How To Setup Your Board Of Advisors

Setup you Board of Advisors as outlined below:

#1 Your Commercial Banker

Go to your bank and ask to speak with the commercial banker. Every bank has one and they can be one of your most powerful allies and mentors. The really good news they are on the banks payroll.

Tell them you are working with Business Consulting And Accounting and that we are construction accountants and we are involved with your contractors bookkeeping and accounting side of the business and that you have a totally separate firm that preparing your Annual Federal Tax Return.

Bankers like to know you are using tried and true method of "Trust But Verify" to help limit fraud and errors. We recommend you have different companies doing your bookkeeping and your Annual Federal Tax Return because that will provide you with checks and balances in your system. In addition if you need to replace one or the other it will be a lot simpler.

Plan on meeting with them on a monthly, quarterly, semi-annual basis whatever works for both of you and bring two printed copies of your Profit & Loss and Balance Sheet for them to review with you. Always, always keep your commercial banker updated about any major changes that may affect your business or personal finances. NEVER SURPRISE YOUR BANKER! 

Ask your banker these questions:

1. Is there anything on the financial reports I should pay closer attention too?

2. How can you and the bank help me run my business more profitably?

3. Who is your target customer and how can I refer new customers to you?

No matter what size your construction business is now, whether you need a loan or line of credit or not, you need to understand that lending money is only part of what banks offer to help your business succeed. Lots of people need all construction services and some of them will ask their banker for referrals.

Do not catch the dreaded disease I call "Yellow Fever". This Randalism occurs when Caterpillar, the world's leading manufacturer of construction equipment begins to promote their brand new shiny yellow colored backhoe or grader or heavy equipment with all the latest whistles, bells and gadgets.

My advice is "Wait for it" and let your commercial banker know you are interested in some new equipment, keep developing the relationship and whamo! You could get THE CALL...

"Hi Bob... how are things going? Hey we haven't met for a while and I was wondering if we could meet for coffee because we are about to REPOSSES a piece of heavy equipment that you may be interested in? I showed the last Profit & Loss and Balance Sheet you gave me with some folks at the bank and they thought we may be able to work something out if you are interested..."

The bank is does not like storing equipment, they would rather it would go from the repo man to somebody else without stopping if possible. The price and terms are very fair so it is important to remember this Randalism "The Pig Gets Fed, The Hog Gets Slaughtered!" Negotiate a fair deal that allows the bank to get something and you get something, a win-win and you will find more great deals coming your way in the future.

#2 Your Outsourced Contractor's Accountant

Get a good construction accounting firm and outsource as much bookkeeping, payroll processing, complex invoicing and monthly and quarterly tax reports as you can afford. It will free up time to do what you do best and the books will be kept in order.

Choose someone that specializes in your industry because the days of the one-size-fits-all accounting practice has gone the way of the dinosaurs.

Make certain they have current technology which means they have equipment in a secure server farm that allows you to access your QuickBooks DESKTOP version on the internet. You do not want the QuickBooks Lite Online Version because you need to see the same QuickBooks software you have on your desktop now. The only difference is you can access it anywhere in the world and your bookkeeper can get to it from their office. No bookkeeper need ever be in your office again.

Your outsourced accountant needs to provide an easy way to get the paperwork to them with fax, scanning, email, and in person. Make certain they are in an office building, not their home. A more professional environment attracts a better class of bookkeeper. And the building needs to have a secure lock box that allows you to drop paperwork off 24/7/365 when it is convenient for you, not just during business hours.

Obviously scanning all your paperwork into a paperless secured server and link source documents to the transactions in QuickBooks for easy retrieval later is a given. This makes it easy for you to get to it remotely, see it, print it or email it without having to dig through a file cabinet or pile of papers.

Finally they need to be available to meet with in person to discuss how your business is doing. And they need to be able to explain in easy to understand language what your Financial Statements, Profit & Loss and Balance Sheet mean.

#3 Your Federal Tax Return Preparer

If your bookkeeping is solid you can use any qualified tax preparer to fill in the blanks and generate the return. I used to believe only a C.P.A. could fill out a tax return. Now with the advances in technology and properly setup QuickBooks I no longer feel you need a C.P.A. for this. 

#4 Your Commercial Attorney

If you own and operate a business you absolutely positively need a commercial attorney to:

1. Setup your business entity, LLC, Inc. or whatever is best

2. Review contracts you will ask your customers to sign

3. Review contracts you will be asked to sign

4. Keep you out of trouble wherever possible

5. Keep you out of litigation if at all possible

6. Setup your partnership agreements

#5 Your Financial Planner

Eventually you will want to leave your business and pursue other interests so plan ahead now. You could start with Quicken software and play around with it. You can learn a lot about investing and run some scenarios that will show you how much income you will need to retire and develop an action plan.

Once you have some basic knowledge get a Certified Financial Planner. If you do not have a lot of money to ask your commercial banker to recommend someone at the bank and eventually when your reserves build up get a Certified Financial Planner.

That's all I have for now and if you have read this far please do me the honor of commenting and rating this article. Tell me what you liked, didn't like, tell it like you see it because your feedback is crucial and I thank you in advance.

Outsourced Construction Accounting Services

Outsourced Construction Bookkeeping Services

QuickBooks Expert Specializing In Construction Bookkeeping Services