Too many construction businesses fall over because the owner has not established efficient business systems. This typically happens because the construction company owner is so caught up in the day-to-day operations that the fundamentals of proper business management get forgotten. Often too, it must be said that the owner doesn't like bookkeeping or other administrative tasks, so these get put on the back burner.

The symptoms are familiar, and their results disastrous:

• Poor or non-existent record-keeping. 
• Tax obligations are not met. 
• Invoices go out late, and debts remain uncollected. 
• There is one cashflow crisis after another. 
• Goods and services are incorrectly costed and priced.

Any of these factors can lead the business down the slippery path to failure, but all are avoidable. The whole point about putting in sound systems is that they free you to spend more time working ON your business, not in it.

Read More

Topics: Contractor, Contractor Tips, Contractor Operating Tips, Construction Systems And Processes

Hiring an accountant is widely considered best practice for small business owners. But delegating financial analysis and reporting doesn't mean thoroughly checking out of the process each month or quarter. On the contrary, it's recommended that business owners work closely with their accountants throughout the year to better understand their financial position and make smart plans for future growth.

We have discussed time and again the importance of knowing the difference between Construction Accounting and Regular Accounting. For the sake of our new readers, blog subscribers, and podcast listeners, I'll be providing you with some basic accounting knowledge so you can have more informed, insightful discussions with your financial advisors before the year ends.

Read More

Topics: Contractor Challenges, Contractor, Contractor Tips, Contractor Operating Tips, Construction Productivity

Many complex moving parts are involved in operating a profitable construction company, but at its core, business success hinges on just one thing: customer relationships. 

 

This is why Customer Relationship Management software is vital for contractors who want to grow their business.

 

A CRM solution helps your construction company nurture and improve client relationships by maintaining centralized data on all your leads and existing clients. With access to a history of customer transactions and communications, your team can make their next move with confidence while offering highly personalized customer service.

 

Construction business owners know that to find a loyal client base, they have to stand out from their competitors. One of the best and easiest ways to do that is to have outstanding customer service. How you treat your customers reflects your entire business. People think positively about companies that treat their customers and clients well. 

 

 

Read More

Topics: Contractor Challenges, Contractor, Contractor Tips, Contractor Operating Tips, Construction Productivity

Be honest: is email helping or harming your construction business?

 

Remember when email was new and novel, and everyone thought it would vastly improve communication while freeing up time? It did improve communication - especially in the construction industry, where you have a team working on the field and in the office - on some levels, and freed up employee time at first. Now, however, email has become a productivity killer.

 

Construction business owners and workers have to wade through hundreds of emails in their inbox each day. Many contractors working on-site, choose to deal with email as it comes in rather than all at once. This takes the focus off their work and makes it difficult to concentrate on their tasks.

 

Read More

Topics: Contractor Challenges, Contractor, Contractor Tips, Contractor Operating Tips, Construction Productivity

As a construction company owner, you are getting paid, paying someone, or both. Contracting is all about money and taxes. With your job being not only physically demanding but also mentally draining, have you considered valuing your efforts? I understand how challenging it is for you to keep tabs on your employee's schedule, but make sure you also track yours.

 

The primary reason to track Owner's Time On Jobs is to have a more accurate Job Costing Reports. You need to know how much money each job is making or losing. As an employer, you need to adopt the use of a time tracking software to assure accountability and improve productivity in the workplace.

Read More

Topics: Payroll Processing, Contractor Challenges, Contractor, Contractor Tips, finance, Contractor Operating Tips, Payroll For Construction Contractors

QuickBooks users are generally not stumped by the software; they are confused by the accounting information necessary to complete the transactions. Quick access to correct information is essential to maintain the accuracy of your financial records.

 

There are no limits to the number of items that can be entered into QuickBooks improperly. Messy files build transaction by transaction or merely put invoice by invoice, receipt by receipt can all be entered into QuickBooks incorrectly. No pop-up will say, "This Is WRONG" – Do It Over.

Read More

Topics: QuickBooks Training Online, Contractor Challenges, Contractor, Contractor Tips, finance, Contractor Operating Tips, Construction Books

When it comes to 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 a month performing payroll functions. That's 12 full days a year that could be spent generating sales, prospecting new business opportunities, improving products or services, or servicing customers.

 

Getting time cards input into QuickBooks and processing payroll can be a big hassle for your construction company.

 

• Employee advances and loans that you forget to deduct can drain away your entire profit.
• Timecards come in late causing payroll to be under enormous pressure to meet direct deposit deadlines.
• Tracking employee bonuses, reimbursements and garnishments take time and money and can cost your company some serious fines, penalties, and lost productivity if not handled correctly.
  
  

Read More

Topics: Payroll Processing, Contractor Challenges, Contractor, Contractor Tips, finance, Contractor Operating Tips, Payroll For Construction Contractors

Construction is a tough business, and people failure is common. 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. Some lessons we already took note of years ago, having owned and operated our construction company. By building a system and gaining insight from us, you can pick up from our mistakes which you don't have to go through and can start avoiding before it comes crashing down. 

 

We are deeply passionate and committed in the construction industry that we want to support you, our clients and readers, to achieve your definition of success. Whether you're a contractor, owner, spouse, a business professional, bookkeeper, or accountant; we understand your frustrations because we've been where you are now, and we're here to help.

 

 

Read More

Topics: Communication Skills For Better Accounting Results, Clients, Online Class, Construction Accounting Online Classes

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.

 

Randalism: If you know the answers, the questions will not bother you.

 

The only real difference between success and failure is the answers. What kind of answers are you looking for? Alternatively, should we begin by pointing out that you might be asking the wrong questions? 

 

Read More

Topics: Communication Skills For Better Accounting Results, Clients, Online Class, Construction Accounting Online Classes

To hire or not hire employees is one of the few optional things where the business owner gets to choose, change their mind or change direction as needed. With so much discussion about employees, payroll, and payroll taxes; you may feel that you are missing out by not hiring lots of employees. Reality is that as a small business owner, you DO NOT HAVE to hire employees.

Hiring, maintaining, and feeding employees is not the measure of success. Owner-Operators can open his or her business and do all the work themselves. Moreover, some construction business owners still go by "No Skills Required." Thinking that "The jobs we do are simple. It's easy, and anybody can do it …that's why they think you can too!" They say things like, "You can start right now. Let's not waste time on an employment application/background check and other stuff. No Training Required - I trust you to do the most skilled functions in my business because you need a job."

 

Read More

Topics: Hiring Employees, Leveling Up