The Number One Thing You Need To Know About Your Construction Business

Posted by Sharie DeHart on Fri, Jan 03, 2020

When you own a small construction business, it's vital you understand how money flows into and out of it. At a basic level, you need to know where your income comes from and what your expenses are. At a deeper level, knowing how money moves through your business can help you make strategic decisions about growth, invoicing, and debt management.

The consequences of not understanding money can be drastic—poor financial management is one of the main reasons businesses fail. That's why you need to understand cash flow.

What is cash flow?

[Starting Cash + Cash In - Cash Out] = Cash Flow

Before you can start to understand your cash flow, you need to know what cash flow is. Cash flow refers to the movement of money into and out of your business. It's fundamentally understanding how much money is coming into your business (your income, loans, and transfers of personal funds into the company) versus how much is leaving (your expenses, taxes, and loan payments).

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Topics: Construction Cash Flow, Cash Flow, QuickBooks Do-It-Yourself construction Bookkeeping, Contractor, Contractor Tips, Contractor Operating Tips, Construction Systems And Processes

Unique High-Profit Contractors Count All Their Income

Posted by Sharie DeHart on Fri, May 12, 2017

The Ripple Effect Of Not Counting All Your Income Happens When You Go To The Bank For A Loan

You need to be able to show the bank that you have enough sales to pay back the loan. For most contractors, an excessive amount of profit is NOT an issue.

There are always more than enough expenses that happen naturally in your Construction Company. And there are always tools that need to be purchased, repaired or replaced.

As 2017 tax season is finishing, I have heard from owners and employees who say. This Income or That Income doesn’t count. The fact is it all Counts.

The underground economy may be there but don’t count on the information being a secret. Between Memberships, rewards cards and using a credit card purchases are being tracked everywhere by somebody. (Some contractors think buying a truck for cash is not traceable).

Play it straight, report all of your construction company income and if your QuickBooks setup is done right and the bookkeeping entries are clean more often than not you may get a big fat tax refund!

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Topics: Contractor Bookkeeping Services, Cash Flow, zLien

Snacks

Posted by Randal DeHart on Thu, Jun 16, 2016

One Tiny Bit Of Knowledge High Profit Contractors

Use To Get Well Over 100% Return On Investment

They Provide Snacks And Beverages for their field workers and office staff. What you say? It costs money! How is spending money going to make me money? Perhaps you think I am crazy! Read though and pay special heed to the three Profit Enhancement Strategies near the end.

Let's Take A Look At A Typical Construction Worker Named John

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Topics: Construction Profits, Cash Flow, Increase Profits

Contractors Who Feed Workers Make Lot More Money

Posted by Randal DeHart on Fri, Aug 21, 2015

One Tiny Bit Of Knowledge High Profit Contractors

Use To Get Well Over 100% Return On Investment

Let's Take A Look At A Typical Construction Worker Named John

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Topics: Construction Profits, Cash Flow, Increase Profits

Unique Tips For Managing Cash Flow In Your Contracting Company

Posted by Randal DeHart on Fri, Aug 29, 2014

Cash flow is the lifeblood of any construction company and especially the ones with annual sales volume under $1,000,000. Some construction Company experts even say that a healthy cash flow is more important than your contracting company's ability to complete projects! While that might seem counterintuitive, consider this: if you fail to satisfy a customer and lose that customer, you can always work harder to please the next customer. If you do not have enough cash reserves to pay your suppliers, creditors, and make payroll, then your Construction Company is out of business, game over!

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Topics: Cash Flow, Construction Company Cash Flow

When Is It Income In QuickBooks?

Posted by Randal DeHart on Tue, Oct 18, 2011

The One Burning Question Contractors Want To Know:

Show Me The Money! When money comes into the business at some point it turns into income which is one of the 5 Key Performance Reports successful contractors monitor on a regular basis.

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Topics: Cash Flow, QuickBooks For Contractors, General Contractor, 80 20 Rule