There is a natural ebb and flow in the business cycle, which in regular times operates, somewhat predictable.

 

In normal times, contractors who pay close attention to their Five Key Performance Indicators financial reports and stay aware of the macro global economy and the microlocal economy can plan and earn an expected profit after paying themselves a reasonable salary.

 

The past two years have been anything but ordinary, and frankly, we are having a tough time with the economic forecasts models we follow, including our internal ones.

 

Something similar occurred from 1976 to 1980, and suddenly in early 1981, the national and global economy began to turn around, and there was a severe shortage of contractors and qualified construction workers.

 

 

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Topics: The Contractors Account, Cloud Based Bookkeeping Services, Outsourced Accounting For Contractors, Systems And Processes, Construction Company Cash Flow, Contractor Guidance

It’s been another excellent year for Fast Easy Accounting. We appreciate your support for those of you who have been with us through all these years; without our contractor clients, template customers, construction accounting academy students, email subscribers, podcast listeners, blog readers, and social media followers, we wouldn’t get to where we are today.

 

As we look back on our 2021, I hope your fondest memories will include the time you’ve spent with all the things you love and are passionate about. And because we love what we do and we are passionate about serving our contractor friends - for us, this year was all about empowering your contracting business by continually providing you with outstanding products, high-quality services, and dependable resources for your bookkeeping and accounting needs.

 

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Topics: The Contractors Account, Outsourced Accounting For Contractors, Systems And Processes, QuickBooks Construction Accounting, Happy New Year

As a Construction Contractor, much of your world is Outside The Box. You make what seems impossible and turn it into a finished product; the whole house remodel, kitchen or bath remodel, new roof, install an attic fan, replace windows, deck, patio, hot tub, swimming pool, children's backyard playhouse. 

 

The Handyman Contractor fixes "Things," which are very important to the clients who need them—fixing a door, hanging a closet rod, moving something, removing something. Compared to a Whole House Remodel, it may seem like you are not doing anything. The reality is that to the person who needed the work done that a few simple little things may change their whole world for the better. Your Work as a Handyman Contractor brings joy to their life. Be Proud of it. No job is insignificant, and no construction business is too small for us.

 

I want to be the person who says Merry Christmas! You have earned it. 

 

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Topics: The Contractors Account, Invoicing, Cloud Based Bookkeeping Services, Outsourced Accounting For Contractors, Systems And Processes, Construction Company Cash Flow, QuickBooks Construction Accounting, accounts receivable for contractors, Contractor Guidance

If you've been considering making a move to a cloud-based accounting system, you're not alone. Cloud technology has impacted many business functions, including efficiently managing your business's financial aspects.

 

Cloud-based accounting moves your accounting from being hosted on your computer's hard drive to an online platform. Cloud-based platforms like QuickBooks and Xero offer important features that save you time and money, freeing you to focus on other essential construction business activities.  

 

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Topics: The Contractors Account, Invoicing, Cloud Based Bookkeeping Services, Outsourced Accounting For Contractors, Systems And Processes, Construction Company Cash Flow, QuickBooks Construction Accounting, accounts receivable for contractors

Hiring Vs. Outsourcing

 

Are you thinking of hiring a bookkeeper? After reading this, you may think it is not as good an idea as it seems. In addition to the costs of advertising, reading many fiction stories (resumes), interviewing candidates (like a brand new car on the showroom floor), job-seekers are the best they will ever be during the interview. After that, it is all downhill, and the only question is how fast.

 

We interviewed hundreds of candidates for Construction Bookkeeping positions, and 90% of them said they could do the job - if we trained them.

 

What does it cost to have a bookkeeper on your payroll?

 

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Topics: The Contractors Account, Systems And Processes, Construction Company Cash Flow

Creating invoices and receipts is vital to successfully running a business. You need receipts to track your purchases and expenses. Your clients need invoices for their tax purposes and to manage their finances. Paper receipts and invoices have been around a long time, so many people are used to them and may even resist moving away from them. 

Thanks to technology, paper receipts and invoices are becoming more a thing of the past. There are environmental reasons for the move. Paper invoices require millions of trees and billions of gallons of water to produce, and they emit carbon dioxide (CO2), so going paperless can be a good thing for the environment.

The Old Way Contractors Invoiced the jobs was sometimes just as much or more work than doing the job itself.

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Topics: The Contractors Account, Invoicing, Systems And Processes, Construction Company Cash Flow, accounts receivable for contractors

Many data support the idea that it's less costly, easier, and more efficient to encourage repeat customers than bring in new ones. Among the stats Hubspot lists are: that a 5% increase in customer retention is responsible for more than 25% increase in profit; repeat customers are nine times more likely to convert than first-time visitors, and a 2% increase in customer retention has a similar impact to your bottom line as reducing costs by 10%.

Understand The High-Profit Client - Most of them have personality traits commonly known as drivers - folks who are accustomed to getting things done quickly and efficiently. They do not mind paying professionals to service, repair, or build new construction projects related to their houses and commercial buildings.

Design and develop your internal customized systems and processes when and where it makes sense. As much as possible, when it is cheaper to buy something ready-made for a fraction of what it costs you to do-it-yourself then buy it.  

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Topics: The Contractors Account, Construction Bookkeeping And Accounting, Systems And Processes, Business Planning For contractors, Contractor Tips, finance

Construction business owners already have a time-consuming and challenging job running their business. If their business is open five days a week, they usually need the weekend to catch up on paperwork, pay bills and manage any tasks they didn't get to during the week. 

 

For those with a seven-day-a-week business, there's even less time off. They often feel the need to be onsite whenever the company is open to deal with unanticipated issues, help the staff out, and ensure all tasks are completed. 

 

Being onsite seven days a week isn't healthy or productive, however. It can cause burnout and result in errors being made. It affects the construction owner's personal life and quality of life, not to mention their overall well-being. 

 

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Topics: Systems And Processes, Construction Project Managment, Project Management, Contractor Operating Tips, accountability, Construction Accountability

Every contractor has a Job Costing Library; some keep it in their head, some keep it on paper with names like completed jobs, bids, estimates. Other contractors keep it in their QuickBooks For Contractors' software records. Still, other contractors rely on places like RS Means for comprehensive databases of construction costs. These are similar to the "Flat Rate Books" used by car repair shops for decades.

 

A tiny fraction of contractors understand the actual value of a customized cost library and invest the time, energy, and resources to build and maintain one. Having done several, I can tell you it is a painful, arduous task. I will tell you a story to make it crystal clear.

 

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Topics: The Contractors Account, Systems And Processes, Construction Company Cash Flow

You may be getting your construction projects done with sheer willpower, but the lack of processes, business plans, and strategy will eventually wear you down. You can either keep on "Powering Through"- spend your life endlessly chasing details, missing appointments, suffer untold losses in cash flow and profits, or you can start developing a plan and work on your business.

 

Successful contractors improve processes all year long. Your construction company can benefit from an excellent system that other successful contractors are using now, which means there is no need to "Reinvent The Wheel." As your construction company grows and evolves, your processes can support the controlled and planned expansion.

 

Along with trying to keep on top of your construction business, the unfortunate reality is that most business owners don't take proper holidays. Usually, this is because their business relies on them, and they don't have the support to keep the business running without them.

 

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Topics: The Contractors Account, Construction Bookkeeping And Accounting, Systems And Processes, Business Planning For contractors, Contractor Tips, finance