Too many construction businesses fall over because the owner has not established efficient business systems. This typically happens because the construction company owner is so caught up in the day-to-day operations that the fundamentals of proper business management get forgotten. Often too, it must be said that the owner doesn't like bookkeeping or other administrative tasks, so these get put on the back burner.
The symptoms are familiar, and their results disastrous:
- Poor or non-existent record-keeping.
- Tax obligations are not met.
- Invoices go out late, and debts remain uncollected.
- There is one cashflow crisis after another.
- Goods and services are incorrectly costed and priced.
Any of these factors can lead the business down the slippery path to failure, but all are avoidable. The whole point about putting in sound systems is that they free you to spend more time working ON your business, not in it.
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Topics:
Contractor,
Contractor Tips,
Contractor Operating Tips,
Construction Systems And Processes
Hiring an accountant is widely considered best practice for small business owners. But delegating financial analysis and reporting doesn't mean thoroughly checking out of the process each month or quarter. On the contrary, it's recommended that business owners work closely with their accountants throughout the year to better understand their financial position and make smart plans for future growth.
We have discussed time and again the importance of knowing the difference between Construction Accounting and Regular Accounting. For the sake of our new readers, blog subscribers, and podcast listeners, I'll be providing you with some basic accounting knowledge so you can have more informed, insightful discussions with your financial advisors before the year ends.
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Topics:
Contractor Challenges,
Contractor,
Contractor Tips,
Contractor Operating Tips,
Construction Productivity
Many complex moving parts are involved in operating a profitable construction company, but at its core, business success hinges on just one thing: customer relationships.
This is why Customer Relationship Management software is vital for contractors who want to grow their business.
A CRM solution helps your construction company nurture and improve client relationships by maintaining centralized data on all your leads and existing clients. With access to a history of customer transactions and communications, your team can make their next move with confidence while offering highly personalized customer service.
Construction business owners know that to find a loyal client base, they have to stand out from their competitors. One of the best and easiest ways to do that is to have outstanding customer service. How you treat your customers reflects your entire business. People think positively about companies that treat their customers and clients well.
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Topics:
Contractor Challenges,
Contractor,
Contractor Tips,
Contractor Operating Tips,
Construction Productivity
Be honest: is email helping or harming your construction business?
Remember when email was new and novel, and everyone thought it would vastly improve communication while freeing up time? It did improve communication - especially in the construction industry, where you have a team working on the field and in the office - on some levels, and freed up employee time at first. Now, however, email has become a productivity killer.
Construction business owners and workers have to wade through hundreds of emails in their inbox each day. Many contractors working on-site, choose to deal with email as it comes in rather than all at once. This takes the focus off their work and makes it difficult to concentrate on their tasks.
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Topics:
Contractor Challenges,
Contractor,
Contractor Tips,
Contractor Operating Tips,
Construction Productivity
As a construction company owner, you are getting paid, paying someone, or both. Contracting is all about money and taxes. With your job being not only physically demanding but also mentally draining, have you considered valuing your efforts? I understand how challenging it is for you to keep tabs on your employee's schedule, but make sure you also track yours.
The primary reason to track Owner's Time On Jobs is to have a more accurate Job Costing Reports. You need to know how much money each job is making or losing. As an employer, you need to adopt the use of a time tracking software to assure accountability and improve productivity in the workplace.
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Topics:
Payroll Processing,
Contractor Challenges,
Contractor,
Contractor Tips,
finance,
Contractor Operating Tips,
Payroll For Construction Contractors
QuickBooks users are generally not stumped by the software; they are confused by the accounting information necessary to complete the transactions. Quick access to correct information is essential to maintain the accuracy of your financial records.
There are no limits to the number of items that can be entered into QuickBooks improperly. Messy files build transaction by transaction or merely put invoice by invoice, receipt by receipt can all be entered into QuickBooks incorrectly. No pop-up will say, "This Is WRONG" – Do It Over.
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Topics:
QuickBooks Training Online,
Contractor Challenges,
Contractor,
Contractor Tips,
finance,
Contractor Operating Tips,
Construction Books
The business cycle operates like ocean waves that cause a lot of construction business to go out in a year or two. Some grew too fast without reliable financial reporting tools and proper guidance.
As you may know, there is an expansion and contraction Isoquant that occurs in all businesses. For construction companies, it is accelerated because of the enormous risks in project work. The changes in demand for Labor, Material, Other Costs, Subcontractors can occur almost overnight which often causes a financial death spiral, and the contractor does not know they are in trouble before it is too late.
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Topics:
Contractor Challenges,
Contractor,
Contractor Tips,
finance,
Contractor Operating Tips
A wise business owner once said, "Happiness is positive cash flow." As a business owner, I'm sure you agree. Everything is better when your cash-in exceeds your cash-out.
A cash crisis can be emotionally devastating, and it can even kill your business. If you've ever had to beg, borrow, and steal to cover tomorrows payroll you know what I mean.
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Topics:
Contractor Challenges,
Contractor,
Contractor Tips,
finance,
Contractor Operating Tips
When it comes to paying employees, laws and the IRS, have made the payroll function a time-consuming nightmare for the small business owner.
Small business owners spend an average of eight hours a month performing payroll functions. That's 12 full days a year that could be spent generating sales, prospecting new business opportunities, improving products or services, or servicing customers.
Getting time cards input into QuickBooks and processing payroll can be a big hassle for your construction company.
- Employee advances and loans that you forget to deduct can drain away your entire profit.
- Timecards come in late causing payroll to be under enormous pressure to meet direct deposit deadlines.
- Tracking employee bonuses, reimbursements and garnishments take time and money and can cost your company some serious fines, penalties, and lost productivity if not handled correctly.
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Topics:
Payroll Processing,
Contractor Challenges,
Contractor,
Contractor Tips,
finance,
Contractor Operating Tips,
Payroll For Construction Contractors
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
