When you think of payroll, you might still envision paperwork and envelopes given to employees by hand. Even with direct deposit being the norm for years, there is still a significant paper component to manage.
You won't find a contractor using inefficient tools on the job site these days. The hammer or the nail gun? No question. While every contractor recognizes the flaws of using ineffective tools, they may still be losing money due to inefficient payroll tools and processes.
As with most things, payroll is going digital – for a good reason. There are many benefits to digital payroll for construction business owners and staff alike. Read on to learn why switching to paperless payroll could be right for you.
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Topics:
Construction Cash Flow,
Construction Bookkeeping And Accounting,
Key Performance Indicators,
Contractor Tips,
Improve Construction Cash Flow,
Boost Construction Profitability
The new year is a natural time to decide what you want to achieve and how. Businesses tend to progress more consistently if the owner sets financial goals and makes a plan to achieve them.
Your construction business (and personal) budget is one area where you should keep your resolutions from slipping. While it’s true that there’s also next year when it comes to your financial goals, putting it off has real consequences that equal less money and more work. So here are seven steps you should take in January to start your 2023 budget.
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Topics:
Construction Cash Flow,
Construction Bookkeeping And Accounting,
Key Performance Indicators,
Contractor Tips,
Improve Construction Cash Flow,
Boost Construction Profitability
The end of the year is typically a reflective time. Something about that lull between holiday festivities and New Year's Eve sets the stage for introspection and review. While you're busy reflecting on the year ending and making plans for the new one about to begin, make sure you take some time to consider your finances.
Preparing your End of Financial Year (EOFY) information often feels stressful—there are receipts to sort out and reports to review. You must ensure you have all the necessary information about your income and expenses. It can be overwhelming, and it can make the EOFY feel daunting.
The end of the financial year isn't just a time to collect receipts and find invoices. It's also a time to reflect on how your past year went, what went well and what didn't, and what you can change for next year.
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Topics:
Construction Cash Flow,
Construction Bookkeeping And Accounting,
Key Performance Indicators,
Contractor Tips,
Improve Construction Cash Flow,
Boost Construction Profitability
Enlightened contractors like you understand the value of developing your own unique Construction Contracting System, a collection of documented repeatable processes and operation manuals. The key is continuously refining your construction company's practices and procedures.
Your office ensures your contracting company has a steady flow of projects. Proper accounting and bookkeeping develop timely financial reports to show which jobs are profitable so you can pursue more. Thus, you can focus more on the following:
- Acquiring the right clients
- Doing the project as close to on time and on budget as possible
- Get job deposits and timely progress payments
- Follow-up with clients to monitor satisfaction and line up new projects
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Topics:
Construction Cash Flow,
Construction Bookkeeping And Accounting,
Key Performance Indicators,
Contractor Tips,
Improve Construction Cash Flow,
Boost Construction Profitability
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
Business dashboards are a valuable business intelligence tool, offering an "at-a-glance" big picture view of a company's performance.
Some construction business owners use a dashboard to track KPIs (Key Performance Indicators) relevant to just one aspect of their business, such as sales growth, marketing, or financial data. Others rely on an executive dashboard for an overview of data culled from various sources (e.g., their accounting software, CRM tools, and website analytics).
The great advantage of a dashboard is that it presents and compares complex data drawn from several sources using visual tools (i.e., tables, line graphs, and bar graphs). With access to this consolidated data – information that would take hours to compile and analyze on your own – business owners are empowered to make more informed real-time business decisions.
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Topics:
Construction Accounting,
Key Performance Indicators,
KPI,
Contractor,
Contractor Tips,
Contractor Operating Tips
Contractors have often told us that they're "one job away from making it big or losing everything". Our clients usually wonder why some of their competitors appear to be making a lot of money than they do when they seem to be doing similar work.
Not everyone seems to realize that in construction, money is not made in the field by working and pushing boundaries of tactical efforts - working harder and faster. Money is made in the office developing and implementing strategy.
For example, a backhoe takes longer and more skill to mobilize and demobilize on and off a job site than a shovel. Tactics mean using a shovel for all earth-moving projects. Strategy means knowing when to use a backhoe and when to use a shovel.
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Topics:
Key Performance Indicators,
KPI,
Contractor Challenges,
Contractor,
Contractor Tips,
finance
Construction Company Owners Have Told Us - "I am one job away from MAKING IT BIG or LOSING EVERYTHING and it's keeping me AWAKE AT NIGHT! This madness has to STOP!"
If You Are Sick And Tired Of Gambling - Your construction company, your future and the futures of all the people who depend on you because you continue putting up with a Bad Bookkeeper who is training you like an organ grinder trains a monkey! Knowing their rotten financial reports are causing you to make bad business decisions putting you and everyone else on the edge of financial ruin because you have don't know what surprises tomorrow will bring...
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Topics:
Key Performance Indicators,
KPI
