One of the biggest concerns contractors have about outsourcing their bookkeeping to a cloud-based contractor accounting service like ours, is they think it means sending jobs off-shore rather than keeping your dollars in America where they can help other Americans. In too many cases, that is precisely what occurs.

 

Many contractors would like to subcontract out their bookkeeping services, and the two main reasons they don't is - fear of losing control and cost.

 

To paraphrase an old quote and adapt it to the construction industry, "It is not the strongest, toughest, hardest working construction contractor that survives, nor the most intelligent among them. It is the construction contractors that are most adaptable to change."

 

 

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Topics: FAQs, The Contractors Account, Construction Accounting, contractors bookkeeping and accounting, Accounting Software for Contractors, Contractor

Without proper tracking and matching of income and expenses, most construction companies never know if they made a profit until the job is over. Due to your work's nature, as construction contractors provide services on a per-job operation, issuing invoices make it all the more challenging and complicated than it has to be. The good news is that it doesn't have to stay that way. 

 

What should you include on your invoices to get paid faster? Even if you've been running your business for a while, you might be missing other information that you should include. So here is a step-by-step guide on what to include on your invoices.

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Topics: Payment Collect, Invoice With Smart Phone, Invoice With Tablet, QuickBooks Construction Accounting, payment issues

All construction contractors have experienced bad debt's financial pain, which is defined as a customer who refuses to pay no matter what you do.

 

I've been there before, and it will probably happen again in the future. Owning and operating any business, including accounting, means sometimes you provide goods and services and not get paid.

 

When you sat for an exam or a school test and knew the material forwards and backward, it was fast and easy. The exams and tests for the classes you struggled with were the opposite.

 

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Topics: Construction Accounting, Customers, Contractor Challenges, Contractor, payment issues

Now that the internet has become an integral part of our daily lives, modern consumers no longer depend on television, radio, and print advertisements. We look and go through a plethora of information first, accessed through popular search engines (Google, Bing, and others), before deciding to make a purchase or hire a local service.

Technology advancement allowed companies to promote and connect with a larger number of potential consumers than the traditional, physical presence of a brick-and-mortar store. As a contractor, you are no longer confined to your neighborhood and push services directly to them. Your online presence enables you to reach out and pull qualified leads towards your construction company. But what should you do when you don't have a marketing manager that handles this side of your business? I say work with what you already have and go from there.

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Topics: Marketing Ideas For Contractors That Work, Contractor Marketing, Inbound Marketing For Contractors

If you have a task that you don't like to do, there's an app or software program to take care of it for you. It might take a few moments of your time to learn and understand how the software or app works, but doing so will save you valuable time and precious energy. It will also free you up to spend time on the tasks you love to do, not on all the paperwork and record-keeping that go along with running a business.

When you run your own contracting or trade business, your life involves many long days being on job sites while managing projects, staff, and clients. There probably are not enough hours in the week for you to deal with all the issues that arise while keeping your clients happy and taking time out of your schedule to manage your business is probably the last thing you want to do.

Thanks to a variety of online software companies, running your business is now a lot easier. You can efficiently manage your projects, employees, finances, and records all through your computer or tablet, freeing you up to focus on your clients.

 

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Topics: TSheets, TSheets Construction Time Card Calculator, Xero For Construction Companies, KPI, QuickBooks Construction Accounting, Contractor, hubdoc, receipt bank

Bookkeeping embezzlement stems from a feeling of entitlement and the need to get even. Your bookkeeper or accountant will steal if they feel confident they can get away with it and if circumstances allow for it due to weak integrity and a sense of "Redistributing The Wealth, But Not The Work Or The Responsibility."

 

It is estimated that the number of bookkeepers caught embezzling from contractors is less than one percent of the total. In most cases, the ones that are caught are rarely convicted because all too often, it is the contractor who has to spend thousands of dollars on forensic accountants and attorneys to prove the theft occurred.

 

In most cases, it is near impossible to persuade the authorities to prosecute when a contractor bookkeeper embezzles because it is often viewed as a "Victimless Crime."

 

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Topics: New Contractors, Bookkeeper Embezzlement, Embezzlement, Construction Accounting, Contractor Bookkeeper Embezzlement, Construction Bookkeeper Embezzlement, Contractor Challenges, Contractor

Being in your own business can be the best time in your life. Alternatively, the worst time! No one starts a business, especially a contracting business, and have it rolling perfectly with a profit every step of the way. Between regulations, economic uncertainty, and other outside forces; always a learning curve.

Picking a Get-Me-By Contractor's Bookkeeping Solution in many cases is using an Excel Spreadsheet and a shoebox, file folders all dumped into a file box and looking at the Online Banking once in a while. This accounting method is the "I still got money, so I must be okay."

When you use today's Job Deposit To Pay For the material, labor, and subcontractors from the last job, it is also known as "Rob Peter To Pay Paul." Cash flow is never a problem until the sales stop; then it doesn't matter if it is the economy (your customers get laid off), domino effect (their customer didn't pay them), or you are unable to work due to being hurt on the job or get sick (flu or more serious illness).

 

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Topics: QuickBooks Construction Reports, Key Performance Indicators, KPI, QuickBooks Construction Accounting, Contractor, finance

Proactive versus reactive are the two methods of getting something done. I find everyone works in a combination of both, I included.

Proactive is scheduling and doing everything ahead of time. Nothing is ever waiting until the last minute. Reactive is more emergency driven and are things that need to be done now.

As much as we plan, it would be best if you were flexible, adaptable, and reliant. Things happen that are beyond your immediate control. Those of you who want a predictable environment are employees working for a large employer where schedules are fixed, and they are doing the same things every day.

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Topics: Construction Accounting, Service Agreements For Your Contracting Company, Service Agreements, Contractor Challenges, Lien Waivers, Contractor

How many times a day do you hear from someone saying, “It’s Boring", or "I’m Bored.” It is a red flag that should light up your “Oh Crap” meter. Moreover, more important, whenever an employee says it. Because this usually means they are shortcutting the work versus the fact that you have so many right processes in place that the work is genuinely dull. Being bored is a factor in manufacturing jobs.

I saw a special where a manufacturer described how the process is that they moved employees on a scheduled basis between workstations to help them avoid boredom and stay fresh throughout their workday. Proved to be a Win-Win for everyone. Studies found that alert employees have fewer accidents, which in turn reduces your cost of doing business and raises cash flow and profits.

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Topics: The Contractors Account, Construction Accounting, contractors bookkeeping and accounting, Accounting Software for Contractors, Contractor

It's unexpected these days that people happen to find your business and become a client or customer with no work on your part. Your construction company has to grab people's attention, turn curious visitors into leads, and then convert those leads into sales.

This means that the more solid leads you have, the greater your chances of making a sale. Solid leads are those contacts engaged in your business, fit your buyer persona, and are at least somewhat motivated to make a purchase or hire your services.

 

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Topics: Contractor Lead Services, Construction Marketing, Marketing, Profitable Leads For Contractors, handyman marketing, Contractor