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.
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Topics:
The Contractors Account,
Invoicing,
Cloud Based Bookkeeping Services,
Outsourced Accounting For Contractors,
Systems And Processes,
Construction Company Cash Flow,
QuickBooks Construction Accounting,
accounts receivable for contractors
Hiring Vs. Outsourcing
Are you thinking of hiring a bookkeeper? After reading this, you may think it is not as good an idea as it seems. In addition to the costs of advertising, reading many fiction stories (resumes), interviewing candidates (like a brand new car on the showroom floor), job-seekers are the best they will ever be during the interview. After that, it is all downhill, and the only question is how fast.
We interviewed hundreds of candidates for Construction Bookkeeping positions, and 90% of them said they could do the job - if we trained them.
What does it cost to have a bookkeeper on your payroll?
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Topics:
The Contractors Account,
Systems And Processes,
Construction Company Cash Flow
Creating invoices and receipts is vital to successfully running a business. You need receipts to track your purchases and expenses. Your clients need invoices for their tax purposes and to manage their finances. Paper receipts and invoices have been around a long time, so many people are used to them and may even resist moving away from them.
Thanks to technology, paper receipts and invoices are becoming more a thing of the past. There are environmental reasons for the move. Paper invoices require millions of trees and billions of gallons of water to produce, and they emit carbon dioxide (CO2), so going paperless can be a good thing for the environment.
The Old Way Contractors Invoiced the jobs was sometimes just as much or more work than doing the job itself.
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Topics:
The Contractors Account,
Invoicing,
Systems And Processes,
Construction Company Cash Flow,
accounts receivable for contractors
There was a time when a contractor put a simple ad in the paper or a line listing in the Yellow Pages, and they would have more leads than they could handle. It was the only way to go, and the contractors who insist on that and "Word of Mouth" do not survive.
Could those contractors have avoided failure?
I believe they could have. This article explores the top reasons construction businesses fail and the three key questions that every contractor like you needs to ask to prevent failure. It would be best to answer these questions to provide a clear path to your continued and future growth and success.
Contractors who did not move from simple ads that had always worked, and evolved a Marketing Plan made the same mistake other failed companies and brands made. They were unable to Innovate, Reinvent, and Evolve by having a deep understanding of what business they were in, who and what they were competing with, and by challenging themselves to understand their actual expertise.
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Topics:
Builders Bookkeeping Services,
Accountant,
Bookkeeping Services,
Construction Accounting,
Contractor,
Contractor Tips,
Contractor Operating Tips
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.
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Topics:
The Contractors Account,
Construction Bookkeeping And Accounting,
Systems And Processes,
Business Planning For contractors,
Contractor Tips,
finance
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.
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Topics:
Systems And Processes,
Construction Project Managment,
Project Management,
Contractor Operating Tips,
accountability,
Construction Accountability
Every contractor has a Job Costing Library; some keep it in their head, some keep it on paper with names like completed jobs, bids, estimates. Other contractors keep it in their QuickBooks For Contractors' software records. Still, other contractors rely on places like RS Means for comprehensive databases of construction costs. These are similar to the "Flat Rate Books" used by car repair shops for decades.
A tiny fraction of contractors understand the actual value of a customized cost library and invest the time, energy, and resources to build and maintain one. Having done several, I can tell you it is a painful, arduous task. I will tell you a story to make it crystal clear.
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Topics:
The Contractors Account,
Systems And Processes,
Construction Company Cash Flow
You may be getting your construction projects done with sheer willpower, but the lack of processes, business plans, and strategy will eventually wear you down. You can either keep on "Powering Through"- spend your life endlessly chasing details, missing appointments, suffer untold losses in cash flow and profits, or you can start developing a plan and work on your business.
Successful contractors improve processes all year long. Your construction company can benefit from an excellent system that other successful contractors are using now, which means there is no need to "Reinvent The Wheel." As your construction company grows and evolves, your processes can support the controlled and planned expansion.
Along with trying to keep on top of your construction business, the unfortunate reality is that most business owners don't take proper holidays. Usually, this is because their business relies on them, and they don't have the support to keep the business running without them.
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Topics:
The Contractors Account,
Construction Bookkeeping And Accounting,
Systems And Processes,
Business Planning For contractors,
Contractor Tips,
finance
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.
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Topics:
The Contractors Account,
Construction Bookkeeping And Accounting,
Systems And Processes,
Business Planning For contractors,
Contractor Tips,
finance
If you're looking to grow your construction business, you might consider expanding your service offerings. Adding additional services is an excellent way to increase your profitability, diversify your income and expand your market. But there are essential things to consider before adding to your income streams.
First things first - find the money. If you don't have savings earmarked to fund your ideas, you'll want to make sure your "scaling my construction business" plan includes adequate financial planning.
Applying to a lender for a business loan is one option. In this case, you'll want to include up-to-date cash flow reports, income statements, budgets, and projections in your plan for a potential lender.
If your construction business doesn't have a credit history, you may need to look at other options for financing your plans. Using a business credit card regularly and paying off the balance can help you build a good credit rating, which will help you prepare to apply for a loan down the road.
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Topics:
The Contractors Account,
Construction Bookkeeping And Accounting,
Systems And Processes,
Business Planning For contractors,
Contractor Tips,
finance
