Each contractor type has unique construction accounting needs which means if the QuickBooks process is custom-fitted to the needs of each construction company, it is a beautiful thing.
We have listened as our contractor clients have described to fellow contractors how "fast and easy QuickBooks is and what wonderful reports it generates" while the other contractor will describe in no uncertain terms what a piece of junk it is. The difference is in the QuickBooks set up. Two woodsmen will cut and stack vastly different piles of firewood in a day if one uses a chainsaw as it was intended and the other uses it as a cross-cut saw. Same tool, different result!
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Topics:
Strategic Outsourced Bookkeeping Services,
Outsourced QuickBooks Bookkeeping,
Contractor Challenges,
Contractor,
Contractor Tips,
Construction Accounting Online Classes,
QuickBooks Template
Profitable contractors attend networking events not because they have nothing better to do; they do it because it pays off. You can either spend hours doing office tasks like bookkeeping or getting face to face with someone who may need your services. Meeting people gives you the chance to build and develop relationships, hire you, or refer you to someone who might.
Most of our contractor clients work alone or with a small team, making connections vital and refreshing to meet other professionals doing similar work.
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Topics:
Contractor Challenges,
Contractor,
Contractor Tips,
finance,
Contractor Operating Tips
During my lifetime, I have seen too many contractors work hard, never have enough money to retire. Some of them die from exhaustion, and others just wore themselves out and lived their final years in poverty and only a few, less than 5% ever made enough money from owning and operating their construction company and outside investments to retire early enough and enjoy a comfortable lifestyle.
This article is a bit strong, and it could offend some folks. If it offends you, please accept my sincere apologies. I tend to tell it straight and not sugar coat anything because I have been involved in the construction industry most of my life beginning with working in my Step Father's construction company after school in the mid-1960s.
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Topics:
Contractor Challenges,
Contractor,
Contractor Tips,
finance,
Contractor Operating Tips
If a Contractors Bookkeeping Services System doesn't work and they want it fixed but will not allow any changes, they need a magician, not a construction bookkeeper. Our workflow removes paperwork frustrations only if the contractor is also willing to do their part.
It hurts when we have to let a contractor client go elsewhere because we are not able to help them. We sincerely believe we can help all contractors have more freedom, by earning more money, working fewer hours and sleeping better at night by taking the pressure off their bookkeeping so they can focus on financial reports and job costing reports, instead of data entry.
In a few rare cases, contractor clients have wanted specific financial and job costing reports, but they flatly refused to allow us to make changes in their contractors bookkeeping services system which would have made it possible.
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Topics:
Contractor Challenges,
Contractor,
Contractor Tips,
finance,
Contractor Operating Tips
Journal entries are a quick and dirty way to get transactions in without putting forth the time and effort to enter each transaction. In the short run, you save time; in the long term, you can forget about the accurate
Job Cost Reports.
QuickBooks set up right and choosing the correct QuickBooks Version (QuickBooks Mac here) is the most critical part of being able to generate accurate reports including Job Cost Reports all because it is the foundation upon which your entire financial system is built. Put the wrong foundation under your business, and it will not matter who is doing the bookkeeping because it will always be a mess and you will never get the reports you need to operate and grow your business profitably. Your
Board of Advisors and especially your banker
will be unhappy; however, they may not say it outright, just that your loans, lines of credit, and referral opportunities may be limited.
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Topics:
Contractor Challenges,
Contractor,
Contractor Tips,
finance,
Contractor Operating Tips
As a construction or trade contractor, you are highly skilled, intelligent, and adaptable. That is a given because you operate in a multi-faceted changing environment doing the impossible with limited time, money, and resources on every project. Moreover, soon as one is finished, another one is waiting for you.
Many contractors like you feel that hiring a Professional Contractor Bookkeeping Service is a waste of money when you should be able to do it yourself. You press a few keys on your keyboard thinking you are going to get the results you want, accurate bank balances, a report showing who owes you money and who you owe money to, a Profit and Loss Report and Balance Sheet Report you can understand and if all goes well perhaps even some Job Costing Reports. Instead, what you get is a hot steaming pile of fertilizer that cannot even be used in the garden.
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Topics:
Contractor Challenges,
Contractor,
Contractor Tips,
finance,
Contractor Operating Tips
Many contractors are having trouble adapting to the new economy. I have made more mistakes – than ten of the average contractors put together. I've learned a great deal of hard, hard lessons, and worked my way through several "Character Building Moments." What I am about to ask you to do is something I have done for many years during my contracting days, and it still works.
Understanding Other Costs:
Marketing Cost
The cost your company spent to acquire and maintain the job. Depending on how you allocate marketing dollars as a percentage of sales or a fixed budget will have an impact on your marketing cost per job. Your cost-per-call, closing ratio, and other related information is all part of your operations, accounting, and bookkeeping reports.
Mobilization Cost
Are the costs you incurred to get a crew to the job site in terms of travel time and vehicle operating costs; and then the labor costs to unload tools, equipment, and material and put everything in place for easy access and not in the way of the work to be done. These costs are generally high and fixed.
Demobilization Cost
Are the reverse and generally lower because it takes less time to load the truck or van since you know where everything goes, and you know the quickest route back to the shop or office. These costs are also generally high and fixed.
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Topics:
Contractor Challenges,
Contractor,
Contractor Tips,
finance,
Contractor Operating Tips
All construction contractors have experienced the financial pain of bad debt, 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.
Knowing The Answers Helps
"If you know the answers, the questions will not bother you" - Randalism.
In school, when you sat for an exam or a test, and you 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:
Contractor Challenges,
Contractor,
Contractor Tips,
finance,
Contractor Operating Tips
In the mechanical trades of the construction industry, plumbing, electrical, HVAC and related fields of irrigation, low voltage and audio / visual equipment companies there are lively discussions happening regarding "Repair Versus Replace."
Most of the time, the participants are more fixed in their positions and intense with passion than any political or religious discussion I have ever seen.
The primary question involves a deep-seated paradigm regarding the definition of honor and integrity. Is it more honorable and better for the client to treat every mechanical part as something that must have every last bit of use squeezed out of it before replacing it? Or is it better to replace it at the first sign of breakage? Or lastly is there a middle ground?
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Topics:
Contractor Challenges,
Contractor,
Contractor Tips,
finance,
Contractor Operating Tips
Hi, everyone! This is Norhalma from Fast Easy Accounting. You've probably seen the videos I made and just heard my Podcast with Randal. If you don't know me yet, you must be thinking, "Well, what does she know about construction accounting?" To tell you the truth, I am neither an accountant nor a contractor. I am the company's webmaster. I also build, maintain, and fix stuff - only I'm in front of a computer managing the company's website.
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Topics:
Construction Contractor's Family,
Contractor Challenges
