External factors, such as economic changes or technological advances, can significantly impact whether a business will thrive or fail. The rise of sharing and gig economy apps is an excellent example. These apps gave consumers more affordable options for daily tasks and errands and provided individuals with a new way to earn money on their schedules.

 

Running a business is a fascinating journey. But it's essential to thoroughly evaluate your company before moving further to ensure you're creating a sustainable and successful venture.

 

Costs may be high, requiring careful planning. You may need to educate your customers and convince them to adapt to your business before they're ready to use it or hire you. And let's remember the competition that already exists in the market.

 

 

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Topics: Outsourced Accounting For Contractors, Construction Accounting, MAP vs. PAM, Contractor Marketing, Outsourced Bookkeeping Services, Contractor, Contractor Tips, Contractor Operating Tips, sole proprietor

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. 

 

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Topics: Outsourced Accounting For Contractors, Construction Accounting, MAP vs. PAM, Contractor Marketing, Outsourced Bookkeeping Services, Outsourced Accounting, Contractor, Contractor Tips, Contractor Operating Tips, sole proprietor

Fraud can be a significant threat to businesses of all sizes in any industry. Construction companies are not spared and are even more vulnerable to various fraudulent activities, from bid rigging and inflated costs to payroll fraud and misuse of funds. 

 

Many small business owners have become increasingly concerned about fraud after the pandemic. According to SAP Concur (An expense management solutions company), a staggering 85% of businesses surveyed expect the risk of fraud to continue. Making matters worse, many fraudulent acts originate from within businesses themselves. 

 

What can you do as a construction business owner with three or more employees? You can start with essential internal controls that you can implement to safeguard your business:

 

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Topics: Outsourced Bookkeeping Services Red Flags, Outsourced Accounting For Contractors, Outsourced Bookkeeping Services For Plumbing Contr, Construction Accounting, Outsourced Bookkeeping Services, Outsourced Accounting, Contractor, Contractor Tips, Contractor Operating Tips

Your to-do list is often long and constantly growing longer when you're an entrepreneur. There are a lot of things you need to do, and it can feel like they're all urgent. In such cases, it's easy to push essential tasks to the side and focus on less vital activities, but that often means you miss deadlines, make mistakes, or always feel like you're trying to catch up.

 

Here are some ways to determine the most productive order to complete your tasks.

 

1. Know all of your tasks

 

It isn't enough to have a running list of tasks in your head; you need to write them out so you can see them at a glance. Take the time to list all your tasks, and break down large tasks into smaller steps.

 

Write a list of the activities you must do for the week—or even the next two weeks—on Monday morning. Include information such as how urgent they are, how long they'll take to complete, and their deadlines.

 

Now you know what you'll need to complete and when.

 

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Topics: Construction Accounting, Contractor, Contractor Tips, Contractor Operating Tips, Construction Productivity, crisis

In today's competitive business landscape, establishing a personal brand is essential for standing out in the construction industry. Whether you're a contractor, architect, or engineer, cultivating a professional image differentiates you from competitors and fosters trust and credibility among clients and partners. 

 

The words "personal brand" are still somewhat controversial and carry an unfortunate cast of self-promotion and vanity. However, personal branding is more important than ever in the job market, and those without a clear personal brand or mission to create one are lagging behind the competition. 

 

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Topics: Construction Bookkeeping Personalities, Construction Accountant Who Listens, Construction Personal Branding, Contractor Brand, Personal Brand, Construction Company Brand Building

If your company is experiencing rapid growth, you might find yourself navigating a good news/bad news situation: while your sales figures climb, managing cash flow becomes increasingly complex, pushing you to seek additional financing to meet the rising demand.

Consider this scenario: A couple wanting to sell their house expresses interest in your remodeling service, presenting an exciting opportunity that could significantly elevate your construction business.

However, they have a requirement: they want the job done in three weeks.

Now, you're caught in a challenging position. Declining could mean missing out on a lucrative partnership, yet agreeing could strain your cash reserves.

You're not alone in this struggle; many businesses face similar hurdles when scaling operations or entering new partnerships, especially when balancing cash flow and the cost of fulfilling the project on time.

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Topics: Construction Bookkeeping And Accounting, Construction Accountant Who Listens, Banking, Funding, Construction Funding

We often overlook the immense value that construction contractors bring to our communities. From building our homes and schools to developing infrastructure and commercial spaces, construction contractors like you play a vital role in shaping our world. Your contributions are undeniably essential, yet they often go unrecognized. This Labor Day weekend, it's time to shed light on your significant impact on our everyday lives.

 

Construction contractors are responsible for bringing our dreams and ideas into reality. Whether it's a new residential housing development, a highway expansion project, or the construction of a commercial building, you are the driving force behind these monumental undertakings. You possess the expertise, skills, and dedication necessary to transform architectural plans into tangible structures serving our communities.

 

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Topics: Construction Accountant Who Listens, Construction Productivity, Construction Business Continuity, succession planning

Communication is crucial in the construction industry, and active listening plays a significant role in fostering successful communication. In the bustling environment of a contracting business, the ability to actively listen can make a substantial difference in understanding client needs, ensuring project requirements are met, and ultimately delivering top-quality results.

 

Active listening involves more than just hearing the words; it encompasses fully concentrating, understanding, responding, and remembering what is being said. For construction professionals, this skill can improve client relationships, make fewer errors, enhance teamwork, and ultimately increase project success.

 

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Topics: Construction Accountant Who Listens, Problem Construction Worker Tips, Contractor Tips, Contractor Operating Tips, Construction Productivity, Production, Active Listening

Avoiding cash flow crises is crucial for the success and sustainability of your construction business. Managing cash flow is vital for small business owners. Poor cash flow management can create significant challenges even if your business is profitable.

Cash is a fact; Profit is an opinion

A cash crisis can be emotionally devastating and even kill your business. If you've ever had to beg, borrow, and steal to cover tomorrow's payroll, you know what I mean.

Understanding cash flow

Cash flow refers to the money moving in and out of your business. Cash inflows come from sales, interest earned, and investments. Cash outflows cover rent, payroll, bills, and supplier payments. Positive cash flow means your inflows exceed outflows, while negative cash flow indicates more money going out than coming in.

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Topics: QuickBooks Contractors Financial Reports, cash report, Cash Flow, Construction Bookkeeping And Accounting, Contractor Cash Flow Problems, Increase Cash Flow, Improve Construction Cash Flow

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.

 

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Topics: QuickBooks Contractors Financial Reports, Construction Bookkeeping And Accounting, Project Management, Financial Modeling, Financial Statement