External factors, such as economic changes or technological advances, can significantly impact whether a business will thrive or fail. The rise of sharing and gig economy apps is an excellent example. These apps gave consumers more affordable options for daily tasks and errands and provided individuals with a new way to earn money on their schedules.
Running a business is a fascinating journey. But it's essential to thoroughly evaluate your company before moving further to ensure you're creating a sustainable and successful venture.
Costs may be high, requiring careful planning. You may need to educate your customers and convince them to adapt to your business before they're ready to use it or hire you. And let's remember the competition that already exists in the market.
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Topics:
Outsourced Accounting For Contractors,
Construction Accounting,
MAP vs. PAM,
Contractor Marketing,
Outsourced Bookkeeping Services,
Contractor,
Contractor Tips,
Contractor Operating Tips,
sole proprietor
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
Having used QuickBooks for 25+ years and helping 1,000's of contractors here are the top 9 reasons Contractors contact me since I am one of the few QuickBooks ProAdvisor specializing in Construction Accounting.
Do any of these scenarios sound like what you may be dealing with on a regular basis in your Construction Contracting company…
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Topics:
The 80-20 Rule For Construction Company Owners,
Contractors Bookkeeping Services,
Outsourced Bookkeeping Services
In an attempt to save money, the cheap contractor does the following and ends up spending the most money and earning a tiny profit because they believe in Maximizing over Optimizing. In the short run Maximizing can payoff; however, in the long run it never does.
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 life beginning with working in my Step Father's construction company after school in the mid 1960's.
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Topics:
Outsourced Bookkeeping Services,
Contractor Breakeven Analysis
I hate doing laundry including stain treatments forgetting to move it to the dryer, folding and ironing, absolutely none of it appeals to me.
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Topics:
Outsourced Contractors Bookkeeping Services,
Outsourced Bookkeeping Services
