Does this sound like you? Maybe you started your company with a few friends and relatives as your earliest clients, and you thought your overhead expenses would be low since you worked out of your home. You made a decent living for yourself, hired a few sub-contractors per project, paid your suppliers, and earned a profit—at least that is what your tax preparer said.
Things begin to change, and the reality of the construction industry begins to dawn on you. Those early customers who were your friends because you could get faucets, fixtures, and materials at wholesale prices now tell you they were happy with your work. They want your construction company to do all their future work (and refer you to their closest neighborhood friends) as long as your price is lower than the other bids they are getting.
Yes, this kind of business builds your integrity, but at the same time, you are dirt-poor. Why? Because as a construction company owner, you now have overhead no matter what business entity you operate. It's not just office overhead; you have field overhead, too.
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Topics:
Outsourced Accounting For Contractors,
Construction Accounting,
MAP vs. PAM,
Contractor Marketing,
Outsourced Bookkeeping Services,
Outsourced Accounting,
Contractor,
Contractor Tips,
Contractor Operating Tips,
sole proprietor
Fraud can be a significant threat to businesses of all sizes in any industry. Construction companies are not spared and are even more vulnerable to various fraudulent activities, from bid rigging and inflated costs to payroll fraud and misuse of funds.
Many small business owners have become increasingly concerned about fraud after the pandemic. According to SAP Concur (An expense management solutions company), a staggering 85% of businesses surveyed expect the risk of fraud to continue. Making matters worse, many fraudulent acts originate from within businesses themselves.
What can you do as a construction business owner with three or more employees? You can start with essential internal controls that you can implement to safeguard your business:
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Topics:
Outsourced Bookkeeping Services Red Flags,
Outsourced Accounting For Contractors,
Outsourced Bookkeeping Services For Plumbing Contr,
Construction Accounting,
Outsourced Bookkeeping Services,
Outsourced Accounting,
Contractor,
Contractor Tips,
Contractor Operating Tips
To be in business and to remain in business, become a business person! To run a business, you must be business-like. It's not sufficient just to be very good at what you do. Many people who are 'very good at what they do' have failed. The familiar cry: "I'm far too busy for that" is no excuse. Are you 'too busy' to be a competent businessperson? If so, your construction business won't last long. You must continue to develop your business skills.
To be a businessperson, you have to make an effort to become something of an 'all-rounder,' not just a specialist player. You can offer outstanding goods or services, but if you don't develop sound business systems, you are not a fully rounded businessperson, and your business will be in danger of failing.
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Topics:
outsource bookkeeping,
outsourced construction accounting and bookkeeping,
Outsourced Accounting,
Do What You Do Best And Outsource The Rest,
Contractor Tips,
Work-Life Balance
Outsourcing can offer a range of advantages for small construction businesses in today's competitive market. Not only does it reduce costs and free up valuable time for owners to focus on growing their business, but it also provides access to skills and expertise that may be unavailable in-house. Small construction businesses can streamline operations, increase productivity, and scale faster than ever by working with external professionals or firms who work in certain areas.
Because a small business focuses on survival, you pay much attention to the bottom line. This makes much sense, but it also leads to being seriously overworked.
Contractors are under increased pressure to cut their prices to get enough work. And that means they need to reduce costs. New technologies and approaches in cloud computing for construction accounting give forward-thinking contractors a fantastic ability to get more for less -but in most cases, contractors' heads are still stuck in 1990, thinking they have to do everything themselves.
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Topics:
outsource bookkeeping,
outsourced construction accounting and bookkeeping,
Outsourced Accounting,
Do What You Do Best And Outsource The Rest,
Contractor Tips,
Work-Life Balance
A fractional CFO, or Chief Financial Officer, is a finance professional working part-time, retainer, or contract. They bring the experience and expertise of a high-level CFO to your business – without the cost of hiring a full-time, in-house employee.
Fractional CFOs service several clients simultaneously, typically on a part-time, retainer, or contract basis. Their specialty is providing outsourced CFO services to small and medium businesses.
Because their financial management skills are so well-developed, it's common to bring one on board to help navigate a challenge.
Every construction business can benefit from dedicated financial management expertise, but very few small companies have the means to hire someone full-time—particularly in the lean early years.
Unfortunately, it's those first few years when a company is just starting up that establishing good habits with managing financial resources is so important, and, over time, can even make or break a construction business.
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Topics:
Bookkeeping,
Outsourced Accounting,
QuickBooks Construction Accounting,
Fractional Construction CFO,
Construction Chief Financial Officer
Many entrepreneurs operate with their business processes and systems in their heads. They know what they must do daily and how they want to get things done.
Unfortunately, when a construction business grows, and staff need to be hired – or the owner needs to take time away from the company – it's an absolute liability not having processes and systems documented in one place.
To be in business and to remain in business, become a business person! To run a construction business, you must be business-like. It's not sufficient just to be very good at what you do. Many people who are 'very good at what they do' have failed. The familiar cry: "I'm far too busy for that," is also no excuse. Are you 'too busy' to be a competent businessperson? If so, your construction business won't last long. You must continue to develop your business skills.
Read More
Topics:
Bookkeeping,
Outsourced Accounting,
QuickBooks Construction Accounting,
QuickBooks Do-It-Yourself construction Bookkeeping,
Construction Accounting Academy
Not everyone knows construction accounting, and it is easy to assume all accounting is the same. Even if you have outsourced your financial functions, as a small construction business owner, having a solid understanding of critical financial concepts is crucial to work with your advisor and 'speak their language". This article outlines several essential concepts that every small business owner should know.
Construction is a tricky business, and people's failure is expected. Most of our clients have either failed or come very close. It doesn't matter how many times you are knocked down; it only matters that you learn your lessons, get up, and go again. We noted these lessons years ago, owning and operating our construction company. By building a system and gaining insight from us, you can pick up from our mistakes, which you don't have to go through and can start avoiding before it comes crashing down.
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Topics:
Bookkeeping,
Outsourced Accounting,
QuickBooks Construction Accounting,
QuickBooks Do-It-Yourself construction Bookkeeping,
Construction Accounting Academy
Construction Accounting Basics For Construction Contractors
Construction Accounting is not a natural mindset for Construction Contractors. Construction Accounting has own language. Regular Accounting the language is Income Minus Expenses Equals Net Profit.
Construction Accounting is Income Minus Cost of Goods Minus Overhead Equals Net Profit. That simple little thing called Cost of Goods Sold is the primary difference between Regular Accounting and Construction Accounting.
Understanding that difference and how it relates to Job Costing and Job Profitability can get contractors like you firmly on the road to financial freedom.
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Topics:
Outsourced Accounting,
Assisted Do-It-Yourself Contractor Bookkeeping
Let me introduce myself, Hi, I’m Sharie when you call
I’m the voice on the other end of the phone
Calls come from Construction Contractors, Wives, Mothers, Bookkeepers, Advisors and others all wanting to find someone to reassure them that they are not crazy and what they expect and what’s expected from them is not unreasonable.
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Topics:
Construction,
Construction Psychology,
Outsourced Accounting,
construction suppport,
contractor divorce
As a 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 and soon as one is finished another one is waiting for you.
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Topics:
Outsourced Accounting
