Developing a comprehensive strategy for your construction business can be about as much fun as wrestling a pig in the mud because:

• It is slippery and hard to get control over it.
• It will wear you out and frustrate you to no end.
• You will swear it is a complete waste of time.
• Your contractor buddies who are barely making a living will think you're crazy.
• In the end, you will be thoroughly worn out, exhausted and mentally drained.

What separates wealthy contractors from poor contractors?

• It's not a lack of opportunities to bid jobs or get leads because getting leads is easy.
• It's not lack of ambition because every contractor I know is active and ready to get busy.
• It's not a lack of intelligence or the ability to develop a production method and follow it to the end.
• It's not lack of money because if you follow my process, you know how to overcome that using O.P.M. (Other People's Money)

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Topics: Contractor Challenges, Contractor, Contractor Tips, finance, SWOT Analysis

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

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