those mundane, nasty, dirty, aggravating, grubby little chores you get stuck with along with its rotten scoundrel cousin the Monthly / Quarterly Tax Reports.
If You Have Employees - Whoa! Look out! Now you have payroll to process, in some cases you may decide to provide cash advances to your employees to keep them focused on the job and not on personal issues and finally there are all the Payroll Taxes you need to keep track of and file the reports for on a regular basis. Some Contractors - Decide their time is more valuable spent meeting prospective clients, putting together bids, managing jobsites and a whole lot of other things other than bookkeeping. So they find someone else to do it and that is the subject of this article.
Just Like There Are - Skilled construction workers and clowns trying to pass themselves off as skilled workers there are Professional Bookkeepers and Bad Bookkeepers.
You Know How To - Tell if someone knows what they are doing in construction because you have been doing it a while.
You May Not Know - How to tell if someone is going to do right by you in your bookkeeping so here are the top ten things to watch out for:
Red Flag #01 Professionals Have A Real Office - Professionals in any field, doctors, lawyers, consultants and bookkeepers that cannot afford to maintain an office, even a small one room office, outside their home is in my opinion dangerous, dangerous, dangerous!
The Ones Who Say - "I keep my overhead low" may as well be saying "Your records are available to any of my family, friends and neighbors to rummage through them because I am not the least bit concerned about your exposure to Identity theft or you competition getting a peek at what your business is all about."
Red Flag #02 Professionals Do Not Work Alone - Because it is too easy to get sloppy and lazy when there is nobody else looking over their work. After a while they develop a severe case of the stupids! Just like a hermit living in the mountains in a cabin they go stir crazy.
Red Flag #03 Professionals Accept Credit Cards - Wanna Bees don't and in a lot of cases it is because of bad credit score, business location, business setup, criminal record, (Perhaps involving embezzlement) and a whole lot of other reasons including the fact that it cost money to take credit and debit cards.
The Ones Who Say - "It costs money to accept credit cards" ask them if they use credit cards ask yourself, "What are they really saying?" Business Consulting And Accounting - Accepts all major credit and debit cards including Visa, MasterCard, Novus, Discover, American Express, Check Cards, Cash, Checks and Wire Transfer. And it does not cost you anything extra!
Red Flag #04 Bad Bookkeeper - For a short list of Bad Bookkeeper Traits Click Here
Red Flag #05 Time Billing Only - Professional Bookkeeping Services charge a flat monthly fee for services. Only someone who does not know what they are doing still charges by the hour.
We Are Accountants For Goodness Sake - Any bookkeeping and accounting firm that does not know how to calculate complex algorithms that take into account fluctuations in the workload and generate a monthly fee that is fair to you and them they need to go back to school and take those courses on Decision Modeling, Statistical Analysis and Business Process Management.
All Professional Bookkeeping Services - Have formulas for calculating fee structures. It is not rocket science:
How many employees do you have? From that we know how much time and effort will be required to process payroll and do the tax reports
What type of construction do you do? New, remodel, service, residential, commercial? From the number of employees and the type of work you do we know how much time and effort will be required to do all the bookkeeping, bank and vendor reconciliations and the rest. Because we have a System. Click Here To Learn About Our System
Red Flag #06 All Businesses Welcome - Gone is the day of the person sitting at the desk with green eyeshades handling the books for a variety of businesses. You Are Facing Fierce Competition - And it is getting worse. You need someone who specializes in your industry. If you are in the construction industry we can help. If you are in the restaurant industry, sorry, we cannot help you.
Red Flag #07 Your QuickBooks Is Hidden - Today more than ever you need to have access to your QuickBooks. Any bookkeeping service that cannot or will not allow you 24/7 access to your QuickBooks Desktop Version in a cloud based environment is doing you a disservice. Now if you do not want or need it that is O.K. too!
Red Flag #08 Annual Tax Return And Bookkeeping - Bad, Bad, Bad....I have written several articles on this subject and you can Click Here For The Best One
Red Flag #09 Unwilling To Collaborate - When your bookkeeper gets a bit uncomfortable about other people being involved and overseeing your financial records you have a BIG PROBLEM.
We Advocate Trust-But-Verify - There are five people you need on your Board of Advisors and you are paying for their services anyway so you may as well take full advantage of them. They are there to help you.
Red Flag #10 They Do Not Understand KPI - KPI is short for Key Performance Indicators also known as the Five Key Reports every contractor needs. For more information about Key Performance Indicators Please visit www.FastEasyAccounting.com/kpi
I hope this podcast helps you understand that outsourcing your contractors bookkeeping services to us is about more than just “doing the bookkeeping”; it is about taking holistic approach to your entire construction company and helping support you as a contractor and as a person.
We understand the good, bad and the ugly about owning and operating construction companies because we have had several of them and we sincerely care about you and your construction company!
That is all I have for now and if you have listened this far please do me the honor of commenting and rating podcast www.FastEasyAccounting.com/podcast Tell me what you liked, did not like, tell it as you see it because your feedback is crucial and I thank you in advance.
We Remove Contractor's Unique Paperwork Frustrations
For Construction Company Owners who do not need the full power of QuickBooks for contractors and want 24/7 online access we offer Xero Accounting Online and we have custom setup for construction companies.
I hope this podcast helps you understand that outsourcing your contractors bookkeeping services to us is about more than just “doing the bookkeeping”; it is about taking holistic approach to your entire construction company and helping support you as a contractor and as a person.
We understand the good, bad and the ugly about owning and operating construction companies because we have had several of them and we sincerely care about you and your construction company!
That is all I have for now and if you have listened this far please do me the honor of commenting and rating podcast www.FastEasyAccounting.com/podcast Tell me what you liked, did not like, tell it as you see it because your feedback is crucial and I thank you in advance.
You Deserve To Be Wealthy, Because You Bring Value To Other People's Lives!
This is one more example of how Fast Easy Accounting is helping construction company owners across the USA including Alaska and Hawaii put more money in the bank to operate and grow your construction company. Construction accounting is not rocket science; it is a lot harder than that and a lot more valuable to construction contractors like you so stop missing out and call Sharie 206-361-3950 or email sharie@fasteasyaccounting.com
Thinking About Outsourcing Your Contractors Bookkeeping Services?
In closing, I want to caution you that we may or may not be a good fit for your contracting company. This guide will help you learn what to look for in outsourced construction accounting.
Thank you very much and I hope you understand we really do care about you and all contractors regardless of whether or not you ever hire our services. Bye for now until our next episode here on the Contractors Success MAP Podcast.
0151: Why Successful Contractors Use Professional Bookkeeping Services
00:42:29
This Podcast Is Episode Number 0151 And It Will Be About Why Successful Contractors Use Professional Bookkeeping Services
What You Should Expect From Your Bookkeeping System? The first and most important principle in Construction Accounting is everything starts with Cash because Cash Is Fact; Profit Is An Opinion.
All transactions in the bank account of your construction accounting system no matter if it is QuickBooks or Xero must be assigned to the proper accounts:
Income
Job Deposits
Payroll
Taxes
Cost of Goods Sold (Direct and Indirect Costs including Labor, Material, Other and Subcontractors.
Other costs including permits, plans, bills from suppliers and purchases on your personal credit cards.
Overhead
Second Important Principle In Construction Accounting Tracking Income properly, Knowing how, when and where to put Customer Estimates, Customer Invoices, Customer Job Deposits and any Retainage Withheld, Vendor Refunds and Rebates.
Good Construction Accounting
Is All About the Details
Payroll entered into QuickBooks (Employee, Check and Tax Detail depends on the Payroll Service used). Bank Reconciliations, Credit Card Reconciliations including Home Depot and Lowes, Vendor Statements verified and matched against invoices.
The Answers You Need To Operate And Grow
Your Construction Company Are In Reports
To get accurate reports the paperwork details must be entered into your QuickBooks by following The Construction Accounting Method NOT The Regular Accounting Method.
The old saying “Garbage In = Garbage Out” is 100 times more true when it comes to Construction Accounting. When your bookkeeper takes shortcuts in the data entry, for example entering bulk numbers from credit statements for expenses in bulk instead of entering each transaction your Financial and Job Costing Reports are totally worthless.
You Need To Know Who is your customer, how much have you billed them, are there unbilled change orders? If you do not tell your bookkeeper and they do not put the information into QuickBooks how will you ever know, let alone get paid?
Who do you owe money unless you tell your bookkeeper? Who did you purchase material, labor, subcontractors, other items from, when and was it paid with cash, check, credit card or put on the charge account? If you do not tell your bookkeeper and they do not put the information into QuickBooks how will you ever know what the Job Costs are let alone Job Profitability?
QuickBooks needs to know how to allocate the costs (money spent) to give accurate Job Costing reports. foundation of data has been entered properly. Balance Sheet Report reflects the heath of the business – again QuickBooks can only report on the information given.
What kind of Basic Financial Reports can using Fast Easy Accounting’s Customized Setup Provide?
Every Contractor Should Have These Reports No Matter Who Is Doing The Bookkeeping.
The Next Layer of Construction Accounting. Here is where someone who knows Construction Accounting should be doing the bookkeeping. Many bookkeepers say they know Construction Accounting but are “Clueless About Doing Construction Accounting”. Just like many people know about being a passenger on a commercial jumbo jet but people “Clueless About Piloting A Jumbo Jet”.
Hint: a good clean, easy to understand QuickBooks setup does not need class tracking unless your construction company has multiple locations. What kind of Job Costing Reports can using Fast Easy Accounting’s Customized QuickBooks Setup For Contractors Provide?
Job Profitability Summary Summarizes the profits your Construction Company earned from serving each construction customer within the date range you selected on the report.
The Key Column Is the Percentage (%) of Difference. This tells you which customers and clients are profitable and which ones are not. In this example it is Sam Hill is in the top twenty percent (20%) and Henry Mancini is in the bottom eighty percent (80%).
In Most Cases When I run this report for a contractor, after we have finished cleaning up QuickBooks, the contractors are amazed because more often than not their "Friends and Family" are the least profitable and the customers who make very little fuss or cause problems are the most profitable.
Profit & Loss by Job Shows you how much cash and profit you are making or losing on each job depending on the date range you selected.
The Key Column Is the Percentage (%) of Income. This tells you which of your customers are most profitable and least profitable. In this example it is Sam Hill is in the top twenty percent (20%) of the income scale and Henry Mancini is in the bottom eighty percent (80%).
Unbilled Costs by Job Report shows you a list of costs assigned to a specific customer or job that has not been billed.
The Key Column Is the "Billing Status" because as new costs are added this report will grow and as existing costs are Billed this report will shrink. Also any jobs that are Fixed Bid that appear in the "Billing Status" will need to be opened and fixed otherwise this report will become cluttered and useless.
Every Ninety Days Or Less Replace your least profitable customer and replace them with someone who is like the people in the Top Twenty Percent (20%) and watch your profits soar!
Fast Easy Accounting website can have so much detail that people get lost on it. So here is the short version of What We Do:
We Setup QuickBooks For All Kinds Of Contractors Handyman, Home Builders, Commercial Tenant Improvement And Specialty Contractors
Brand New Contractors HVAC Contractors Carpentry Construction Insulation Contractors Carpet Installers Interior Designers Commercial T. I. Contractors Land Development Contractors Concrete Contractors Landscape Contractors Construction Managers Masonry Contractors Custom Deck Contractors Mold Remediation Contractors Custom Home Builders Painting Contractors Demolition Contractors Plumbing Contractors Drywall Contractors Pressure Washing Contractors Electrical Contractors Remodel Contractors Emerging Contractors Renovation Contractors Excavation Contractors Restoration Contractors Finish Millwork Contractors Roofing Contractors Flipper House Contractors Spec Home Builders Flooring Contractors Specialty Contractors Framing Contractors Subcontractors General Contractors Trade Contractors Glass Installation Contractors Underground Contractors Gutter Installation Contractors Utility Contractors Handyman Contractors
We provide QuickBooks Cleanup of existing transactions, enter Missing Transactions and provide ongoing Contractors Bookkeeping Services. We have a vendor who hosts QuickBooks (Desktop Version) in the Cloud Environment using a Commercial Host approved by Intuit (makers of QuickBooks).
Using 3rd Party Software that is user friendly to QuickBooks (not all 3rd Party Software works as well as advertised) we make the data collection of receipts and sending bank and credit card statements easy for our clients.
With our web based financial reporting tool, our clients are able to review their financial statements 24/7; it comes with explanations in an easy to understand language with format (words, pictures and graphs) for the busy contractor without an accounting background to quickly review and make sense of the number. More detailed Job Costing Reports are available inside QuickBooks.
Why you need a Good Accounting System is to provide more answers than what the TAX Accountant needs to do your annual Federal and State Taxes. By the way NEVER EVER LET YOU TAX PREPARER DO YOUR CONTRACTOR BOOKKEEPING. Click here to learn why.
All construction contractors should be profitable....and IF and job is Not it is because the Construction Contractor made the informed decision to give the customer “A Bargain; because…..” not that they gave the customer a “Wild Guess” and had to take money out of their personal household funds to pay for the expenses of the job.
I hope this podcast helps you understand that outsourcing your contractors bookkeeping services to us is about more than just “doing the bookkeeping”; it is about taking holistic approach to your entire construction company and helping support you as a contractor and as a person.
We understand the good, bad and the ugly about owning and operating construction companies because we have had several of them and we sincerely care about you and your construction company!
I trust this podcast helps you understand that outsourcing your contractors bookkeeping services to us is about more than just “doing the bookkeeping”; it is about taking holistic approach to your entire construction company and helping support you as a contractor and as a person.
We Remove Contractor's Unique Paperwork Frustrations
We understand the good, bad and the ugly about owning and operating construction companies because we have had several of them and we sincerely care about you and your construction company!
That is all I have for now and if you have listened this far please do me the honor of commenting and rating podcast www.FastEasyAccounting.com/podcast Tell me what you liked, did not like, tell it as you see it because your feedback is crucial and I thank you in advance.
You Deserve To Be Wealthy, Because You Bring Value To Other People's Lives!
This is one more example of how Fast Easy Accounting is helping construction company owners across the USA including Alaska and Hawaii put more money in the bank to operate and grow your construction company. Construction accounting is not rocket science; it is a lot harder than that and a lot more valuable to construction contractors like you so stop missing out and call Sharie 206-361-3950 or email sharie@fasteasyaccounting.com
Thinking About Outsourcing Your Contractors Bookkeeping Services?
Thank you very much and I hope you understand we really do care about you and all contractors regardless of whether or not you ever hire our services. Bye for now until our next episode here on the Contractors Success MAP Podcast.
0037: Why Bookkeeping Takes Longer And Is Painful When Contractors Do It
00:08:54
Every Piece Of Paper, Receipt, Invoice, Bank Statement, Notice, Loan Statement Triggers A Memory And You Relive It Again And Again!
Three Examples:
#01 Every Invoice when you did not get paid or took a discount
#02 Every Receipt for materials, subcontractors or other costs
#03 Every Time Card reminds you of what your employees did or didn't do
When your bookkeeper or your outsourced contractors bookkeeping service does the day-to-day bookkeeping they are not emotionally invested in every transaction, which is why it takes them only a small fraction of the time to do your contractors bookkeeping and accounting services.
They did not live the event, which means 100% of their focus, and concentration is on getting the transactions into QuickBooks or Xero Accounting Online ASAP!
Put Your Time And Effort Into Making Money
As the contractor you are the most valuable employee in your company. You have the most versatile skill sets of anyone in your company and it can be a blessing or a curse.
If you believe you are the only one who can do anything right and nothing can be done without your oversight and approval your construction company is and will continue to be a nightmare until you snap out of it and turn it into a wonderful dream.
What is the one thing you and you alone can do for your construction company that nobody else of the face of the earth can do? Make decisions. That is the one thing only you can do.
Everyone else involved with, dependent upon and involved with your construction company including your employees, suppliers, vendors, customers, clients and tax agencies will support you or destroy you based upon one and only one criteria; do you make good decisions on bad ones.
Do your decisions add value to society as a whole and raise the value of your company and by association raise the value of everyone around you?
Bill Gates raised the value of Microsoft immensely by focusing his time and effort on the things only he could do and because of his leadership and strategic vision amassed a fortune for himself and thousands of people around him.
Your construction company may not rise to the level of a multi-billion dollar global enterprise; however, what would it be worth to you if it became a five million dollar local company generating net 20% net profit every year? That would mean one million dollars a year before taxes in "Hip National Bank".
What if it only did 1/2 as well and became a $2.5 million dollar a year company generating 10% net profit every year? That would mean you would be putting $250,000 dollars a year before taxes in "Hip National Bank".
Let's take it down a notch and say it only did 1/4 as well and became a $1.25 million dollar a year company generating 10% net profit every year? That would mean you would be putting $125,000 dollars a year before taxes in "Hip National Bank".
How would your lifestyle change with any one of those income levels and would it be worth it to consider changing the way you are doing things now? If you do what you have always, done you will get what you have always gotten?
In order to do anywhere near that kind of volume you have to stop doing the things you are no good at like contractor bookkeeping.
You can hire a qualified construction accountant and plan on spending $50,000 for annual salary and another $50,000 a year for their payroll taxes, overhead, continuing education, benefit package, office space, computers, printers, software, hardware and more.
Or you could outsource the entire contractor bookkeeping service to someone like us who has a complete contractors bookkeeping services system with a team of construction bookkeepers, construction accountants, project managers, payroll and tax specialists all working together to see to it your contractors bookkeeping needs are done right and on time. Not just one lonely bookkeeper but a team of specialists dedicated each area of your contractors bookkeeping service needs.
Having your spouse or girlfriend, boyfriend do the bookkeeping is even worse because you will double your pain since they will bring it up during conversations when you are supposed to be resting and recuperating at home or on vacation.
This is one more example of how Fast Easy Accounting is helping construction company owners just like you put more money in the bank to operate and grow your construction company. Construction accounting is not rocket science; it is a lot harder than that and a lot more valuable to construction contractors like you so stop missing out and call Sharie 206-361-3950 or email sharie@fasteasyaccounting.com
Thinking About Outsourcing Your Contractors Bookkeeping Services?
0386: Costly Bookkeeping Mistakes That Kill Profit And Growth
00:06:43
This Podcast Is Episode Number 0386, And It's About Costly Bookkeeping Mistakes That Kill Profit And Growth
Most construction business owners like you understand that effective financial management is key to your success. But lack of knowledge, frustration, and even avoidance can add up to your bookkeeping mistakes that derail future company growth.
With everything contractors like you need to do every day, including weekends and holidays, it's too easy to let crisp, timely Financial Reports go unread, and in some cases, you may not fully understand what they are telling you when you do read them.
Protect your construction business and reduce stress by avoiding these costly bookkeeping errors:
Mixing personal and professional finances
From day one, business owners should have a separate bank account to deposit their income and pay their business expenses.
It's also crucial to designate a business-only credit card. Come tax time; separate statements will make submitting claimable expenses quick and easy while reducing painful audit risk.
Letting accounts receivable slide
It's frighteningly easy to lose track of which customers have paid you and which clients are late. Implement a strict policy and schedule for tracking accounts receivable and pursuing unpaid invoices.
Ask customers to pay at the point of purchase or no more than 30 days later;
Contact clients to confirm they have received your invoice and to agree on a payment date;
Follow up immediately when payment dates are missed; and
Keep accurate, up-to-date records of each client's payment history.
Investing in a cloud-based accounting solution can make AR a breeze by automating your monthly invoicing – and contacting late payers with a reminder email.
Not tracking direct construction job for each job or project
If you want to know where you are making and losing money, you need to implement a system of Job Costing.
Not allocating overhead to jobs
For your Job Costing and Job Profitability Reports to be useful, you need a way to allocate overhead among jobs. Overhead generally refers to costs that benefit all jobs.
For Example:
Office And Shop Rent
Office Supplies
Admin Staff Salary
Officer Owner Salary
Marketing And Advertising
Consulting, Legal, And Accounting
Other Overhead Costs
Not using tech to track your expenses
Tired of chasing down missing receipts and struggling to justify claims come tax time? There's an app for that! Our outsourced bookkeeping clients have mobile apps specific to their company needs that integrate seamlessly with QuickBooks or Xero.
Neglecting to strategize for long-term growth
Practical accounting means managing day-to-day finances while making provisions for future growth. Software and cloud-based solutions offer easy ways to track your financials, but they also generate reports and provide analytic tools construction business owners can use for future forecasting.
Familiarize yourself with the reports your software can generate to track long-term trends, identify and mitigate risk, and discover new ways to increase profitability. Talk to your accountant about which reports and metrics are most important for your particular business and how to utilize them.
Final thoughts
You don't have to go through it alone.
Construction business owners like you are rarely trained accountants. Don't try to manage your company's finances all by yourself.
Collaborate with a trusted professional, invest in quality IT solutions, and spend some time familiarizing yourself with relevant tools and trends.
You'll feel empowered, which is step one to forging a more love-filled relationship with small business accounting. If you need help avoiding these mistakes, fill out the form on the right and I'll be in touch with you.
About The Author:
Sharie DeHart, QPA is the co-founder of Business Consulting And Accounting in Lynnwood, Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations and offers insights on how to manage the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. Call 1-800-361-1770 or sharie@fasteasyaccounting.com
07 Feb 2025
614: Social Media Marketing Basics For Construction Contractors
00:12:08
This Podcast Is Episode 614, And It's About Social Media Marketing Basics For Construction Contractors
Social media can feel overwhelming. With so much noise and so many platforms, where do you start? The truth is that a great social media strategy can transform how you connect with customers and help you grow your contracting business.
Social media platforms' reach and accessibility are unprecedented. They connect businesses with a vast audience in real-time. Besides their broad reach, social media platforms also serve as valuable tools for businesses to listen to what their customers say about their brand, competitors, or the industry.
Social media allows for active engagement. Construction companies like yours can post questions, respond to comments, and forge stronger customer bonds. Unlike traditional marketing channels, it's a great leveler. All businesses – whether big or small, have equal access. This means smaller companies can compete effectively against their larger counterparts.
Whether you are new to social media or arerefining your approach, these six steps will help you thrive online.
1. Start with the fundamentals
Social media isn't just about pretty pictures or funny tweets. At its core, it's a powerful tool for strengthening your brand, building relationships, and hitting your business goals—if you have a plan.
Think of it this way:Posting randomly is like throwing darts in the dark. Set clear objectives for your efforts. Are you trying to boost brand awareness, increase leads, or engage your current customers? Once you define your goals, you can create content that moves the needle.
Action steps:
Map out your objective. To build brand awareness, plan posts introducing your business, sharing behind-the-scenes moments, or showcasing customer testimonials.
Identify your target market, including homeowners, commercial property managers, or other businesses needing construction services.
Create customer personas to understand their needs, challenges, and preferred social media platforms.
2. Choose the Right Platforms
You don't need to be everywhere—you need to be where your audience is. Each social platform serves a different purpose. If you're a Commercial Remodeler, LinkedIn lets you interact with other businesses and build authority. For visual appeal, Instagram is still king. Facebook can help you connect with a broad range of users, while TikTok excels if you want to reach younger audiences.
Quick tips:
Focus on visually-driven platforms like Instagram and Pinterest to showcase completed projects.
Use Facebook for community engagement and updates about your services.
Consider LinkedIn for B2B connections and networking with industry professionals.
3. Develop a Content Strategy
Walking into a grocery store that constantly changes where items are placed is incredibly frustrating, and that's exactly how your audience feels if your posts are scattered and inconsistent. A content strategy helps you post consistently, maintain your brand's voice, and keep people returning for more.
Content calendars can be your best friend. They help you plan posts. And variety is key! Include posts showcasing your services, tips to help your audience, fun polls, or behind-the-scenes sneak peeks.
Action steps:
Share high-quality images and videos of your work, such as before-and-after shots or time-lapse videos of projects.
Post educational content that teaches your audience about construction processes, maintenance tips, or industry insights.
Highlight customer testimonials and case studies to build trust with potential clients.
4. Engage with Your Audience
Social media isn't a one-way street. Don't just post and ghost—start conversations. Respond to comments, ask questions, and keep the dialogue going. Genuine interactions build trust and loyalty.
Contests, polls, and live Q&A sessions are excellent for boosting engagement. For example, hosting a giveaway like "Share your favorite product/service moment and tag us for a chance to win!" can encourage your audience to interact with your brand.
Practical approach:
Respond promptly to comments and messages to build relationships and trust.
Encourage clients to share their experiences and tag your company in their posts.
Join relevant groups or forums on social media to connect with potential clients and industry peers.
5. Explore Paid Advertising
Organic content is essential, but paid advertising can supercharge your reach. With ads, you can target specific demographics, interests, and behaviors. The best part? You don't need a massive budget to start. Start small, run tests, and identify what works.
What you can do:
You could advertise your bestselling product or promote a free resource (like an eBook or webinar). Ads help you position content in front of your dream customers.
Consider running targeted ads on platforms like Facebook and Instagram to reach a broader audience.
Use geographic targeting to ensure your ads reach local homeowners and businesses needing construction services.
Start with a $50 test ad on Facebook or Instagram. Target a specific audience, monitor results, and expand from there.
6. Track and Analyze Your Results
How do you know if your social efforts are paying off? Numbers don't lie. Pay attention to metrics like reach, engagement, and follower growth. Built-in analytics or third-party tools make tracking what's working (and what's not) easy.
If you notice that your audience loves memes or prefers short videos, adjust your strategy based on that data. Social media success is flexible—it's about trying, learning, and improving.
If you're new to this:
Use analytics tools available on social media platforms to monitor engagement, reach, and conversion rates.
First, focus on a few key metrics. Start with the engagement rate (likes, comments, shares) and build from there.
Adjust your strategy based on what content performs best and resonates with your audience.
Remember to monitor industry practices and adapt your strategy accordingly. To increase visibility and engagement, participate in social media challenges or trends that align with your brand.
Final thoughts
It's important to note that while setting up a social media account may be free, social media marketing is not devoid of costs. The time spent updating channels, responding to posts, and participating in discussions equates to time not spent on other business activities.
Social media marketing doesn't have to feel overwhelming. The results will come when you focus on understanding your audience, crafting a strategy, and staying consistent. Success takes time, but with some planning, you can connect with your customers, grow your brand, and achieve your goals—one post at a time.
By implementing these social media marketing basics, construction contractors like you can effectively promote your services, engage with your clients, and grow your brand online, ultimately building meaningful connections and trust with your audience.
About The Author:
Sharie DeHart, QPA, is the co-founder of Business Consulting And Accounting in Lynnwood, Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations and offers insights on managing the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. Call 1-800-361-1770 or sharie@fasteasyaccounting.com
25 Nov 2016
0192: Special Thank You To All Contractors This Thanksgiving Holiday
00:07:01
This Podcast Is Episode Number 0191 And It Will Be About Special Thank You To All Contractors This Thanksgiving Holiday
The time flies between each of the holidays. It is a time to reflect on the years so far and catch up. The magical time of year begins with Halloween, Thanksgiving, Christmas then finally New Year’s Eve.
Halloween is a time to see Happy Children out trick or treating. Randal and I go to the local Mall, sit at the Food Court and watch babies, toddlers, and bigger kids enjoy the night of Trick or Treating. Fantastic to see parents dressed up and having as much fun as the kids.
Thanksgiving is when we give Thanks for being an American. Taking a moment to think back to the challenges for the Pilgrims coming to America. They decided to make the journey with no guarantee of success. To build homes, plant crops, take care of animals. Then later everyone who decided to move West by wagon train, horse or on foot. I am Grateful For Them! I think about my Grandparents, my Great Grandparents (and Randal’s). What was life like when they were children? Where did they come from and how did they get to where they were?
The family’s oral history seems so inadequate. My father shared so much, but now it seems like so little. Be glad for the simple things we take for granted. Going to the grocery store, deli, restaurant for dinner. Living indoors with electricity and indoor plumbing, a car to drive, a bridge to cross the water or a ferry.
Modern Times. I am all for living in the city with the gas station and grocery store just down the street. Appreciate reliable electricity with Tree Contractors trimming powerlines year around to help prevent outages. Grateful for the Lineman who repair power lines when there is a storm, so we have electricity.
Thank You Contractors for going so I can stay home safe. Thank you to the road crews, police, fireman, lineman, tree crews, plumbers and electricians who go out when the news says “Stay Home” and to all the other Contractors and Emergency Services I have not mentioned.
Christmas is the time of Good Cheer. Seeing Lights and smiling children dressed up for pictures with Santa at the nearest shopping mall. Faith that as the year ends; that the New Year will be a better happier, more peaceful time.
Everyone who goes to Times Square and other places around the country and the world to wish in the New Year. The countdown to the New Year is a joy for everyone who participates. It is ringing in the New Year, New Beginning, New Hope and for some the time to make a Fresh Start.
Contractors Make Our Lives Better Contractors build and maintain the things that make our lives better. They build the factories for the factory workers to work in. The Rancher and Farmer whom you don’t think about being a contractor.
The Rancher and Farmer build and repair buildings, fences and maintain the equipment. Learn to be a Jack of All Trades, raise crops and animals and battle the elements. Heat, Wind, Rain, Snow and Forest Fires, or Grass Fires – they see it first. The more remote their location, the more diverse the skills.
Why are they so special to me? My Grandfathers – One of Each, One Rancher, and One Farmer. In the city – Most of us only see a piece of their lives at The Fair in the comfort of a well-lit, heated barn with animals behind fences or gates. The Rodeo is entertainment where the Cowboy show off the skills learned in “real life” with real life consequences. At the Farmers Market, we tend not to think about what it takes to grow the food we eat. Especially not a lot of thought when looking at prepackaged meat in tidy rows in the grocery store.
Safe driving this Thanksgiving Weekend. It’s about friends and family. The ones we are celebrating with, those to whom we are not; and finally to those who are with us in spirit only. Most of us (no matter what our age is) watch the Charlie Brown specials with fond memories. Best Wishes To All.
I trust this podcast helps you understand that outsourcing your contractors bookkeeping services to us is about more than just “doing the bookkeeping”; it is about taking holistic approach to your entire construction company and helping support you as a contractor and as a person.
We Remove Contractor's Unique Paperwork Frustrations
We understand the good, bad and the ugly about owning and operating construction companies because we have had several of them and we sincerely care about you and your construction company!
That is all I have for now and if you have listened this far please do me the honor of commenting and rating podcast www.FastEasyAccounting.com/podcast Tell me what you liked, did not like, tell it as you see it because your feedback is crucial and I thank you in advance.
You Deserve To Be Wealthy, Because You Bring Value To Other People's Lives!
This is one more example of how Fast Easy Accounting is helping construction company owners across the USA including Alaska and Hawaii put more money in the bank to operate and grow your construction company. Construction accounting is not rocket science; it is a lot harder than that and a lot more valuable to construction contractors like you so stop missing out and call Sharie 206-361-3950 or email sharie@fasteasyaccounting.com
Contractor Bookkeeping Done For You!
Thinking About Outsourcing Your Contractors Bookkeeping Services?
613: Strategies To Boost Construction Team Morale During Transitions
00:11:54
This Podcast Is Episode 613, And It's About Strategies To Boost Construction Team Morale During Transitions
Change is inevitable in any business, but it's rarely easy—especially when managing morale. Significant transitions can leave employees feeling uncertain, disengaged, or even overwhelmed, whether you're restructuring your team, implementing new processes, or pivoting your business strategy.
As a small business owner, you probably ask yourself, "How can I guide my team through this while maintaining morale?" You're in the right place. Maintaining high morale within a construction team is crucial for productivity and overall job satisfaction. The construction industry can be challenging, with tight deadlines, physical demands, and unpredictable work environments. Supporting and motivating your team is essential.
Here are 10 practical tips to help you support your team and maintain a positive, productive environment during significant change.
1. Communicate early and often
Transparency is your best friend during periods of change. Keep your team informed by sharing information as early as possible—and don't stop there. Regular updates can help reduce uncertainty and foster trust. Whether it's an email, a town hall, or a one-on-one conversation, aim to explain:
What's changing
Why the change is happening
How it will affect your team
For example, a quarterly team meeting can serve as a platform to address concerns and answer questions. Employees who feel informed are less likely to speculate or fear the worst.
2. Listen to employee concerns
Change impacts everyone differently; your team will have questions, concerns, or frustrations. Show them you care by creating space for open dialogue. Encourage team members to:
Express their feelings
Share feedback on how the change is unfolding
Using anonymous surveys or hosting informal "ask me anything" sessions can make employees feel heard. Remember, acknowledging their concerns—even if you don't have all the answers right away—goes a long way in building trust.
3. Share the vision
People resist change when they don't understand its purpose. Focus on the bigger picture to paint a clear picture of what lies ahead. How will this change benefit the team, the company, or even your customers in the long run?
For instance, if you're restructuring to expand into new markets, explain how it can lead to more innovation or exciting growth opportunities. A shared vision provides clarity and motivates the team to move forward together.
4. Empathize with your team
Here's the truth—change can be stressful. Acknowledge and validate your employees' emotions. Begin meetings or updates with statements like, "I understand this may feel overwhelming" or "We know this transition has been tough."
By showing empathy, you foster a sense of unity and make it clear that you're working through this change together.
5. Keep leadership visible
Your team looks to you for guidance, especially during times of uncertainty. Be present, approachable, and ready to answer questions. Your availability demonstrates that you're actively engaged in the process, whether walking the office floor, participating in virtual check-ins, or sending team-wide updates.
Remember, leadership isn't just about decision-making—it's also about reassurance.
6. Lead with optimism
Have you ever noticed how a leader's tone sets the mood for an entire team? Stay positive and relay your belief in the team's ability to overcome challenges. It's important to remain genuine—optimism doesn't mean brushing off difficulties but tackling them confidently.
When you frame challenges as opportunities for growth, the team will be more likely to rise to the occasion.
7. Invest in employee growth
When change disrupts workflows, employees may feel stagnant or uneasy about their roles. Counteract this by providing opportunities for professional development. Whether you offer access to online courses, arrange workshops, or encourage skill-building projects, you'll remind your team that their growth still matters to the business.
For example, consider introducing workshops to train employees on new systems during a technological shift. This will boost morale and build confidence.
8. Recognize achievements
Sometimes, it's the small wins that keep morale alive. Take the time to acknowledge individuals or teams adapting well or going above and beyond during transitions. Whether it's a shoutout during a meeting or a personal note of appreciation, celebrating achievements can maintain momentum.
Pro tip: Pair recognition with tangible rewards, like an extra day of paid time off or coffee vouchers. It doesn't have to be expensive—just thoughtful.
9. Maintain consistent messaging
Mixed messages can create unnecessary confusion. Ensure that updates regarding the change are consistent across the board. Empower managers and team leads with the right talking points so everyone is on the same page.
Providing an FAQ document or a central update hub is a great way to keep communication aligned and accessible for your team.
10. Foster a sense of community
Change is easier to manage when employees feel like they're part of a supportive team. Arrange team-building activities, whether virtual or in-person, during this period. From group lunches to brainstorming sessions, these activities can help strengthen relationships and build camaraderie.
Create opportunities for employees to collaborate on problem-solving tasks related to the change. This will give them a feeling of ownership and reinforce the idea that "we're in this together."
Adaptability in Construction Bookkeeping
The construction industry frequently shifts due to regulatory changes, economic fluctuations, and technological advancements. An adaptable bookkeeping approach allows businesses to adjust to these changes swiftly, ensuring compliance and minimizing disruptions in financial reporting.
By leveraging technology, enhancing communication, and being responsive to industry changes, construction businesses can maintain strong financial health and become more resilient in a competitive market. An adaptable bookkeeping approach ultimately leads to better decision-making, increased profitability, and a solid foundation for growth.
Keep moving forward
Change can be difficult, but it also holds the potential to bring growth, innovation, and opportunity. By empathizing with your team, communicating clearly, and keeping morale front of mind, you can ensure that the transition strengthens your business instead of destabilizing it.
An adaptable construction business owner can navigate unexpected challenges—such as changes in market demand or supply chain disruptions—more effectively. This resilience helps the business weather economic fluctuations and positions it to seize new opportunities.
About The Author:
Sharie DeHart, QPA, is the co-founder of Business Consulting And Accounting in Lynnwood, Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations and offers insights on managing the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. Call 1-800-361-1770 or sharie@fasteasyaccounting.com
30 Sep 2022
491: What Sets Your Construction Company Apart
00:13:38
This Podcast Is Episode Number 491, And It's About What Sets Your Construction Company Apart
Let me start by saying it's good if you have competition. Indeed, competition pushes you to be innovative. It also means there's an established community for your services. If no one else is offering the service, there's a chance there's no market for it.
But, have you always wondered how a small construction company like yours could stand out from the crowd and its competitors? Awareness of what others in your industry have developed and provided leads to a newfound motivation and belief in making an impactful difference, whether within your company or your community.
The key to benefitting from the competition is knowing how to take on competitors. You measure your share in the particular segment you operate in and obsess about your immediate competition, just as contractors who did not market effectively did years ago.
But first, you need to step back and ask yourself these three key questions and make sure you answer them in a way that will define and liberate your construction company at the same time.
Ask Yourself:
What am I offering? New construction, remodeling, or service and repair?
Who is my competition? DIY, other contractors, money homeowners for a construction project?
What is my fundamental competency - Residential, Commercial, or both?
Challenging yourself is the key to answering these questions. Write your answers on paper or computer, sleep on them and then revisit them again and again until you get to the truth.
Define The Type Of Contracting You Offer And Who Is Your Competition
Be that homeowner doing a weekend project, Handyman Contractors, Remodel Contractors, Trade Contractors, and other contractors and House Builders. It may not be the same form, structure, and category that you operate. For example, Home Depot does not see itself competing in the building supply business but for a share of the home and commercial remodel and repair market.
This approach and behavior across the organization, too, saw themselves as fighting for a share of the building supply market.
Getting The Leads And Doing The Work Is Only Part Of The Answer
Not answering them and acting on the knowledge is one reason many construction companies shrivel and die. They focus on the wrong areas to innovate or improve. They focus on the wrong enemy and threat. As a result, they miss what they could be doing to succeed and prosper over time.
Here are three ways your small construction company can establish itself from competitors and stand out from the crowd:
1. Concentrate, then generate.
What separates wealthy contractors from poor contractors? They concentrate then generate.
Returning to the critical questions at the start, successful contractors know what type of contracting they are good at. SWOT Analysis is one tool used in strategic planning for construction companies to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in determining the particular target market.
Concentrate
Strengths - are projects that your construction company does exceptionally well and earns a higher than average gross margin that gives you an advantage over other contractors. What are they, and how can your construction contracting company expand on them?
Weaknesses - are projects your construction company does poorly at and breaks even or loses money. What are they, and how can your construction contracting company turn them into strengths?
Opportunities - are projects and markets not currently being served where your construction company can enter and turn them into strengths. Have you considered tapping into the "work-from-home" market during this time? Or commercial establishments looking to remodel to implement a better floor plan?
Threats - are elements outside your construction company that could cause trouble for you or your construction projects. What are they, and how can your construction contracting company turn them into opportunities?
A SWOT analysis will help you identify each of these characteristics for your business to understand better what you're doing well, what you could improve, and which external factors could affect your business.
Generate
Marketing is a science, not an art. Now that you've analyzed your SWOT, you laid the foundation by having a vision for what your Construction Company will be when you finish building it, you know who you are, and you know who your prime client is. You can quickly generate more leads than you can handle.
2. Give the client what they want and deliver an excellent service.
There's room enough in most industries for competition. While it's a good idea to know who you're against, your clients are your priority. Focus your efforts on providing goods and services meaningful to them, addressing their pain points, and improving their lives. Market yourself to make those aspects clear. Show them why you're the ideal company to hire for their project.
Large businesses have weaknesses. The bigger they are, the less personalized and responsive their service is. They market themselves to a broader audience and have to bring in more clients to cover their costs because their overhead is higher.
In this respect, your size is an advantage. Fewer customers mean more personal service. That opportunity for relationship building will entice customers looking for extra attention.
Examine what people love about your competitors but also what frustrates them. Build your construction business to address those gaps. If you find that something isn't working with your customers early on, don't be afraid to shift. Be innovative in responding to market changes and client demands. You'll have an easier time making that change early than once you're more fully established.
3. Put together a stellar team.
It is one thing to be a carpenter, plumber, electrician, framer, drywaller, painter, or any other master crafts person and quite another thing to own a construction company that performs those things while managing a business.
Many small contractors have friends in the same trade and work well. Remember that being on your own is okay because employees are not required to succeed in this industry. You could also work well with a group of Trade Contractors and complete the work seamlessly as a team effort.
On the other hand, you could be a one-person remodeler who may have unknowingly built a team by working with highly-skilled professionals. For instance, the person who did your company logo or the banker who helped you set up a business bank account—outsourcing a specialist to help you with the things you are not an expert on - like a Website/Social Media Manager to take care of your online presence does wonder for your Marketing without needing to hire in-house staff and do their payroll.
Of course, a financial advisor or a construction accountant who has been where you want to go and can guide you will benefit your construction business. Optimize your time and skills by doing what you love and do best, and outsource the rest to operate better and grow your construction company.
Final thoughts
We are big fans of optimizing instead of maximizing. We've developed strategies that take the least amount of effort in the least amount of time possible. By taking advantage of existing knowledge from your competitors, you can improve and build upon these as they are relevant for you and your type of construction business.
Knowing that you're different from what's already out there and why you are different makes you attractive to your target market. Be the contractor who will do whatever it takes to rise above owning a job and develop a construction business that will provide for themselves and their families for a lifetime.
About The Author:
Sharie DeHart, QPA, is the co-founder of Business Consulting And Accounting in Lynnwood, Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations and offers insights on managing the remaining cash flow to operate and grow their construction company sales and profits to put more money in the bank. Call 1-800-361-1770 or sharie@fasteasyaccounting.com
01 Jul 2022
478: What Every Contractor Needs To Remember When Negotiating Contracts
00:08:10
This Podcast Is Episode Number 476, And It's About What Every Contractor Needs To Remember When Negotiating Contracts
Several aspects of the construction business can only be learned through experience. One of them is negotiating contracts.
Most people fear the negotiation procedure because it is an intrinsically uncomfortable process. Asking for more money or making personal demands doesn't come naturally to everyone. But with the right toolkit, you can breeze through contract negotiations. And you'd better get used to it because you'll have to handle many contracts whether you're a construction company owner or employee.
Having the right mindset is critical to contract negotiations. You have to believe that you are going to get your way. Bring a positive attitude and a smile to the table. You're not signing contracts with the enemy. The people you're negotiating with will be your business partners in one capacity or another.
We recommend seeking the advice of a qualified construction attorney to put together a contract that fits your specific needs. Your contracts need a well-defined scope of work, clear payment terms, a reasonable schedule, and a proper change order clause. No work should ever be performed based on verbal agreements. Get everything in writing, always, no exceptions.
Let's take a look at some things you need to remember when you're in the process of negotiating contracts:
Be patient
Don't rush to get a contract signed. Rushed arrangements usually leave one or both parties dissatisfied. It's understandable if you want to get the negotiation done, but taking the extra time to examine your contract will benefit you tremendously in the long run.
Involve an expert
You might know what you need from a contract regarding overall business output, but you could get trapped by the legalese. Get a lawyer you trust on board to frame the wording in a way that protects your overall interests. Even if you're good at negotiation, involving an expert is always a good idea.
Don't forget term sheets
Term sheets are a broad overview of the terms of your contract. Before you get into the specifics, it's a good idea to ensure that all parties agree on the big picture.
Take it one step at a time
Negotiating a complex and lengthy contract is an inherently tedious process. In the beginning, ensure you've agreed upon the necessary details. Making some headway is crucial to the overall success of the negotiations. After establishing a rapport with the other party, you can dive into the deeper, more complicated issues.
Think about the specifics
The flowery language on a contract might make for good reading if you're of a particular leaning, but you need to understand what it translates to in the real world. How much will you be making?
Use the phone
Emails are notoriously difficult to decipher at times. You aren't aware of the sender's body language, and sometimes people can confusingly word things because they don't have the best command of the language. If you're unsure about some issues in your contract, pick up the phone, and have a conversation. It will help sort things out.
Don't fret too much about the first draft
The first draft of your contract is just a starting point. It's called a 'negotiation' because you will be changing certain aspects of the contract. Don't be alarmed if there are certain things in there which aren't to your liking.
If you can't make the tough calls, get someone who will
If you're not naturally assertive or find it challenging to be demanding when the situation calls for it, ask for help from someone capable. It could be your business partner or even a spouse.
Do your research
You don't want to make outlandish demands that the negotiating party can't afford. Take some time and do your research. See what similar services or products cost in the industry. Ask some construction experts for advice.
Final thoughts
It's worth repeating that you should always take care to state clearly in writing the terms of your quote or estimate and offer a client the opportunity to ask questions before approving the work. That way, both parties can avoid misunderstandings about expectations and project costs before the work begins.
Negotiating a contract is like a long game of chess, except both parties need to come from the table victorious. Before you begin the process, figure out your short- and long-term goals. Having a clear vision will help you better navigate the tricky waters of contract negotiation.
While nobody knows your contracting business as well as you do, seeking expert financial advice right away is crucial for your survival. For a free initial assessment of your business, please don't hesitate to contact me.
About The Author:
Sharie DeHart, QPA is the co-founder of Business Consulting And Accounting in Lynnwood, Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations and offers insights on how to manage the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. Call 1-800-361-1770 or sharie@fasteasyaccounting.com
18 Jun 2021
424: Five Ways To Make The Most Of Your Construction Business Downtime
00:08:04
This Podcast Is Episode Number 424, And It's About Five Ways To Make The Most Of Your Construction Business Downtime
Every business experiences slow periods when the market for their goods or services lessens and sales drop. Construction business owners like you might be tempted to view downtimes as unproductive or wasted, but there are ways you can make the most of your business during these seasons.
Here are five ways to ensure this time isn't wasted:
1. Take a good look at your business
When things are busy, it gets easy to fall into a habit of taking care of day-to-day tasks and forgetting your overall business picture. However, slower times are an excellent opportunity to step back from the daily grind and ask yourself if your business is still moving towards its goals, what opportunities or challenges are on the horizon, and whether it's time to try something new.
Examine various aspects of your construction business, such as your marketing and sales, to see if they're all working together or if they need revising. Is your social media account information still accurate? Do you have unanswered emails to respond to? When was the last time you posted on your blog? Should your website be updated?
This is a great time to take care of those tasks that have been put off for far too long.
2. Get bold with your marketing
When business is booming, entrepreneurs often prioritize tasks directly related to profits, and other activities—such as marketing—take a back seat. Rather than using downtimes to catch up, use them for experimenting with new tactics. Have you tried creating marketing videos or used Instagram Live? Have you sent out direct mail?
Write a blog and social media posts ahead of time. Strategize your next marketing campaign and commit to posting on social media every day. If you have time, build up a backlog of posts to have pre-written content when things get busy again.
You can also use this time to learn tactics and tricks you may not fully understand. For example, if you like writing your marketing materials but don't understand search engine optimization (SEO) or Google Analytics, this is an opportune time to learn about them. Again, professional development now can help you in the future.
3. Implement new policies and procedures
If you want to make changes in your business, slower times are often a great opportunity to try them. That way, you have the chance to review the modifications and whether they work well for you before they cause a massive headache.
Are you considering a new web hosting service? Are you looking to automate some client-facing activities? Make these changes during a slow period to get a good feel for how well they work. At least then you can address challenges that arise before things get busy and you're left dealing with many upset customers.
4. Harness the power of learning
Knowledge leads to profits and cash flow. What makes knowledge powerful? Use of knowledge. In this cutthroat construction industry, you may not be able to outgrow your competition forever, but you can always outlearn them.
Gain insight from a free consultation with me or enroll in one of our Construction Accounting Academy courses. Master the skills needed to generate useful reports, repeat quality performances, and make informed decisions to operate and grow your construction company. Click here for the list of classes.
5. Connect with your community
Quieter periods are a perfect time to get more involved with your community and do some good. Find a local organization that you care about—or related to your business's work—and partner with them. For example, you could sponsor an event or a seminar or even run a fundraising drive.
Not only will you have something to talk about on your social media, but you'll also engage customers that care about purchasing from companies that do good. These days, that's important to many consumers. According to Forbes, 88% of consumers will be more loyal to a company that supports social or environmental issues, and 87% will have a more positive image of a company that supports social or environmental issues.
Final thoughts
Remember that business won't always be slow, so don't panic when things get quiet. Instead, take the opportunity to reflect on your business, make necessary changes, try new marketing tactics, advance through learning, and connect with your community. Doing so can help you make the most of your downtime so your construction business can rebound more effectively.
About The Author:
Sharie DeHart, QPA, is the co-founder of Business Consulting And Accounting in Lynnwood, Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations and offers insights on how to manage the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. Call 1-800-361-1770 or sharie@fasteasyaccounting.com
21 May 2014
0030: Contractor's Bookkeeper Hiring Guide Part 3
00:11:28
Hiring A Bookkeeper For Your Contracting Company Is Nothing Like Hiring A Construction Worker
Would it be a fair statement to say you know what to ask when hiring a construction worker for your contracting company?
If you need a Licensed Journeyman, you know what to ask for and you know what to expect.
If you need an apprentice, you know what to look for and what to expect. In most cases, you take over where their parents left off; however, that is a topic for another podcast.
The first thing you need to be aware of is not all accounting is the same. Just because someone is skilled in framing spec houses does not mean they can suddenly install expensive wood trim and perform finish carpentry in the home of your most valuable client and the reverse is true as well isn't it?
Just because a bookkeeper can perform regular bookkeeping duties does not mean they can perform construction accounting duties.
Regular bookkeeping is similar to production framing in a tract home development.
Construction bookkeeping is similar to building custom home for a demanding client.
One is fast and furious and requires very little skill and training and the other is slow and deliberate and requires immense skill and training. Don’t put your contracting company in the wrong hands, get all the facts then decide.
If You Are In This Contractor Group You Are In The Second Largest Group Of The Four Types Of Contractors
Together you and your like-minded contractors combined production is more than the Professional Contractors and the Enterprise Contractors combined due to the sheer number of contractors similar to you.
Here Are A Few Statistics Based On Per Person Where You Do Well:
#01 Sales Dollar Volume Per Job #02 Sales Dollar Volume Per Month #03 Sales Dollar Volume Per Year #04 Marketing Cost Per Dispatch #05 Dollars of Revenue Per Billable Hour #06 Percentage Closed Sales Per Dispatch #07 Billable Hours In Standard Eight Hour Day
Your Production Average - Is not as high as Dog And Pickup Truck Contractor because you have employees that may not be as motivated as you; however your group is substantially higher than any of the other three contractor types according to our research and contractor studies we have been engaged in since the early 1970's
Let Me Describe Some Of Your Wonderful Personality Traits
You Are A Wonderful Soul - You have a big heart; just not quite as big as all outdoors. You like having employees because they do not like working alone all the time. As your construction business grows you like to take time off and enjoy your hobbies, travel and vacations.
You Have One To Three - Employees because when your employees get out of line you can hold two of them by the throat; one in each hand and eyeball the third one! This is called “Construction Management”
You Will Usually Invest - Some money to build a retirement nest egg in stocks, bonds or real estate.
You Operate - Your business as a LLC, Sub-S or C-Corporation.
You Earn - Some where between $40K to $60K a year after all expenses (your business pays for a lot of what could be personal expenses)
This is one more example of how Fast Easy Accounting is helping construction company owners just like you put more money in the bank to operate and grow your construction company. Construction accounting is not rocket science; it is a lot harder than that and a lot more valuable to construction contractors like you so stop missing out and call Sharie 206-361-3950 or email sharie@fasteasyaccounting.com
Thinking About Outsourcing Your Contractors Bookkeeping Services?
0196: Merry Christmas From One Contractor To Another
00:11:25
This Podcast Is Episode Number 0196 And It Will Be About Merry Christmas From One Contractor To Another
Merry Christmas from One Contractor To Another
Merry Christmas to all.
Everyone celebrates the Holiday Season in his or her own way.
Even the “Bah Hum Bug” people get pleasure out of their “Bah Hum Bug”ness.
Enjoy, Embrace, Be Glad, Be Joyful and maybe a Little Sad. (No one is up and happy a 100% of the time) Do something nice for others. A smile is easy; it’s always with you, and it’s FREE. It can be a simple thing.
Perfect Example. Last weekend a young man waited specifically to open the door at the Post Office.
Did he have to? No.
Did I need the door opened? No.
Were my arms full of packages? No.
But he turned and waited patiently for me to cross the parking lot so he could open the door.
Why? That act of kindness was important to him.
Why? My reaction was to thank him politely.
And I smiled in appreciation.
My reaction could have been different, nasty, snarky; but it wasn’t
Getting my door opened happens to me often throughout the year not just at the Post Office. Where Men of all ages (young or older) will specifically wait, or hurry to open the door for me before I get there. A couple of years ago a man said as he opened the door (at the Post Office) because he was compelled to wait and open the door for me. It was nice, but again not really necessary.
Do I have an invisible sign that says “Open The Door” for her because she will appreciate it?
The only cost for anyone is a little time and a little effort. I will never recognize any of these men if I saw them again. They do it so effortlessly that I am sure they never remember the faces of the people they open the door for. (I say, People, because I suspect their character is such that they automatically open doors for everyone they meet)
Another easy act of kindness is to Drive Carefully.
Use turn signals, leave space between you and the next car, letting the impatient driver cut in front of you. If you can see them; you can react.
Another act of kindness is to Watch Out For Pedestrians who cross in the middle of the block. Pedestrians will cross the street after dark while wearing dark clothes even when the crosswalk is nearby. The jogger with lots of reflective gear may look a little funny in the daylight; but they are safer because we can see them on a dark, rainy night. We are in Seattle are so we get lots of dark, rainy afternoons, evenings and nights.
Courtesy to Others Who Work while we are shopping, looking at all of the Holiday Lights then come in from the cold to the restaurant or coffee shop. Being friendly is nice. Being loud, obnoxious and messy is fun for the people doing it; not so fun for the staff and other patrons or customers around them.
Several articles have been written this year about the increasing number of people who make reservations at multiple locations then never show and never cancel. Then we wonder why that restaurant has fewer and fewer staff. Why we are asked to wait when we see lots of empty tables.
Restaurants are trying to treat the reservation as “real” and not overbook.
This trend about reservations is happening more and more for traditional holidays. An example of two is Valentine’s Day and Mother’s Day. As Christmas and New Year’s Eve and New Year’s Day approaches I can see where this is a time of both dread and joy for owners and their staff. Choices need to be made:
How Many Staff should be working?
What Special Items should be served?
How Much Food to prepare?
How Much Variety?
Stay Open Late?
Merry Christmas and Best Wishes Of Joy This Holiday Season.
For Me each year The Holiday Season Begins January 1st and Ends December 31st
Treating everyone a little nicer will make the challenges of the day go easier.
I try to find something to be happy and grateful each day. Big Things, Little Things, Simple Things, Sunshine, Rain, Snow. And Yes, last week we had our one day of Snow. It is a year of Lots of Snow in the mountains. I have grateful for the ski resorts to have enough snow for a good, hopefully, profitable season; and even more grateful the snow is not all in my front yard.
I invite you all to join me in the Celebration of the Holiday Season, of Living Well and being Happy.
Again Merry Christmas To All
I trust this podcast helps you understand that outsourcing your contractors bookkeeping services to us is about more than just “doing the bookkeeping”; it is about taking holistic approach to your entire construction company and helping support you as a contractor and as a person.
We Remove Contractor's Unique Paperwork Frustrations
We understand the good, bad and the ugly about owning and operating construction companies because we have had several of them and we sincerely care about you and your construction company!
That is all I have for now and if you have listened this far please do me the honor of commenting and rating podcast www.FastEasyAccounting.com/podcast Tell me what you liked, did not like, tell it as you see it because your feedback is crucial and I thank you in advance.
You Deserve To Be Wealthy, Because You Bring Value To Other People's Lives!
This is one more example of how Fast Easy Accounting is helping construction company owners across the USA including Alaska and Hawaii put more money in the bank to operate and grow your construction company. Construction accounting is not rocket science; it is a lot harder than that and a lot more valuable to construction contractors like you so stop missing out and call Sharie 206-361-3950 or email sharie@fasteasyaccounting.com
Contractor Bookkeeping Done For You!
Thinking About Outsourcing Your Contractors Bookkeeping Services?
Most Contractors Setup QuickBooks Desktop Version In One Of Three Ways:
#1 EZ Step Interview inside QuickBooks Setup #2 Asked Their Tax Accountant To Setup QuickBooks #3 They Attended A How To Setup QuickBooks Class Or Seminar
And QuickBooks Does Not Work The Way They Want It Too!
445: How To Get Your Life Back In A Seven-Day-A-Week Construction Business
00:07:25
This Podcast Is Episode Number 445, And It's About How To Get Your Life Back In A Seven-Day-A-Week Construction Business
Construction business owners already have a time-consuming and challenging job running their business. If their business is open five days a week, they usually need the weekend to catch up on paperwork, pay bills and manage any tasks they didn't get to during the week.
For those with a seven-day-a-week business, there's even less time off. They often feel the need to be onsite whenever the company is open to deal with unanticipated issues, help the staff out, and ensure all tasks are completed.
Being onsite seven days a week isn't healthy or productive, however. It can cause burnout and result in errors being made. It affects the construction owner's personal life and quality of life, not to mention their overall well-being.
Here are three tips for getting your life back when you operate a seven-day-a-week business.
1. Hire a trusted manager
The next best thing to having you onsite all the time is to have a manager with authority similar to yours who can be onsite when you aren't. Invest money in hiring a manager to deal with operations so you can take days off. Train that person to deal with any issues you anticipate and make sure they know and understand the business inside and out. Give them the authority to make decisions in your absence. It might take a little time to build up trust with that manager, but they will be invaluable to you when you have them.
2. Delegate tasks you don't need to do
As a small business owner, you have regular duties that need to be done but could be better done by an expert. Doing them yourself takes up a ton of your time and forces you to be on the job site more. Look at your tasks and determine which ones are eating up your valuable time. Could you hire a bookkeeper? An accountant?
Virtual assistants can now be hired to deal with invoicing, collecting payments, and making phone calls on your behalf. That frees you up to deal with other tasks at your job site, which means you may get your other duties done and find you have free time.
These outside service providers cost money, but they are worth the expense when you consider the time and energy you'll save by not taking on those tedious tasks. Especially when you factor in the extra personal time, you'll have.
3. Start slowly
The worst thing you can do is wait until you feel you're about to have a nervous breakdown before you think about taking days off. That increases the chances that you'll need a day off at precisely the wrong time—during the busy season or when there's a work-related crisis emerging.
To get yourself comfortable with taking days off and get staff used to you being away:
Start slowly.
Maybe take an afternoon off during the weekday; that's typically the slowest.
When you're comfortable with that, start taking an entire day off here and there.
After a while, you'll be fine taking two days off, even during busier periods. You may not always have a five-day-a-week job, but at least you'll be okay taking days off for yourself.
Final thoughts
As contractors, you wear too many hats that you end up wearing yourself out from the weight of it all or from the time it takes for you to wear all of it. You don't have enough energy nor time.
It would be best if you had time away from your business to maintain your sanity and stop yourself from burning out. Having trusted staff and expert service providers in place will help you take a break from your worksite and get yourself some personal time.
About The Author:
Sharie DeHart, QPA is the co-founder of Business Consulting And Accounting in Lynnwood, Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations and offers insights on how to manage the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. Call 1-800-361-1770 or sharie@fasteasyaccounting.com
12 Apr 2019
0310: Contractor Bookkeeping: Outsource Or Do It Yourself
00:09:16
This Podcast Is Episode Number 0310, And It Will Be About Contractor Bookkeeping: Outsource Or Do It Yourself
I would like to start my blog post by asking you to reflect on your WHY. Pause for a while and think about the reason or reasons why you started your business. I highly doubt that your answer is rooted in accounting tasks or involved any type of bookkeeping project at the slightest. It is apparent that you’re passionate about what you do and you love working in the construction industry, be your own boss, and have the freedom you’ve dreamed of.
I admit, small business owners - like myself, have learned to make the most of the resources we have. And as an entrepreneur, tend to take on the challenge of wearing multiple hats. Marketing your business, answering phone calls, responding to emails, scheduling appointments – to name a few. However, I am reminding you now that being a company owner and doing your accounting and bookkeeping requires a totally different skill set from being a construction expert in your field. When it comes to your financials, it would be wise to take a step back and let someone who specializes in bookkeeping do it for you. Not just any accountant or bookkeeper, but see to it that they are Construction Bookkeeping and Accounting Professionals.
Questions to ask yourself:
Do I have experience in bookkeeping and/or accounting?
Outsource: Working with a knowledgeable and experienced bookkeeper that specializes in your industry will save you time in setting up your system and processes, so it’s easier to get started.
DIY: You may have a bit of a learning curve. Start by familiarizing yourself with construction bookkeeping and accounting processes. Create a system and an everyday routine when it comes to managing your paperwork.
What kind of software and applications should I use?
Outsource: Your construction bookkeeper will be able to help you out and can determine which accounting software will work best for your business, provide you with extensive training and support, and share tips and tricks on how you can optimize it.
Fast Easy Accounting supports several different software and applications. In particular, QuickBooks or Xero for construction depends on how you get paid, the type of work your company does, and if you need Job Costing.
DIY: This is where it gets tricky. As I have mentioned, using a particular software depends on the kind of contracting business you have, what you need out of it, and how much time you are willing to devote to learn and use it. Keep in mind that using a more popular and in-demand software and applications have a significant advantage in case you are having some issues. Tech support should be readily available, and if not, a quick Google search can lead to video tutorials and community answers.
Can I process payroll for my employee/employees?
Outsource: During a regular pay schedule, when time cards arrive on time, everything runs smoothly. Payroll processing is a complex task and shouldn’t be put off because it can lead to burdensome complications especially when time cards are late or you have to deal with overtime management, entry errors, employee loans, and ineffective time records. Fast Easy Accounting offers Payroll Processing with options such as Paper Check, Direct Deposit, or Debit Card.
DIY: To learn how to process payroll for your employees is one thing, but to deal with common payroll issues I specified is another thing you need to add on your to-do list even when you’re already busy juggling other tasks.
How do I generate Financial Reports?
Outsource: Contractor Financial Reports such as Profit and Loss, Balance Sheet, Cash, Receivables, Payables, Job Costing Reports, and Job Profitability Reports all depend on proper bookkeeping set up from Day 1. It’s easy to pull a report based on the entries and make use of it whether you want to understand when and where you are making money, or you need to present your financials to the bank or CPA.
DIY: It is easily accessed and generated from your accounting software. The real question here is, how reliable are your reports? A generic chart of accounts that comes with your QuickBooks software, for instance, is not customized to your construction business needs; thus transactions are often assigned to improper categories resulting in inaccurate reports.
Conclusion:
The ability to produce more fieldwork is dependent on your construction skills but more on your ability to plan your work and work your plan. Contractors like you are skilled in construction but not usually in construction accounting. As Construction Accountants, we understand that there are “too many tasks” and not enough time in the day. This is why we develop systems and processes, use software and apps to make it as fast and easy as possible for our clients to manage their business. In the end, it’s not that you can do your own bookkeeping, it is about the best use of your time – whether you are talking to a prospect, looking at a job, creating an estimate, writing an invoice, collecting the money, cleaning your truck and even sleeping.
We offer construction bookkeeping and accounting solutions at our online store. We have QuickBooks and Xero set up templates for those who would like to do their own bookkeeping, we have packages available to choose from when you need to outsource it to us, or opt to have an in-depth review of your current bookkeeping set up. You can always schedule a free one-hour consultation with me by calling our toll-free number 1-800-361-1770 or (206) 361-3950 or send me an email sharie@fasteasyaccounting.com.
We help a little or a lot depending on your needs. I look forward to being able to assist you with any option that best fits your company.
Sharie DeHart, QPA is the co-founder of Business Consulting And Accounting in Lynnwood, Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations and offers insights on how to manage the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. Call 206-361-3950 or sharie@fasteasyaccounting.com
04 Nov 2016
0189: Office Manager Becomes Overworked Contractor's Bookkeeper Who Cuts Corners
00:22:12
This Podcast Is Episode Number 0189 And It Will Be About Office Manager Becomes Overworked Contractor's Bookkeeper Who Cuts Corners
You are a small contractor and needs someone to answer the phone. You hire someone for the office.
Calls are coming in and the Admin Assistant has some free time between calls you want to make use of that famous Standby Time so you ask them to do a little more. Being nice; you now give them the new title of Office Manager.
As the Office Manager; that person is in control of the bookkeeping, customer invoices, vendor payments and more. As the contractor, you are excited because you are handing off responsibility of the day to day activities. From your side; you have checked off the box called Office Manger DONE, phones DONE, bookkeeping DONE and material pickup and delivery person DONE. Everything is solved. Good now you can go back to work and start doing the work. This is the part you are good at and like to do.
Are you expecting Too Much from your Office Manager?
Does the Office Manager understand Bookkeeping or is just trying to keep the checkbook balanced?
Now add employees; are you expecting the Office Manager to understand the payroll?
How about the differences between Construction Accounting and Regular Accounting?
Have you ever heard your Office Manager say: Don’t worry about it. I have everything under control.
Great everything is working and you go back to work. Life is good and I am making money now.
Surprise – Surprise Now it’s November.
Did you remember to pay The Quarterly Payroll Taxes were due on Halloween. It’s another form of Trick or Treat. If they have been paid and you have money left over it is a treat. The Trick is if you forgot, or didn’t know about them – Do you have enough money to pay?
Even the best of bookkeepers are not comfortable writing checks that they know will not clear the bank.
Everything is going smoothly. Business is good and growing. More and more jobs are coming in. Office Manager is handling everything until you ask. How much money did I make on the “XYZ” Job?
Then you discover that the accounting reports are missing details.
Is the Problem the person sitting in the Chair (Office Manager | Bookkeeper | Delivery Person). Do they have enough time to do everything. What is the priority? Delivery of Material because it’s needed on the job RIGHT NOW - DROP Everything and go get “stuff” from the supplier and take it to the job.
Is the Problem the receipts turned in and are not marked with the job name or never turned in at all?
Is the Problem that the time cards are not real time cards for filled out with fiction and guess word days after the fact.
Are the time cards holding up payroll, billing customers (time and material) generally unreadable and show up five minutes before the employees expects their paycheck.
In other words – the Office Manager needs to STOP EVERYTHING to fix, chase down, find something or solve an issue FIRST before the next thing on their list can happen. List is always longer than time needed.
Is the Problem that the phone rings in the middle of something else and the Office Manager can only do two things at once but has ten things to be completed before going home. Ever heard of the old fashion phrase “Just Give It A Lick and A Promise” In other words a quick wipe verses a deep clean edge to edge.
Solution for an Overworked Bookkeeper is that something slips.
Usually it begins with something that not critical but then it is.
Usually the first to go is Job Costing. After all the Job Costing is impacting a report that the owner never looks at. Extra work for when the Office Manager is wearing the Bookkeeper hat. Just get the transaction into QuickBooks and get the bill paid. After all that’s what is important.
Now is the slide into what I call the Office Manager | Bookkeeper is being in full control of the office.
At this stage the Office Manager | Bookkeeper will settle into a routine on that works best for them.
Office Manager is deciding what is the most important thing to do, how to do it, and when to do it.
Contractor comes up for air and wants reports
Unhappiness is when the Contractor comes up for air and asks questions, senses there is a problem but cannot put their finger on what the problem might be.
In frustration the Contractor looks at QuickBooks and because he / she is not into the accounting really just intuitive knows something besides the bank balance is off but doesn’t know what is wrong.
Next step is for the Contactor to call an outsider and ask questions. I suggest a review of QuickBooks file. After the review; I discuss issues with the Contractor about their QuickBooks file.
Contractors want for their Office Manager | Bookkeeper to continue doing the books just make it easier for them to do their job. Contractors want for their Employees to be able to easily fill out their time card.
Question – Is there a PROBLEM? Is it the same PROBLEM?
Many Office Manager | Bookkeeper | Field Employees do not see the same problem or issues that the Contractor sees. Is the Problem fixable?
Is the employee on the defensive? What exactly am I doing wrong? A favorite phrase of employees is “If I only had “XYZ” – I know what to do. If they had “XYZ” would they do something additional or something different? When will they do something additional or different?
A classic statement from an employee. “I know How To Do that?” OK, If you know “How To Do It” then let’s address why it is not being done. (The excuses begin) Is the tasks not being done really important or not important at all. Who is it important for? Why is it important? Are you sure? Is it worth the cost to fix?
As the Contractor – Owner only you make that decision. Otherwise, the Office Manager | Bookkeeper | or Other Employees are really in control and you are working for them. Is that why you are in business?
I trust this podcast helps you understand that outsourcing your contractors bookkeeping services to us is about more than just “doing the bookkeeping”; it is about taking holistic approach to your entire construction company and helping support you as a contractor and as a person.
We Remove Contractor's Unique Paperwork Frustrations
We understand the good, bad and the ugly about owning and operating construction companies because we have had several of them and we sincerely care about you and your construction company!
That is all I have for now and if you have listened this far please do me the honor of commenting and rating podcast www.FastEasyAccounting.com/podcast Tell me what you liked, did not like, tell it as you see it because your feedback is crucial and I thank you in advance.
You Deserve To Be Wealthy, Because You Bring Value To Other People's Lives!
This is one more example of how Fast Easy Accounting is helping construction company owners across the USA including Alaska and Hawaii put more money in the bank to operate and grow your construction company. Construction accounting is not rocket science; it is a lot harder than that and a lot more valuable to construction contractors like you so stop missing out and call Sharie 206-361-3950 or email sharie@fasteasyaccounting.com
Contractor Bookkeeping Done For You!
Thinking About Outsourcing Your Contractors Bookkeeping Services?
Thank you very much and I hope you understand we really do care about you and all contractors regardless of whether or not you ever hire our services. Bye for now until our next episode here on the Contractors Success MAP Podcast.
0179: Start-Up Your Contracting Company With Equipment Auctions
00:16:38
This Podcast Is Episode Number 0179 And It Will Be About Start-Up Your Contracting Company With Equipment Auctions
You Started Your Cоnѕtruсtіоn Company, And Now You Need Tools, Equipment, Trucks, And Vans And You Are Dismayed By What Everything Costs
The соѕt of ѕtаrtіng a Cоnѕtruсtіоn business саn be daunting and scary, tо ѕау thе least. Nо mаttеr whісh part of this wide wonderful іnduѕtrу you choose or hоw profitable іt may bе, еvery Contractor fасеѕ the same оbѕtасlеѕ fоr асԛuіrіng hand tools, power tools, truсkѕ, vans and heavy equipment.
The bіggеѕt оbѕtасlе you will face is getting the money to buу what you need. So еԛuірmеnt аuсtіоnѕ can bе a grеаt hеlр to a Contractor like you.
Considering the retail cost of properly outfitting one work van with the tools and equipment to open a skilled trade business like Plumber, Electrician, HVAC, Carpenter, Framer, Drywaller, Flooring, Roofer or any of the other dozens of skilled trades can cost over $25,000 then wouldn't it make sense to save money where you can?
Auctions Offer Massive Sеlесtіоn And Deep Dіѕсоuntѕ
It is a sad fact Construction Companies suffer from high failure rates because they insist on running their business using P.A.M. instead of M.A.P. and not taking full advantage of their Board Of Advisors which they are paying for most of the services anyway. Their loss can be your gain; however, be forewarned we work with a lot of Contractors who have failed at least once and they can become your most formidable competitor.
Nothing clears out the "Cobwebs of the Mind" like crashing a company someone worked long and hard to build. In all cases, the failed Construction Contractor believed they had the drive, guts, stamina and ability to "Power Through" any and all situations with "Brute Force" because in Construction that is how 99.999% of all problems are solved!
"If The Grand Strategy Is Correct The Enterprise Will Prove Successful; However, Efficient Operations Cannot Overcome Bad Strategy" - Paraphrased from Sun Tzu
Every failed Contractor worth his or her salt will begin to understand the VALUE of a Construction Success System we call M.A.P. after their business has failed and they have time to reflect and think.
Make A Wish List Of Tools And Equipment You know what your company needs to make it more efficient and to reduce The Ten Minutes Of Waste Every Day That Is Killing Cash Flow And Profits so surf the internet, visit trade shows and browse the aisles of your local Home Depot, Lowes and other material and tool suppliers and keep updated about what is available.
Setup Google Alerts To Stay Informed About Auctions
Another Secret of Successful Contractors is they know of еquipment auctions ahead of time. They setup Google Alerts to send them emails about upcoming equipment auctions.
In some cases, they have a skilled foreman or Project Manager setup their own Google Alerts and spend a few minutes every day reviewing what is being offered at upcoming auctions to see if any of it matches the company wish list.
The main disadvantage of auctions is the аbіlіtу to find a wіdе variety оf trucks and tо рurсhаѕе it аt uѕеd рrісеѕ. Evеn іf thеrе іѕ nо real роѕtеd discount, thе tools, equipment, trucks, and vans are ѕеllіng fоr an estimated аррrаіѕеd vаluе which is usually much lоwеr thаn buуіng the ѕаmе stuff brаnd nеw.
Sреndіng less money on uѕеd items can bе a hugе hеlр to Contractors like you if who are looking to get the most value for your dollar.
Fіnаnсіng and Inѕurаnсe
Anоthеr bеnеfіt fоr your ѕtаrt-uр Construction Company is some auction sites have lenders in the audience to help you with fіnаnсіng tо pay fоr your рurсhаѕеѕ. Lеndіng оrgаnіzаtіоnѕ and insurance companies lіkе dеаlіng wіth new and experienced Contractors at аuctions because thе fіrѕt owner hаѕ аlrеаdу absorbed thе initial dерrесіаtіоn that occurs when a tool, equipment, truck or van іѕ taken оff thе dеаlеr lоt.
Rеѕаlе values, lеndіng аmоuntѕ, аnd insurance соѕtѕ are less than what it costs to buy brand new which lоwеrs thе risk fоr еvеrуоnе іnvоlvеd. Lеndеrѕ have smaller loan amounts, insurance values аrе lоwеr bесаuѕе the resale vаluе is lеѕѕ which means everything you need is more affordable for your ѕtаrt-uр Construction Cоmраnу.
Save Money And Have Bеttеr Eԛuірmеnt
Getting bеttеr, bіggеr оr mоrе tools, equipment, and vеhісlеѕ fоr thе ѕаmе chunk of mоnеу is something every Cоnѕtruсtіоn ѕtаrt-uр nееdѕ. Whеthеr you need more trucks tо do mores jobs, оr buying a bеttеr machine wіth еxраndеd financing capabilities, еvеrу dоllаr that can be stretched іѕ a rеаl plus fоr аnу flеdglіng Contractor.
Conclusion
Hореfullу it іѕ easy to ѕее hоw equipment auctions саn роѕіtіvеlу affect your Construction Company whether you are a ѕtаrt-uр or an existing business аnd rеmоvе аnу doubts оr hеѕіtаnсу about buying frоm аuсtіоnѕ.
Do a bit of research and find thе bеѕt аuсtіоn соmраnу for your needs and pay attention to specific dеtаіlѕ regarding buyer protections thаt are оffеrеd so you саn buу with соnfіdеnсе.
Auсtіоnееrѕ who understand the value of repeat customers like you will do their best to accurately rерrеѕеnt what the sell. Construction start-ups and experienced Contractors like you can dо quite wеll аt thеѕе sales!
I trust this podcast helps you understand that outsourcing your contractors bookkeeping services to us is about more than just “doing the bookkeeping”; it is about taking holistic approach to your entire construction company and helping support you as a contractor and as a person.
We Remove Contractor's Unique Paperwork Frustrations
We understand the good, bad and the ugly about owning and operating construction companies because we have had several of them and we sincerely care about you and your construction company!
That is all I have for now and if you have listened this far please do me the honor of commenting and rating podcast www.FastEasyAccounting.com/podcast Tell me what you liked, did not like, tell it as you see it because your feedback is crucial and I thank you in advance.
You Deserve To Be Wealthy, Because You Bring Value To Other People's Lives!
This is one more example of how Fast Easy Accounting is helping construction company owners across the USA including Alaska and Hawaii put more money in the bank to operate and grow your construction company. Construction accounting is not rocket science; it is a lot harder than that and a lot more valuable to construction contractors like you so stop missing out and call Sharie 206-361-3950 or email sharie@fasteasyaccounting.com
Thinking About Outsourcing Your Contractors Bookkeeping Services?
Thank you very much and I hope you understand we really do care about you and all contractors regardless of whether or not you ever hire our services. Bye for now until our next episode here on the Contractors Success MAP Podcast.
566: Marketing Your Construction Business- How To Make It Work For You
00:11:29
This Podcast Is Episode 566, And It's About Marketing Your Construction Business: How To Make It Work For You
Marketing your construction business is crucial for its growth and success. You can use various strategies to promote your business, such as creating a website, networking, social media marketing, and advertising. Additionally, sponsoring events and collaborating with other companies can help you reach a wider audience.
I understand how daunting it can feel for construction business owners like you; we've been there. Whether you're new to the game or have been in business for a while and haven't quite cracked the code, navigating the marketing world can be overwhelming. But it doesn't have to be. Your business deserves to be seen, heard, and thriving—with the proper guidance, you can make marketing work for you. Let's unravel the puzzle, starting from square one.
1. Defining your target audience
Know thy client: the key to tailored marketing.
Before you shout your brand from the rooftops, you must know who you're calling to. Understand the demographics and psychographics of your ideal customer. Are they young professionals, parents, or retirees? What problems do they face that your product or service can solve? The better you know your customer, the better your marketing will resonate.
2. Uncover data gold with market research
Don't rely on guesswork. Dive into market research — it's how you find the "who" and the "why" of your business. This doesn't have to be a complex, expensive ordeal. Start with online surveys or asking family, relatives, and friends in your neighborhood, as well as interviews, social media insights, and competitor analysis. The information you gather here will be invaluable.
3. Set clear goals that spark direction
The beacon of your marketing journey
Without clear objectives, your marketing can feel scattered, like throwing darts in the dark. Your goals should be specific, measurable, attainable, relevant, and time-bound (SMART). Are you aiming to increase website traffic by 30% in six months? Or boost sales by 15% at the end of the year? These goals keep you focused and make success less vague.
3. Develop a marketing strategy
Mapping out your move
Once you've defined your target audience and your goals, it's time to set your marketing strategy. Your marketing strategy is the "how" behind your goals. Identify which channels your audience frequents. If you're targeting working millennials, perhaps Instagram is for you. A well-thought-out marketing strategy aligns your business objectives with the most effective messaging and channels.
4. Consistency is king
Branding isn't just a logo or a tagline. It's the sum of all your customer interactions and experiences with your small construction business. Create a content calendar to ensure your brand is visible across all marketing platforms and your message remains consistent. This calendar should include blog posts, social media content, email campaigns, and any other touchpoints relevant to your audience.
5. Crafting compelling content
The art of the story
Your content should inspire, educate, or entertain — ideally, all three. Write as if you're speaking to a friend, addressing their problem with your service as the solution. Your content is the thread that weaves your story with your customers. Remember, compelling content isn't just about words. Images and videos can support your message.
Visuals – the silent sway
Humans are visual creatures. In fact, 90% of the information transmitted to the brain is visual. High-quality, eye-catching images and videos can convey your message faster and stickier than words alone. Share photos of your "before and after" service provided or a video demonstrating its benefits. The more senses you engage, the deeper your marketing will resonate.
6. Execution and monitoring: making it happen and seeing it through
Take the plunge
It's showtime! Execute your marketing plan with gusto. Use CRM (Client Relationship Management) tools like HubSpot for email campaigns to save time and stay on track. Remember, marketing is a marathon, not a sprint. Consistency and perseverance are key.
7. Learning from your results
Every marketing initiative is a learning opportunity. Use Google Analytics, social media insights, and customer feedback to monitor how your campaigns are performing against your goals. Identify what's working and what's not, and adjust accordingly. The more you learn, the smarter your marketing will become.
A word of encouragement and empowerment:You've got this!
Marketing can be a rollercoaster, with its ups and downs, but you've already taken the crucial first step – you're learning and adapting—trust in your journey, your construction business's uniqueness, and the value you provide. With persistence, creativity, and strategic thinking, your marketing activities will start to feel like second nature.
Embrace the adventure
Think of marketing as an adventure. You're the explorer, and every campaign is a new frontier. It's okay if there's trial and error and even better if there's growth. You're an integral part of the narrative, and your customer eagerly awaits your next chapter.
Remember, word-of-mouth referrals can also be a powerful marketing tool, so be sure to provide excellent service, build relationships with your clients, and ask for their feedback and referrals.
Now, take these steps, make them your own, and enter the world of marketing with confidence.
Your construction business isn't just another face in the crowd — unique, valuable, and deserving of a spotlight. Let's make that happen.
PS
We offer free resources to help you save time and money that you can download and print now.
About The Author:
Sharie DeHart, QPA, co-founded Business Consulting And Accounting in Lynnwood, Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations and offers insights on managing the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. Call 1-800-361-1770 or sharie@fasteasyaccounting.com
19 May 2017
0217: Untrained Construction Bookkeepers Are Too Costly
00:35:00
This Podcast Is Episode Number 0217, And It Will Be About Untrained Bookkeepers Are Too Costly
Construction Bookkeepers Without Training Is A Common Problem
Many Construction Bookkeepers start out as Admin Assistants and get promoted to doing the Contractor's Bookkeeping in their free time. They were not hired to be a bookkeeper but as an office person who does a little data entry.
This method not too bad if the employee stays a long time and grows with the company from owner working solo to gradually adding a few employees one at a time because as Randal says:
Growing By The Inch Is A Cinch; Growing By The Yard Is Hard!
The Term Is Commonly Known As “Grow Your Own.”
This trusted employee ends up learning:
How To Do Payroll For Construction Contractors
How To Do Quarterly Payroll Reports For A Construction Company
How To Do W-2’s For Construction Company Field And Office Workers
How To Do annual 1099’s For Construction Company Subcontractors
How To create Customer Invoices For Construction Contractor's Clients
How To Call The Contractor's Customer And Ask For The Payment
How To Choose What Are The Most Critical Bills To Pay. (Nasty Phones Calls Are The First To Be Paid!)
Over the course of time, the in-house Contractor's bookkeeper / office manager develops new skills. They keep adding them as each new crisis occurs.
Every day someone calls upset, dazed and confused spouses, girlfriends and overwhelmed Contractor's Bookkeepers asking for me to “Please Help – I am so overloaded and frustrated because QuickBooks is a Mess!!"
I recently spoke with someone who wanted to make a few improvements to their business. The company had over 20 employees, and their in-house Bookkeeper was creating payroll Weekly from paper time cards. (which most of the time arrived late). It was Normal for their Bookkeeper to spend hours just trying to read the scribble and make sense of the time cards.
The Contractor's Bookkeeper had the added challenge of matching up the hours to the jobs for proper job costing. A frustrating nightmare for the bookkeeper.
All of this means The Contractor has been successful in growing the business. This is very good. The bad news is that the in-house Bookkeeper is overloaded and a lot of your profit and hard earned money is going to fall through the cracks.
As The Contractor, You Are Paying The Price In The Form Of:
Several Ways You Can Improve In-House Bookkeeper's Life And Grow Your Profits And Your Cash Flow
Upgrade Computer to a new and faster box
Get new monitors that are larger and with better resolutions
Add a second or third monitor for more productivity
Upgrade the office chair the in-house Bookkeeper uses
Double check the phone – is a new phone needed
Would a wireless headset be helpful?
Any Investment That Saves Ten Minutes A Day Of Waste Will Pay For Itself And Pay You Ongoing Dividends
Ten Minutes Waste Kills Your Construction Company Profits
Profit Drain #1 In-House Bookkeeper
Until Your Construction Company - Reaches at least $5 million in annual sales you cannot afford to hire a qualified bookkeeper or construction accountant.
For Example - You Hiresomeone with bad habits which is a Cheap Bookkeeper part-time at $15.00 an hour for 10 hours a week thinking you will save money. The problem with that is you may not understand the true cost to have them on your payroll, including overhead, is closer to $25.29 per hour. See the chart below:
Every Ten Minutes Your Bookkeeper Is Costing You $4.21
And Could Cost Your Company $273.93 Every Year
At 10% Profit, You Need $2,739.30 More Sales To Maintain Profit Margin
In Some Cases - We can do more work for less money by providing you with real construction bookkeeping and accounting + payroll processing + monthly and quarterly tax reports + year end W-2, W-3 + profit and growth management consulting + financial and job costing reports + paperless data storage and more at a lower overall cost and as an added bonus show you how to make more money than you are now!
Cheap Tools And Equipment - Cost a lot of money that you cannot see; out-of-sight means out-of-mind. Invest in the best tools and equipment you can afford because in the short run you will save money. Construction workers who take pride in their work produce better results faster with fewer repairs if they have quality tools and equipment.
Make More Money Faster - With productivity gains. See the chart below:
For Employee #01 Could Cost The Company $1,544.42 Each Year
At 10% Profit, You Need $15,544.20 More Sales To Maintain Profit Margin
For Example - Your best construction worker asks for a tool:
It costs $1,200.00
It will save ten minutes a day in labor
It will last 3 years
The standard response is the company can't afford it!
Highly Profitable - Construction company owners ask their construction accountant to calculate the projected the Return on Investment (ROI) is and then consult their Strategic Business Plan to make an informed decision.
In This Example - It may make sense to finance the purchase even if it means using a credit card at 12% interest because the net return is $3,289.36 which is 245% ROI. See below:
Two Contractors Doing Similar Work - For similar customers with the similar direct and indirect construction costs will have massively different KPI Reports including the Profit and Loss Statements. Size matters when it comes to piles of money and bigger profits!
Before Computers – I Spent Hours Testing Adding Machines
A comfortable easy to use set of keys meant I could work faster.
By Touch, how did the keys feels, how stiff was the keys.
How LOUD, could I use it and still answer the phone?
How durable was the adding machine?
Just as the Right Tool is important to you and your Field Employees. The Right Tools in the office has made the work of the In-House Bookkeeper easier.
The in-house Bookkeeper is a key player in your organization. Everything in the office this them is their “Tools and Equipment.”
Do you know what 10 minutes are costing you? Can that same 10 minutes be used for something more important?
Think of all the tasks you are having your in-house bookkeeper doing. Now how many of them can or should be done by someone else? In the beginning, there was no one else but you and your Office Assistant.
The Office Assistant slowly evolved into being the in-house Bookkeeper. Before your know it the title Office Assistant no longer applies. Now the proper title would be Office Manager and be the in-house Bookkeeper as time permits.
In several blogs, I have quoted saying of my Father and my Brother. Here are some of my Mother’s favorites. When being overloaded with “Things To Do” is really being “The Chief Cook and Bottle Washer” who is willing to pitch in (or by necessity) wherever and whenever a person is needed.
The phrase “Is That My Job Description” never applies to this person.
Another one of my Mother’s sayings was in relationship to housework when there was a “shortage of time.” She would say we are going to give the living room “A Lick and A Promise.” Meaning we were going to give it a quick dusting, vacuum the center of the room, straighten the nick knacks, fluff the pillows on each end of the sofa.
The unspoken was that next time the living room would be vacuumed “Edge To Edge.” The sofa, chairs, tables would be moved and vacuumed under; baseboard would be wiped down. Windows would be washed; drapes would be air fluffed. Feels a bit like spring cleaning.
I find reviewing QuickBooks files that many in-house Bookkeepers are giving the bookkeeping “A Lick and A Promise” Shortcuts are taken. Everything is entered into the checking account. Bank accounts are not reconciled. Credit cards, tax payments are all entered into Accounts Payable, so they will not be forgotten. The time or the willingness to “Go Back” and catch or fix the Bookkeeping never happens.
My first question is what are the things that someone else can be doing?
Would adding an assistant be helpful?
Can someone else go get the mail, open the mail, tidy up the office, make the coffee, take out the trash?
Would adding a shop person be helpful?
Can someone else lift heavy things? (case of paper)
Can someone else move that thing? (desk, cabinet
Can someone else hang that picture, change the light bulb?
My next question is how can payroll be streamlined?
Should payroll be Outsourced to a Payroll Service?
My suggestion for Outsourcing Payroll is almost always YES! Why - The short answer is: It will free up your in-house Bookkeeper’s time. Next reason is as payroll becomes more complicated as you add more employees a payroll service is on top of the rules.
(Washington State added, “Personal Time Off” for 2018. “Personal Time Off” is in effect inside City of Seattle effective in 2017 for employers just passing through (deliver drives, etc.)
Still, want to keep the payroll in-house. Add Electronic Time Card. We recommend T-Sheets.
T-Sheets if setup properly will sync with QuickBooks Desktop In The Cloud (not all 3rd party programs do this nicely) This will save hours of time trying to read employee’s scribble.
I recommend T-Sheets for contractors like you to track your own time.
How many times has a project been Time & Material Billings?
Now, where are the notes on the job?
How much time was spent on the job?
Who spent time on the job?
With T-Sheets built-in database, it is easy to pull reports based on per employee, by time, or by the job.
Having good records is helpful in an audit.
Having good payroll records may help preserve your lien rights on a job.
Having good records is helpful in billing the customer.
Having an electronic timecard with GPS can help keep track of your employees. (Are they working or fishing?)
There is no shortage of tasks for the Office Manager | In-House Bookkeeper
When you ask for financial reports, the word “Overload” comes to mind.
When you ask for job costing reports the “Glazed Look” comes to mind.
When you ask for 10 more things to be done “Muttering Under Breath” happens.
Understand as The Contractor the person who has the most invested in your business is you. The additional energy to “Get The Job Done” is yours because the company is yours. It is by exception that the most dedicated employee will have the same intensity as you do about your business.
Why – because they can clock out and go home. It is you who has to Worry, Wait and Hustle! And sometimes – if you don’t pick up and step up to get the balance of what needs to be done. It won’t get done. We are here to help. We do not try to do it all. Every year we make improvements to our business. Why – To help us help you. I am not excited to pay server fees, but I like the benefit of our Contractor clients and us having 24/7 access to the QuickBooks file if I need it.
Technology is everywhere. Email is nicer that faxing documents everywhere. I have on occasion emailed a client late at night or early morning to be sure they know something before their day starts. I am very much a phone person, but I would never call or answer the phone during those same odd hours.
Looking forward to Chatting About How We Can Help You
Sharie
About The Author:
Sharie DeHart, QPA is the co-founder of Business Consulting And Accounting in Lynnwood Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations and offers insights on how to manage the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. http://www.fasteasyaccounting.com/sharie-dehart/ 206-361-3950 or sharie@fasteasyaccounting.com
I trust this podcast helps you understand that outsourcing your contractor's bookkeeping services to us is about more than just “doing the bookkeeping”; it is about taking a holistic approach to your entire construction company and helping support you as a contractor and as a person.
We Remove Contractor's Unique Paperwork Frustrations
We understand the good, bad and the ugly about owning and operating construction companies because we have had several of them and we sincerely care about you and your construction company!
That is all I have for now, and if you have listened to this far please do me the honor of commenting and rating podcast www.FastEasyAccounting.com/podcast Tell me what you liked, did not like, tell it as you see it because your feedback is crucial and I thank you in advance.
You Deserve To Be Wealthy Because You Bring Value To Other People's Lives!
One more example of how Fast Easy Accounting is helping construction company owners across the USA including Alaska and Hawaii put more money in the bank to operate and grow your construction company. Construction accounting is not rocket science; it is a lot harder than that, and a lot more valuable to construction contractors like you so stop missing out and call Sharie 206-361-3950 or email sharie@fasteasyaccounting.com
Contractor Bookkeeping Done For You!
Thinking About Outsourcing Your Contractors Bookkeeping Services?
Thank you very much, and I hope you understand we do care about you and all contractors regardless of whether or not you ever hire our services. Bye for now until our next episode here on the Contractors Success MAP Podcast.
Most Contractors Setup QuickBooks Desktop Version In One Of Three Ways:
#1 EZ Step Interview inside QuickBooks Setup #2 Asked Their Tax Accountant To Setup QuickBooks #3 They Attended A How To Setup QuickBooks Class Or Seminar
And QuickBooks Does Not Work The Way They Want It Too!
0307: How To Prepare Your Construction Business To Go From Local To Regional Scale
00:08:29
This Podcast Is Episode Number 0307, And It Will Be About How To Prepare Your Construction Business To Go From Local To Regional Scale
The construction industry offers a lot of opportunities. Entrepreneurs developing a construction business have an insatiable desire to grow and expand. Even though this domain offers a lot of opportunities, it brings also a lot of challenges in the same package. Therefore, when you decide to expand your construction company from local to regional, there are a lot of things you need to consider. This article is going to show which strategies you can apply to have a successful transition.
First, you should understand why you need to expand your construction in another city. Below you can find a list of questions you should answer before deciding if you are prepared for this move.
Steps to Follow Before Expanding on a Regional Level
What are your customers asking?
A successful construction business is the one that develops long-term relationships with its clients. When you start a business, one of the first steps is to determine your target audience and understand their requirements and expectations. Therefore, when your clients start asking you to deliver your services in other geographical areas, then it means that you need to expand regionally.
Is your market saturated?
Even though your clients are not asking you to collaborate with them in other areas, this doesn’t mean that you cannot expand your construction business. Any local market has its competition, especially when we are talking about a productive industry like construction. Therefore, it is obvious that, no matter how big your business is, you won’t be able to cover more than a certain percentage of the entire market. Thus, you will reach a moment when your market will be saturated. This is a clear sign that you need to think of an expansion strategy.
Will it help you to leverage your expertise?
If you want to be successful in the construction industry, you need to be innovative and unique. Whether you are using a different internal system, or your people have special skills, you need to stay ahead of your competition. Therefore, expanding your construction business to a regional level will be a great opportunity to leverage your expertise.
Will this expansion motivate your key employees?
One of the biggest difficulties construction companies face is motivating their key employees. What is more, it becomes even harder to find good people to work in this demanding environment. Therefore, once you find them, it is very important to keep them motivated. Thus, when you decide to move from local to regional, think also from your key employees’ perspective. If this may represent a motivating factor for them, then this is a good reason to build your business in a different city as well.
Are you ready to fund your growth?
Even though your construction company is already making a nice profit, growth will always need an investment. For instance, you may need upfront capital to acquire an existing company. Or you may also need money to buy or rent new equipment to start big in the new location. Therefore, before jumping into expansion, you need to think carefully about how your strategy will look and be ready to fund your growth at a regional level.
Challenges to Overcome When Expanding a Construction Business
You can learn a lot from the mistakes other business owners do. So, if you don’t want to repeat them, take a look at the pitfalls mentioned below and analyze your exposure before venturing into expanding your construction business.
Underestimating the efforts necessary to succeed
When you open a new branch in a different city, you need to be ready to invest a lot of time, energy, and money to make sure that you will be successful. Opening an office in a different city is a long-term investment. So, you need to be prepared for the entire process. Entrepreneurs should be ready to translate their marketing content and materials into different languages if they want to approach an expanded target audience. It is very important that people know about you and understands what you have to offer.
Underestimating your competitors
You may be the strongest construction company locally, but this doesn’t mean that once you expand you will keep your top position. The power of the local competitors is usually underestimated by most business owners. But, they have a very important advantage. They know the market very well and have strong local connections. Therefore, even though your work processes and equipment are superior, you will need some time to make clients understand you are trustful, and you really bring something new on the market. Moreover, once you have discovered who your local competitors are, you can analyze their progress on the market and understand what they did wrong and what was good that placed them in this position. In addition, you also need to be prepared for a price drop. Your local competitors will have a primary interest to make you fail. So, they will most probably drop the prices to achieve this goal.
Hiring the wrong branch manager
When you open a branch in a different city, you need a very strong branch manager. You can choose either a local person who knows the market very well and is well-connected with the key stakeholders. But, you can also offer this opportunity to an existing employee who will find it very motivating and put all his efforts into making your business a success. Either option you choose, you need to be mindful in offering him or her an incentive to win. Your branch manager should treat this business as it was his. Thus, he will feel motivated to do everything he can to achieve your goals.
In conclusion
Construction is definitely not a game where you grow or die. Yes, growth can increase your profits and strengthen your brand on the market. But, if it is not done properly, growth can also kill your business as you might not be prepared for the investment and challenges which will come.
About The Author:
Kristin Savage has graduated from Columbia University where she was majoring in Germanic Languages. Besides English as her mother tongue, she also speaks German and Dutch fluently. Currently, Kristin is studying Spanish and planning to obtain her Ph.D. in Applied Linguistics since she is interested in how to use her practical knowledge of language processes in everyday life. She has been a writer at Pick Writersfor a few years and is known for her thorough approach to all the tasks and aspiration to fulfill assignments with flying colors.
We are here to Help “A Little or A Lot” depending on your needs.
I trust this podcast helps you understand that outsourcing your contractor's bookkeeping services to us is about more than just “doing the bookkeeping”; it is about taking a holistic approach to your entire construction company and helping support you as a contractor and as a person.
We Remove Contractor's Unique Paperwork Frustrations
We understand the good, bad and the ugly about owning and operating construction companies because we have had several of them and we sincerely care about you and your construction company!
That is all I have for now, and if you have listened to this far please do me the honor of commenting and rating the Podcast www.FastEasyAccounting.com/podcast Tell me what you liked, did not like, tell it as you see it because your feedback is crucial and I thank you in advance.
You Deserve To Be Wealthy Because You Bring Value To Other People's Lives!
This Is One more example of how Fast Easy Accounting is helping construction company owners across the USA including Alaska and Hawaii put more money in the bank to operate and grow your construction company. Construction accounting is not rocket science; it is a lot harder than that, and a lot more valuable to construction contractors like you so stop missing out and call Sharie 206-361-3950 or email sharie@fasteasyaccounting.com
Contractor Bookkeeping Done For You!
Thinking About Outsourcing Your Contractors Bookkeeping Services?
Thank you very much, and I hope you understand we do care about you and all contractors regardless of whether or not you ever hire our services. Bye for now until our next episode here on the Contractors Success MAP Podcast.
Most Contractors Setup QuickBooks Or Xero Online Accounting Using:
#1 EZ Step Interview inside QuickBooks Setup #2 Asked Their Tax Accountant To Setup QuickBooks #3 They Attended A How To Setup QuickBooks Class Or Seminar
And QuickBooks Does Not Work The Way They Want It Too!
615: Valuation Beyond Numbers - Enhancing Your Construction Business Worth
00:13:25
This Podcast Is Episode 615, And It's About Valuation Beyond Numbers: Enhancing Your Construction Business Worth
When valuing a business, most people think straightforwardly about profits. While financial success is undoubtedly critical, it's far from the only factor determining a business's actual worth. Understanding valuation complexities can offer small business owners and entrepreneurs a clear roadmap for sustainable growth and long-term success.
While financial metrics are undoubtedly important, they do not provide a complete picture of a construction company's worth. For contractors and builders, understanding the nuances of business valuation can pave the way for sustainable growth, effective investments, and successful transitions, whether selling the business or attracting stakeholders.
Here is a fresh perspective on what makes a business truly valuable. We'll discuss traditional valuation metrics, the non-financial factors influencing worth, and practical strategies to enhance value.
The Importance of Business Valuation
Business valuation isn't just for companies preparing for sale or investment. It's a powerful tool that helps you understand your business's health and identify areas for improvement. A valuation gives you insight into whether your construction business is structured for long-term sustainability or is at risk of operational inefficiencies, market challenges, or other pitfalls.
Think of it this way: knowing your business's valuation is like running a health check. It gives you a snapshot of financial health, considers external factors, and ensures your company is ready to tackle challenges or opportunities that come your way. If valuation isn't already part of your business planning, it's time to make it one.
Traditional Valuation Metrics
Traditionally, business valuation has relied heavily on financial metrics. Two commonly known approaches include:
Earnings multipliers
This method involves multiplying a business's annual revenue or profits by a standard industry-specific figure.
Discounted Cash Flow (DCF) Analysis
DCF looks at a business's projected future cash flows and discounts them to present value, providing an estimate that accounts for risk and time. While highly detailed, this method depends heavily on accurate forecasts.
These approaches are undoubtedly helpful but don't tell the whole story. A construction business can be profitable yet fail to secure a high valuation due to overlooked non-financial factors.
Beyond Profits: The non-financial factors that matter
While profits are essential, they're only the beginning of the valuation equation. Non-financial factors can significantly influence how much your business is worth:
1. Market Demand and Competitive Landscape
It's not just about how much profit you generate today—it's about your position in the market. Is the demand for your product or service growing, or is the market becoming saturated? Are competitors innovating faster than you? A future-proof business consistently assesses market trends and adapts to stay relevant.
Pro Tip:Conduct regular SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis to understand your edge in the market.
2. Operational Risks
Operational risks can make the most profitable contracting business unattractive to potential buyers or investors. For example:
Does the business rely heavily on an individual owner, a single key employee, or one major customer?
Are there documented systems and processes, or does the business suffer from inefficiencies?
Think of these risks as red flags that could threaten scalability and sustainability.
3. Reputation and Brand Image
Your brand's reputation isn't just about avoiding bad press—it's a key driver of trust among customers, clients, and partners. Businesses with a loyal customer base and a positive reputation often command higher valuations.
Real-Life Example:A one-person remodeling company with a loyal local following may receive a higher valuation than a larger one with profits but poor customer reviews.
4. Innovation and Adaptability
How well does your business innovate? Construction businesses that embrace new technologies and methods are typically more resilient. Failure to adapt to changing technologies or market dynamics can cause even profitable enterprises to stall. Businesses that thrive on creativity invest in Research and Development, are ahead of the curve, and demonstrate resilience, which adds immense value during valuation.
Key Question:Is your company actively curious about emerging trends and technologies?
5. Legal and Regulatory Compliance
Compliance isn't just about avoiding lawsuits—it's about showing that your business operates responsibly. Construction companies must comply with a myriad of regulations. A solid compliance record can improve a company's valuation by reducing risks related to potential lawsuits or fines. Demonstrating responsible operations assures buyers that your business is trustworthy.
6. Team Strength and Cohesion
The quality and stability of your workforce can influence valuation. A skilled, experienced, and well-coordinated team enhances productivity and project delivery, making the business more attractive to potential investors or buyers. High employee turnover can signal underlying issues and be a red flag to prospective investors.
Warning Sign:Frequent employee turnover can signal a toxic workplace culture, directly impacting valuation.
Strategies for maximizing business value
To increase valuation, focus on both profitability and these often-overlooked factors:
Diversify revenue streams:Reduce reliance on a single product, service, or client to decrease operational risk.
Document processes:Streamline workflows and document systems to make the business more scalable.
Build a lasting brand:Invest in customer experience, brand identity, and online presence. A strong brand pays dividends in terms of valuation.
Foster a strong team:To retain top talent, provide training, career development opportunities, and a positive workplace culture.
Stay innovative:Review and refine your business model regularly to meet changing market needs.
The role of innovation, compliance, and team strength
True innovation, regulatory compliance, and a skilled team create a synergy that elevates your business value. These three pillars foster trust and sustainability:
Innovation keeps you competitive.
Compliance helps avoid costly legal issues.
Team strength ensures the knowledge and talent needed for long-term growth.
Final thoughts
Unlock your business's actual value.
Valuing a construction business encompasses much more than simply analyzing profits. To truly understand your company's worth, consider financial and non-financial factors. Focusing on market position, operational efficiency, and innovation can enhance your company's valuation and ensure long-term success in the competitive construction industry.
Valuing a business is never just about profits. Understanding traditional metrics and exploring non-financial factors can position you for long-term success. Whether you're gearing up to sell or want to ensure your construction business thrives, a balanced approach is key.
Want advice to boost your business value? Contact us. We'll help you create a plan tailored to your needs.
About The Author:
Sharie DeHart, QPA, is the co-founder of Business Consulting And Accounting in Lynnwood, Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations and offers insights on managing the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. Call 1-800-361-1770 or sharie@fasteasyaccounting.com
11 Jul 2014
0057: Contractors Success Map Construction Apprentice Thinking Patterns
00:12:06
This podcast is episode number 0057 and it will be about Construction Apprentice Thinking Patterns
This podcast will focus On Construction Apprentices and how they think. It is my intention to offer some useful insights to all Journeymen in all of the construction trades and all owners of small construction companies.
Construction Apprentices are one of my most favorite groups of construction workers because they provide a never-ending supply of good clean humor. For the record, I have a deep respect and sincerely appreciate all apprentices everywhere for they are the men and women who continually replenish the supply of skilled Journeymen and are vital members of The Greatest Industry On Earth.
Having served an apprenticeship in plumbing and passed the Washington State Journeyman Plumber Exam PLO1 in 1981 this article comes from the heart of someone who understands the good times while serving an apprenticeship.
After becoming a Journeyman Plumber, I spent several wonderful years in the trades as a construction worker and later as a contractor. Therefore, these observations are from first-hand experience. Overall, I have fond memories of the good times spent on a variety of residential and commercial jobsites.
Over the next ten years, I paid my dues to the trade by mentoring several apprentices and most of them went on to become phenomenal Journeymen and enjoyed long and profitable careers.
The information presented here are from journals and notebooks of my own experiences as an apprentice and my observations of the behavioral traits of construction workers, contractors, engineers, architects and other people who are involved in construction.
All apprenticeship programs regardless of the industry have one thing in common the Four Levels Of Learning.
#1 Freshman Construction Apprentice I don’t know that I don’t know anything about construction so I will listen and learn for a little while until I decide the Journeyman teaching me is stupid.
#2 Sophomore Construction Apprentice Now I know that I don’t know anything about construction, but I know a lot more than the dumb Journeyman who is supposed to be training me. He is obviously slow and stupid because he will stare at the plans for a very long time before making a decision. Why can’t he get it together so we can get to work and get the job done?
#3 Junior Construction Apprentice Well, now I know construction well enough now that I can do it if I concentrate and stare at the plans long enough to see the entire layout in my mind. I was wrong to think the Journeyman teaching me is an idiot. I am the idiot.
#4 Senior Construction Apprentice I know construction well enough to do it in my sleep and I really wish I had not been so impatient with the Journeyman who cared enough about the trade and me to take me on as his apprentice.
Being a Construction Apprentice is an interesting journey. I refer to it as a phenomenon where otherwise intelligent men and women regress into a mental state just above plant life because they are attempting to shove massive amounts of mental information by their amygdala and allow it to go directly into their cerebral cortex where it is stored in long-term memory.
While immersed in deep training mode the apprentice's muscle memory is being transformed at the cellular level to do things that do not make sense at the time. If they stick with the process, they will most likely come out the other side very intelligent and highly skilled Journeymen or they will quit and go into something less stressful like being a peace negotiator or rocket scientist.
Every apprentice, me included, has experienced every symptom listed below. This is a sample taken from several hundred observations and personal experiences.
Twelve Signs You Might Be A Construction Apprentice:
1. You are very enthusiastic about learning a skilled trade 2. You wander about aimlessly on jobsites in awe and wonder 3. You dress in blue jeans, plaid shirt, work boots and baseball hat 4. You are asked what color the sky is on your home planet in the summer 5. You are told earth is full and you need to seriously consider returning home 6. You have a dazed look on your face when the Journeyman explains something, twice 7. You are told to wait in the truck while the Journeyman and the contractor talk and instead get out and start wandering around 8. You are told not to do something and do it anyway just to see what will happen 9. You have a listening problem so the Journeyman does not talk, he shouts at you 10. You are asked if you are ambivalent and you reply without thinking "Well yes and no" 11. You are like a cross-eyed discus thrower, never setting any new records but keeping everyone's attention 12. You are told the lights are on in your head; however, nobody is home now
Understanding breeds patience and leads to success. Just knowing the road your construction apprentices must travel and sharing this article with them can help make the transition smoother for everyone involved.
Need A Mentor? - Someone who has been were you want to go and can guide you. We would like to be that person for you. Call Sharie 206-361-3950 or email sharie@fasteasyaccounting.com and schedule your no charge one-hour consultation
I leave you with this heartfelt blessing - “The four levels of learning apply to everyone, not just apprentices and since lifelong learning is a journey relax and enjoy the ride”
For Construction Company Owners who do not need the full power of QuickBooks for contractors and want 24/7 online access we offer Xero Accounting Online and we have custom setup for construction companies. Click Here For More.
This is one more example of how Fast Easy Accounting is helping construction company owners just like you put more money in the bank to operate and grow your construction company. Construction accounting is not rocket science; it is a lot harder than that and a lot more valuable to construction contractors like you so stop missing out and call Sharie 206-361-3950 or email sharie@fasteasyaccounting.com
Thinking About Outsourcing Your Contractors Bookkeeping Services?
0043: What Makes Our Contractors Bookkeeping Service Different
00:22:53
Aren't All Bookkeeping Services The Same?
That's a fair question and one I can respect because on the surface every business, industry and service provider appears to be the same. Coffee is coffee isn't it?
Coffee from Starbucks could be said to be ground up coffee beans that have been mixed with hot water and how can that be any different than coffee from the machine that sits in the corner of the Greyhound Bus terminal?
Wine could be said to be grapes pressed, aged and put into a container. What makes Inglenook Cabernet Sauvignon NAPA Valley, 1941 worth more than wine under $5 at Trader Joe's?
Long ago in a bike shop in Seattle, Washington I went shopping for a bike helmet and asked the clerk for a "cheap helmet" because in my mind all bike helmet were the same and I was not about to be ripped off. He had a profoundly simple answer:
"If You Have A $10 Head Buy A $10 Helmet"
He said it with a deadpan face, no expression and he acted as if he could not care less about what helmet I purchased.
I remembered something my Step-Father used to say "Buy the best you can afford and cry once, rather than buying the cheapest and crying about it not doing what it was intend to do forever."
He was a simple man without a lot of formal education and yet one of the wisest men I have ever known.
I purchased the most expensive helmet I could afford and it saved me from experiencing several injuries over the next few years.
Over the years I have put into practice a lot of the words of wisdom my Step-Father offered and I can say with 100% assurance his advice about buying the best you can afford has helped me make a lot of money because every time I buy the best it has been the cheapest in the long run and generated a lot of dividends.
If you are thinking about delegating your contractors bookkeeping to someone I would like to make a case for why you should hire the best bookkeeping service you can afford regardless of whether or not it is us because we may not be the best choice for your contracting company.
Six Important Questions To Ask All Bookkeepers And Bookkeeping Service
#01 - What do you know about construction accounting?
This is a simple question and the answer should tell you a lot. Go deeper ask about how they handle Work-In-Process (WIP), Retention, Job Deposits, Maintenance Agreement Tracking, Change Order Tracking, Payment Applications.
If you want more in depth questions click here. We have a contractors bookkeeping system that handles all of this and more. To learn more about it please visit www.Fasteasyaccounting.com/cbs
You want to know in advance if they plan on putting your entire company in the hands of one lonely bookkeeper who is doing everything in their own business trying desperately to stay afloat? Answering their business and personal phone calls, selling new work, running errands, maintaining their own company infrastructure, checking email, going crazy trying to do everything required to own and operate their own business and if there is any time left over they will handle your bookkeeping.
What happens to your company bookkeeping records if they get sick, go on vacation, get to busy or just plain quit?
We have a team of people so that no one person is responsible for everything with checks and balances in place so that if something does slip through the cracks we have processes to find and fix them.
#03 - Do You Have A Commercial Office Space?
If the bookkeeping service has Commercial office space it is because their contractor clients like and trust them and that translates into earning enough revenues to support and office.
Bookkeepers who work from home put their contractor clients at risk of losing paperwork to children, friends, relatives and competitors who will be in their homes on a regular basis and everyone is naturally curious.
#04 - What Is Your Recovery Plan In Event Of A Disaster?
What would happen if a flood, fire, landslide, earthquake, burglary or any other event wiped out the bookkeeper's place of business? Do they have a contingency plan in place to restore your contracting company records and if so how long would it take? Or are they just hoping nothing will happen? Worse yet have they never even considered it?
If Your Company Records Are Destroyed
You Are Out Of Business!
We have a contingency plan. Everything backed up offsite at a minimum of 1,000 miles from our headquarters in Lynnwood Washington but inside the U.S.A. And all of our live QuickBooks files are resting on an Intuit Approved Commercial Hosting Services Provider. They backup everything offsite everyday.
This means every bit of work on your QuickBooks file is saved automatically the split second we finish pressing a key on one of our keyboards. No fuss, no muss, no having to think about it.
All important documents we receive are uploaded into secure paperless servers a minimum of 1,000 miles from our headquarters in Lynnwood Washington but inside the U.S.A.
One of our contractor clients experienced the need for this service first hand. Here is his story in his own words: --------------------------------------------------------------------------------------- Remodel Contractor - Edmonds, WA
"On July 27, 2008, Sunday evening around 6:30 pm my girlfriend and I just got home from an overnight hiking trip. When we arrived home we had discovered that we had been robbed. We immediately called 911.
As we walked through the house we discovered that our computer was gone along with many other valuables. The computer had all the company business on it.
QuickBooks, invoices, all the subcontractors’ info, and everything to keep the company books.
We were at a loss for what to do. But as luck would have it, we had Randal DeHart as our accountant. He had all our info on a back-up system somewhere in a huge server.
So we called Randal to let him know that we would get a new computer as soon as the insurance company paid us.
Randal called us the next day, July 28th, 2008 and told us to come to his office. To our surprise he had gone to Office Depot and purchased a new computer and loaded it with QuickBooks and restored all our business information.
We are so appreciative that Randal had our backs, so to speak. We had told him that we would pay him for the computer as so as possible. But you know what he said……….
“No thanks are necessary and that if we just Pay-It-Forward, that’s all he asked.”
How’s that for a Good Accountant? ---------------------------------------------------------------------------------------
#05 - Can I Get To My QuickBooks File While You Have It?
With our service you can access your QuickBooks file anytime anywhere 24/7/365 with any web enabled device including iPhone, iPad, PC, Smartphone, Tablet. You can generate reports and do almost anything you would do if it was on your desktop except keep it updated with the latest software patches because that is done for you automatically. And you can access MS Word and MS Excel desktop version as well.
All QuickBooks Files Are Backed Up Every Night On A Secured Server
You Can Access QuickBooks Desktop Version From PC or Mac
English Speaking, U.S. Based Technicians Maintain The Server
QuickBooks Software Updates Are Automatically Applied
We Provide Your QuickBooks Maintenance And Suppor
As an added bonus you can create an invoice using your Smartphone and email it to your customer and they can pay you via credit card before you leave the jobsite! Click Here To Learn More
#6 - How Do I Get Paperwork To You?
As a contractor your time is precious and limited so the more ways to get paperwork to your bookkeeper the better. Any bookkeeper or bookkeeping service that only has one option which is you to bring it all too them costs you time and money and why should you bear the burden? Worse yet are the bookkeepers who want to "Come to your home or office" and either pick up the paperwork or do the work on your computer. This is never a good idea on so many levels, not just the liability exposure of someone injuring themselves on your property and you being liable. What happens if they wipe out important files on your computer or spill coffee on it and fry everything? The risks far outweigh the benefits. We offer several options to get paperwork to us and you don't even need to organize it because we have a system from having owned and operated several construction companies in the past.
Organizing Construction Bookkeeping Paperwork Is Like Herding Cats!
You Can:
· Drag and drop it to a special folder we setup on your computer desktop
· Mail it to us 19909 64th Ave West, Suite 201, Lynnwood, WA 98036
· Bring it by during office hours or special office hours for contractors
· SnoKing Contractors Center members have 24/7/365 access to meeting rooms and can leave paperwork in the lockbox
· Put us on your vendor list to have bills and statements emailed to us
· ScanSnap Scanner sends paperwork with push of one button Learn More
· Bring it in bags, boxes, baskets, wheel barrow, forklift or ox cart
· Get it from the dashboard of your truck, van, car or SUV and send it to us
· Send it by taxi cab
· Fax it
· Email it
· FedEx it
· UPS it
· In a few cases we send someone to get it
· Whatever is easiest for you!
· We are here to serve you!
We Have A Construction Bookkeeping System - With workflow processes for everything including paper sorting. Which means once it arrives no matter how organized or disorganized it is we need to pre-process everything before it enters our workflow where it is scanned and uploaded into paperless servers in the cloud? Hopefully you not having to sort anything will save you time and money.
Construction Paperwork Is Like An Apprentice - Left unattended it tends to wander off and get lost. Here are a few helpful hints where paperwork hides
In The Contractors Mobile Construction Office Command Center, The Truck: · On the dashboard · Behind the seat · Under the seat · In the console between the seats · In the glove box · Under the spare tire · In the box you got from the supplier warehouse
Outside Your Mobile Office: · In you post office box · Stuffed in manila envelopes · On the night stand · Piled on your desk · In your wallet · Inside your portfolio · Stuffed in all your pants pockets · In your computer bag · Stuffed in all your shirt pockets
Coffee Stained Paperwork Is Optional - We prefer a dark roast, double foam, shot of mint, with a hint of cinnamon. However, plain old black coffee is O.K. too!
Do Not Be Concerned - Where the paperwork has been, when we owned and operated our plumbing service, repair and drain cleaning company we had seven trucks and over twenty employees. We processed paperwork that had been places you can only imagine with no problems at all.
Don't Sort The paper - Get a big box, file box, and scoop it all into the box, close the box, bring us the box. To you, the contractor, every piece of paper has a story.
This Means Every Time You - Touch it, see it, sort it, smell it, put it into QuickBooks for Contractors or just look at it your protective conditioned mind and its fear creating mechanisms will replay the entire story which will slow you down and in turn drag out the entire construction bookkeeping process.
Furthermore It Could - Possibly lead to a release serotonin which causes the blood vessels in your head to contract and lower your pain threshold.
It Is A Fact - Doing something you don't like or understand like construction
Bookkeeping Can Be Painful - For contractors and in the end when you try to "Power Through The Pain" like Olympic athletes you end up losing money because after powering through the pain you typically do not have the luxury of a vacation and rest period you have to go see that next customer, close the next sale or manage the next job and when you are not at your peak performance you lose, big time!
Your Contractors Bookkeeping Paperwork Has Already - Been over handled, we do not have any emotional attachment to it which means we can reduce input time by at least 40% and since we pass the savings on to you everybody wins.
Your Contractors Bookkeeping paperwork has been over handled long before we get it and since we don't have any emotional attachment to we can reduce input time by at least 40% and we pass the savings on to you so that everybody wins.
This is one more example of how Fast Easy Accounting is helping construction company owners just like you put more money in the bank to operate and grow your construction company. Construction accounting is not rocket science; it is a lot harder than that and a lot more valuable to construction contractors like you so stop missing out and call Sharie 206-361-3950 or email sharie@fasteasyaccounting.com
Thinking About Outsourcing Your Contractors Bookkeeping Services?
446: Practical Tips For Encouraging Repeat High-Profit Clients
00:08:49
This Podcast Is Episode Number 446, And It's About Practical Tips For Encouraging Repeat High-Profit Clients
Many data support the idea that it's less costly, easier, and more efficient to encourage repeat customers than bring in new ones. Among the stats Hubspot lists are: that a 5% increase in customer retention is responsible for more than 25% increase in profit; repeat customers are nine times more likely to convert than first-time visitors, and a 2% increase in customer retention has a similar impact to your bottom line as reducing costs by 10%.
Understand The High-Profit Client - Most of them have personality traits commonly known as drivers - folks who are accustomed to getting things done quickly and efficiently. They do not mind paying professionals to service, repair, or build new construction projects related to their houses and commercial buildings.
Design and develop your internal customized systems and processes when and where it makes sense. As much as possible, when it is cheaper to buy something ready-made for a fraction of what it costs you to do-it-yourself then buy it.
Systems, Systems, Systems - You need systems (a system is simply a collection of processes built upon an understanding of what works and each method has been tried and tested). Without systems or a desire to "wing it" and see what happens will bring out the animal in these people, and they have been known to cause construction business a great deal of harm and financial pain.
For project milestones and projected completion dates (when change orders occur, update the completion date)
Cause the least amount of grief and interruptions to their lives
Ensure they make the fewest possible decisions (they make decisions all day long)
To make sure nobody ever tries to "educate" them about construction (they don't care, that's why they hired you!)
Then, follow along these four practical tips to encourage your high-profit clients to keep coming back.
1. Build relationships with clients
Take time to learn more about your customers.
Do they mention family members? Ask about their loved ones. Do they have particular concerns? For instance - too many cable cords around the house and they have small children. Keep track of their issues and be attentive to their needs. Recommend solutions that address their specific problems. Go the extra mile to show your customers they're important to you.
Ask for their input, as well. They'll get to know your products and services and offer insights into what's working and what could be improved. If you engage them--and make changes based on their feedback--you'll develop a loyal customer base.
The more special your clients feel, the more likely they are to hire you again. They'll appreciate your thoughtfulness and value your service.
2. Make it personal
Your loyal clients deserve communications that are more personal and less formal. Using impersonal emails for your more extensive email list is fine, but use more personal touches with your best customers.
Phone them or suggest an in-person meeting if you want to let them know about an essential business-related matter. Keep track of important dates, as well. You can send gifts or cards to mark important occasions or to reach out.
Make your best customers feel they stand out from the rest by being more personal with them.
3. Share relevant information
Still, if you get to know your customers well, you can pass along articles, books, or other information that might interest them, even if it isn't related to your business. Newsletters are a great way to stay in touch with your customers and let them know what you're up to. It shows them you understand and you care.
4. Remember your loyal clients
Businesses sometimes focus their attentions exclusively on new customers, forgetting about loyal and repeat customers. You need new customers to keep your business thriving; however, excluding long-term customers creates customer churn.
It's great to offer new customers rewards and incentives, but that leaves existing customers feeling ignored. Offer your long-term customers bonuses for their loyalty.
Final thoughts
The Key Here Is To Get In And Get Out Fast - And they will love you for it! The high-profit client has more money than time, so more than most people; their time is worth a lot more to them than you can imagine.
Encouraging repeat customers makes solid business sense. To be successful, you need a balance of new and long-term clients. This means building relationships with people, personalizing your attention, sharing relevant information, and remembering your loyal customers.
A great product or service at a reasonable price might bring your customers in, but outstanding customer service that gives them a positive, memorable experience will keep them coming back.
About The Author:
Sharie DeHart, QPA, is the co-founder of Business Consulting And Accounting in Lynnwood, Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations and offers insights on how to manage the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. Call 1-800-361-1770 or sharie@fasteasyaccounting.com
25 Dec 2015
0144: The People That Got You Where You Are Cannot Take You Where You Are Going
00:16:54
This Podcast Is Episode Number 0144 And It Will Be About The People That Got You Where You Are Cannot Take You Where You Are Going
All Construction Companies Have Growing Pains - When you started your construction company it was all you or perhaps you had a partner or somebody who was helping with the office work like answering phones, bookkeeping and running a few errands.
Your Construction Company Grew - And you found yourself with problem employees who little by little took over the back office operations and were preventing your business from growing.
Here You Realize - The people who got you where you are cannot take you where you are going! It is a harsh reality that has everything to do with change. The only people who embrace change are wet babies and everyone else hates it.
Passive Aggressive - Employees in positions of authority and especially Bad Bookkeepers become envious of your success and will destroy your contracting company from the inside like a cancerous infection if you don't replace them. The most common reason is they believe you lied to them! Their paradigm is entrenched and not open to personal growth and change. When they joined your contracting company it was small and fun and not a lot of rules just right and now it is become a profit and money tree just like every other successful contractor. Expansion Isoquants - Are pretty pictures to demonstrate the process of how a construction company grows.
When The Economy Is Expanding -Demand for construction rapidly and almost overnight outstrips supply because so many contractors gave up and left the industry.
Well Intentioned Yet Unseasoned Contractors - Seize the opportunity to grow their contracting company rapidly by haphazardly bidding and winning projects without giving any thought to calculating their company Expansion Path Isoquants, infrastructure, logistical support, working capital requirements, Job Costs or Key Performance Indicators (KPI).
There Is Inevitable Chaos - Caused by too much work and not enough labor, material, other costs and subcontractors (LMOS) leads to the contractor becoming a pipe through which money flows with increasing velocity and not in a fun way.
The Answer Is Simple But Not Easy -Which why construction company owners who do the work have the results; cash, capital, freedom and time to do the things they really want to do with their lives while everyone else is looking for a shortcut or an app. Instead use the Contractor Strategic Development Outline.
Level One -Dog and Pickup Truck with annual sales roughly $100,000 to $200,000 and a friend or relative doing the bookkeeping.
Level Two - Salt of The Earth with annual sales roughly $200,000 to $400,000 and the demands of the business have outgrown the skillsets of the friend or relative doing the bookkeeping. It is time to outsource to Strategic Bookkeeping Services and move the bookkeeper to executive assistant. This is where feelings get hurt and people feel unloved because they gave you the best years of their life (Actually you paid them in cash, perks and benefits) and now you are putting them elsewhere and taking away their power! This is where a lot of construction businesses get stuck because "Environment Trumps Will Power!"
Level Three- Professional Small Contractor with annual sales roughly $400,000 to $5 million. This is the "Sweet Spot" where we see a lot of our clients make a lot of money and begin to focus more on what Michael Gerber calls "Working On The Business; Not In The Business" with a Board of Advisors and a business plan.
Level Four -Enterprise Contractor with annual sales exceeding $50 million are run by people with a lot of heartburn and stress because they are so heavily regulated and watched by everyone from the laborer in the trench to the board of directors and shareholders.
Employees At Each Level - Are not suited to work in the levels above or below. Entrepreneurs like you are the only ones who can transition because you learn to embrace change and when you try to make your staff grow with you it rarely works because they normally will not change.
Need A Mentor? - Someone who has been were you want to go and can guide you. We would like to be that person for you. Fill out the form on the right or call Sharie 206-361-3950 or email sharie@fasteasyaccounting.com and schedule your no charge one-hour consultation
I trust this podcast helps you understand that outsourcing your contractors bookkeeping services to us is about more than just “doing the bookkeeping”; it is about taking holistic approach to your entire construction company and helping support you as a contractor and as a person.
We Remove Contractor's Unique Paperwork Frustrations
We understand the good, bad and the ugly about owning and operating construction companies because we have had several of them and we sincerely care about you and your construction company!
That is all I have for now and if you have listened this far please do me the honor of commenting and rating podcast www.FastEasyAccounting.com/podcast Tell me what you liked, did not like, tell it as you see it because your feedback is crucial and I thank you in advance.
You Deserve To Be Wealthy, Because You Bring Value To Other People's Lives!
This is one more example of how Fast Easy Accounting is helping construction company owners across the USA including Alaska and Hawaii put more money in the bank to operate and grow your construction company. Construction accounting is not rocket science; it is a lot harder than that and a lot more valuable to construction contractors like you so stop missing out and call Sharie 206-361-3950 or email sharie@fasteasyaccounting.com
Thinking About Outsourcing Your Contractors Bookkeeping Services?
Thank you very much and I hope you understand we really do care about you and all contractors regardless of whether or not you ever hire our services. Bye for now until our next episode here on the Contractors Success MAP Podcast.
527: Leading Causes Of Stress For Contractors And How To Counter Them
00:08:44
This Podcast Is Episode Number 527, And It's About Leading Causes Of Stress For Contractors And How To Counter Them
Construction business owners face various sources of stress that can negatively impact their well-being and overall business performance. Some leading causes of stress for construction business owners include financial pressures, tight deadlines, workforce management, safety concerns, and regulatory compliance. If not adequately addressed, these factors can lead to burnout, decreased productivity, and even business failure.
Many entrepreneurs believe hard work and determination are all it takes to build and sustain a successful business. But when you consider the pressures of running a company, it seems wise to add effective stress management to the list. Left unchecked, stress can erode your passion and undermine performance – not to mention a severe toll on your health.
Are you wondering how to stop stress from derailing your productivity, profits, and overall well-being? Follow these practical tips for avoiding the main causes of "business burnout."
Cause: So many tasks, so little time
Solution:Without effective strategies for managing time and sharing the load, you'll be forced into a reactive versus proactive position – the perfect storm for chronic stress and impaired decision-making.
Prioritize your tasks.
Make a to-do list and prioritize your tasks based on urgency and importance. This will help you focus on what must be done first and avoid feeling overwhelmed.
Use a project management tool to organize and assign tasks, track progress, and share results with clients.
Don't try to do everything yourself. Delegate tasks to reliable and competent employees or outsource them to a trusted contractor.
Hire an accountant to help you navigate taxes and implement time- and money-saving financial solutions year-round.
Cause: Cash Flow
Solution: All businesses, particularly start-ups, must have enough cash to keep running after covering monthly expenses. Cultivating a consistent cash flow is crucial for managing your finances and stress levels. Here are a few ways to stay cash flow positive.
Follow up promptly on unpaid bills, and consider offering an incentive for early bill payment (such as a slight discount when payment is received within five days of invoicing)
Be wary of slashing prices: if you must mark down a product or service, be sure you can recover your costs elsewhere.
Think "less is more" when purchasing inventory to avoid sinking precious cash into excess stock.
Have a trusted employee monitor your cash flow and inform you once it dips below a certain threshold.
Again, this is where your construction bookkeeper comes in. I recommend reviewing your Five For Five At Five.
Cause: Attracting New Clients
Solution:Starting to panic because you keep missing your sales goals? Auditing your current approach and implementing better growth strategies is critical to alleviating that stress. Here are a few ideas to get started.
Drill down into the behaviors and preferences of your customers, so you can better target your marketing.
Analyze each step in your sales process to see where the holes are and tighten your approach.
Use your audience research to develop a new product or service that fills a unique need for your customers and gives you a leg up on the competition.
Practice self-care. Taking breaks throughout the day is important to clear your mind and recharge. Go for a walk, grab a snack, or do something you enjoy. Take care of yourself physically and mentally. Get enough sleep, exercise regularly, and eat a balanced diet. Consider meditation or other relaxation techniques to reduce stress.
Final thoughts
Starting and growing a business takes tremendous energy. But by leveraging skilled help and improving key management processes, you'll learn to pace yourself – and keep that passion burning for years to come.
Running a construction business is challenging, but taking care of yourself is essential to effectively manage your business without burning out.
About The Author:
Sharie DeHart, QPA, co-founded Business Consulting And Accounting in Lynnwood, Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations and offers insights on managing the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. Call 1-800-361-1770 or sharie@fasteasyaccounting.com
02 Mar 2018
0258: Construction Company Field Vs Office Profit Growth Strategy
00:33:58
This Podcast Is Episode Number 0258, And It Will Be About Construction Company Field Vs Office Profit Growth Strategy
Field Vs. Office Battle
Where did the insurrection between office and field start? Do you wonder why some Construction Contractors have ongoing rebellions between the two subgroups and other Contractors don't? Better yet what can you as a Contractor do about it and why should you care?
Friction Costs Time And Money
Start by visualizing what Ten Minutes Of Waste A Day Costs Your Bottom Line.
For office staff multiply hourly wage by 1.75 to get a rough estimation of expense. Start with hourly wage + payroll taxes + overhead. Office staff earning $15.00 an hour with payroll taxes and overhead taxes costs roughly $25.86 an hour. $0.43 every minute or $1,120.56 Every Year. At 10% profit you would need $11,205.60 more sales to make up of the loss.
For field multiply their hourly wage by 1.42 to get a rough estimation of what they cost your company in terms of hourly wage + payroll taxes + overhead. For example: Your field worker that you pay $25.00 an hour with payroll taxes and overhead taxes cost you roughly $35.64 an hour or roughly $0.59 every minute or $1,544.42 Every Year. At 10% profit you would need $15,444.20 more sales to make up of the loss.
Everyone has a conviction of how the reality. Yet not everyone is mature enough to appreciate "We Live In A World Of What Is; Not What Should Be" - Randalism. This is the elemental reason of misunderstandings which lead to massive declines in productivity, steep deteriorations in cash flow and profits. What Gets Measured Gets Managed. Find and stop cash flow leaks and profit drains by walking a mile in the shoes of both office staff and field workers.
Management By Walking Around
Spend time in your office and become someone's assistant.Observe how they accomplish their work and understand what they do and why they do it. The number of steps required to process payroll will amaze you. If your construction company does Job Costing that adds several steps to preparing payroll and even more steps when entering receipts, bills, invoices, purchase orders, cash payments and checks.
Oftentimes your office staff is working with misinformation. A receipt without a job name or address or any clue which job it goes too. A bank statement that only shows the date the check cleared, the check number and the amount without any information regarding who it went too, why or a job name. Office staff believes field workers are lazy and incompetent, field workers believe office staff is too nosy and wasting field workers time.
Many times field workers will bring receipts for material, fuel, permits or something else they paid for personally to the office expecting to get reimbursed immediately. Most of the time the paperwork does not have the job name or any authorization from you or your management team and office staff is reluctant to just pay it. Again field workers judge office staff is trying to cheat them or at minimum playing power tripping games.
Reimbursements hidden cost. If field workers do not get instant action they will wantonly expend 10-15 minutes which costs the company $5.90 to $8.85 for their time plus $4.30 to $6.45 for your office staff for a subtotal between $10.20 to $15.30 and that does not include the hidden cost of operating the company vehicle which can range upwards of $2.75 or more a mile.
Office workers are already overloaded and these interruptions increase their annoyance and strain to a new level which causes them to lash out at the field worker. And so begins the battle between field workers and office staff.
Spend time with your field workers and become someone's apprentice. Observe how they perform their work and understand what they do and why they do it. The number of steps required to mobilize on a job site and get tools, material and field workers in place is a process in itself.
Most of the time when field workers arrive at the job site they encounter blockages from weather, access, electricity, waster, restrooms / portable toilet access, missing plans / blueprints, missing / broken tools, other tradespeople in the way or not having done their part of the job which causes chain-reaction delays.
On top of all the other delays and setbacks the bean-counters, office staff, expects them to fill out a time-card with where they are and what they are doing (Cost Codes) and to write notes on every piece of paper before handing it to the bean-counter, office staff. The peeved field worker feels they have to do all the important work and all the office staff work too.
Office and field are separate but equal. Each skill-set requires different working style and different cultures. It is your profession as the contractor to help everyone come together and understand each other's job and how it fits in the grand scheme of things.
Office ensures your contracting company has a steady flow of projects and develops timely reports to show which ones are profitable so you can pursue more of them and which ones are not profitable so you can avoid them in the future. It is the 80/20 Rule For Contractor Success. To do this, they need to chase after everything.
How To Combine The 80/20 Rule With Business Process Management
The 80-20 Rule Combined With Business Process Management
Can Improve Your Life In Ways You Never Dreamed Possible!
20% Of The Construction Companies - Share the Top 80% of the profits which the owners and shareholders use to support lavish lifestyles because they know what to do when to do it and how to do it!
80% Of The Construction Companies - Share the Bottom 20% of the profits which the owners and shareholders use to support just above or just below average lifestyles because they don't know what to do, when to do it or how to do it!
What Successful Contractors Do
Successful contractors understand how and why the business cycle of construction works and they stay focused on keeping work moving through the four components:
Acquiring customers and clients
Doing the project as close to on-time and on budget as possible
Get job deposits and timely progress payments
Follow up with the customers and clients to monitor satisfaction and line up new projects
Field versus office battle can rob your contracting company of time, money and resources and eventually wear down even the toughest contractor. Enlightened contractors like you understand the value of developing your own unique Construction Contracting System which is a collection of documented repeatable process and operations manuals which is like to the Rubiks Cube that annoying yet fun toy that can entertain and frustrate you
Randal DeHart, PMP, QPA is the co-founder of Business Consulting And Accounting in Lynnwood Washington. He is the leading expert in outsourced construction bookkeeping and accounting services for small construction companies across the USA. He is experienced as a Contractor, Project Management Professional, Construction Accountant, Intuit ProAdvisor, QuickBooks For Contractors Expert and Xero Accounting Specialist. This combination of experience and skill sets provides a unique perspective which allows him to see the world through the eyes of a contractor, Project Manager, Accountant, and construction accountant. This quadruple understanding is what sets him apart from other Intuit ProAdvisors and Xero accountants to the benefit of all of the construction contractors he serves across the USA. Visit http://www.fasteasyaccounting.com/randal-dehart/ to learn more.
Our Co-Founder Randal DeHart - Is a Certified PMP (Project Management Professional) with several years of construction project management experience. His expertise is construction accounting systems engineering and process development. His exhaustive study of several leading experts including the work of Dr. W. Edward Deming, Michael Gerber, Walter A. Shewhart, James Lewis and dozens of others was the foundation upon which our Construction Bookkeeping System is based and continues to evolve and improve. Check out our Contractor Success Map Podcast on iTunes and Follow Randal on Google+
We are here to Help “A Little or A Lot” depending on your needs.
I trust this podcast helps you understand that outsourcing your contractor's bookkeeping services to us is about more than just “doing the bookkeeping”; it is about taking a holistic approach to your entire construction company and helping support you as a contractor and as a person.
We Remove Contractor's Unique Paperwork Frustrations
We understand the good, bad and the ugly about owning and operating construction companies because we have had several of them and we sincerely care about you and your construction company!
That is all I have for now, and if you have listened to this far please do me the honor of commenting and rating the Podcast www.FastEasyAccounting.com/podcast Tell me what you liked, did not like, tell it as you see it because your feedback is crucial and I thank you in advance.
You Deserve To Be Wealthy Because You Bring Value To Other People's Lives!
This Is One more example of how Fast Easy Accounting is helping construction company owners across the USA including Alaska and Hawaii put more money in the bank to operate and grow your construction company. Construction accounting is not rocket science; it is a lot harder than that, and a lot more valuable to construction contractors like you so stop missing out and call Sharie 206-361-3950 or email sharie@fasteasyaccounting.com
Contractor Bookkeeping Done For You!
Thinking About Outsourcing Your Contractors Bookkeeping Services?
Thank you very much, and I hope you understand we do care about you and all contractors regardless of whether or not you ever hire our services. Bye for now until our next episode here on the Contractors Success MAP Podcast.
About The Author:
Randal DeHart, PMP, QPA is the co-founder of Business Consulting And Accounting in Lynnwood Washington. He is the leading expert in outsourced construction bookkeeping and accounting services for small construction companies across the USA. He is experienced as a Contractor, Project Management Professional, Construction Accountant, Intuit ProAdvisor, QuickBooks For Contractors Expert and Xero Accounting Specialist. This combination of experience and skill sets provides a unique perspective which allows him to see the world through the eyes of a contractor, Project Manager, Accountant, and construction accountant. This quadruple understanding is what sets him apart from other Intuit ProAdvisors and Xero accountants to the benefit of all of the construction contractors he serves across the USA. Visit http://www.fasteasyaccounting.com/randal-dehart/ to learn more.
Our Co-Founder Randal DeHart - Is a Certified PMP (Project Management Professional) with several years of construction project management experience. His expertise is construction accounting systems engineering and process development. His exhaustive study of several leading experts including the work of Dr. W. Edward Deming, Michael Gerber, Walter A. Shewhart, James Lewis and dozens of others was the foundation upon which our Construction Bookkeeping System is based and continues to evolve and improve. Check out our Contractor Success Map Podcast on iTunes and Follow Randal on Google+
Most Contractors Setup QuickBooks Desktop Version In One Of Three Ways:
#1 EZ Step Interview inside QuickBooks Setup #2 Asked Their Tax Accountant To Setup QuickBooks #3 They Attended A How To Setup QuickBooks Class Or Seminar
And QuickBooks Does Not Work The Way They Want It Too!
0368: Build Or Rebuild Your Construction Company By Bootstrapping
00:07:00
This Podcast Is Episode Number 0368, And It's About Build Or Rebuild Your Construction Company By Bootstrapping
Bootstrapping is figuring out how to reduce the cash you need to start or re-start your business, by eliminating any unnecessary overheads while finding out who will give you a hand.
If for whatever reason, you're not able to raise enough capital to start-up, you might be able to get what you need by 'bootstrapping' (finding what you need through unconventional or low-cost methods):
Have others lend what you need
You don't have to purchase new equipment to start your business. Think about what items you might be able to borrow over the short term or do without until the business grows.
Draw up a list of your asset needs and make a determined effort to borrow from others what you can while searching online for second-hand items that will save your business money. Are there people you know that are already in the construction business who could lend you what you need?
Call in favors
Time to talk to friends, other business owners' and family to see which assets, time, or money they can help with. It's a common bootstrapping technique to save money, and chances are there is more help out there than you realize.
Reduced your set up costs and overheads
Look at the bare minimum you'll need for your living expenses and cut your salary or work for no pay for a time. It's quite common for business founders to put in this unpaid 'sweat' equity to start with.
Look around your home and decide what you can sell to raise the cash you need. If your business is that important to you, then sell everything you can.
Look for support
Search online for what's happening in the construction industry to see if there is any support in your specific trade.
Tap into any family and friends that are willing to help, which could be cash or just a helping hand setting up and spreading the word you're in business. You'll be surprised who in your circle of friends will help.
Harness social media
You don't need a large marketing budget to build a customer base. The Internet can help you develop a strong presence for free.
Whether you decide to create a presence on Facebook, Twitter, LinkedIn, or Instagram, regular interactions, and postings are the keys to gaining customer awareness.
Delay payment
Possibly you can negotiate with suppliers a much longer payment cycle, free trials, or several months' rent-free in a new lease agreement.
Low-cost marketing
Effective marketing can be creative rather than costly. Some ways you can get your brand in front of potential customers include:
Email campaigns – as you begin to sell to consumers' you'll want to get them coming back for repeat services. This is where building an email contact list and sending out regular deals with calls to action can keep your business going.
YouTube videos – images can speak louder than words, and video even more so. Whether you're explaining what your business does or showing how your services works, videos are a cost-effective medium for getting your messages across to your target market.
Build word of mouth referrals by actively asking new customers to refer you. Don't wait for word of mouth to build over time as it tends to be too slow.
Outline all the ways that you can save money by first reducing what you need and then from what you can borrow. Spend your time like a currency and do as much as you can yourself (with friends) before you start paying others.
Next steps
Research your local construction industry to see if there are any specific start-up grants, subsidies, or support that you may be able to tap into and talk to your financial advisers (e.g. your accountant) if you're looking to fund from the crowd to make sure you're doing the right thing.
List everything you need and brainstorm with others how you can get access without paying for it and be confident you've accumulated more goodwill than you think; if you don't ask, you won't receive.
About The Author:
Sharie DeHart, QPA is the co-founder of Business Consulting And Accounting in Lynnwood, Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations and offers insights on how to manage the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. Call 1-800-361-1770 or sharie@fasteasyaccounting.com
20 Jan 2023
507: Starting And Operating A Small Construction Business On Limited Funds
00:11:49
This Podcast Is Episode Number 507, And It's About Starting And Operating A Small Construction Business On Limited Funds
So you have a great business idea and are convinced you can make it work, but you don't have much capital to get your business off the ground. Juggling existing financial commitments such as a mortgage or bank loan could put a squeeze on your business plans. Many entrepreneurs use creative thinking and shrewd planning to get businesses off the ground with the smallest budgets.
Freelancers in all industries deal with the same problems due to the nature of their work. Most of you came from the skilled craftsman trades; some worked as construction company managers and have now started or thought of starting your business.
If you just did, congratulations, you have decided to own and operate a construction company. Practically, solo contractors manage every aspect of their business, but we are here to help you navigate it. Here are the things you need to consider (especially when you are on a limited budget) to keep it running.
Making your construction business fit your finances
Starting your company on the tiniest of budgets means working harder to ensure your business doesn't implode from a lack of funds. Even if you don't have funds, you probably have something that many established companies don't have - time. You can build income and cash flow from your hard work if you have time.
Remember that the easiest businesses to get off the ground with limited capital don't require plenty of resources or initial outlay. These are generally service-based businesses, such as handyperson and residential home-improvement services.
Minimizing costs and eliminating expenses
It goes without saying that if you have a limited budget, you will need to direct your spending where it has the most significant impact on your business. Here are some tips to make your money go further.
Harness free business support. Business support or advice doesn't need to cost a fortune – there are plenty of ways to get help and build your knowledge for free. Use the Internet to research success stories in your chosen industry and find out if there are any government business mentoring services you could access. You could also approach your network of friends and family or industry associations to put you in touch with someone in your industry who could share their knowledge.
Do it yourself. Almost any business task can be completed by yourself, depending on how much spare time you have. If you don't have the design budget for an expensive-looking website or are unsure how to design advertising material, consider learning how to do it yourself. For example, you might be able to attend a free or low-cost course on how to use design software or use Internet resources to teach yourself.
Work from home or lease low cost. Working from home can be a great option; you don't need to meet clients at your premises, as most will invite you to their property. If you need a physical office to meet clients, leasing a room in a shared office or splitting the lease on a property with another business is an excellent way to minimize costs. Shared office spaces often have shared amenities such as meeting rooms and coffee break areas, which are great for meeting clients.
Order only what you need. Avoid the temptation to order large quantities of stock from suppliers in anticipation of large orders. Less supply means you save on storage costs and reduce the risk of theft or damage. The downside is that you may have to pay more for items, lowering your margins, but you can order in bulk once the business is booming.
Minimize fixed costs. The more fixed costs you have, you are financially tied down. Some fixed costs like power and telephone line rental can't be avoided, but other costs such as transport costs or office supplies will vary each month. Think carefully before financially committing to services that may not be necessary, such as expensive mobile data plans or a private mailbox.
Use free or cloud-based software. Rather than paying for bundles of software, download software off the Internet instead. A variety of websites offer free word processing software, accounting platforms, and budgeting tools, either as a limited-time trial or completely free. There are also free or low-cost cloud-based versions of many commonly used programs. Cloud-based programs are stored on the Internet, so they don't require as much processing speed or physical space as those stored on your computer's hard drive.
Use social media as a marketing tool. Creating a Facebook or Instagram account is free and provides you with a platform to market your business to your local community. Facebook also features a low-cost paid advertising feature you could use to drive potential customers to your pages. Social media pages can also be a free substitute for a website until you have enough money to create your own. You will need a significant online presence to gain customers and generate sales through social media, which takes time.
Directing profits back into your business
It may have taken a lot of hard work and determination, but you are now making sales. Spending money on yourself or some new gadget to reward your persistence is tempting. Avoid splashing out unless it will make a big difference to your business by improving productivity or operational capacity. It's generally best to put the money straight back into growing the backbone of your business – either by purchasing a piece of essential equipment or growing your client list.
Know when to spend
Like any start-up business, there will be times when you need to make big decisions, such as pursuing expansion opportunities or new markets. You might need to spend most (or even all) of your savings or consider borrowing to take advantage of new opportunities.
Final thoughts
Many aspiring to self-employment do not have any idea what freelancing entails. Contracting services to homeowners or individuals require lots of time and effort to earn a profit immediately. Employees tired of their own work lives idealize those of business owners and often ignore the difficulties faced in this environment. Before counting on notions of optimal freelancing experience, consider your own life, strengths, and abilities. Ask yourself these questions: "Am I ready to begin a long-term career in contractor work?" and "What do I want to achieve through my contracting business?"
f you are a new, struggling construction business owner, tackling these problems from the bottom up streamlines the path to success. If you ever become discouraged, remember that everyone starts at the beginning and that you can achieve your desired level of success if you put in the work to attain it. Again, you are not alone. Let me know how I can help you today by filling out the form on the right.
About The Author:
Sharie DeHart, QPA, is the co-founder of Business Consulting And Accounting in Lynnwood, Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations and offers insights on managing the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. Call 1-800-361-1770 or sharie@fasteasyaccounting.com
31 May 2024
578: Utilizing The Power Of Financial Modeling In The Construction Industry
00:13:26
This Podcast Is Episode 578, And It's About Utilizing The Power Of Financial Modeling In The Construction Industry
n the ever-evolving world of construction, financial modeling is a game-changer. It drives intelligent decision-making, minimizes risks, and ensures the revenue health of projects. Crafting precise and insightful financial models is a valuable tool for construction companies. It offers a panoramic view of the asset landscape and enables proactive planning and strategic management.
Financial models are invaluable tools designed to help you understand and protect your business's economic health. By simulating different scenarios and examining potential outcomes based on various inputs, such as sales growth, margins, and cash flow, these models provide a comprehensive picture that aids in informed decisions.
1. Precise Cost Forecasting and Budgeting
Financial modeling empowers construction companies to predict costs accurately, considering many factors such as material costs, labor expenses, equipment outlays, and overheads. Companies can develop precise project budgets by creating detailed financial models, spot potential cost overruns, and implement strategies to monitor expenses. This foresight allows for proactive cost management, preventing financial surprises that could impact project profitability.
Start by creating a base financial model incorporating your current financial data. Input variables such as projected sales, estimated expenses, and planned investments allow you to forecast your financial performance across different scenarios. By simulating best-case, worst-case, and most-likely scenarios, you'll be better prepared to navigate potential challenges and seize opportunities.
Action Tip:Develop your initial model using spreadsheet software or financial modeling tools. Regularly update it as new data becomes available.
2. Streamlined Cash Flow Management
Effective cash flow management is crucial in construction, where substantial capital outlays are often needed before revenues are realized. Financial modeling enables companies to map out cash flows over the project's lifecycle, identifying potential bottlenecks and ensuring adequate liquidity is maintained to support ongoing operations. By optimizing cash flow through meticulous financial modeling, construction companies can enhance their financial stability and seize growth opportunities.
Presenting a detailed financial model can significantly enhance your credibility with lenders and investors. It demonstrates your understanding of your business's financial position and showcases your preparation for future growth.
Action Tip:When seeking financing, ensure your model includes comprehensive projections showing how the funds will be used and the expected return on investment.
3. Informed Decision-Making through Scenario Analysis
Financial modeling allows construction companies to conduct scenario analysis, assessing the potential impact of various factors on project outcomes. Whether it's changes in material costs, fluctuations in interest rates, or delays in project timelines, scenario analysis helps companies evaluate the financial implications of different situations and develop contingency plans to mitigate risks. This proactive approach to risk management is invaluable in an industry where unforeseen challenges can have significant financial repercussions.
Financial models serve as robust decision-support tools. They help you evaluate the economic implications of various choices, whether setting pricing strategies, launching new projects, or considering investment opportunities.
Action Tip:Before making substantial business decisions, use your financial model to conduct a cost-benefit analysis. This will help you weigh the pros and cons and align decisions with your financial goals.
4. Assessing Project Feasibility and Profitability
By incorporating revenue projections, cost estimates, and financing structures into their financial models, companies can gauge the financial viability of potential projects and make informed decisions about resource allocation. This thorough assessment of project feasibility helps companies refrain from investing in financially unviable ventures and focus on opportunities with the most significant potential for success.
It's crucial to create detailed and comprehensive financial projections. This includes estimating costs for materials, labor, equipment, and permits and factoring in potential risks and market fluctuations. Additionally, conducting sensitivity analysis and scenario planning can help assess the project's financial resilience to various external factors. Utilizing industry-specific Key Performance Indicators (KPIs) and benchmarks can provide valuable insights into the project's economic viability.
Action Tip:Set up regular financial reviews—monthly or quarterly—to compare projected versus actual performance. Use these reviews to refine your model and strategies continually.
5. Setting and Achieving Goals and Monitoring Performances
Defining specific financial goals for the construction business, such as increasing revenue, improving profitability, or managing cash flow effectively, is essential. These goals should be realistic, measurable, and aligned with the business strategy.
It involves a detailed representation of the construction company's economic situation, including income, expenses, assets, and liabilities. This model is a valuable tool for analyzing different scenarios, identifying potential risks, and evaluating the impact of strategic decisions on the company's finances.
Establish clear, achievable financial goals based on your model's insights. By tracking your progress against these goals, you can focus strategically on growth and profitability while identifying improvement areas. Regularly comparing your actual financial performance with your model's projections is essential. This practice helps identify deviations, assess their causes, and make the necessary adjustments to keep your business on track.
Action Tip:Break down long-term goals into smaller, manageable milestones. Regularly review and adjust these goals based on your actual performance and market conditions.
Strategic Financial Planning and Risk Mitigation
Financial modeling is the cornerstone of strategic financial planning for construction companies, providing a roadmap for long-term financial management and risk mitigation. By creating comprehensive financial models, companies can pinpoint potential financial vulnerabilities, develop risk mitigation strategies, and make informed decisions that align with their long-term financial objectives. This proactive approach to financial planning is essential for navigating the industry's inherent complexities and uncertainties.
Construction businesses can make more accurate cost projections and optimize their financial resources by incorporating various factors such as material costs, labor expenses, and overheads (LMOS™) into the financial model.
Once the financial model is in place, it's essential to regularly review and update it to reflect changes in the business environment, market conditions, or project parameters. This ensures that the construction business stays on track toward achieving its financial goals and can adapt to evolving circumstances.
In conclusion
The potential of financial modeling in the construction industry is immense. By harnessing financial modeling tools and techniques, construction companies can gain invaluable insights into their financial landscape, make informed decisions, and proactively manage financial risks. Ultimately, the ability to develop accurate and insightful financial models is a crucial differentiator for construction companies looking to achieve financial resilience, profitability, and sustainable growth in a friendly, competitive, and dynamic industry.
PS
We offer free resources to help you save time and money that you can download and print now.
About The Author:
Sharie DeHart, QPA, co-founded Business Consulting And Accounting in Lynnwood, Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations. She offers insights on managing the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. Call 1-800-361-1770 or sharie@fasteasyaccounting.com
01 Dec 2023
552: Why Online Reviews Matter And Ways To Deal With Negative Feedback
00:10:10
This Podcast Is Episode 552, And It's About Why Online Reviews Matter And Ways To Deal With Negative Feedback
In today's digital age, online reviews hold immense power and influence over the success of small construction companies. With easy access to social media, Google reviews, and review websites, customers can easily voice their opinions and experiences with your business online. Most people searching for a local construction company - whether they need a plumber, painter, or general contractor, will check their online reviews before deciding.
Positive reviews can help establish credibility, build trust, and attract new customers. Conversely, negative reviews can damage a company's reputation and deter potential customers. Given the importance of online reviews, small construction companies should aim to provide excellent service and encourage satisfied customers to leave positive reviews.
As a small business owner, you must understand the importance of online reviews, as they will impact your brand image, sales, and customer loyalty.
Boost your brand image
Online reviews are the first point of contact between your business and potential customers. Positive reviews can improve your brand image and credibility. When customers leave positive reviews, they help build an excellent impression of your brand, which can lead to increased sales and customer loyalty. A study conducted by BrightLocalfound that 85% of consumers trust online reviews as much as personal recommendations. So, having a positive online reputation can make a big difference in the success of your small construction business.
Improve your sales
Online reviews can directly impact your sales. Positive reviews can help you attract new customers, while negative reviews can drive potential customers away. Positive reviews indicate that your business is reliable, trustworthy, and provides excellent customer service. You should encourage customers to leave positive reviews and respond professionally and promptly to negative ones.
Gain insight into customer experience
Online reviews can provide valuable insights into customer experience, which can help you improve your business. Reviewing them lets you identify areas to improve customer service, products, and business operations. Also, reviews can help you understand your target audience and what they value most about your business. Addressing customer feedback shows that you are willing to take the necessary steps to improve your business, which can enhance your online reputation and attract new customers.
Increase customer loyalty
Customers appreciate businesses that value their feedback. Responding to customer reviews and addressing their concerns shows you care about their experience with your business. When customers feel heard and appreciated, they are more likely to return and become loyal customers.
Ways to deal with negative online feedback/review:
Leave the negative review up
A negative review doesn't have to be the end of the world. Although customers like to see five-star reviews, they understand that perfection is almost impossible—and probably a sign that something is "too good to be true." In that sense, having a customer or two provide negative feedback gives more credibility to the positive reviews. Customers expect to see a couple of negative reviews. If they're in amongst positive feedback, the negatives won't hurt you much and may increase your legitimacy if handled well.
Respond to the review honestly
Customer complaints are a way to build trust with your potential clients by allowing you to respond honestly and professionally. Did something go wrong that was out of your hands? Offer an apology and explain what happened. Was there a misunderstanding? Take the opportunity to clear it up. Has the reviewer requested additional information or a solution? Respond online to show what you've done to address the situation. Did the reviewer misunderstand a policy? Explain your policy and invite them to contact you with further questions.
Doing so shows readers that you take their concerns seriously and are willing to take responsibility when things go wrong.
Learn from negative reviews
If you see the same concerns repeatedly in the online feedback, it may be time to review your services. Negative reviews give you insight into areas where your customers feel your business could make changes, so take the time to consider what you're being told. You can improve your offerings or communicate better with clients to manage their expectations.
Thank them for their feedback, let them know you're taking their concerns seriously, and explain your next steps.
In summary
A solid online presence with positive reviews can give you an edge over competitors. It shows that you're reliable, trustworthy, and provide quality work. Encourage satisfied customers to leave reviews on platforms like Google, Yelp, and Facebook. This can help increase the number of reviews and boost your overall rating.
However, remember never to pay for or incentivize customers to leave positive reviews. Make it part of your process to encourage customers to leave reviews by simply asking for them. Monitor and ensure you respond to any negative reviews professionally and promptly.
If possible, ensure your responses include an apology, a statement about your commitment to your clients, and a way to continue the conversation offline if further communication is needed. Doing so will show potential customers and clients that you care about their feedback and are willing to take responsibility. It will also allow you to move the conversation to a more private forum if the reviewer isn't happy with your response.
PS
We offer free resources to help you save time and money that you can download and print now.
About The Author:
Sharie DeHart, QPA, co-founded Business Consulting And Accounting in Lynnwood, Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations and offers insights on managing the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. Call 1-800-361-1770 or sharie@fasteasyaccounting.com
02 Jul 2021
426: Construction Business Mid-Year Reminder For Setting And Reviewing Goals
00:10:03
This Podcast Is Episode Number 426, And It's About Construction Business Mid-Year Reminder For Setting And Reviewing Goals
How are you and your construction business? Have you considered what you'd like to achieve in the coming twelve to eighteen months? Or maybe your set of priorities for the next half of 2021?
Contractors like you are typically highly creative and optimistic; thus, you often have difficulty narrowing down your ideas from among all the exciting possibilities, whether it's an opportunity to expand to a new market or choose a better time management strategy.
While some of you love planning, others feel overwhelmed by the process. So how do you decide on just a handful of goals that take priority, with so many moving parts that make up a construction business?
1. Set SMART Goals
Focus your efforts and increase your chances of achieving your goals by the SMART guideline: Specific, Measurable, Achievable (Attainable), Realistic, and Time-Bound.
Start by defining your top three business goals for the next four quarters. Then, with those in mind, do some research to help you decide on the best way to achieve those three goals – and a reasonable timeline for meeting specific targets.
2. Redefine Your Brand
Is the elevator pitch you used a year ago – even six months ago – still accurate? Unless you are crystal clear on who you are as a construction company, whom you're here to serve, and what you hope to achieve in the next one to three years, it's going to be hard to come up with meaningful goals.
Getting leads and doing the work is only part of the answer. Not answering them and acting on the knowledge is one reason why so many contractors' companies wither and die. They focus on the wrong areas to innovate or improve. They focus on the wrong enemy and threat. As a result, they miss what they could be doing to succeed and prosper over time.
Take a look at your company vision, mission statement, and core values. Next, define the contracting you offer and who your competition is. It may not be the same form, structure, and category that you operate. For example, Home Depot does not see itself as competing in the building supply business but for a share of the home and commercial remodel and repair market. Instead, be that homeowner doing a weekend project, Handyman Contractors, Remodel Contractors, Trade Contractors, and other contractors and House Builders.
If your brand needs tweaking to reflect where your construction business is today and where you want it to go, start there. Then you can move on to setting some beneficial long and short-term goals.
3. Big Picture Planning
Construction business owners dream big—and they should! Thinking big can lead to groundbreaking products and services that become the foundation of innovative, successful companies.
When it comes to goal-setting, thinking big is great, too. But to make those big ideas like "increasing market share" or "growing profits" happen, you need to break them down into smaller, specific goals and strategies tied to a budget and timeline.
For instance, while your overarching objective may be to "grow profits by 50% by December 31", your smaller goals might include:
Launching a social media campaign the first week of March to attract 2,500 new prospects by months' end; or
Increasing total sales by 40% by establishing an online presence (Business Website) by August 1.
Again, the key is to define goals that are measurable and achievable.
4. Define Smaller Goals
Thinking through how you'll achieve your broader objectives can be a fun exercise – one you can turn into a group activity, including your entire team. First, sit down and discuss what you know about your customers. Next, review your historical sales data and look over your current budget and forecasting.
With all the relevant information at hand and everyone at the table, you can develop strategies that align with your construction company vision, assign deadlines, and get buy-in on what everyone needs to do to see your ideas through to completion.
It is easy to get caught up in the short term and what you have today. You measure your share in the particular segment you operate in and obsess about your immediate competition just as contractors who did not market effectively did years ago. But you need to step back and ask yourself the three key questions and make sure you answer them in a way that will define and liberate your construction company at the same time.
What are you offering?
Who is your competition?
What is your actual competency?
Final thoughts
It's worthwhile to take some time to reflect on your personal goals as you think through your business goals. For example, maybe you've wanted to get involved in mentoring, improve your networking skills, or attend more conferences. Self-development is, in a sense, professional development – and vice versa, so include them in your plans.
Of course, coming up with business goals is just one part of the equation. You'll also need to monitor your progress, note milestones, and share your company achievements with your team regularly. Tracking your results will help your employees stay motivated – and it also gives you the chance to adjust your goals and strategies in time to achieve the best possible results by year's end.
Happy 4th of July!
Use promo code:30FEAfor a 30% discount (from today until July 11, 2021) upon checkout at our:
Fast Easy Accounting Store (Bookkeeping Set Up and Cost Codes Templates only - does not apply to Consultation/Training/Outsource Accounting), and
Sharie DeHart, QPA is the co-founder of Business Consulting And Accounting in Lynnwood, Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations and offers insights on how to manage the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. Call 1-800-361-1770 or sharie@fasteasyaccounting.com
09 Apr 2021
0414: Leading Contractors Successfully Through Major Organizational Change
00:09:50
This Podcast Is Episode Number 414, And It's About Leading Contractors Successfully Through Major Organizational Change
We are all currently experiencing and adapting to present pandemic times. We've probably adjusted our business model to cater to our clients, new and existing. Construction business change is almost always a good thing, but often poor management means that the workforce becomes disengaged and the change process painful. In the worst cases, this results in irreparable damage being done.
It doesn't need to be this way. Follow these steps and empower yourself to lead your contractors through significant organizational change successfully.
1. Understand the change
Make sure you understand precisely what is changing and how it affects your people. Speak to whomever you need to ascertain this properly. You need to know what the impact is on your people and the jobs they do.
Educating yourself will mean you're better equipped to communicate with your staff. It will give them confidence that you are the right person to lead them into the unknown. It will also relieve their anxieties, as they will trust you to keep them informed and look after their individual and collective interests.
2. Communicate effectively
Regular and varied communication is essential in managing change. Initial briefings to employees should be face to face, with adequate time set aside to prepare beforehand.
They should be delivered by an appropriately senior manager who also has excellent presentation skills and a natural delivery style. The audience needs to be engaged, not alienated. In the future, set up a recognized channel that will control information flow on daily developments.
This could be an online micro-site or a newsletter or bulletin. Ensure the tone and language are upbeat and that the positive messages the business wants to promote about the change are a recurring theme. You should consult with your marketing team for advice on how to do this effectively.
3. Consult with your people
Consult staff on their views and provide clear channels for those opinions to be received. Consider providing an email address to receive questions, or if you have set up a micro-site, set up a message board that allows for questions and answers to be posted online.
It is equally important to ensure you are responding swiftly to those questions. It's a good idea to set up and publish an FAQ list, preventing answering the same question multiple times. This will also help inform the content of future communications through understanding the hot topics.
Ultimately, the change may be mandatory and not open to amendment, but even if this were true, communication must still be a two-way street. If you don't demonstrate an active interest in employees' views, you risk an outright mutiny.
4. Use your champions
Identify the characters in your team that are positive about the change, and pick out one or two popular to hold or sway over their teammates. These are your wingmen, and it's essential you tap into that resource early. Get them on the side and meet with them regularly. Explain the critical role they have to play in helping others to stay upbeat.
As well as being a supportive and positive voice amongst the people, they are also your eyes and ears, in a position of trust with colleagues. This means they will pick up on potential concerns or flashpoints early and bring these to your attention in confidence.
Your champions will play a pivotal role in supporting managers; positive voices from the populace are invaluable.
5. Control the dissenters
The negative voices in your team are often the loudest and most influential. You will have several people in your organization who are confused or undecided about how they feel about the change. They are susceptible to being convinced by your team's detractors, who will attempt to rally them to their cause. If all those sitting on the fence jump off on the wrong side, your life will worsen. Don't let that happen.
Target those dissenting staff members and speak to them individually. Show empathy and understanding of their concerns but explain their colleagues' impact on their negativity's open expressions. Try to get them involved in meetings, taking an active role in being a critical but objective voice.
But ultimately, if their views are extreme and it's clear they intend to persist being a disruptive influence, then take a hard line. Tell them their behavior is not acceptable and could lead to disciplinary action on the grounds of their conduct.
6. Maintain the business
Don't let your team lose focus on their day-to-day responsibilities and the running of the construction business. There will inevitably be some impact on productivity during a major change. However, there is a limit to this, and staff needs to be reminded that their traditional roles and responsibilities remain. Plan briefings and communications to minimize the impact on your resources, and by extension, your customers.
7. Toe the line
A lack of professionalism and objectivity of managers can spell disaster. Even if you feel that the business change is fundamentally wrong or concerns your seniors' judgment, you must not reveal this. You need to maintain the party line and express the changes in favorable, objective terms.
Discuss your concerns with others you trust in the business if you need a sounding board, but be very careful whom you confide in.
8. Manage outside influences
The change may attract outside attention from the local or national press or pressure groups. This might happen if your organization is huge, in the public sector, or a regulated or contentious industry. In these cases, you also need to be aware of the effect of these outside agencies' activities on your employees. You can rarely exercise much control over external media, but you can make sure your finger is on the pulse. This will allow you to react quickly if an external event occurs that's likely to cause disruption or concern.
Final thoughts
Change doesn't have to be stressful and unpredictable, providing you to plan and stay in control. The key to success is keeping your construction employees bought into the objectives and engaged with the change mechanics. Following these steps will ensure you do that and allow you to successfully lead people unscathed through even the most major organizational change.
About The Author:
Sharie DeHart, QPA is the co-founder of Business Consulting And Accounting in Lynnwood, Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations and offers insights on how to manage the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. Call 1-800-361-1770 or sharie@fasteasyaccounting.com
27 Nov 2015
0140: Thanksgiving Day Please Join Us In Thanking All Contractors And Their Workers
00:08:01
This Podcast Is Episode Number 0140 And It Will Be About Thanksgiving Day Please Join Us In Thanking All Contractors And Their Workers
Thanksgiving Is A Time - To give thanks for all that we have and for the men and women who are part of the greatest industry on earth, Construction. You make civilization possible for everyone!
Construction Is - The oldest industry in existence. Everything started with The Builder, and He had a Son who was a carpenter and everyone who was, is and will be part of the construction industry has a special connection to The Builder and His Son. The difference between Atheists And Christians is so close yet so far away. Click Here For A Comparison
Construction Gets Deep - Inside you and will not let go and that is why Sharie and I co-founded Business Consulting And Accounting to still be a part of the construction industry and spend time with the people we love, admire and respect.
Construction Is - A tough business and people failure is common. In fact most of our clients have either failed or come very close. It doesn't matter how many times you are knocked down; it only matters that you learn your lessons, get up and go again.
A Lot Attention - Has been focused on companies that have achieved a level of success and it is important to recognize and thank all of the men and women who serve everyone with their commitment to be a part of the construction industry.
Construction Is - What makes civilization and a civilized society possible. It is because of their commitment to step out of their comfort zone to start, own and operate construction businesses that we owe a great debt of gratitude.
I Thank God That I Was Raised In - A family that was involved in construction which meant there were plenty of opportunities to help after school. There was never any pressure and it was not something that I had to do; I just felt it was important to do my fair share to help, and yes I was paid in relation to what results I provided.
Shortly After High School - I married my high school sweetheart, Sharie, and here we are thirty eight years later still on our honeymoon, life is good! I decided to leave construction forever and join the white collar world.
My College Major Was Accounting - After working in an accounting position for a short time I decided to go back to construction. I served a Plumbing apprenticeship; passed the Washington State Journeyman Master Plumbers Exam and became a PL01 in 1981.
I Still Maintain - Journeyman Plumber PL01 status by keeping up with the continuing education credits, re-testing and re-certifying because once in a while I do a little plumbing, just for fun.
Every Thanksgiving - Please offer a word of thanks for all the men and women who have chosen to be a part of the greatest industry in the world; construction.
Happy Thanksgiving 2015
To All Contractors Your Families And Your Loved Ones!
I trust this podcast helps you understand that outsourcing your contractors bookkeeping services to us is about more than just “doing the bookkeeping”; it is about taking holistic approach to your entire construction company and helping support you as a contractor and as a person.
We Remove Contractor's Unique Paperwork Frustrations
We understand the good, bad and the ugly about owning and operating construction companies because we have had several of them and we sincerely care about you and your construction company!
That is all I have for now and if you have listened this far please do me the honor of commenting and rating podcast www.FastEasyAccounting.com/podcast Tell me what you liked, did not like, tell it as you see it because your feedback is crucial and I thank you in advance.
You Deserve To Be Wealthy, Because You Bring Value To Other People's Lives!
This is one more example of how Fast Easy Accounting is helping construction company owners across the USA including Alaska and Hawaii put more money in the bank to operate and grow your construction company. Construction accounting is not rocket science; it is a lot harder than that and a lot more valuable to construction contractors like you so stop missing out and call Sharie 206-361-3950 or email sharie@fasteasyaccounting.com
Thinking About Outsourcing Your Contractors Bookkeeping Services?
Thank you very much and I hope you understand we really do care about you and all contractors regardless of whether or not you ever hire our services. Bye for now until our next episode here on the Contractors Success MAP Podcast.
0076: How Our QuickBooks Backup Saved A Contractor's Company
00:11:19
This Podcast Is Episode Number 0077 And It Will About How Outsourced Bookkeeping Saved A Remodel Contractor's Company
Over the years I have spoken to hundreds of contractors about backing up their QuickBooks
Some contractors have acted on the idea, and others, not so much. There are two kinds of contractors who use computers:
Those who have yet to experience fire, flood, theft, bad bookkeeper or hard drive crash
Those who have and are now passionate about spreading the word about backups
This particular contractor is one of the nicest, gentlest and friendliest people you will ever meet; typical of all good contractors!
He is a large and powerful man having worked in construction for over 30 years. Let just say he knows how to communicate in a gentle but firm way to get his point across to his employees and trade contractors.
He was not particularly interested in the fact that we have remote servers and that our clients QuickBooks files are backed up every night.
We Provide Online Access To QuickBooks Desktop Version And More: · Fully functioning Quickbooks desktop version · Exporting to Excel and/or Word is part of the service · Print anything directly from QuickBooks, Word or Excel on your own printer QuickBooks Desktop Version can be accessed from any Internet connection
QuickBooks Runs On High-Speed Servers
In A Building With Armed Guards
And Highly Trained Technicians
QuickBooks file backed up every night on a secured server
English speaking, U.S. Based tech support for server support
We maintain and support your QuickBooks data file and reports
QuickBooks software maintenance updates are automatically applied
Being A Gentleman - He listened politely while I told him all about the benefits of having his QuickBooks backed nightly and the fact that he could get to his QuickBooks from anywhere there was internet connection.
Once I shut up he let me know he decided to hire our services because we could get his bookkeeping on track and help him build his construction business.
The rest was nice but not very important since he did not plan on having any fire, flood, theft, bad bookkeeper or hard drive crashes.
A Short While After We Began Working Together Tragedy Struck!
He Sent The Following Email:
"On July 27, 2008, Sunday evening around 6:30 pm my girlfriend and I just got home from an overnight hiking trip.
When we arrived home we had discovered that we had been robbed. We immediately called 911.
As we walked through the house we discovered that our computer was gone along with many other valuables. The computer had all the company business on it.
QuickBooks, invoices, all the subcontractors’ info, and everything to keep the company books.
We were at a loss for what to do. But as luck would have it, we had Randal DeHart as our accountant. He had all our info on a back-up system somewhere in a huge server.
So we called Randal to let him know that we would get a new computer as soon as the insurance company paid us.
Randal called us the next day, July 28th, 2008 and told us to come to his office. To our surprise he had gone to Office Depot and purchased a new computer and loaded it with QuickBooks and restored all our business information.
We are so appreciative that Randal had our backs, so to speak. We had told him that we would pay him for the computer as so as possible. But you know what he said……….
“No thanks are necessary and that if we just Pay-It-Forward, that’s all he asked.”
How’s that for a Good Accountant?"
--------------------------------------------------------------------- Replacing computer equipment is not standard operating procedure for us; however, in this case he really needed help to continue operating his construction company.
It is one thing for us to say we really do care about all contractors and quite another to demonstrate it.
I hope this real life story in this podcast helps you understand that outsourcing your contractors bookkeeping services to us is about more than just “doing the bookkeeping”; it is about taking holistic approach to your entire construction company and helping support you as a contractor and as a person.
We understand the good, bad and the ugly about owning and operating construction companies because we have had several of them and we sincerely care about you and your construction company!
That is all I have for now and if you have listened this far please do me the honor of commenting and rating podcast www.FastEasyAccounting.com/podcast Tell me what you liked, did not like, tell it as you see it because your feedback is crucial and I thank you in advance.
You Deserve To Be Wealthy, Because You Bring Value To Other People's Lives!
This is one more example of how Fast Easy Accounting is helping construction company owners across the USA including Alaska and Hawaii put more money in the bank to operate and grow your construction company. Construction accounting is not rocket science; it is a lot harder than that and a lot more valuable to construction contractors like you so stop missing out and call Sharie 206-361-3950 or email sharie@fasteasyaccounting.com
Thinking About Outsourcing Your Contractors Bookkeeping Services?
In closing, I want to caution you that we may or may not be a good fit for your contracting company. This guide will help you learn what to look for in outsourced construction accounting.
Thank you very much and I hope you understand we really do care about you and all contractors regardless of whether or not you ever hire our services. Bye for now until our next episode here on the Contractors Success MAP Podcast.
Do You Suspect Your Contractor Bookkeeper - Is overwhelmed trying to figure out how to do construction accounting and they are costing you more than they are worth in salary, fees and loss profits because you cannot get QuickBooks reports and financial reports when you need them? Would you like to reduce your employee count and related overhead costs?
Worse Yet Is Your Contractor Bookkeeping Service - Yanking your chain and training you like an organ grinder trains a monkey?
What Do You Need Today?
We Are Committed To Serving Your ContractorBookkeeping Services Needs with superior services using highly trained professionals and the best construction bookkeepers at very reasonable rates!
Not All Outsourced Contractor Bookkeeping Services Are Good - There are some Red Flags to watch for and avoid that could cause your Contractors more pain than you are experiencing now! For more information Click Here
Like Ham And Eggs For Breakfast - The hen is involved but the pig is committed! We are fanatics about providing your Contractors with most awesome, efficient, forward thinking, innovative, accounting technology, outsourced construction accounting services and outsourced contractor bookkeeping services you have ever known.
This is one more example of how Fast Easy Accounting is helping construction company owners just like you put more money in the bank to operate and grow your construction company. Construction accounting is not rocket science; it is a lot harder than that and a lot more valuable to construction contractors like you so stop missing out and call Sharie 206-361-3950 or email sharie@fasteasyaccounting.com
Thinking About Outsourcing Your Contractors Bookkeeping Services?
· Is a construction company contracting for profit
· Needs Job Costing reports and solid Financial Reports
· Needs the power of the full QuickBooks Desktop Version
· Is focused on saving money with innovations and cost control
· Is open to implementing a Business Plan designed to increase sales
QuickBooks Desktop Version In The Cloud - can reduce your overhead and increase your productivity. Being able to work from anywhere, anytime, with a single source for all of your data allows you to:
· QuickBooks Online - Is a totally different version of QuickBooks. It is nothing like QuickBooks Pro, Premier, or Enterprise
· We Have Contracted - With an enterprise level QuickBooks hosting service to provide you with English speaking well trained network technicians to support you and your staff.
· You Can Use The QuickBooks Desktop Version - You have purchased or we can arrange to lease QuickBooks on a month-to-month basis and you will be upgraded to the latest versions every year at no additional cost.
· QuickBooks Desktop In The Cloud - Allows access to multiple licensed users at the same time and they do not have to be in the same location, city, state or country for that matter.
QuickBooks Cloud Computing Has The
Same QuickBooks Desktop Features
Because It's QuickBooks Desktop
Running On A High-Speed
Secure Cloud Server
QuickBooks Online - Does Not Have Effective:
· Purchase orders
· Inventory tracking
· Sales order tracking
· Job costing or estimating
· Customized price levels
· Integration with Excel, Word, or Outlook
· Online bill payment
· Payroll input
· Forecasts
· Business plans
· QuickBooks Online - Does not allow user add-ons programs like:
· UDA Construction Suite
· Business Plan Software
· Marketing Plan Software
· Paperless Document Management
· Scheduling Software
· Job Costing Software
· Project Management Software
· Time Tracking Software
QuickBooks Desktop Hosting - Can save you and your staff time, energy and money by using exactly the same QuickBooks interface you use on your local PC.
This is one more example of how Fast Easy Accounting is helping construction company owners just like you put more money in the bank to operate and grow your construction company. Construction accounting is not rocket science; it is a lot harder than that and a lot more valuable to construction contractors like you so stop missing out and call Sharie 206-361-3950 or email sharie@fasteasyaccounting.com
Thinking About Outsourcing Your Contractors Bookkeeping Services?
This Podcast Is Episode Number 0248, And It Will Be About Contractors Need To Reward Themselves
It's the Holiday Season which means everyone is so busy thinking of everyone else.
Wrapping up the end of the year, getting one more thing done that makes sense. I want to be the person who says Merry Christmas! You have earned it. Many of Holiday movies are variations of “Scrooge” based on “This Is Good” and “That Is Bad.” Anyone who has not had any challenges in life has been either extremely lucky or in a very protected bubble.
Congratulations To You Construction Contractor On Your Success!
Please send me all your extra four-leaf clovers. If your favorite Happy Leprechaun is not too busy, I will take a little extra Magic. I can never have too much Magic or Sunshine.
Life Happens. Challenges Happen. Some Good, some bad depending on the perception of the event. We can all look back and see what we might have done differently. The question is, Did we make a decision? Did that decision seem to be the best decision to make based on the information on hand at that time?
If you and I make a thoughtful decision (not a knee-jerk reaction), then it is a good decision. Sometimes we think I should have, could have, if and only, but, because and [fill in the blank]. These are negative thoughts that are not useful. All negative thoughts just drag you down into a bad mental place.
I offer The Serenity Prayer As A Beacon Of Truth: http://thelordsprayer.net/serenity.html God grant me the serenity to accept the things I cannot change; courage to change the things I can; and wisdom to know the difference…..
Between religions, the name of God may change; however, from my viewpoint, the message of the prayer is the same all over the world no matter what religion is your choice. The key is you have a choice to believe, what you want to believe and how to practice your faith. The sun rises and sets for each one of us every day.
Embrace Life
Enjoy The Day – Moment By Moment.
Do Something Fun.
Watch The Sunset.
Listen To The Birds Sing.
Hear A Train Whistle.
Rejoice In The Laughter Of Children for at that moment they are embracing their world with complete abandonment. Smile. Think Happy Thoughts. The Simplest Things Are Free.
Every day, everyone can find a reason to be frustrated if they are looking from that particular view. The other driver is driving too slow, too fast, recklessly, music is too loud, passing out hand gestures, honking their horn, on their cell phone, texting, car issues of smoke from the tailpipe, car smells, bad tires, no headlights. The list of things to be annoyed about is endless; no one is exempt.
While we are annoyed, there is nothing more dangerous than someone is crossing in the middle of the street, at night, wearing all dark clothes, either being clueless of the danger or playing chicken with cars. Drivers, everywhere at some point during the day or nighttime hours will see happen repeatedly.
It used to be when we heard someone who appeared to be talking to themselves, that they were (to put it politely) a little troubled in the head (an old-fashioned saying). Now with cell phones and wireless headsets or earpieces, it is a little harder to pick out the people who appear to be talking to invisible friends.
It is easy to listen to the news and become depressed, agitated, or thinking the challenges of the day are hopeless to overcome. Mother Teresa said it best.
Now that we have defined the problem – What is the solution?
Think Lemonade. Shift in thinking – Are you thinking Inside The Box or Outside The Box? Life is a series of challenges, followed more lessons, tests, and quizzes. It is how we react that makes the difference.
On any construction project – Bearing Walls is Inside The Box (Laws of Physics) The WOW Factor that your clients dreamed of is Outside The Box.
Construction Accounting – Numbers are Inside The Box (State, Local, Federal Income Tax, Payroll Tax, Sales Tax Reports) The Estimate Process chosen by you for each project is Outside The Box.
As a Construction Contractor, much of your world is Outside The Box. You make what seems like the impossible and turn it into a finished product; whole house remodel, kitchen or bath remodel, new roof, install an attic fan, replace windows, deck, patio, hot tub, swimming pool, children’s backyard playhouse.
The Handyman Contractor fixes “Things,” and those things are very important to the clients who need them. Fixing a door, hanging a closet rod, moving something, removing something. In comparison to a Whole House Remodel it may seem like you are not doing anything. Reality is that to the person who needed the work done that a few simple little things may change their whole world for the better. Your Work as a Handyman Contractor it brings joy to their life. Be Proud of it.
Every Construction Contractor has to determine who fits the profile of my best Customer?
What Do The Like To Do? What Are They Good At Doing? Any Construction Contractor can have Fantastic Quality Workmanship in some phases of construction and have to deal with a myriad of separate, unrelated issues if they do not like the work. One of the simple ways to start if looking at your QuickBooks Report “Job Profitability Summary. This is the first step to understanding and using the 80/20 Rule For Success In Contracting.
Biggest Gifts a Construction Contractor can give to themselves is the power of choice.
As a person who thinks Outside The Box - From time to time Randal has had to Tell Me No. The wonderful idea that I have is physically is impossible to do. How can that be, I made a drawing and everything. The answer must be a bigger hammer, taller ladder, stronger person, [fill in the blank] tool.
I think he is just trying to pop my balloon. In reality, Randal never pops my balloon. No matter how much I think outside the box, visualize about what I think will work, the fact is it is just not going to happen.
Sometimes it is the person doing it makes all of the difference in the world. What is your strength? It is always a beautiful site to see a semi-sitting somewhere where most of us could not park a VW Bug. Truck Drivers are a highly skilled craftsman who performs Magical Deeds so we will have the basics of food, clothing, shelter and the fun stuff we want but do not necessarily need. Delivered all types of weather.
Beauty is always in the eye of the beholder. A final gift to yourself is to live in the area of the country you want to live in. It will make you work life more enjoyable, personal life much happier. Add all of the small things together it can suddenly become a big thing.
Life is a journey that happens One Day At A Time, One Decision At A Time, One Choice At A Time Made By Each of Us. Tomorrow is always a New Day, with every prospect of being a happier day if we let it.
Sharie DeHart, QPA is the co-founder of Business Consulting And Accounting in Lynnwood Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations and offers insights on how to manage the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. http://www.fasteasyaccounting.com/sharie-dehart/ 206-361-3950 or sharie@fasteasyaccounting.com
I trust this podcast helps you understand that outsourcing your contractor's bookkeeping services to us is about more than just “doing the bookkeeping”; it is about taking a holistic approach to your entire construction company and helping support you as a contractor and as a person.
We Remove Contractor's Unique Paperwork Frustrations
We understand the good, bad and the ugly about owning and operating construction companies because we have had several of them and we sincerely care about you and your construction company!
That is all I have for now, and if you have listened to this far please do me the honor of commenting and rating the Podcast www.FastEasyAccounting.com/podcast Tell me what you liked, did not like, tell it as you see it because your feedback is crucial and I thank you in advance.
You Deserve To Be Wealthy Because You Bring Value To Other People's Lives!
This Is One more example of how Fast Easy Accounting is helping construction company owners across the USA including Alaska and Hawaii put more money in the bank to operate and grow your construction company. Construction accounting is not rocket science; it is a lot harder than that, and a lot more valuable to construction contractors like you so stop missing out and call Sharie 206-361-3950 or email sharie@fasteasyaccounting.com
Contractor Bookkeeping Done For You!
Thinking About Outsourcing Your Contractors Bookkeeping Services?
Thank you very much, and I hope you understand we do care about you and all contractors regardless of whether or not you ever hire our services. Bye for now until our next episode here on the Contractors Success MAP Podcast.
Sharie DeHart, QPA is the co-founder of Business Consulting And Accounting in Lynnwood Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations and offers insights on how to manage the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. http://www.fasteasyaccounting.com/sharie-dehart/ 206-361-3950 or sharie@fasteasyaccounting.com
Most Contractors Setup QuickBooks Desktop Version In One Of Three Ways:
#1 EZ Step Interview inside QuickBooks Setup #2 Asked Their Tax Accountant To Setup QuickBooks #3 They Attended A How To Setup QuickBooks Class Or Seminar
And QuickBooks Does Not Work The Way They Want It Too!
0084: High Profit Small Contractors Use OPM Working Capital
00:17:34
This Podcast Is Episode Number 0084 And It Will Be About How High Profit Small Contractors Fund Working Capital With OPM
Construction Working Capital - Definitions are complex and can take a lot of room to explain and since we are primarily concerned about helping small construction companies like yours to make a lot of money I will keep it simple and easy.
Construction Companies Need Short-Term Liquid Working Capital such as cash, lines of credit, loans, owner financing, credit cards, supplier accounts and other forms of money to conduct daily operations.
Small Construction Companies With Annual Sales Less Than $10,000,000 and other requirements enjoy some benefits that are not always available to larger firms. Likewise, larger firms can leverage economies of scale
The Larger Your Construction Company - grows the more likely you could end up operating like a bank without the hundreds of ways to generate revenues from fee income and interest calculation that banks use.
The Most Popular Method - Which was designed by investors and developers and shrewd business people who understand the concept of divide and conquer is for contractors to get little or no down payment for a construction project, do all the work, including change orders and then try to collect their money.
What Often Happens - Is that contractor’s hate paperwork preferring to keep everything in their head. Then when it comes time to collect their money they find themselves having to re-sell the job and talk their customer into parting with their money. It is similar to the old bartender joke.
No Deposits And Progress Payments? - Man Goes Into A Bar: "Hey bartender, hurry up and pour me a double before the trouble starts" and the bartender does. The man drinks it. The man repeats the scenario several times and soon the bartender says "Hey there have been a number of drinks crossing the bar and no money coming back" to which the man replies "Uh-oh! The trouble is about to start!" This is similar to a contractor who does a lot of work without getting deposits and progress payments.
Its Been Said: "The value of services rapidly diminish after the services have been performed" which is why highly profitable companies like McDonalds gets your money before they deliver your meal. Compare the success and profitability of a McDonalds franchise to most restaurants.
The Least Popular Method- Is getting work orders and contracts signed and deposit checks before starting the project because most of us were conditioned from childhood through adulthood and beyond not to ask for money.
Contracts With Clear Simple Language - All Change Orders will be documented with a scope of work and be Paid In Advance before the work begins. Again we recommend you hire a good construction attorney and have that person write your contracts.
Contractors That Finance - Working capital with their own money and whatever they can borrow will earn less profit and put themselves at higher risk of failure than contractors who use Other People's Money (O.P.M.). It is a given that to start your construction business you need working capital and we have formulas that can work with you to estimate how much you will need and assist you the calculations in our Business Plan section.
In The Example Shown - There are two fictional contractors that started at the same time and each one had $10,000 working capital between cash in the bank, room on their credit cards and supplier accounts.
There Are Risks - In doing this the most important is understanding the money you have from your customers and clients that has not been used to perform work is a liability to the company and needs to be reflected properly in your bookkeeping system and you should never use any unearned dollars to buy anything frivolous like a new F-350 Pickup truck or a vacation.
Bookkeeper Theft- Is another risk to be aware of because Bad Bookkeepers and Incompetent Bookkeepers have been known to re-distribute your wealth if they believe you are earning too much money.
We Have No Issue - With contractors earning lots and lots of money. Our bookkeeping system is setup so that we NEVER HAVE ACCESS TO YOUR MONEY. We simply do your bookkeeping.
Your Construction Accountant- Is a valuable key component in setting up QuickBooks to help you keep track of it all. And as needed we can help with ongoing bookkeeping services and Strategic Management Process Development.
I hope this podcast helps you understand that outsourcing your contractors bookkeeping services to us is about more than just “doing the bookkeeping”; it is about taking holistic approach to your entire construction company and helping support you as a contractor and as a person.
We understand the good, bad and the ugly about owning and operating construction companies because we have had several of them and we sincerely care about you and your construction company!
That is all I have for now and if you have listened this far please do me the honor of commenting and rating podcast www.FastEasyAccounting.com/podcast Tell me what you liked, did not like, tell it as you see it because your feedback is crucial and I thank you in advance.
We Remove Contractor's Unique Paperwork Frustrations
For Construction Company Owners who do not need the full power of QuickBooks for contractors and want 24/7 online access we offer Xero Accounting Online and we have custom setup for construction companies.
I hope this podcast helps you understand that outsourcing your contractors bookkeeping services to us is about more than just “doing the bookkeeping”; it is about taking holistic approach to your entire construction company and helping support you as a contractor and as a person.
We understand the good, bad and the ugly about owning and operating construction companies because we have had several of them and we sincerely care about you and your construction company!
That is all I have for now and if you have listened this far please do me the honor of commenting and rating podcast www.FastEasyAccounting.com/podcast Tell me what you liked, did not like, tell it as you see it because your feedback is crucial and I thank you in advance.
You Deserve To Be Wealthy, Because You Bring Value To Other People's Lives!
This is one more example of how Fast Easy Accounting is helping construction company owners across the USA including Alaska and Hawaii put more money in the bank to operate and grow your construction company. Construction accounting is not rocket science; it is a lot harder than that and a lot more valuable to construction contractors like you so stop missing out and call Sharie 206-361-3950 or email sharie@fasteasyaccounting.com
Thinking About Outsourcing Your Contractors Bookkeeping Services?
In closing, I want to caution you that we may or may not be a good fit for your contracting company. This guide will help you learn what to look for in outsourced construction accounting.
Thank you very much and I hope you understand we really do care about you and all contractors regardless of whether or not you ever hire our services. Bye for now until our next episode here on the Contractors Success MAP Podcast.
574: What Every Contractor Needs To Know About Successful Construction Companies
00:12:25
This Podcast Is Episode 574, And It's About What Every Contractor Needs To Know About Successful Construction Companies
Small construction businesses have several characteristics that distinguish them from larger firms. These characteristics include having a limited workforce, smaller revenue streams, and a more localized focus.
They are often run by the owners themselves or a small team of employees. They tend to have a more personal approach to their work, as they are usually more involved in every aspect of the project. Due to their size, they are often more flexible and able to adapt to market or project scope changes. However, they may also face challenges such as limited resource access, difficulty securing financing, and increased competition from larger firms.
Over the years, we have had many successful construction clients. The seasoned ones have become lifelong friends and are now retired, living according to their terms. And several are still working according to their schedule with quality, high-paying clients.
Is it still possible to succeed in this industry, given the state of the economy? Regardless of government or environment, what I find common among them are these characteristics:
1. Owners leading by example
The construction company owner or project manager leads by example. They are usually the first to arrive and the last to leave. The owner knows everyone by name, and their presence is unmistakable. They show a strong commitment, setting the standard where they work. This commitment should be easy to understand. After all, if they don't work hard in their own company, how can they expect anyone else to take their business seriously?
2. Simple business structure
They operate a simple and open business structure, encouraging easy access to the owner for every employee. They value the contribution of each employee, many of whom are allowed to influence aspects of the construction business that would ordinarily be denied to them in a large hierarchical company
3. Communication among employees
Staff receive information as soon as the owner does. Goals, problems, and concerns are discussed openly. Feedback on issues is encouraged, and staff are asked to contribute their ideas for improving and overcoming difficulties. It is often this aspect of open communication that staff appreciate the most; it is unique to small construction businesses, whether you have only one or two staff.
4. The crew is carefully chosen
Staff is recruited very carefully because the contractor owner(s) recognize that they are the lifeblood of any small business. Staff are hired because their knowledge, skills, and abilities will benefit the organization rather than because of friendships or family relations. They are carefully chosen, nurtured, and trained to help the crew members and the organization from the relationship.
5. Staff commitment and loyalty
All staff are very committed and loyal. Good performance is rewarded with praise, extra responsibility, and money—poor performance is not. Poor workers are consistently removed as they upset the rest of the team. Organizations whose staff show optimum commitment and loyalty have a source of competitive advantage that is hard to copy or beat.
6. A unique service (or product delivery that goes with the service)
Most successful construction businesses have unique products or services, such as designs, products, systems, or some other aspect that sets them apart. This uniqueness is an essential source of competitive advantage and one that many companies work hard to sustain, adapting and innovating their products or services as their competition catches up with them.
7. A specific customer focus
Successful small businesses specifically focus on their customers and clients and are geared to supplying them with exactly what they want. This focus means adopting a market-led approach, with the owners and their managers consistently looking for ways to solve their client's problems and improve their products to match their client's requirements.
8. Prompt follow-up
On occasions when an inquiry or complaint is received, successful construction company owners actively follow up and solve them as quickly as possible. The results are promptly reported back to the client or customer, and in the case of complaints, measures are put in place to reduce the likelihood of similar issues reoccurring. Successful small businesses view complaints and problems as opportunities for growth and improvement.
They work with a construction accountant
They hire the best people to do their job in-house or outsourced. There are several valuable lessons that construction business owners can learn from accountants, and the successful ones know and appreciate the value they bring to their business.
Construction accountants are experts in financial management in their industry. They can help trade business owners understand their company's financial health, identify areas for improvement, and develop strategies to increase profitability.
Additionally, construction accountants are skilled at analyzing data and making informed decisions based on that data. They help construction business owners track their progress toward goals, identify trends and patterns in their financial data, and make data-driven decisions to benefit their businesses.
Since delegating their financials to us, our clients have told us that they have more time to focus on what they're good at and love to do. We help them stay compliant with tax laws and regulations, which is one of the common causes of a business's owner stress come tax time. By working with us, you can ensure you meet your tax obligations and avoid costly penalties. You can also gain valuable insights and support that will help you grow and succeed in the long run.
Final thoughts
Embodying these traits and improving your practice are essential to succeeding in your construction business. A solid plan that clearly understands your target market and competitive advantages and a detailed financial system are also necessary. Focus on building meaningful relationships with clients and suppliers, providing high-quality work, and staying up-to-date with industry trends and technology.
Additionally, it is crucial to have a skilled and reliable team in place and continuously invest in their professional development. You can build a successful and profitable construction contracting business with dedication, hard work, and a strategic approach. And, of course, a construction business accountant who will guide you along the way.
PS
We offer free resources to help you save time and money that you can download and print now.
About The Author:
Sharie DeHart, QPA, co-founded Business Consulting And Accounting in Lynnwood, Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations. She offers insights on managing the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. Call 1-800-361-1770 or sharie@fasteasyaccounting.com
09 Oct 2020
0388: What Does Your Accounting System Say About Your Construction Business?
00:09:40
This Podcast Is Episode Number 0388, And It's About What Does Your Accounting System Say About Your Construction Business?
How many times a day do you hear from someone saying, “It’s Boring", or "I’m Bored.” It is a red flag that should light up your “Oh Crap” meter. Moreover, more important, whenever an employee says it. Because this usually means they are shortcutting the work versus the fact that you have so many right processes in place that the work is genuinely dull. Being bored is a factor in manufacturing jobs.
I saw a special where a manufacturer described how the process is that they moved employees on a scheduled basis between workstations to help them avoid boredom and stay fresh throughout their workday. Proved to be a Win-Win for everyone. Studies found that alert employees have fewer accidents, which in turn reduces your cost of doing business and raises cash flow and profits.
In accounting, you want to be boring. Good to be bored from the standpoint that everything is going smoothly. Anytime it is not, then it is moments of frustration, anxiety, and sometimes sheer terror.
Whenever something is going wrong, the instant reaction is to assign blame. Don’t do this! It does not help anything and takes up energy. We review lots of issues; it’s by exception that it is YOUR FAULT!
Remember every time you decide; look at a job, meet a customer, hire an employee, and make the best decision possible with the information at hand. Information changes, circumstances change, and sound judgment; good fit yesterday may not be tomorrow or the day after.
Common issues in any accounting file - QuickBooks Desktop, QuickBooks Online, or other software is:
The initial setup of your QuickBooks file using EZ Setup is designed for everyone regardless of the type of business or size - it is easy to do and hard to use. It may be the software for many people in software moving, changing, “aka” – fixing everything.
You have grown and have changed the services you provide. Education and training are needed. You need help from other professionals. - As with all software, QuickBooks Desktop had come a long way from when we first started using it. At one time, it had only one sales tax location and rate, which was OK until States like Washington State changed the reporting rules for Sales Tax. It changed from your business location to destination-based.
Thank goodness for Excel, as Randal developed one of many Excel workbooks to give me the information I needed to fill out the Sales Tax form each quarter manually.
QuickBooks Desktop releases a new version each year. You can buy the software, install it on your computer, and immediately start using it. You can pick and choose which features you want to begin using: - Setup Check Register - Create Estimates - Create Invoices
During one of our construction company periods, we did service and repair with lots of daily invoices. Completing the sales tax report pre-Randal’s Excel workbooks was super awful; with the Excel sheet, it moved to just awful. Life became awesome when QuickBooks improved with the ability to track sales tax and produce a useful report. Better yet, giving credit where credit is due – Randal fixed it!
Having the proper tools is the key to everything, regardless if it is in the field, on the job, or in the office. You, your spouse, or your staff can do the work if you have the proper tools. The appropriate setup of a sound accounting system is one of the means for office. We recommend QuickBooks Desktop as the primary software for contractors. It will grow with you and your business, and many tax accountants use QuickBooks Desktop:
QuickBooks Pro
QuickBooks Premier
QuickBooks Enterprise
We have found a way to use QuickBooks Desktop in a cloud environment and enjoy all the benefits of QuickBooks Online without the hassles and lack of reporting ability.
We found moving QuickBooks back and forth between the client’s computer and ours lead to problems of data put into two different QuickBooks files and no way to merge them. Hint - Online banking provides cloud access, but the actual data is resting on a server somewhere, and it does not work well for contractors.
The next step is thinking about the details of your business:
What do you want to know about your business?
What kind of reports are you receiving now?
Do you understand the reports?
Who does the reports?
Our focus is on helping you be successful by knowing your numbers and making you get it easier.
Everything about construction accounting for contractors comes back to a few of the basics.
Can you give your tax accountant all the info needed without it becoming a massive project?
If someone else is doing your bookkeeping:
Do you know what to look for in QuickBooks?
Do you know which customers and jobs are the good ones?
Are you making money or losing money?
Are you able to do Job Costing?
We are looking at contractor accounting files regularly, and we speak the language of construction and construction accounting.
Final thoughts
We are not just “Idea People”; we have an active Accounting Practice offering multiple services.If you could ask your bookkeeper, accountant, advisor any question – What would that question be?In reverse – What question do they ask you regularly that you cannot quickly answer?
About The Author:
Sharie DeHart, QPA is the co-founder of Business Consulting And Accounting in Lynnwood, Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations and offers insights on how to manage the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. Call 1-800-361-1770 or sharie@fasteasyaccounting.com
27 Aug 2021
434: The Actual Net Worth Of Your Construction Company
00:12:23
This Podcast Is Episode Number 434, And It's About The Actual Net Worth Of Your Construction Company
Have you been in business as a construction contractor or specialty contractor for a while, and now you are wondering what your construction company is worth?
Nothing is ever as good or as bad as it appears. If you are like most contractors, you learned a trade, skill, or craft, and after a while, you decided to go into business for yourself and make "The Big Bucks," which was one of the happiest days of your life. I've heard It said that boat owners experience two of the happiest days in their lives; the day they bought their boat and the day they sold it.
So, how much is your construction contracting company worth?
Accounting Value:
Equity Which Is [Assets or What You Own] (Cash, Tools, Material, Loans The Company Made) - [Liabilities or What You Owe] (Payables, Credit Card Balances) = [Equity or what is left Over].
These numbers are found on your construction company Balance Sheet. See the example below and notice the highlighted line "Total Equity," which is $305,616.56.
This means as far as the accounting records are concerned:
#1 If the owner collected all of the money owed to them [Accounts Receivable] and got the security deposit back.
#2 Sold all vehicles, computers, office equipment, machinery, and equipment [Fixed Assets] for the amount shown.
#3 Paid all of the bills [Accounts Payable], [Credit Cards], [Other Current Liabilities], [Long Term Liabilities].
#4 There would be $305,616.56 in cash for the owner.
The Real World:
The actual net worth of your construction contracting company is what someone else will pay you for it. There are 100's of factors that affect how much your construction company is worth, and I have listed nine of them below:
#1 Length of Time In Business- In general, the longer your business has been around, the better. Just know that everything changes rapidly, so what occurred more than three years ago may not be as relevant in most cases.
#2 Standard Financial Statements- There are several ways to set up QuickBooks for Contractors. It depends on what you want from them.
Internal Financial Statements are what most bookkeepers set up, which means they may add a lot of fluff and try to capture Work-In-Process (W.I.P.) and Job Costing in the Chart of Accounts, which is acceptable for your internal use next to worthless for anyone outside your company.
Tax Preparer Financial Statements are what most C.P.A.'s and Tax Preparers setup which means they keep the Chart of Accounts small as possible and mirror the annual tax return as close as possible. This helps them get the tax return done in the least amount of time and effort possible. It is next to worthless for you, the contractor, and anyone else.
Standard Financial Statements are what most bankers and investors like to see because the Chart of Accounts is set up to make it possible for them to understand the financial health and well-being of your Construction Company. Most banks subscribe to a service like The Risk Management Association (R.M.A.) that allows them to input key data from your Financial Statements and returns an in-depth analysis of your construction company. This means when a contractor gives their banker, investor, or potential buyer anything but Standard Financial Statements; they are "Shooting Themselves In The Foot With A Nail Gun." Our Contractor Bookkeeping System can provide you with Standard Financial Statements; unless you or your bookkeeper makes adjustments in the Chart of Accounts. You and your bookkeeper can make any adjustments in the Item lists, and as long as they are linked to the correct account in the Chart of Accounts, it will be O.K.
#3 Net Income- Is your construction company earning enough money to pay you a decent salary? Which should be at least twice your highest-paid employee and at least 10% net profit after all costs, including Income Taxes.
#4 Cash Flow- Is there enough cash in the bank or money market accounts to keep your company running for at least 60 days? And is your cash balance growing every year by at least 5%?
#5 Number of Customers or Clients- Which do you have Customers or Clients? Having the right mix of quality customers or clients that provide a lot of top-line sales and revenue. Quantity is not as important as quality.
#6 New Customer or Client Acquisition Strategy-A simple documented strategy outlining your best customer demographics and psychographics profile, so you know who they are, where they are, and how to attract them.
#7 Existing Customer or Client Retention Strategy-A simple documented strategy outlining the changing needs of your customers and clients based upon the profile of your best customer demographics and psychographics, so you know what they are going to want before they do and continually innovate your services to those wants, wishes, and desires.
#8 Documented Operations Manuals-Don't get trapped by the lazy way of training people by paying people to learn by experience or by sitting around the "Camp Fire," "Water Cooler," "Break-Room," or "Job site." In the end, you will have chaos because everybody will have a different way of doing everything, and no amount of yelling, screaming, threats, punishment will be adequate. In the end, you will waste a lot of money that should have gone to bottom line profits. This can be avoided with documented operations manuals.
#9 Unique Selling Proposition-the one thing you do best that makes you the most money is your Unique Selling Proposition. One of our Plumbing companies in the 1990s was maintenance contracts for fast food restaurants. We made a lot of money by cleaning their drains and side sewers during their slow times instead of waiting until it was an emergency and fixing and replacing leaking faucets because we could schedule the work to be done by our crews during our slow time.
Final thoughts
Remember, there is a world of difference between Regular Accounting and Construction Accounting. Construction Accounting is the center of your construction business; pay attention to what it says, and it can make you wealthy. The value in your bookkeeping and the actual net worth of your company lies in the accuracy of the reports.
With the appropriate tools and processes, you can have the insights you need to manage and grow your construction company effectively and efficiently, even without you running it. You can sit back and relax while you monitor and manage the work-in-process you already laid out. The last thing I leave you is "Knowledge is Power." There are simple answers to all complex problems, and they are usually wrong. Invest the time, money, and effort to do it right the first time. You have what it takes to be successful, and you deserve to be wealthy because contractors add value to other people's lives.
About The Author:
Sharie DeHart, QPA is the co-founder of Business Consulting And Accounting in Lynnwood, Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations and offers insights on how to manage the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. Call 1-800-361-1770 or sharie@fasteasyaccounting.com
20 Apr 2018
0265: High Quality Lead Generation For Your Contracting Company
00:39:20
This Podcast Is Episode Number 0265, And It Will Be About GeneratingHigh Quality Lead Generation For Your Contracting Company
Are you a contractor looking to generate new business leads?
You may have already invested in a quality website, but are still failing to see it generate the results you expected. Or maybe you have yet to delve into any marketing at all.
In this Podcast Randal interviews John Leutermann, a digital marketing expert who specializes in growing contracting businesses online. Randal and John discuss the important questions you may have when considering investing in internet marketing services.
John has been doing digital marketing for over 10 years. He previously worked for an advertising agency for over five years. At the agency, he managed the websites, SEO, and digital marketing for over 60 local contractors.
John currently works at Weather Tight Corporation in Milwaukee, WI as the Web Marketing Manager, a position he has held for over eight years.
Weather Tight is Wisconsin’s largest privately owned remodeler specializing in Windows, doors, roofing, siding & gutter protection. John manages all aspects of digital marketing and advertising for Weather Tight.
John is also the owner of Big Rock Marketing, a digital agency specializing in helping small and medium businesses grow their businesses online. His agency handles web design, SEO, email marketing, digital advertising, and review management for their clients.
What is the main problem internet marketing can solve for your contracting business?
As mentioned earlier, creating a visually appealing website is important. However, this simply isn’t enough to consistently bring in new business leads.
This is where SEO and internet marketing come into play. These strategies are effective in increasing your digital footprint online, slowly building your online presence, and driving business to your website.
How does John differentiate from other digital marketing experts?
The most important thing John takes pride in is the level of personal service he provides to clients. Because his agency is smaller in size, he is the main point of contact for his clients. This means he is able to explain the details of the work being done on your account.
Larger agencies typically aren’t able to do this, as they usually have an employee whose role is solely communicating with clients about their account. John uses your budget to market your business.
How can a contractor determine whether they will be a good fit for pursuing internet marketing?
John has 3 questions a contractor should ask themselves to gauge whether they will be a good fit for internet marketing services:
1. Is the client committed to providing resources and budget to online marketing? It is important for a contractor to be committed to internet marketing. If the client is perceiving internet marketing as an expense, it likely is not a good fit for moving forward. Internet marketing, especially SEO services, take about 6 months to start seeing results. After about 12-18 months, the brunt of the leads will start to come through.
2. Is the client prepared to handle more leads while still providing the same level of customer service? The main goal of internet marketing is to help you generate more leads for your business. It’s important for contractors to know they can keep up with more customers seeking their services. The last thing you want is to increase your leads, but then lose business due to poor customer service.
3. What budget is the client able to commit towards internet marketing? This number will depend on the location of your business, as well as the level of competitiveness of your industry. John can help you determine the best option. However, you should have an idea of what you are able to afford to invest toward internet marketing.
I have been doing digital marketing for over 10 years. I previously worked for an advertising agency for over five years. At the agency, I managed website creation, SEO, and digital marketing for over 60 local contractors. I currently work at Weather Tight Corporation in Milwaukee, WI as the Web Marketing Manager, a position I have held for over eight years. Weather Tight is Wisconsin’s largest privately owned remodeler specializing in Windows, doors, roofing, siding & gutter protection. I manage all aspects of digital marketing and advertising for Weather Tight. I am also the owner of Big Rock Marketing, a digital agency specializing in helping small and medium businesses grow their businesses online. My agency handles web design, SEO, email marketing, digital advertising, and review management for their clients.
Editor’s Note: I have only known John Leutermann a short time and I trust him and find him to be very knowledgeable and capable on the subject operating and growing remodeling companies.
I Highly Recommend all contractors spend some time on his/her website and get to know him/her. He/she is a valuable resource to all contractors, not just remodel contractors. Please be sure to let him/her know Randal DeHart, The Contractors Accountant, recommended you.
The Information Shown Below Is From Fast Easy Accounting
Download The Contractors APP Now!
Access code: FEAHEROS
The QR Code Below Will Go
Apple Or Android Store
Whichever One
You Need
Simply scan the QR code below or search for ‘MyAccountants’ in the App Store and enter the Access code: FEAHEROS to utilize the powerful App features and capabilities, and benefit from having our Construction Accounting App at your fingertips, 24/7.
Access code: FEAHEROS
Or click to download the Contractors APP now from the App or Android store
I trust this podcast helps you understand that outsourcing your contractor's bookkeeping services to us is about more than just “doing the bookkeeping”; it is about taking a holistic approach to your entire construction company and helping support you as a contractor and as a person.
We Remove Contractor's Unique Paperwork Frustrations
We understand the good, bad and the ugly about owning and operating construction companies because we have had several of them and we sincerely care about you and your construction company!
That is all I have for now, and if you have listened to this far please do me the honor of commenting and rating the Podcast www.FastEasyAccounting.com/podcast Tell me what you liked, did not like, tell it as you see it because your feedback is crucial and I thank you in advance.
You Deserve To Be Wealthy Because You Bring Value To Other People's Lives!
This Is One more example of how Fast Easy Accounting is helping construction company owners across the USA including Alaska and Hawaii put more money in the bank to operate and grow your construction company. Construction accounting is not rocket science; it is a lot harder than that, and a lot more valuable to construction contractors like you so stop missing out and call Sharie 206-361-3950 or email sharie@fasteasyaccounting.com
Contractor Bookkeeping Done For You!
Thinking About Outsourcing Your Contractors Bookkeeping Services?
Thank you very much, and I hope you understand we do care about you and all contractors regardless of whether or not you ever hire our services. Bye for now until our next episode here on the Contractors Success MAP Podcast.
Most Contractors Setup QuickBooks Desktop Version In One Of Three Ways:
#1 EZ Step Interview inside QuickBooks Setup #2 Asked Their Tax Accountant To Setup QuickBooks #3 They Attended A How To Setup QuickBooks Class Or Seminar
And QuickBooks Does Not Work The Way They Want It Too!
This is a lively and entertaining view of The Four Types Of Contractors as described by someone who was raised by contractors, became a contractor and loves contractors
I Have Been Privileged - To work with a variety of good people who own and operate construction businesses.
It All Started With Construction - This was the first thing that happened since the entire universe was formed by the Creator who built it all and authored the all-time number one best seller, Basic Instructions Before Leaving Earth.
His Son Was A Carpenter - And many good people have chosen the wide wonderful world of construction as their career path.
Contractors Have Made Countless - Sacrifices and contributions to further the development, maintenance, and growth of civilization and I am proud to be counted among them.
Over The Years - I have encountered many wonderful people who own construction businesses and about 20 years ago it hit me like a BFO (Blinding Flash of the Obvious) there are Four Types of Contractors:
This is one more example of how Fast Easy Accounting is helping construction company owners just like you put more money in the bank to operate and grow your construction company. Construction accounting is not rocket science; it is a lot harder than that and a lot more valuable to construction contractors like you so stop missing out and call Sharie 206-361-3950 or email sharie@fasteasyaccounting.com
Thinking About Outsourcing Your Contractors Bookkeeping Services?
0104: QuickBooks Is Not A Professional Construction Accounting Software
00:13:42
This Podcast Is Episode Number 0104 And It Will Be About QuickBooks Is Not A Professional Construction Accounting Software
But It Can Be Made Into One For Contractors With Annual Sales Volume Between $0 Start Up And $10,000,000
Did you buy QuickBooks thinking it was “Quick” at keeping the “Books” for your Contracting Company and got very frustrated with it because it was neither? You are not alone!
The question a lot of contractors ask is "Does anybody out there understand how to do the bookkeeping for my Construction Company?"
It is not your fault QuickBooks fault, your spouse’s fault or your bookkeeper’s fault or anyone else’s fault. QuickBooks was built upon the foundation of very simplistic single-entry bookkeeping software called “Quicken” built on DOS.
Quicken was developed for regular people, not businesses, to have an electronic check register for keeping track of bank balances without having to use those tiny manual paper registries that come with every box of blank checks?
When Quicken was released it was immediately popular and very soon a lot of small businesses started using it and started asking the parent company Intuit for a business version of Quicken.
Intuit responded to market demand and released “QuickBooks” which is double entry bookkeeping software for business.
QuickBooks was better by far than anything was at the time because it was inexpensive and easy to figure out. However, like most things, it got big and better and the growing pains were horrible.
If you Google “Construction Accounting Software” the results are over 20,000,000. Construction trade journals list over 4,000 construction accounting software programs that actually work well for the construction industry.
Enterprise level contractors with 100+ employees need to invest several million dollars to buy implement and install construction accounting software.
Professional level contractors with 50-100 employees need to invest several hundred thousand dollars to buy implement and install construction accounting software.
Professional level contractors with 20-50 employees can easily buy implement and install QuickBooks For Contractors Enterprise version for roughly $25,000.
All other contractors with 1-20 employees can purchase QuickBooks For Contractors Premier for around $500 and install it themselves or hire a construction accounting professional to setup QuickBooks for their particular need.
QuickBooks is designed to be the low price leader in Construction Accounting Software and that is O.K. because it is very customizable if you know how to do it.
We have thousands of webpages chock full of FREE information and FREE Forms you can download which is available in public and online.
I trust this podcast helps you understand that outsourcing your contractors bookkeeping services to us is about more than just “doing the bookkeeping”; it is about taking holistic approach to your entire construction company and helping support you as a contractor and as a person.
We Remove Contractor's Unique Paperwork Frustrations
We understand the good, bad and the ugly about owning and operating construction companies because we have had several of them and we sincerely care about you and your construction company!
That is all I have for now and if you have listened this far please do me the honor of commenting and rating podcast www.FastEasyAccounting.com/podcast Tell me what you liked, did not like, tell it as you see it because your feedback is crucial and I thank you in advance.
You Deserve To Be Wealthy, Because You Bring Value To Other People's Lives!
This is one more example of how Fast Easy Accounting is helping construction company owners across the USA including Alaska and Hawaii put more money in the bank to operate and grow your construction company. Construction accounting is not rocket science; it is a lot harder than that and a lot more valuable to construction contractors like you so stop missing out and call Sharie 206-361-3950 or email sharie@fasteasyaccounting.com
Thinking About Outsourcing Your Contractors Bookkeeping Services?
In closing, I want to caution you that we may or may not be a good fit for your contracting company. This guide will help you learn what to look for in outsourced construction accounting.
Thank you very much and I hope you understand we really do care about you and all contractors regardless of whether or not you ever hire our services. Bye for now until our next episode here on the Contractors Success MAP Podcast.
0366: Construction Business Communication Strategies During A Pandemic
00:06:15
This Podcast Is Episode Number 0366, And It's About Construction Business Communication Strategies During A Pandemic
Most small business owners face a time in their career when they have to communicate in ways or about topics they aren't confident with. COVID-19 has put construction business owners in the position of having many conversations that are uncomfortable and stressful.
Whether you're communicating with employees about company issues during the pandemic, hoping to negotiate a rent reduction to the landowner, or changes to credit terms to your banker, here are some strategies that will help you be more effective in your communications.
1. Be transparent
It's vital during a crisis that you're transparent about your company's situation. You might not feel good telling your suppliers that the business has slowed considerably. Still, honesty and transparency will help them understand your situation and encourage them to work with you on a solution.
The same is true of employees. Your staff needs you to be open and honest with them about where your company currently stands, how long you expect to stay open if the situation continues, and what adaptations they can make so you can stay in business. Even employees who are resistant to change will likely find ways to adjust if it's necessary to keep your business running. But it's more difficult for them to buy-in to your changes if they don't know why they're doing so.
You may also not feel great telling customers about your business troubles during COVID-19, but loyal clients will want to know and will do what they can to help out, even if that means buying gift cards for your services to use at a later date.
2. Be consistent
It's not enough these days to issue one email to your staff at the beginning of a crisis and hope they don't need more information from you. Things change suddenly and unexpectedly, and your employees need to hear from you regularly.
You don't have to inundate them with emails, but a couple of messages a week to let them know how business is doing and any changes to your policies or procedures will help them. Especially if your staff is now working remotely, you need to check in to make sure they're supported as they adjust to their new work life.
Keep contact with your clients, too, so they know of any changes that affect them. Let them know how you can help them during the pandemic—if you still can—and ways they can help you or other small businesses.
3. Be realistic
A pandemic is not the time to be overly optimistic about your capabilities. Be realistic about what you know you can commit to and don't make promises beyond that.
Don't promise your employees you will keep them employed for the duration of the pandemic unless you know for sure you have the cash flow to do so. It doesn't help your employees to think things are fine to be surprised when you can't afford the payroll suddenly. Instead, be honest and realistic about what you can do and what you likely can't.
If you're negotiating a change in your credit terms, be realistic about when and how much you can pay. If you're looking to renegotiate your rent agreement, be honest about what you can and can't afford. This will help the landowner and creditors come to a reasonable agreement with you.
Final thoughts
Remember, you aren't in this situation alone. Countless other small business owners face the same scenario you do. Many institutions, customers, and employees will do what they can to help your construction business succeed, so don't be afraid to reach out and ask for help or tell them what you need.
Being transparent, consistent, and realistic with your communications will help you navigate these uncertain times.
Please don't hesitate to get in touch with us if you have a question.
About The Author:
Sharie DeHart, QPA is the co-founder of Business Consulting And Accounting in Lynnwood, Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations and offers insights on how to manage the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. Call 1-800-361-1770 or sharie@fasteasyaccounting.com
01 Mar 2019
0304: Why Trade Shows Are Important To Your Construction Business (Featuring Seattle Home Show Spring 2019)
00:07:00
This Podcast Is Episode Number 0304, And It Will Be About Why Trade Shows Are Valuable To Your Construction Business (Featuring Seattle Home Show Spring 2019)
Organizations and industries, no matter the career discipline, is fully invested in coordinating and taking part in conferences, summits, expos, and exhibits. Industry trade fairs are remarkably relevant to construction company owners because it leverages traditional marketing practices without being intrusive (because your target market comes to you), fosters real, solid relationships, and promotes camaraderie among your associations.
Trade shows humanize your brand and company and add value to your business in general because it is:
Experiential
There’s a reason why global companies capitalized on the emotional connection; it’s more than just the product - it’s the experience. As Randal puts it, the homeowner doesn’t want the drill, but she wants a hole in the wall to hang the picture frame. Consumers’ emotions play a significant role in influencing their decisions. This is your chance to incorporate the touch-and-feel element to your brand. A great first impression and a memorable booth don’t end after arranging and fixing your displays; it only starts there. Engage your attendees by making your booth interactive and fun. Note that some people bring their whole family with them – like me (big ticketed items, remodeling, and upgrades are most likely decided by couples – some with children in tow) so please be mindful and patient with the little ones, consider this when setting up your exhibit.
Educational
Tons of new products and equipment are being released in the market every year, whether it is a machine or software for your business system. Keeping up with the latest construction technology and innovation is essential to your company’s further advancement. Spending your time learning new trends and emerging industry tools is never a bad idea. It's also a great opportunity to educate your audience by making your demonstrations informational, hands-on and dynamic. It establishes authority and trust that you’re the go-to expert in town. Keep in mind that some attendees have no particular interest and are just there to look around, show off your products and highlight your services and how it could make their everyday life more comfortable. They might end up with something they have no idea they need until they met you.
Entrepreneurial
As a business owner, nothing will raise and keep your spirits high than being surrounded by like-minded people who took the big step to put themselves out there and showcase their products and services. You and your staff will certainly develop personal traits and interpersonal skills while networking and collaborating with a group of people. An industry-specific local event like this is an excellent way of creating formidable connections and building positive relationships among your community.
In conclusion:
Investing your time and money to increase your brand awareness and market to high-quality leads could potentially work in your favor especially when done strategically. There’s no better place where you can meet and greet your prospective clients, mingle with construction industry leaders, gain feedback from the live audience, and lay your construction company roots locally than at industry fairs. Of course, consider the advantages and disadvantages when deciding to exhibit in a trade show. As with all other businesses, there are always benefits and risks to deliberate and discuss with your team.
The Seattle Home Show is the Northwest’s largest consumer home show held in downtown Seattle at CenturyLink Field Event Center during Spring and Fall. The exhibit features hundreds of builders, remodelers, and interior designers. I brought my family along with me to support local business owners and companies who have taken their time to showcase their products and services. I have huge appreciation to all who participated and attended this event.
If you are a homeowner, check out the Exhibitor List in case you are on the lookout for a particular brand/company/product. Booth numbers are also included so when you arrive; you know exactly which vendors you would like to prioritize and connect with first. If you live or work near Seattle, the spring show is until March 3rd, Sunday. Visit their website for more details.
Full disclosure: This blog post is not paid, sponsored, or in-partnership connection with Seattle Home Show. The author is not endorsing nor advertising the said event as well as the products/brands/companies included in the photos. Furthermore, the views and opinions expressed in this blog post are those of the author and do not necessarily reflect the policy or position of any other Fast Easy Accounting employee.
Thank you for stopping by. Please know that we do care about you and your construction company regardless of whether you hire our services or not. For help with your accounting and bookkeeping needs please fill out the form on the right and we'll be in touch with you shortly.
About The Author:
Norhalma Verzosa is a Certified Construction Marketing Professional and works as the Webmaster of Fast Easy Accounting located in Lynnwood, WA. She has a Bachelor's Degree in Psychology and a Certified Internet Web Professional with a Site Development Associate, Google AdWords Search Advertising, and HubSpot Academy certifications. She manages the entire web presence of Fast Easy Accounting using a variety of SAAS tools including Hubspot, InfusionSoft, Shopify, and WordPress.
We are here to Help “A Little or A Lot” depending on your needs.
I trust this podcast helps you understand that outsourcing your contractor's bookkeeping services to us is about more than just “doing the bookkeeping”; it is about taking a holistic approach to your entire construction company and helping support you as a contractor and as a person.
We Remove Contractor's Unique Paperwork Frustrations
We understand the good, bad and the ugly about owning and operating construction companies because we have had several of them and we sincerely care about you and your construction company!
That is all I have for now, and if you have listened to this far please do me the honor of commenting and rating the Podcast www.FastEasyAccounting.com/podcast Tell me what you liked, did not like, tell it as you see it because your feedback is crucial and I thank you in advance.
You Deserve To Be Wealthy Because You Bring Value To Other People's Lives!
This Is One more example of how Fast Easy Accounting is helping construction company owners across the USA including Alaska and Hawaii put more money in the bank to operate and grow your construction company. Construction accounting is not rocket science; it is a lot harder than that, and a lot more valuable to construction contractors like you so stop missing out and call Sharie 206-361-3950 or email sharie@fasteasyaccounting.com
Contractor Bookkeeping Done For You!
Thinking About Outsourcing Your Contractors Bookkeeping Services?
Thank you very much, and I hope you understand we do care about you and all contractors regardless of whether or not you ever hire our services. Bye for now until our next episode here on the Contractors Success MAP Podcast.
Most Contractors Setup QuickBooks Or Xero Online Accounting Using:
#1 EZ Step Interview inside QuickBooks Setup #2 Asked Their Tax Accountant To Setup QuickBooks #3 They Attended A How To Setup QuickBooks Class Or Seminar
And QuickBooks Does Not Work The Way They Want It Too!
499: Construction Company Employee Vs. Contractor - What You Need To Know
00:11:22
This Podcast Is Episode Number 499, And It's About Construction Company Employee Vs. Contractor - What You Need To Know
Depending on the nature of your construction business, you may have workers who are employees or contractors, or you may have both. Each has its merits, but it's important to review which are to meet your tax obligations.
With so much discussion about employees, payroll, and payroll taxes, you may feel like missing out by not hiring many employees. The reality is that as a small business owner, you do not have to hire employees.
To hire or not to hire employees is one of the few optional things where the business owner can choose, change their mind, and change direction as needed.
When you have an employee, you must withhold income tax and report on additional benefits. Contractors generally look after their tax obligations.
Is there another way?
Yes - to outsource most of the mundane low-value tasks that take time away from what you are skilled in. As the owner, you can use that time to meet with clients, create estimates, collect money, pay bills, and have a little left over.
It's against the law to treat an employee as a contractor. Significant penalties apply if you do, so it's essential to get it right.
The simplest way to remember is:
An employee works in your business and is part of your business.
A contractor is running their own business.
But how can you be sure that you've got an employee or a contractor on your hands, especially with remote work blurring the lines between employees and contractors?
Does it come to the point that you should be hiring a worker as an employee when you thought they were a contractor?
There are six factors to consider:
1. Ability to subcontract or delegate
An employee is not able to subcontract or delegate the work. They must perform the outlined tasks themselves. If they can't do the work themselves for any reason, say a prolonged illness, and someone else does it, this is a substitution. Your business would then pay the other person to carry out those activities.
A contractor can delegate the work as long as they're not obligated to do it themselves per the contract. If your contractor didn't work, they would arrange for another qualified person to do it. You would pay your contractor, who would then pay their subcontractor.
2. Basis of payment
An employee is paid a set amount per period. The most obvious example would be an annual salary or hourly wage.
Some employees are paid piece-work rates. They receive an amount per successful sale or per the number of pieces produced. A commission basis would be a price-per-item structure.
A contractor, however, is paid an agreed-upon price in exchange for a predetermined result. Some contracts may specify the amount to be paid in increments as stages of the project are completed. But the key takeaway is that a contractor is paid when the agreed-upon result is achieved.
3. Equipment, tools, and other assets
If your business is responsible for providing the equipment, tools, and other assets required to perform the job, that's characteristic of an employee.
If the worker is providing these items, they are likely a contractor.
4. Commercial risks
Employees do not bear the commercial risk and are not liable for correcting any defects in the work at their own expense. Instead, your business takes this responsibility. The worker will be paid for the time required to complete the task.
A contractor assumes commercial risk. They are responsible for fixing any mistakes on their own time. Your business does not have to pay for any extra time taken or materials used unless otherwise specified in the contract. This additional work would fall under the umbrella of the terms set at the beginning of the project.
5. Control over the work
Employees have to complete the work the way the employer specifies. What work is done, where it's done, how it's done, and when it's done are all up to the employer. The employee then completes the work as required.
Contractors are not subject to the same rules. They decide when and how the work is done, so long as it meets the obligations laid out in the contract. For example, a contractor could work three 10-hour days rather than four 8-hour days to complete a job.
6. Independence
An employee works within a business. They complete tasks as required until they leave the job.
A contractor operates independently and may have other contracts with other companies. They can freely accept and refuse other work. Their obligation is complete when they deliver the specified outcome.
Final thoughts
Don't add staff just to have staff. Employees are expensive. In Washington State, it is mandatory to offer Family Leave and PTO. Family Leave is similar to State Unemployment which is calculated on gross wages. PTO (Personal Time Off) is at a rate of 1 hour per every 40 worked. The employee can use the time off anytime they want – no notice given) Other benefits may include paid vacation and holidays.
Most construction company owners like you are doing what they can to survive and thrive in tough economic times, and we are here to support and hopefully help you stay out of trouble where we can.
It can be confusing to determine between an employee and a contractor, but it's crucial that you do so to meet your tax obligations and play by the rules. Contact us to learn more about your tax obligations for employees and contractors.
You can use it today, November 25, up to Sunday, November 27, 2022, at 11:59 PM. (Please note: Offer does not apply to Outsourced Accounting, Bookkeeping Review, or any Consultation and Training products; you can use it, however, to purchase any course or monthly subscription classes in Construction Accounting Academy).
I look forward to helping you with your business goals.
About The Author:
Sharie DeHart, QPA, is the co-founder of Business Consulting And Accounting in Lynnwood, Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations and offers insights on managing the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. Call 1-800-361-1770 or sharie@fasteasyaccounting.com
22 Mar 2024
568: The Power Of Core Values In Your Trade Business
00:10:53
This Podcast Is Episode 568, And It's About The Power Of Core Values In Your Trade Business
As a construction company owner, you're the architect of your business's vision and culture. But some of the foundation often needs to catch up in the hustle to improve services, chase sales, and keep the lights on. Core values—those guiding principles that shape your company's identity—are more than words on a wall or a statement in a handbook.
Getting leads and doing the work is only part of the answer. Not answering them and acting on the knowledge is why many construction companies wither and die. They focus on the wrong areas to innovate or improve. They focus on the wrong enemy and threat. As a result, they need to catch up on what they could be doing to succeed and prosper over time.
Is the elevator pitch you used a year ago – even six months ago – still accurate? Unless you are crystal clear on who you are as a construction company, whom you're here to serve, and what you hope to achieve in the next one to three years, it will be hard to come up with meaningful goals.
These aren't just buzzwords to sprinkle throughout your website—your business's core values can act as the compass for your business, sharpening much about it. If your brand needs tweaking to reflect where your construction business is today and where you want it to go, start there.
Let's dive into why core values are critical to your entrepreneurial journey.
1. Core values establish a company culture.
A company without defined core values is like a boat without a rudder—adrift without direction. Sure, you're moving, but where?
Core values foster a sense of identity and purpose
Your core values anchor your company's culture. They define your company's personality. When employees understand and live these values, it unifies them.
Guide decision-making and conduct
Values should be your company's moral compass, setting the course for how you want your team to operate in every situation. From difficult decisions to everyday choices, they help your team stay true to the company's ethos.
2. Attract and retain talent.
In a competitive job market, your company's values can attract like-minded individuals.
Appeal to employees who align with the values
Millennials, and now Gen Z, not only seek employment but also meaningful work. They are drawn to companies whose values match their own. When you promote your business's core values, you'll find it easier to recruit those who are best suited for your team.
Increase employee engagement and loyalty
Employees who connect with your values are more likely to be engaged in their work and committed to the company's long-term success. This engagement translates to higher levels of staff retention, and engaged employees are much less likely to look for a job at other companies.
3. The currency of trust: build trust and reputation.
Consumers want to buy from companies they believe in.
Demonstrate integrity and authenticity
When your core values drive your business practices, you stand out as a company that's not just about profits but about people and principles. This authenticity in business operations builds a strong foundation of trust with your customers.
In a world of cynicism, displaying your core values shows that you mean what you say.
Enhance customer trust and loyalty
A company that walks the talk regarding values will create loyal customers who return for repeat business and refer others to you.
4. Provide a framework for decision-making
One of the trickiest parts of leading a business is knowing which opportunities to chase and which to pass up.
Help plan actions and initiatives
Clear core values make evaluating opportunities easier and aligning them with your company's long-term strategies.
Guide strategic planning and goal-setting
Strategic plans also benefit from a values-driven approach. Your values help you set more meaningful, impactful, and achievable goals that resonate with your business mission.
5. Drive business success.
Ultimately, businesses are run by people. And it is people, working together under common values, that power growth and success.
Create a cohesive and aligned team
When everyone's values align with the company's, you create a culture of respect, understanding, and support.
Set the foundation for long-term growth and sustainability
A business founded on strong core values can withstand market challenges and changes in leadership. It's the foundation for building a resilient, adaptable, and sustainable business.
In the construction industry, where safety, teamwork, and accountability are of utmost importance, having a set of core values can help establish a healthy and productive work environment, build trust among team members, and ensure that all stakeholders are aligned toward a common goal. Core values can also help attract and retain top talent, as employees who share the same values as the company are more likely to be engaged and committed to their work.
In conclusion
Integrity is the overarching essence of core values. Core values are not mere internal branding nor a dusty document to be rolled out during public relations crises. They are the heart of your construction company.
In crafting core values and integrating them into your business strategy, you're not just creating a checklist of moral standards; you're shaping your company—its culture, impact on the world, and its legacy.
In every action, every decision, and every interaction, your values should be the guide that keeps your construction business on course.
So, if you haven't already, now is the perfect time to sit down with your team and chart the values that will define your business.
PS
We offer free resources to help you save time and money that you can download and print now.
About The Author:
Sharie DeHart, QPA, co-founded Business Consulting And Accounting in Lynnwood, Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations and offers insights on managing the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. Call 1-800-361-1770 or sharie@fasteasyaccounting.com
28 Jul 2023
534: The Rundown To Running Your Own Construction Business
00:13:25
This Podcast Is Episode Number 534, And It's About The Rundown To Running Your Own Construction Business
Getting your construction business up and running and making a profit is usually much more complicated than it sounds. So let's focus on honing the skills you'll need to make it happen by acquiring these yourself or consulting professionals to help you.
What it means to be your own boss
Being your own boss might sound like it is the ultimate ticket to freedom and financial success – and it can be. But don't be fooled into thinking you'll be able to put in a few hours each morning and spend the afternoons networking over a round of golf. The reality is that most businesses require much hard work – more than your standard 9–5 job and over some years – before they start to make a reasonable profit, and many new construction businesses fold before they reach that point.
Here are the top things you should be aware of:
You need to be passionate about what you do: Setting up your contracting business is challenging. If you're not passionate about what you do, you'll find it hard to stay motivated when faced with several hurdles. Also, if your business is just another idea to make money and not something you're passionate about, you'll lack that key ingredient to make your new business more attractive than the established competition. Before you start a construction business, ask yourself if you're passionate about this industry.
You'll need to make sacrifices, at least during the first couple of years: You'll need to put in a lot of hard work between coming up with your business idea and establishing your business. You'll probably have to work harder than most of your mates and make many sacrifices. It might mean less time with your friends, less time for sports or hobbies, or even less time with your family. You'll also probably be taking home less money – and might need to sacrifice family holidays or put major household purchases on hold until your business is established. Ask yourself if you're prepared to make the sacrifices necessary to make it a success – and check that your family is prepared to make these sacrifices too.
You'll face risk and uncertainty: When you start your own business, you won't have the security of regular payments from an employer. Your business might be unable to pay you a wage for the first few weeks, months, or years. In addition, you might need to draw on your savings or even take out a loan to finance your business operations. There's an element of risk and uncertainty when you start your own business, so you need to be sure that your construction business idea is viable and that you have enough money to support yourself and your business until you reach your break-even point and start turning a profit.
You'll need abundant patience and persistence: It's rare for a start-up that has everything run according to plan without any teething problems. You'll likely encounter your fair share of setbacks and challenges, from financial issues to demanding customers and problem staff. While there's a fine line between persisting against all odds (when the business is not viable) and giving up when the going gets tough, you'll need patience and persistence to make your business a success.
Getting the skills you need
Very few people who own businesses start with all the necessary skills. The secret is to quickly inventory your current skills and identify the gaps in your knowledge base. You can then either get the training you need or employ people with the right skills for those areas you don't have a natural affinity for.
You'll need the following skills to run your business.
Market research skills to understand the market you are entering and stay abreast of market developments, customer preferences, and the actions of your competitors.
Money management skills to forecast when you expect your business to break even, understand your financial position at any point, and asses the financial implications of any business decision you make.
Marketing and sales skills to effectively promote your products or services and reach your break-even target sales as soon as possible.
People skills to help you manage and motivate your staff and deal with customers.
Negotiating skills to ensure you can strike the best deal when dealing with suppliers or bidding contracts.
In the longer term, it's a good idea to do courses in all these areas, even those you're uncomfortable with. If, for example, you don't like figures, or feel you are not good with people, try to develop these skills over time. A rudimentary understanding of financial statements and what the critical metrics for your business mean will help you run your business better and improve your people skills if that is your area of weakness.
"Do you have what it takes" Self-test
Here's a quick self-test you can take to see what it takes to start your construction business.
1. Do you have several years of experience in the trade industry you're considering entering? If not, it might be best to wait a few years until you increase your knowledge and contacts.
2. Starting your own business is challenging. Do you thrive on challenges? If not, starting your own business might not be your best option.
3. A wide range of skills to run a business successfully would be best. Are you prepared to undergo training to develop the skills you need or to heed input from specialist advisers in areas, not your specialty?
4. There's no fallback guy when you run your own business. Do you enjoy making and being responsible for your own decisions?
5. You'll need to invest much time into your business start-up. Are you prepared to work long hours without the security of a steady income?
6. You might not be able to pay yourself a wage for a while. Are you prepared to lower your standard of living until your business starts to make a profit, and do you have sufficient savings or an alternative income to live off during the start-up period?
7. Most small businesses fail due to inexperience, poor management, or lack of planning. Are you actively working on overcoming these common problems?
8. Starting your own business has implications for your family, including less income, reduced family time, and taking on additional responsibilities. Does your family understand this and unconditionally support your desire to start a business?
9. Regardless of how excited you might be about starting your own business, there is a chance you might fail. Are you prepared to risk losing the money you invest in your business?
When a business starts, it's natural for you, the owner, to be a jack-of-all-trades. You may not have the capital to hire specialists or access the technology to help you. As your business grows–or as you look to take a minor role in your construction company–you may find the industry has become over-reliant on you, making it challenging to take a step back.
Final thoughts
Have you M.A.P.ped your business yet? Consider this before retreating and delegating:
Marketing - never sells more than Production can provide; on-time and on-budget
Accounting - manages the money to maintain operations and produce a reasonable profit
Production - delivers the project intending to exceed customer expectations
As you know, we are big on Construction Marketing, Accounting, and Production; having a basic operation manual in place for your office, remote, and field employees pays off in the long run.
It won't be easy to run your construction business on your own. Are you prepared to hire staff and delegate responsibilities to them or use the services of a professional? If not, this could reduce the chances of your business being successful.
Call, email, or fill out the form on the right to schedule a free consultation with me - regardless of where you are in you're construction business journey.
About The Author:
Sharie DeHart, QPA, co-founded Business Consulting And Accounting (Fast Easy Accounting) in Lynnwood, Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations. She offers insights on managing the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. Call 1-800-361-1770 or sharie@fasteasyaccounting.com
21 Aug 2020
0381: The Value Of Service Agreements In Your Construction Company
00:08:36
This Podcast Is Episode Number 0381, And It's About The Value Of Service Agreements In Your Construction Company
It goes to the heart of the question of the difference between a customer and a client. Service agreement holders are more likely to be clients who add more value to your construction company because they represent your customer base's most loyal segment.
Every service agreement customer represents future work. In the meantime, service agreement clients are a source of cash flow and are predetermined to call you instead of your competition when repairs are necessary.
Non-service agreement customers are more likely to be customers and fickle. They may call your contracting company for future work or decide to shop the competition and use the information they find to negotiate for a lower price. In some cases, they may not even remember you or your construction company name.
Besides, your replacement sale close-ratio usually is higher with service agreement clients, and your overall pricing and related service care level can be much higher, resulting in even more raving fans. Service agreement clients trust you, follow your recommendations, and do not frequently shop around.
When and if you ever decide to sell your company, potential buyers understand the value of service agreements, and your company will be more attractive if you have a strong base of service agreement clients and are generally willing to pay even more for it than you expected.
Service Agreements Place On The Financial Reports
The Balance Sheet is the summary report which shows all of the assets minus the liabilities, which equals the "Book Value" or owner's equity. In theory, the owner's equity is what would be leftover if you liquidated the company, sold the assets, and paid all of the debts or liabilities.
Your service agreement clients' true value will not show on the Balance Sheet before the business is sold; however, it is used to calculate "goodwill" if the buyer pays more than book value for the company.
Construction Accounting As It Relates To Service Agreements
The price of a service agreement must pay for the corresponding maintenance, and whatever is left after the cost of material, labor, and other expenses is gross profit. This means every service agreement carries a hidden cost for future maintenance work, which equals the total value of services yet to be performed.
For example, a plumbing contractor might sell an annual service agreement that entitles a restaurant to four follow-up drain cleaning package visits each calendar quarter for $600 and a 20% discount on all additional services.
This means you will send a plumbing drain technician to clean the restaurant's main drain four times a year at a cost to your company of $75 for labor and overhead each = $300. The service agreement's income is $600 - your cost is $300 = $300 additional income.
Keep The Service Agreement Cash Separate
One of the best parts is that you have an immediate increase in cash flow. Successful contractors put the cash in another interest-bearing bank account and do not transfer it until the work is performed. It is not even necessary to recognize it as income until the job is done.
Maintenance That Is Never Performed
Some clients will not return phone calls and never let you schedule their service. Here are two suggestions to consider:
#1 Disconnect The Work From The Payment
Think about a pre-paid annual gym membership. It gives you the right to use the gym for the next year, but if you fail to take advantage of this benefit of membership, you do not receive a refund after the fact.
#2 Maintenance Is One "Free" Benefits
The obligation to schedule the maintenance should rest with the client. We recommend that your customer service representative contact each service agreement client to schedule services; however, if the client refuses to set an appointment, the contractor's obligation is met.
Five Benefits
#1 Your dispatcher can group service agreement calls together saving travel time
#2 It can be used to fill in slack times when there is not enough work to go around
#3 It is a great way to train new technicians by having them shadow experienced technicians
#4 Add on sales while the technician is onsite they can ask if there is anything else that needs to be fixed or upgraded
#5 Immediate increase in cash reserves
Five Drawbacks
#1 Your dispatcher may not be able to group calls together
#2 You may not have any slack time to fill
#3 It costs more in the short run to train technicians this way
#4 It will require you to have a way to track the upcoming service agreement dispatches
#5 It requires a bit more construction accounting than most bookkeepers know how to do
Final thoughts
Service Agreements raise your construction company's value if you ever want to sell it for much cash because investors buy income streams, not worn out broken down equipment and stale customer list.
The final decision rests with you to decide if adding service agreements to your contracting company makes sense. It requires a bit more construction accounting than most bookkeepers know how to do, and if needed, we can help train them.
About The Author:
Sharie DeHart, QPA is the co-founder of Business Consulting And Accounting in Lynnwood, Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations and offers insights on how to manage the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. Call 1-800-361-1770 or sharie@fasteasyaccounting.com
10 Apr 2015
0106: The Cheap Contractor Spends The Most Money
00:28:57
This Podcast Is Episode Number This Podcast Is Episode Number 0106 And It Will Be About The Cheap Contractor Spends The Most Money
In an attempt to save money, the cheap contractor does the following and ends up spending the most money and earning a tiny profit because they believe in Maximizing over Optimizing. In the short run Maximizing can payoff; however, in the long run it never does.
This article is a bit strong and it could offend some folks. If it offends you, please accept my sincere apologies. I tend to tell it straight and not sugar coat anything because I have been involved in the construction industry most of life beginning with working in my Step Father's construction company after school in the mid 1960's.
During my lifetime, I have seen too many contractors work hard, never have enough money to retire. Some of them die from exhaustion and others just wore themselves out and lived their final years in poverty and only a few, less than 5% ever made enough money from owning and operating their construction company and outside investments to retire early enough and enjoy a comfortable lifestyle.
Part of our mission here at Fast Easy Accounting is to help as many contractors as we can to shift their Paradigm and become one of the top 5%.
Overloaded Construction Vehicles Cost More Money Than They Save
Example #01 They overload their vehicles beyond what they are designed to carry
They believe the truck manufacturer "Low-Balls" the Gross Vehicle Weight Rating (GVWR). For a short read on this subject, click here to download a white paper. For more in depth information on GVWR please visit Model Minimum Uniform Crash Criteria they have extensive data on this subject.
Excess Weight Causes:
Premature tire failure $$$
Replacing brakes more often $$$
Lower gas mileage $$$
Wears out engines, transmissions, suspensions faster $$$
If you are involved in a traffic collision and the attorneys get involved it could cost you everything you own and then some $$$$$$$
Google "Does an overloaded truck have legal implications in a car wreck" and you will get over 2,000,000 results
Cheap Tools Cost More Money Than They Save
Example #02 They buy the cheapest tools they can find
They believe buying tools based on the price not the Total Cost Of Ownership (TCOO). The total cost of ownership has to take into account what ten minutes waste cost your construction company
Cheap Tools Waste Time And Money:
The bargain basement priced shovels that break the first day you try to use it $$$
The cheap light weight hammer that splinters and sends shrapnel flying everywhere $$$
The low priced sazall, drill or circular saw that falls apart after a week $$$
The thin gauged extension cords that cannot provide enough power to do the job $$$
Damaged power cords that are hazardous and when OSHA finds them you pay lots of fines and penalties $$$$$$$
Make More Money Faster - With productivity gains.
Every Ten Minutes Your Construction Worker Costs You $5.94
Every Ten Minutes A Day Of Unproductive Construction Worker Labor:
For Employee #01 Could Cost The Company $1,544.42 Each Year
At 10% Profit You Need $15,544.20 More Sales To Maintain Profit Margin
For Example - Your best construction worker asks for a tool:
It costs $1,200.00
It will save ten minutes a day in labor
It will last 3 years
The standard response is the company can't afford it!
Highly Profitable - Construction company owners ask their construction accountant to calculate the projected the Return on Investment (ROI) is and then consult their Strategic Business Plan to make an informed decision.
In This Example - It may make sense to finance the purchase even if it means using a credit card at 12% interest because the net return is $3,289.36, which is 245% ROI. See below:
QuickBooks Online Is A Recipe For Disaster For Contractors
Example #03 They try to make QuickBooks Online work
QuickBooks Online is a great product for many companies, but not construction. The primary reason is contractors are one of the few companies that pack their entire company into trucks and vans, drive it to their customer's location. Then they put together a custom built product which means the margin for error is enormous and break even calculations are a moving target can only be done in a properly Setup QuickBooks File Designed Specifically For Construction Accounting.
Most companies have a fixed location where customers come to them and they sell prepackaged products which they know exactly how much margin they need to sell everything for in order to earn a profit and stay in business so their company breakeven is very simple to calculate.
Contractors Using QuickBooks Online May Experience Some The Following Issues
1.Limited Job Costing Reporting
2.Limited Sales Tax Reporting
3.Limited Custom Reports
4.Limited Report Formatting
5.Limited Detail On Reports
6.Limited Filtering Of Reports
7.Limited To One Window
8.Limited Tech Support
9.Limited 3rd Party Apps
10.Slow Response Time
11.Wasting Time Moving Between Windows
12.Cannot Easily Link Multiple Companies
13.Payroll Issues
14.Importing multiple transactions
15.Importing IIF Files
16.Updating Chart of Accounts
17.Work-In-Process (WIP) Reports
18.No Inventory Reporting
19.Problems With Retention Held Reports
20.Problems With Retention Due Reports
21.Purchase Order Tracking
22.Job Progress Invoice Tracking
23.Corrupted Trial Balance Reports
24.Corrupted Financial Reports
25.Cannot Create Item Reports
26.Cannot Backup Before Performing Major Revisions
27.Too Many People In The File
28.QuickBooks Online Is Like A Doorknob Where Everyone Gets A Turn
29.Not Enough Controls To Keep Amateurs From Really Causing Problems
30.Tax Accountants in an effort to make QuickBooks online easier for them
31.Pages Regularly Become Unresponsive The Program Needs To Be Restarted
QuickBooks Online is a great program for small companies including some non-profit organizations but it is not suited for a serious construction contractor with more than two projects a month and generating more than $500 a year in sales.
Most Construction Companies started using QuickBooks Online so they could get to their QuickBooks Pro or QuickBooks For Contractors file anywhere they have internet access 24/7.
We Can Move Your QuickBooks Online File Into Our Private Cloud Server And Provide You With The Full Power Of QuickBooks Desktop Version Online In The Cloud!
Access QuickBooks Desktop Version From Your PC or Mac
Highly Skilled Technicians Maintain The Software
And We Maintain Your QuickBooks File
Push A Button And Have
1.Paperless System For You To Store, Print, E-mail Documents
2.Microsoft Is On The Server For You To Use
3.Microsoft Excel Is On The Server For You To Use
4.Key Performance Reports Every Contractor Needs
5.Cash Report anytime YOU want it!
6.Receivables report anytime YOU want it!
7.Payables report anytime YOU want it!
8.Profit & Loss statement anytime YOU want it!
9.Balance Sheet report anytime YOU want it!
10.Job Costing report anytime YOU want it!
11.Estimates Vs. Actuals report anytime YOU want it!
12.Frequently Asked Questions And Answers Click Here
QuickBooks For Contractors Is Running Smoothly On Cloud Based High-Speed Servers 1,000+ Miles Away From Our Office In Lynnwood Washington with redundant backups offsite
Tucked Securely In A Building With Armed Guards
With Highly Skilled Technicians Maintaining It
All QuickBooks Files Are Backed Up Every Night On A Secured Server
Access Windows QuickBooks Desktop Version From PC or Mac
English Speaking, U.S. Based Technicians Maintain The Server
QuickBooks Software Updates Are Automatically Applied
We Provide Your QuickBooks Maintenance And Support
Frequently Asked Questions And Answers Click Here
But Wait There's More!
Our Contractor Clients Have 24/7 Access To QuickBooks Contractor Financial Reports!
Just when you thought our special brand of outsourced contractor bookkeeping services couldn't possibly get any better...it does...yet again!
We provide professional contractor bookkeeping services primarily for construction company owners with annual sales volume $0 - $5,000,000 using the full desktop version of QuickBooks For Contractors which rests on an Intuit Approved Commercial Hosting Service.
On demand 24/7 internet cloud based access to your QuickBooks Reports including Profit & Loss, Balance Sheet, Receivables, Payables and more without having to own or open QuickBooks For Contractors!
Example #04 They get the cheapest bookkeeper they can find
The cheap contractor thinks all bookkeepers are the same; however, they bristle at the suggestion all contractors are the same. It is true that almost anyone can do bookkeeping because 95% of it is boring and only 5% is sheer terror. However when the regular bookkeeper attempts to do construction accounting that is like watching a naked person, covered in honey getting into a fight with a grizzly bear in the woods; it never ends well.
Until Your Construction Company - Reaches at least $5 million in annual sales you cannot afford to hire a qualified bookkeeper or construction accountant full-time to put on your accounting staff because there is no such thing as a part-time qualified bookkeeper or construction accountant.
For Example - You Hire someone with bad habits who is a Cheap Bookkeeper part time at $15.00 an hour for 10 hours a week thinking you will save money. The problem with that is you may not understand the true cost to have them on your payroll, including overhead, is closer to $25.29 per hour.
Every Ten Minutes Your Bookkeeper Wastes Costs You Money!
Every Ten Minutes A Day Of Unproductive Office Labor:
Could Cost Your Company $273.93 Every Year
At 10% Profit You Need $2,739.30 More Sales To Maintain Profit Margin
Everybody Loses When A Contractor Goes Out Of Business Or Worse Yet Bankrupt!
It May Seem Harsh - In order to survive and thrive as a contractor you must make certain your employees are focused on their job during the time you are PAYING THEM TO WORK! You must do whatever it takes to enforce the rules of engagement for producing results at your contracting company or be prepared to work for some other contractor and live under their rules.
Plugging Some Of The Little Leaks Listed Above Can Be Done Without Spending A Dime!
Some Will Require Investment; Consult Your Construction Accountant For Advice!
In Some Cases - We can do more work for less money by providing you with real construction bookkeeping and accounting + payroll processing + monthly and quarterly tax reports + year end W-2, W-3 + profit and growth management consulting + financial and job costing reports + paperless data storage and more at a lower overall cost and as an added bonus show you how to make more money than you are now!
Two Contractors Doing Similar Work - For similar customers with the similar direct and indirect construction costs will have massively different KPI Reports including the Profit and Loss Statements. Size matters when it comes to piles of money and bigger profits!
I trust this podcast helps you understand that outsourcing your contractors bookkeeping services to us is about more than just “doing the bookkeeping”; it is about taking holistic approach to your entire construction company and helping support you as a contractor and as a person.
We Remove Contractor's Unique Paperwork Frustrations
We understand the good, bad and the ugly about owning and operating construction companies because we have had several of them and we sincerely care about you and your construction company!
That is all I have for now and if you have listened this far please do me the honor of commenting and rating podcast www.FastEasyAccounting.com/podcast Tell me what you liked, did not like, tell it as you see it because your feedback is crucial and I thank you in advance.
You Deserve To Be Wealthy, Because You Bring Value To Other People's Lives!
This is one more example of how Fast Easy Accounting is helping construction company owners across the USA including Alaska and Hawaii put more money in the bank to operate and grow your construction company. Construction accounting is not rocket science; it is a lot harder than that and a lot more valuable to construction contractors like you so stop missing out and call Sharie 206-361-3950 or email sharie@fasteasyaccounting.com
Thinking About Outsourcing Your Contractors Bookkeeping Services?
In closing, I want to caution you that we may or may not be a good fit for your contracting company. This guide will help you learn what to look for in outsourced construction accounting.
Thank you very much and I hope you understand we really do care about you and all contractors regardless of whether or not you ever hire our services. Bye for now until our next episode here on the Contractors Success MAP Podcast.
543: Better Practices For Managing And Maintaining Construction Business Cash Flow
00:10:47
This Podcast Is Episode 543, And It's About Better Practices For Managing And Maintaining Construction Business Cash Flow
In the business world, cash flow remains the lifeblood that keeps your operations running smoothly. Whether you're a start-up finding your feet or a seasoned business in the construction industry, managing and maintaining a steady cash flow can be challenging. But a few small changes can make a world of difference to your cash flow and overall revenue.
Your business needs cash. Cash keeps your company in operation and enables it to grow, so you should know how much your business needs to survive. Although many think the answer is linked solely to operating expenses, this isn't true.
No single factor determines how much cash every construction business needs to have on hand. Somewhere between 3-6 months of operating expenses is an excellent baseline to start from, but there's more to it than that.
Initiate a discussion with your lenders if interest only or deferred payments on outstanding debts are possible.
Request more flexible payment options
It never hurts to ask, especially if you've been transacting with your vendors for a long time and you've established a certain level of mutual trust and confidence. You can request more flexible payment options or longer payment terms.
Tap into available credit lines
Take advantage of available lines of credit and place the funds in interest-bearing accounts.
Assessing your cash flow is fundamental to better understanding your business's financial health.
Let's dive into some practical strategies you can implement to boost your cash flow.
Make invoicing a priority -get paid faster and aggressively follow up on invoices.
Receiving speedy payments is crucial to improving your cash flow. If you typically invoice your customers, consider offering them an incentive to pay earlier than the standard 30-day payment period. A small discount of 5% could encourage them to settle their bills within ten days.
Small businesses in the construction industry are at risk of having their clients not pay them on time—or at all. Being too passive in collecting unpaid invoices or reminding clients when payment is due will not help you collect the money you need to pay your bills.
Sending out reminders of due invoices can speed up getting you paid and encourage clients considering not paying you to reconsider. Reach out to clients if necessary to discuss payment options. Even a payment schedule is better than no payment at all.
Invoicing should be a regular part of your business day. Adopting a same-day or next-day invoicing practice can ensure you're on top of your receivables. Additionally, consider emailing invoices as a supplement to regular mail.
If you have customers who are habitually late, don't hesitate to remind them regularly about payments.
Use business credit cards.
Using business credit cards to pay suppliers or make purchases can also help manage cash flow. Most credit cards offer a grace period, sometimes up to 25 days, allowing you to settle the statement balance without incurring interest. Some even come with cash-back features.
Watch for scope creep.
Scope creep occurs when clients or stakeholders change a project's goals or deliverables. Almost all projects experience some form of scope creep, but too many changes to a project can severely impact your bottom line and hurt your cash flow.
Make sure the terms of your project are set out clearly, and let clients know that any changes to the project will result in additional fees. If clients attempt to change the project, you can remind them about the original agreement and the extra costs. If they insist on making the changes, you can charge the agreed-upon amount.
Invest in today's technology.
Investing in modern bookkeeping software or invoice management services can help streamline your receivables and expedite customer payments. While it may seem like an additional cost, this investment can offer tremendous cash flow benefits in the long run.
Many software solutions can help you understand your company's cash flow. They can help you build projections and get a real-time view of how your business is doing. This information can then be shared among company managers so everyone knows how the company is doing financially and where strategies need to be put in place or altered to get you back on track.
Additionally, invoicing and project management software can encourage faster, more manageable payment from clients and keep projects on budget. This will also improve your cash flow.
Consider delegating the financial tasks.
Many construction small business owners become self-employed because they have construction skills, not because they want to be businessmen. The financial aspects of a construction business are complex and take much time and planning. That can add demanding responsibility to the business owner.
Hiring someone to take care of the financial aspects of your business or even to advise you about the decisions you face can take the stress off you. That's precisely how we can help. Having someone on your side with the financial expertise and construction experience to assess your business, advise you about your cash flow, and help you secure funding. With the time and money you'll save, it will be worth it in the long run.
Final thoughts
Remember, cash flow is king in the business world. Assessing your cash flow is fundamental to better understanding your construction business' financial health. Implement these simple yet effective strategies to maintain a positive cash flow and drive your business toward success.
Need help with managing your cash flow? Get in touch with us now.
About The Author:
Sharie DeHart, QPA, co-founded Business Consulting And Accounting (Fast Easy Accounting) in Lynnwood, Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations. She offers insights on managing the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. Call 1-800-361-1770 or sharie@fasteasyaccounting.com
18 Feb 2022
459: Improving Your Business Negotiation Skills As A Contractor
00:09:51
This Podcast Is Episode Number 459, And It's About Improving Your Business Negotiation Skills As A Contractor
Several aspects of the construction business can only be learned through experience. One of them is negotiating contracts.
Owning your business requires many skills, and among the most important might be the ability to manage negotiations. As a business owner, you could find yourself negotiating in many circumstances, such as:
Salary and job expectations with a potential employee
Financing terms with a lender
Payment terms with a supplier
Lease or property agreements
Equipment agreements.
Most people fear the negotiation process because it is an intrinsically uncomfortable process. Asking for more money or making personal demands doesn't come naturally to everyone. But with the right toolkit, you can breeze through contract negotiations. And you'd better get used to it because you'll have to handle many contracts whether you're a construction company owner or employee.
Having the right mindset is critical to contract negotiations. You have to believe that you are going to get your way. Bring a positive attitude and a smile to the table. You're not signing contracts with the enemy. The people you're negotiating with will be your business partners in one capacity or another.
Tips For Costing Out Jobs
For small construction businesses, it's vital to appear as professional as your larger competitors whenever you communicate with clients, but especially when negotiating the details of a potential project.
Be sure when you're preparing your quote or estimate that you includethe following information:
Your business number
Business contact info (phone, email, address)
A detailed summary of the work to be performed
A breakdown of costs (subcontractors, materials, time, and hourly cost for labor)
The total cost
A timeline for the work and completion date
Contract terms, including deposit and payment schedule
Another essential piece of information is to provide your clients when the quote or estimate expires. Many companies choose an expiry date of 30 days to protect themselves from the possibility of rising costs for materials or other factors that may influence the cost of the job.
Your ability to negotiate will impact your financial situation, which is why it's a good idea to refine your skills. That way, you'll feel confident when discussion time comes around.
Here are four tips to improve your negotiation skills:
1. Be prepared
One of the best things you can do to improve your skills is to be prepared for any negotiation. By being prepared, you'll be better able to negotiate beneficial agreement terms, and you'll identify when someone is offering you a great deal that you should take advantage of.
This means doing your research to understand the scenario you're negotiating in. Get to know what terms businesses like yours have agreed to, what other options you have available to you and how they'd stack up against the agreement you're considering.
Also, give thought to what you would consider a good agreement. Ask other people how they have handled similar negotiations. Finally, make sure you know what you'll do if talks fall through. It's easier to walk away from a negotiation if you know you have a backup plan in place.
2. Know what you're willing to give up
Before you go into the negotiations, it's crucial to not only know what you want but what you're willing to give up. Would you lose an investor, so you keep more shares in your company? Would you give up partial control of your company for more claims? Would you pay more money for additional storage space?
Understand what you're willing to give up and what you won't yield on.
Knowing what you will and won't give up on helps you stay focused and prevents you from making snap decisions that you ultimately wind up regretting. It also enables you to evaluate whether the deal is good for you and pushes you to keep the most important things.
3. Practice negotiating
There are plenty of opportunities in your daily life to practice your negotiation skills in a low-stakes environment. You can practice negotiating where you want to eat for dinner, who has to do the chores, and what activities to participate in on the weekend. Use these situations to develop your listening skills and find a way to mutually beneficial terms.
4. Keep it conversational
Negotiations are about both sides walking away feeling optimistic about the deal that has been reached. You don't want a negotiation to become adversarial. Remember that you are having a conversation to reach an agreement between all parties involved, and keep in mind that the negotiation isn't personal. You and the other parties both want to get something out of the agreement, and you likely both want the other side to come away happy as well.
Final Thoughts
Negotiation is an integral part of business life. Ideally, you want to feel confident, relaxed and prepared to go into any negotiation. The best way to do so is to do your research, know what you want, practice your skills, and keep things conversational.
Offer a client the opportunity to ask questions before approving the work. That way, both parties can avoid any misunderstandings about expectations and project costs before the work begins.
Negotiating a contract is like a long chess game, except both parties need to come away from the table victorious. Before you begin the process, figure out your short and long-term goals. Having a clear vision will help you navigate the tricky waters of contract negotiation better.
About The Author:
Sharie DeHart, QPA is the co-founder of Business Consulting And Accounting in Lynnwood, Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations and offers insights on how to manage the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. Call 1-800-361-1770 or sharie@fasteasyaccounting.com
24 Apr 2015
0108: Working With Consultants To Help Your Contracting Company
00:19:51
This Podcast Is Episode Number 0108 And It Will Be About Working With Consultants To Help Your Contracting Company
Many business consultants contact us after they start working with Handymen, Contractors and Construction Company because they are frustrated with contractors who are having trouble earning a profit.
The primary root cause is most contractors do not understand their overhead costs and breakeven. In turn, contractors are frustrated with Bean Counters and Desk Jockeys who do not understand how construction works.
Perhaps this article will shed some light that will help consultants and contractors understand each other and offer some tips that will benefit everyone.
Contractors, bless their hearts, we love them all! Most contractors operate their companies as if they were job superintendents not business owners. Which means they subscribe to P.A.M. Production First, Accounting Second (and only after the year is over and it is time to file tax return) and Marketing (rarely if at all since they believe the best advertising in referrals and word-of-mouth)
Let's Step Into A Contractor's Shoes And Understand How They Got To Where They Are
Bob The Contractor, (not his real name), has a small company they provides a decent middle income living for his family of four but not much hope of building a business that will run without him constantly being involved and running himself ragged. He is a skilled technician who learned his trade in an apprenticeship program, working for another contractor and by his own experiences.
Over the years, Bob developed a Paradigm, Mindset, Understanding, Perception or whatever word makes the most sense to you about how construction companies operate.
Some of the building blocks of his Paradigm were from personal experience and the rest came from several meetings of the Business Round Table; the little round table in the local bar and grill with four chairs, a pitcher of beer, four glasses and three of his contractor friends.
All of them agree that production, getting work done is the most important part of the business because that is what they always did when they worked for someone else and that is what they expect of their employees.
All learning is comes from connecting new things to things we already know and Bob has settled into a rut; which is a grave with gradual slopes on each end. He only knows what he knows and does not know what he does not know.
Learning to own and operate a successful construction company is very similar to learning a construction trade. There are only two ways to do it. Self-taught and learning from someone who is already mastered the skill.
Self-taught means making many mistakes and it takes a lifetime before you get good at it, and then it is too late. Learning from a master is much faster and in the end allows the student the opportunity to go beyond the teachings of the master and have an even greater success.
Bob has this nagging feeling he is missing something and so he contacts a Business Consultant...
Let's Step Into A Business Consultant's Shoes And Understand How They Got To Where They Are
John The Business Consultant, (not his real name), got decent grades in school and graduated college with a Business Management Degree. John has a lot of energy and loves to solve problems and make the world a better place.
After graduation John went to work for a Mega Company which is a large multi-national company expecting to be on the fast track to promotions, bonuses, fast cars and long vacations in the sun. It did not take long for John to realize that if he put his college degree in one hand and five dollars in the other he could buy a cup of coffee and have something to read and admire.
The problem with large multi-national companies like Mega Company is they rarely hire talent; rather they hire fresh college graduates, work them hard and fast until they realize they're on an endless treadmill deep inside a downtown high-rise building also known as a "Vertical Salt-Mine" with fluorescent lighting and little or no possibility for advancement. Somewhere between 5-10 years, the good ones wake up and ask themselves "Is there someplace better I could be?" "Perhaps I should leave Mega Company and start my own consulting firm and fulfill my life's ambition!"
They are "Idea People" full of good ideas and projects and tons of new Strategic Planning Initiatives they expect their customers and clients to embrace and implement by dropping everything else they are doing and getting to work on this new life-changing path.
Example E-Mail Frustrated Business Consultants Send Us
The following email was changed to protect the identity of the sender and is typical of the ones we get:
I am consulting for a local contractor and I'm trying my best to get him to hire your firm for his bookkeeping and accounting needs. He is running things by the seat of his pants and writing things on scraps of paper that ends up on the dashboard of his truck, under the seat, behind the seat, on the floor, in the toolbox and stuffed into the overhead sun-visor.
I understand this is how contractors do things, but I am trying to help him get organized and it's difficult. I have helped several businesses, and he thinks he has a "ballpark" number of his construction company monthly overhead. I need to know exactly what his overhead expenses are, so I can help him increase cash inflow and profits. He needs to know if he is pricing jobs in such a way that he will remain profitable and grow his business so he can have a better lifestyle and retire someday.
Sharie did spend just over an hour consulting with this Business Consultant and he gained a tremendous amount of insights and as I understand it the Business Consultant and his contractor client are still working together and we are providing some much needed outsourced contractor bookkeeping services.
One Answer Is For Business Consultant's Spend Two Months Working For A Contractor
At this point, you either agree with me wholeheartedly or believe I am a crazy nutter or just looking to get free labor for contractors. Your perception or your Paradigm is reality so whatever you believe is true.
I was blessed with having grown up in a construction family and have spent most of my adult life in and around contractors and construction. Learn more... I have started construction companies, made a lot of mistakes, made a lot of money, spent many years acquiring formal education and certifications, (I have more degrees than a thermometer) so I have a foot in both camps as a Contractor and Business Consultant.
A Business Consultant who will invest two months working side by side with a contractor will, in my opinion, gain such tremendous insights, knowledge and humility that will be more valuable than spending 100 years trying to figure out contractors from the outside looking in.
I trust you will find value in this podcast and please understand it comes from the heart of someone who really loves contractors and has a deep commitment to helping as many as I can. The same goes for my business partner, best friend and spouse of over 40 years, Sharie. Moreover, everyone on staff here at Fast Easy Accounting goes the extra mile to do everything we can to help and support all contractors.
Our commitment stays the same to all contractors regardless of whether or not you ever hire our services because we are all in this world together and cooperation will do a lot more good than competition. "The Rising Tide Raises All Ships" which means when contractors do well everyone benefits.
I trust this podcast helps you understand that outsourcing your contractors bookkeeping services to us is about more than just “doing the bookkeeping”; it is about taking holistic approach to your entire construction company and helping support you as a contractor and as a person.
We Remove Contractor's Unique Paperwork Frustrations
We understand the good, bad and the ugly about owning and operating construction companies because we have had several of them and we sincerely care about you and your construction company!
That is all I have for now and if you have listened this far please do me the honor of commenting and rating podcast www.FastEasyAccounting.com/podcast Tell me what you liked, did not like, tell it as you see it because your feedback is crucial and I thank you in advance.
You Deserve To Be Wealthy, Because You Bring Value To Other People's Lives!
This is one more example of how Fast Easy Accounting is helping construction company owners across the USA including Alaska and Hawaii put more money in the bank to operate and grow your construction company. Construction accounting is not rocket science; it is a lot harder than that and a lot more valuable to construction contractors like you so stop missing out and call Sharie 206-361-3950 or email sharie@fasteasyaccounting.com
Thinking About Outsourcing Your Contractors Bookkeeping Services?
In closing, I want to caution you that we may or may not be a good fit for your contracting company. This guide will help you learn what to look for in outsourced construction accounting.
Thank you very much and I hope you understand we really do care about you and all contractors regardless of whether or not you ever hire our services. Bye for now until our next episode here on the Contractors Success MAP Podcast.
0091: Local Vs. Cloud Based Contractor Bookkeeping Services
00:14:28
This Podcast Is Episode Number 0091 And It Will Be About Local Vs. Cloud Based Contractor Bookkeeping Services
One of the biggest concerns contractors have about outsourcing their contractors bookkeeping to a cloud based contractor accounting service like ours is they think it means sending jobs off-shore rather than keeping your dollars in America where they can help other Americans.
In too many cases that is exactly what occurs.
Understanding the differences between Outsourced, Offshore and Freelance Bookkeepers is the key.
Outsourced Contractor Bookkeeping Services Like Us Have Pros And Cons:
Pros 1. We offer Flat Rate pricing, no surprises, no heartache, no regrets, no long term contracts, month to month, cancel anytime because we are paid for results not efforts
2. We specialize in construction accounting and working with contractors across the USA including Alaska and Hawaii
3. All work is done in our commercial office in Lynnwood Washington which is open to the public
4. We care about contractors who want long term relationships and we will always "go the extra mile"
5. We operate as a fully functional team with multiple skill levels to handle any construction accounting issue
6. Nobody takes work home or out of the office for any reason in order to keep your records confidential
7. Everyone working on your contractors bookkeeping here has real world field experience working on construction sites
8. Our construction bookkeepers and construction accountants have a minimum of 10,000 hours of practice in construction accounting
9. Your QuickBooks For Contractors desktop version is available online 24/7/365
10. Live phone support is available support during normal business hours
11. Your QuickBooks is backed up every night on secured servers
12. Our staff is fully trained, supported and we provided continuing education programs
13. We have QuickBooks setup templates to accommodate over 100 different types of contractors and can custom build for over 10,000 combinations
14. With hundreds of construction company clients we have unique insights to share with you what successful contractors do that makes them money
15. We have a fully functional tested and working contractors bookkeeping services system
Cons 1. We are not the low price leader
2. We are not a good fit for contractors who like to control everything
3. We are not a good fit If all of your construction company contracts exceed $100,000 or if you have more than $10M in annual sales
4. We are not good "negotiators" and do not tolerate anybody who takes pride in "grinding down" their suppliers and trusted advisors
Off-Shore Accountants Have Pros And Cons:
Pros
1. Offshore bookkeepers have better training than most American freelance bookkeepers 2. They work cheap
Cons
1. Language barrier can be very frustrating to contractors like you
2. Possible identity theft because the weakness of international laws
3. Transactions put into the wrong account can distort all your Job Costing Reports including the Profit and Loss By Job Report
4. Forget trying to train them on construction accounting in a way that works for your particular contracting company
Local Free Lance Bookkeepers Have Pros And Cons:
Pros
1. They may come to your office
2. They work cheap
Cons
1. They typically work by the hour because they have no bookkeeping system and expect to paid for efforts, not results
2. They work alone and therefore have little or no support staff to help with low level administrative duties
3. They spend very little time and money on initial training let alone paying for continuing education
4. They typically serve every business and industry on the planet because they cannot afford to turn business away
5. They do not understand construction or construction accounting which can be very frustrating to contractors like you
6. Working from home means your sensitive financial records are at risk of being reviewed by your competitors
7. Possible identity theft because the weakness of internal controls
8. Transactions put into the wrong account can distort all your Job Costing Reports including the Profit and Loss By Job Report
9. Forget trying to train them on construction accounting in a way that works for your particular contracting company
All three groups have Pros and Cons and it is up to you to decide what is best for your construction contracting company.
Listed below are just a few of the construction company types we serve:
Brand New Construction Companies Handyman Contractors Cabinet Installers Handywoman Contractors Carpentry Construction Companies HVAC Contractors Carpet Installers Insulation Contractors Commercial Tenant Improvement Contractors Interior Designers Concrete Contractors Land Development Contractors Construction Companies Landscape Contractors Construction Managers Masonry Contractors Contracting Companies Mold Remediation Companies Contractors Moss Removal Companies Custom Deck Contractors Painting Contractors Custom Home Builders Plumbing Contractors Demolition Contractors Pressure Washing Companies Drywall Contractors Remodel Contractors Electrical Contractors Renovation Contractors Emerging Contractors Restoration Contractors Excavation Contractors Roofing Contractors Finish Millwork Contractors Spec Home Builders Flipper House Contractors Specialty Contractors Flooring Contractors Subcontractors Framing Contractors Sub-Contractors General Contractors Trade Contractors Glass Installation Contractors Underground Contractors Gutter Installation Contractors Utility Contractors
I hope this podcast helps you understand that outsourcing your contractors bookkeeping services to us is about more than just “doing the bookkeeping”; it is about taking holistic approach to your entire construction company and helping support you as a contractor and as a person.
We understand the good, bad and the ugly about owning and operating construction companies because we have had several of them and we sincerely care about you and your construction company!
That is all I have for now and if you have listened this far please do me the honor of commenting and rating podcast www.FastEasyAccounting.com/podcast Tell me what you liked, did not like, tell it as you see it because your feedback is crucial and I thank you in advance.
We Remove Contractor's Unique Paperwork Frustrations
For Construction Company Owners who do not need the full power of QuickBooks for contractors and want 24/7 online access we offer Xero Accounting Online and we have custom setup for construction companies.
I hope this podcast helps you understand that outsourcing your contractors bookkeeping services to us is about more than just “doing the bookkeeping”; it is about taking holistic approach to your entire construction company and helping support you as a contractor and as a person.
We understand the good, bad and the ugly about owning and operating construction companies because we have had several of them and we sincerely care about you and your construction company!
That is all I have for now and if you have listened this far please do me the honor of commenting and rating podcast www.FastEasyAccounting.com/podcast Tell me what you liked, did not like, tell it as you see it because your feedback is crucial and I thank you in advance.
You Deserve To Be Wealthy, Because You Bring Value To Other People's Lives!
This is one more example of how Fast Easy Accounting is helping construction company owners across the USA including Alaska and Hawaii put more money in the bank to operate and grow your construction company. Construction accounting is not rocket science; it is a lot harder than that and a lot more valuable to construction contractors like you so stop missing out and call Sharie 206-361-3950 or email sharie@fasteasyaccounting.com
Thinking About Outsourcing Your Contractors Bookkeeping Services?
In closing, I want to caution you that we may or may not be a good fit for your contracting company. This guide will help you learn what to look for in outsourced construction accounting.
Thank you very much and I hope you understand we really do care about you and all contractors regardless of whether or not you ever hire our services. Bye for now until our next episode here on the Contractors Success MAP Podcast.
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Every Ten Minutes Your Bookkeeper Is Costing You $4.21
Kristin Savage has graduated from Columbia University where she was majoring in Germanic Languages. Besides English as her mother tongue, she also speaks German and Dutch fluently. Currently, Kristin is studying Spanish and planning to obtain her Ph.D. in Applied Linguistics since she is interested in how to use her practical knowledge of language processes in everyday life. She has been a writer at 
Norhalma Verzosa is a Certified Construction Marketing Professional and works as the Webmaster of Fast Easy Accounting located in Lynnwood, WA. She has a Bachelor's Degree in Psychology and a Certified Internet Web Professional with a Site Development Associate, Google AdWords Search Advertising, and HubSpot Academy certifications. She manages the entire web presence of Fast Easy Accounting using a variety of SAAS tools including Hubspot, InfusionSoft, Shopify, and WordPress.