Small business owners spend an average of eight hours monthly performing payroll functions. That's 12 business days a year that could be spent generating sales, prospecting new business opportunities, improving products or services, or servicing customers.

Upgrading or changing your payroll system comes with a ton of attractive benefits. Saving time and money, making everyone's account more manageable, and better integration are all excellent reasons to consider a change.

But if the switch is mishandled, the results can be catastrophic and lead to long-lasting problems. Read on for tips on avoiding a disastrous payroll system migration.

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Topics: QuickBooks For Contractors, Construction Bookkeeping, Business Process Management For Contractors, Construction Project Managers, Construction Project Managment, Project Management, Project Management For Construction

When you start a small business, it's usually only you behind the whole operation. You wear many hats, from CEO to clean-up crew. As you pour your heart and soul into your business and it begins to grow, the amount of work involved grows.

Because a small business focuses on survival, you pay much attention to the bottom line. This makes much sense, but it also leads to being seriously overworked.

These days, contractors are under increased pressure to cut their prices to get enough work. And that means they need to reduce costs. New technologies and approaches in cloud computing for construction accounting give forward-thinking contractors a fantastic ability to get more for less -but in most cases, contractors' heads are still stuck in 1990, thinking they have to do everything themselves.

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Topics: Strategic Outsourced Bookkeeping Services, Construction Company, Outsourced labor, outsource bookkeeping, Outsourced bookkeeping, outsourced construction accounting and bookkeeping, Do What You Do Best And Outsource The Rest

In the past, Construction Project Managers were laborers or served an apprenticeship in one of the skilled construction trades and were promoted to foreman. This meant many people were more comfortable in manual labor without management skills. And when "things" were put in charge of "people," the results were not usually favorable.

Because of this, many construction companies failed and went out of business due to the Cost of Chaos in their businesses. And it is still happening today.

In the late 20th century, construction and construction management were separated into individual disciplines, each with its methodologies, terms, and definitions.

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Topics: QuickBooks For Contractors, Construction Bookkeeping, Business Process Management For Contractors, Construction Project Managers, Construction Project Managment, Project Management, Project Management For Construction

Construction contractors like you are primarily in the "Hurry Up" and "Wait" zone.

• • Hurry up and answer the call from the customer. 
  • Wait to make the appointment. 
  • Hurry up and get to the job. 
  • Wait for the customer to come home to be available. 
  • Hurry up and create the proposal. 
  • Wait for a decision. 
  • When the client says "Yes," it is - wait for the Job Deposit.
  • Wait to Start The Job

This Hurry Up and Wait for activity makes it hard for the contractor to schedule other jobs. Many contractors only hold a place open for the client once a job deposit has been received. 

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Topics: Construction Company, Marketing Ideas For Contractors That Work, Marketing Tracking, Construction Marketing, Contractors Emergency Marketing Plan

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.

 

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Topics: Construction Company, Contractor, Construction Competition, Construction Competitors

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!

 

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Topics: Construction Bookkeeping And Accounting, Contractor Tips, Contractor Guidance, Pricing Jobs, How To Charge Clients, How To Raise Prices

There are a few different methods that employers use to pay their employees, and while they may have similarities, they each also have implications for your construction business and employees. On top of that, there may be a blended model at play, in which you offer two types of compensation at once, such as a wage and bonuses. 

 

When paying employees, laws and the IRS have made the payroll function a time-consuming nightmare for the small business owner.

 

Small business owners spend an average of eight hours monthly performing payroll functions. That's 12 full business days a year that could be spent generating sales, prospecting for new business opportunities, improving products or services, or servicing customers.

 

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Topics: Payroll Loan, Payroll Processing, Payroll Tax, Payroll Options, Construction Bookkeeping And Accounting, Contractor Tips, Payroll For Construction Contractors

Doing something different is hard. Do you feel like everyone else is the most brilliant person in the room, and you just don't get it? Getting into a rut and repeatedly doing the same things is easy.

 

If those things work, then yes, continue to do them repeatedly. The problem is when something is not working, and you continue down the same path expecting a different result. The opposite of too much change can create another form of chaos. How do you know what is broken if you change a zillion things all at once?

 

Looking for ways to make your job easier is the goal of all construction contractors. The last thing you want to hear from your staff or a trade contractor is, "Do you want me to do that over?" Your answer is "No!" (thundered, with many extra words). What you expected was that your staff did it correctly the first time.

 

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Topics: Construction Bookkeeping, Construction Accounting, Construction Bookkeeping And Accounting, Contractor Tips, Accounts Payable For Contractors, Accounts Payable

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.

 

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Topics: Give Your Customers And Clients What They Want, High Profit Repeat Construction Clients, Business Process Management For Contractors, Winning Teams

There comes a time for every small business to raise its prices. While it may seem scary, remember that it's your job to keep costs fair for you and your customers. That means you have to charge prices that work for you and allow you to remain in business. 

Am I Not Charging Enough?

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.

Knowing The 80/20 Rule For Construction Contractors will surely help:

• 20% of your customers typically 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 most significant drain is trying to save money doing our contractor bookkeeping instead of reviewing the Key Performance Indicator (KPI) Reports. 

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Topics: Construction Bookkeeping And Accounting, Contractor Tips, Contractor Guidance, Pricing Jobs, How To Charge Clients, How To Raise Prices