All Highly Successful Contractors Like Saving Money Where They Can
But Not On Cheap Tools, Equipment, Material And Bookkeeping
Because That Always Costs Them Profit Dollars In The End
- Cheap tools break which slows the work down, increases labor costs and in the end costs more than quality tools.
- Cheap equipment breaks down more often, increases labor costs and also costs more than quality equipment.
- Cheap material is one of the causes for warranty work which drains profits and runs up labor and material costs.
- Cheap Contractor Bookkeeping can cost more than the previous three combined because of what you don't see.
The Cost Of Cheap Tools, Equipment And Material
Cheap Tools And Equipment - Cost a lot of money that you cannot see; out-of-sight means out-of-mind. When contractors like you invest in the best tools and equipment you can afford in the short and long run you will save money. Construction workers who take pride in their work will always produce better results faster with fewer repairs if they have quality tools and equipment. And they will tend to stay with your construction company longer which will help you earn more profits.
Make More Money Faster See The Chart Below:
Every Ten Minutes Your Construction Worker Costs You $5.94
Every Ten Minutes A Day Of Unproductive Construction Worker Labor:
Employee #01 Costs The Construction Company $1,544.42 Each Year
At 10% Profit You Need To Sell $15,544.20 More To Maintain Profit Margin
For Example - Your best construction worker asks for a tool which costs $1,200.00, will save ten minutes a day in labor and last three years the most common response is "We can't afford it...make do with what you have...it is a poor craftsman who blames his or her tools".
When someone suggests "buying a tool to save money" most contractors hear "spend my hard earned money". These knee-jerk reactions come directly from the part of our brain called the "amygdala". It is what causes us to react to circumstances rather than respond them. It is also known as the "Fight or Flight" decision center.
Break the cycle of "doing the same thing you have always done and getting the same thing you have always gotten" by simply "Stopping And Thinking". With a simple Cost-Benefit-Analysis as shown below you can make intelligent decisions and always remember
Cheap Contractor Bookkeeping
Until Your Construction Company - Reaches at least $5 million in annual sales you cannot afford to hire a qualified bookkeeper or construction accountant full-time to put on your accounting staff and don't be fooled; there is no such thing as a part-time qualified bookkeeper or construction accountant.
For Example - If you try to save money by hiring someone who says they have 10 years of experience ask one simple question:
How Much Money And Time Have You Invested Books, Classes And Seminars
To Hone Your Construction Accounting Skills Or Even Regular Bookkeeping
In The Past Ten Years And What Was The Last One You Attended?
Anytime a bookkeeper whom is interested in joining our team of Highly Qualified Professional Construction Bookkeepers and they tell me they have several years of experience I ask that question and in 98% of the time the answer none.
As you well know the basics of just about trade from butcher, baker, candlestick maker, framer, plumber, electrician, HVAC, roofer, concrete finisher can be learned in six months. However it takes 10,000 hours of training and practice to begin to become skilled in construction bookkeeping or become a Journeyman in any construction trade and then a minimum of 100 hours a year to stay current with the trends in a given trade.
So let's look at the true cost of a bookkeeper with bad habits who is a Cheap Bookkeeper that you hired part time at $15.00 an hour for 10 hours a week thinking you will save money.
The True Cost Of A Cheap Bookkeeper At $15.00 Is Close To $25.29 Per Hour
For A Rough True Cost Of Your Bookkeeper Double The Hourly Wage You Pay Them
Every Ten Minutes Your Bookkeeper Wastes Costs You Money!
Every Ten Minutes A Day Of Unproductive Office Labor:
Could Cost Your Company $273.93 Every Year
At 10% Profit You Need $2,739.30 More Sales To Maintain Profit Margin
Everybody Loses When A Contractor Goes Out Of Business Or Worse Yet Bankrupt!
It May Seem Harsh - In order to survive and thrive as a contractor you must make certain your employees are focused on their job during the time you are PAYING THEM TO WORK! You must do whatever it takes to enforce the rules of engagement for producing results at your contracting company or be prepared to work for some other contractor and live under their rules.
In Some Cases - We can do more work for less money by providing you with real construction bookkeeping and accounting + payroll processing + monthly and quarterly tax reports + year end W-2, W-3 + profit and growth management consulting + financial and job costing reports + paperless data storage and more at a lower overall cost and as an added bonus show you how to make more money than you are now!We Remove Contractor's Unique Paperwork Frustrations
For Construction Company Owners who do not need the full power of QuickBooks for contractors and want 24/7 online access we offer Xero Accounting Online and we have custom setup for construction companies. Click Here For More.
This Is One More Example of how Fast Easy Accounting is helping construction company owners all across the USA including Alaska and Hawaii put more money in the bank to operate and grow your construction company. Construction accounting is not rocket science; it is a lot harder than that and a lot more valuable to people like you so stop missing out! Call Sharie 206-361-3950 or sharie@fasteasyaccounting.com and schedule your no charge one-hour consultation.
Profitable Contractors and Construction Company owners have known about the value of outsourced bookkeeping services and contractor coaching services like ours for a long time and now you know about it too!
We Scan Your Receipts And Invoices link the appropriate transactions to QuickBooks or Xero Accounting Online depending on the construction accounting service you are using and provide ongoing Cloud Based Contractors Bookkeeping Services by accountants who understand construction.
Our Contractor Bookkeeping Services System Is A System
Thinking About Outsourcing Your Contractors Bookkeeping Services To Save Time And Money?
Click On The Button Below To Download A Free Guide
Business Process Management (BPM) For Contractors
Need Help Now?
Call Sharie 206-361-3950
sharie@fasteasyaccounting.com
Xero Outsourced Construction Accounting Services
QuickBooks Outsourced Construction Bookkeeping Services
We Are Xero Accounting Experts Specializing In Construction Bookkeeping Services
About The Author:
Randal DeHart, PMP, QPA is the co-founder of Business Consulting And Accounting in Lynnwood Washington. He is the leading expert in outsourced construction bookkeeping and accounting services for small construction companies across the USA. He is experienced as a Contractor, Project Management Professional, Construction Accountant, Intuit ProAdvisor, QuickBooks For Contractors Expert and Xero Accounting Specialist. This combination of experience and skill sets provides a unique perspective which allows him to see the world through the eyes of a contractor, Project Manager, Accountant and construction accountant. This quadruple understanding is what sets him apart from other Intuit ProAdvisors and Xero accountants to the benefit of all of the construction contractors he serves across the USA. Visit http://www.fasteasyaccounting.com/randal-dehart/ to learn more.
Our Co-Founder Randal DeHart - Is a Certified PMP (Project Management Professional) with several years of construction project management experience. His expertise is construction accounting systems engineering and process development. His exhaustive study of several leading experts including the work of Dr. W. Edward Deming, Michael Gerber, Walter A. Shewhart, James Lewis and dozens of others was the foundation upon which our Construction Bookkeeping System is based and continues to evolve and improve. Check out our Contractor Success Map Podcast on iTunes and Follow Randal on Google+
