Setting financial goals for your construction business may be one of your most important responsibilities as a leader and business owner. Your financial goals serve as far more than wishful projections; they form the backbone of your road map for success, both internal and external. Financial goals are something that every single business should possess regardless of its market, model, or size. Let's explore how to set and track financial goals that empower your business to thrive.

Why Financial Goals Matter for Your Construction Business

Financial goals are more than just numbers on a spreadsheet. They are the roadmap that helps you plan and make strategic decisions. Without clear goals, it's like driving without a destination in mind. Think about it—how do you know if you've arrived if you never set out where you wanted to go?

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Topics: QuickBooks Contractors Financial Reports, Business Process Development For Construction, Business Process Management For Contractors, finance, Construction Business Goals, Financial Modeling, Financial Statement, Goal-Setting in Construction

Avoiding cash flow crises is crucial for the success and sustainability of your construction business. Managing cash flow is vital for small business owners. Poor cash flow management can create significant challenges even if your business is profitable.

Cash is a fact; Profit is an opinion

A cash crisis can be emotionally devastating and even kill your business. If you've ever had to beg, borrow, and steal to cover tomorrow's payroll, you know what I mean.

Understanding cash flow

Cash flow refers to the money moving in and out of your business. Cash inflows come from sales, interest earned, and investments. Cash outflows cover rent, payroll, bills, and supplier payments. Positive cash flow means your inflows exceed outflows, while negative cash flow indicates more money going out than coming in.

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Topics: QuickBooks Contractors Financial Reports, cash report, Cash Flow, Construction Bookkeeping And Accounting, Contractor Cash Flow Problems, Increase Cash Flow, Improve Construction Cash Flow

Understanding financial statements might sound daunting, but small business owners like you must stay on top of your game. Each financial report offers unique insights into your company's economic status. 

 

As a construction contractor, your financial statements provide valuable insights into your company's financial health and are essential for making informed decisions. Let's look at the critical components of financial statements and why they matter to construction contractors.

 

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Topics: QuickBooks Contractors Financial Reports, Construction Bookkeeping And Accounting, Project Management, Financial Modeling, Financial Statement

Contractors who ask for help in Cleaning Up their QuickBooks Files before filing taxes have better results than those that do not. The Tax Accountant is happier because the QuickBooks file is clean and easier to work with. They will likely find more deductions that can save you money and, in some cases, mean the difference between success and failure in your construction company.

• Because the QuickBooks file is clean, the Tax Accountant will have fewer questions for you.
• Because the QuickBooks file is clean, the Tax Accountant can easily find the reports needed to file your tax return.
• Because the QuickBooks file is clean, the Tax Accountant can focus on saving you money.
  

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Topics: QuickBooks Cleanup, QuickBooks Contractors Financial Reports, Construction Bookkeeping And Accounting, QuickBooks Construction Accounting, Contractor Guidance

Every contractor who goes out of business has one thing in common, bad financial reports or none at all.

Does this sound familiar? Contractor opens a business because they are so skilled at trade. With a small amount of cash, less than $10,000, a few credit cards with $5,000 available credit, they are off to the races.

You tell friends and relatives about your new adventure and get lots of jobs. Of course, you wouldn't take advantage of friends or relatives at meager prices, would you?

You open supplier charge accounts credit cards from Home Depot and Lowes. Your working capital increased by $20,000. "Wow, life is excellent! I should have done this a long time ago!"

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Topics: Construction Company Failure, QuickBooks Contractors Financial Reports, Bad Construction Bookkeepers, Construction Bookkeeping And Accounting, Contractor Guidance

As your construction business grows, it's essential to have trusted financial professionals managing your books and providing strategic financial advice. 

 

After all, the busier you get, the more complex financial management becomes - and the less time you'll have to maintain your books and try to make sense of all the data. 

 

However, many construction business owners are not sure of the differences between a construction bookkeeper, a construction accountant, a financial planner, and a Certified Public Accountant (CPA) - or whether hiring one or all of them makes the most sense.

 

Keep in mind that each branch of accounting serves a different function similar to how it works in construction. There are framers, rough carpenters, and finish carpenters, and all three work with lumber, yet in most cases, the skill sets to do everything are rarely found in the same person.

 

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Topics: QuickBooks Contractors Financial Reports, Construction Bookkeeping And Accounting, Winning Teams, Contractor Guidance

Construction Financial Reports You Can Understand

And Have When And Where You Need Them!

QuickBooks contractor Financial Reports such as Profit and Loss, Balance Sheet, Cash, Receivables, Payables, Job Costing Reports and Job Profitability Reports are a mystery to most contractors. Unless you have invested years in learning how to read them and really understand the coded messages hidden in plain sight reading them can literally make you take a nap.

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Topics: QuickBooks For Contractors Financial Reports, QuickBooks Contractors Financial Reports