Contractor Success Map With Randal Dehart | Contractor Bookkeeping And Accounting Services

This Podcast Is Episode Number 413, And It's About The Ugly Truth About Doing Your Construction Company Payroll Still Doing Your Payroll? At face value, it seems like a great idea.   If you're a small construction business owner with just a few employees, you probably think hiring a payroll specialist is an expense that you can avoid.    You feel that you can handle it yourself. You have the best intentions to keep your staff paid and on time. What could go wrong, right?   Well, lots. Here are 3 reasons why you should stop:   It's a time waster If you don't have a finance background, you'll likely spend a substantial amount of time calculating employees' work hours, computing for taxes and other deductions, creating payslips, processing, and filing. Even if you have a bit of a bookkeeping background, are you sure you want to spend your precious time doing these tasks instead of focusing on your construction business's core aspects? You don't need to study the ins and outs Sure, you can learn about relevant

This Podcast Is Episode Number 412, And It's About The Right Accounting Software Can Increase Your Profits Most construction business owners who use accounting software quickly master the basics. They automate processes like invoicing and payroll, track expenses, and view real-time financial reports to manage cash flow and make better business decisions.  What three reports do you need for your construction business? #1 Cash On Hand - This report shows you how much cash you have in your checking accounts, savings accounts, payroll accounts, hip national bank (your wallet), and petty cash box in your office.  #2 Cash Coming In - This report shows you how much cash your customers and clients owe you and how much of it will be likely to receive in the next 30-60-90 days. #3 Cash Going Out - This report shows you how much cash you owe yourself, suppliers, employees, and the taxman and how much of it will be likely to pay out in the next 30-60-90 days. It used to be QuickBooks was the only real option for construc

This Podcast Is Episode Number 411, And It's About Overcome The Struggles Of Hiring And Managing Independent Contractors  

This Podcast Is Episode Number 410, And It's About How To Make 2021 Your Contracting Cash Flow Year Nobody wants their business to fail. Although it's impossible to predict the future with 100% accuracy, a cash flow forecast is a tool that will help you prepare for different possible scenarios in the future.  What is Cash Flow Forecast? Cash flow forecasting is the process of estimating how much cash you'll have and ensuring you have a sufficient amount to meet your obligations. By focusing on the revenue you expect to generate and the expenses you need to pay, cash flow forecasting can help you better manage your working capital and plan for various positive or challenging scenarios. A cash flow forecast comprises three key elements: beginning cash balance, cash inflows (e.g., cash sales, receivables collections), and cash outflows (e.g., expenses for utilities, rent, loan payments, payroll). Building Out Cash Flow Scenario Models It's always good to create best-case, worst-case, and moderate financial scen

This Podcast Is Episode Number 409, And It's About The Answer To Your Construction Bookkeeping Chaos Making decisions never ends for contractors like you. Being adaptable is one of the basics of good decision-making skills. Think of decision-making as being in a bumper car. You are continually driving and trying to avoid the other bumper cars. Suppose you hit one you back up and go again (reminder this is the only safe place to hit other vehicles). The rest of the time, life as a contractor feels more like the Indy 500. You are driving as fast as you can, passing other cars, making pit stops, and scrambling to make it to the finish line. Translate this to a typical daily life of a construction contractor: The paperwork, processes, and decision-making are never-ending. The concept of time is all about 10 minutes Your coffee brews in less than 10 minutes Take a shower in less than 10 minutes Load the dishwasher in 10 minutes Take out the trash in less than 5 minutes Read your email in less than 5 minutes Decid

This Podcast Is Episode Number 408, And It's About The 4 Contractor Do-It-Yourself Bookkeeping Flaws Exposed As a construction business owner, 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. You are highly skilled, intelligent, and adaptable. You press a few keys on your keyboard thinking you are going to get the results you want, accurate bank balances, a report showing who owes you money and whom you owe money to, a Profit and Loss Report and Balance Sheet Report you can understand and if all goes well perhaps even some Job Costing Reports. Instead, what you get is a hot steaming pile of fertilizer that cannot even be used in the garden. Many contractors like you feel like hiring a Professional Contractor Bookkeeping Service is a waste of money when you should do it yourself. That is often what leads good contractors like you into The Vicious Construction Company

This Podcast Is Episode Number 407, And It's About Critical Crisis Takeaways For Construction Business Owners If there's one thing last year taught us, it's how quickly the world has changed in such a short time and that we cannot take anything for granted. While we can all hope that the pandemic is a once-in-a-lifetime scenario, there is a lot in life and in business that is uncertain, and there is a great deal we can learn from the response to COVID-19 to help plan for the future. Yes, your construction company might have changed drastically in recent months. There is good news in that, too. It means your business is adaptable and that you can find ways to survive. Here are some lessons learned from resilient businesses and business owners during COVID-19. 1. Be Adaptable There are ways that many small businesses adapt to ensure they can continue operating during a crisis. The question is whether you're willing to adjust or are fighting to keep your business the same as before. You might miss the old ways

This Podcast Is Episode Number 406, And It's About Practical Tips To Trim Your Overhead Costs Every small construction business owner knows how challenging it is to cut down expenses without somehow compromising internal or external quality. Regardless of your business's nature, the first step to reducing your overhead costs is to take the time to go through every single expense you have. Next, assess which ones are necessary for your business to operate smoothly, what can be trimmed down, and what can be eliminated. It's important not to rest on your laurels. Continually thinking of ways to reduce your overheads is essential for a healthy cash flow, so conducting regular reviews of your business expenses should be a routine task. Here are some smart and practical tips that you might not have considered to lessen your costs while maintaining employee and customer satisfaction. Negotiate with suppliers Don't hesitate to contact your suppliers and vendors to request flexible monthly payment plans or discounts

This Podcast Is Episode Number 405, And It's About Early Warning Signs Of Insolvency To Watch Out For Running a construction business isn't exactly a walk in the park. It is hard work but a rewarding journey at the same time, and you can probably attest to this yourself.    Sometimes, things also don't go as planned, and you may find your business in financial distress. Suddenly you find yourself falling behind on due dates, suppliers are chasing for payments, and your stress levels are skyrocketing.    Regardless of your business's nature, it would be best if you had sufficient cash flow to meet your financial obligations. And the closer you are to not being able to do this, the closer you get to insolvency.   To ensure that your situation doesn't get worse and prevent your construction business from going under, here are some early warning signs to look out for. These are signs that you need to deal with the situation as soon as possible. Constant Shortage of Cash In any business, cash is king. So if your

This Podcast Is Episode Number 404, And It's About The Reason Why Some Construction Projects Fail Estimating and submitting bids is one of the most stressful and nerve-wracking sides of your construction business. It is essential to keep in mind that "break-even" in the construction business is challenging to calculate because most projects are one-of-a-kind custom jobs. Proactive contractors have systems and cost libraries with pre-priced assemblies for bidding, which works in conjunction with Strategic Construction Accounting to provide management with progress invoicing, job costing, and job profitability. With poor bookkeeping, misguided judgment, and clerical errors come bad decisions on what projects to bid on and not to bid on until eventually, you'll run out of time and money. This is why some construction projects fail or, worse, construction companies get bankrupt.  Whenever someone decides to have some work done, they get several bids from competing contractors because they heard someone say a lon

This Podcast Is Episode Number 403, And It's About Cash Flow Management And How To Track Income A wise business owner once said, "Happiness is positive cash flow." As a business owner, I'm sure you agree. Everything is better when your cash-in exceeds your cash-out. A cash crisis can be emotionally devastating, and it can even kill your business. If you've ever had to beg, borrow, and steal to cover tomorrow's payroll, you know what I mean. Having a proper cash management system allows you to: Know when, where, and how your cash needs will occur. Know what the best sources are for meeting your additional cash needs. Be prepared to meet these needs when they occur by keeping good relationships with bankers and other creditors. The starting point for avoiding a cash crisis is allowing your accountant to develop a cash flow projection for you. Your construction accountant can help you develop both short-term (weekly, monthly) cash flow projections, help you manage daily cash, and long-term (annual, 3-5 year) c

This Podcast Is Episode Number 402, And It's About A Guide On Contractor Bookkeeping In Ten Minutes A Day Using QuickBooks

This Podcast Is Episode Number 401, And It's About Hidden Costs When Choosing The Right Construction Accounting Software Typically, in the first month of the year, many contractors with expensive high-end construction software are re-examining if QuickBooks for Contractors is all they need and if switching over to it makes sense. I chat with Contractors every day. You tell me your stories - about your challenges in running a business, keeping up with the bookwork, estimating and bidding jobs, doing the work and collections from clients, and having or not having employees and paying their taxes.  The first thing we ask is which of The Four Types of Contractors best describes your company? Salt of The Earth Dog And Pickup Truck Professional Enterprise Level Having used several high-end construction software programs costing over $60,000 and a few low-cost programs under $500 like QuickBooks and Peachtree, and some free online bookkeeping programs, I have concluded that for contractors with annual sales volume u

This Podcast Is Episode Number 400, And It's About A Guide On How To Provide Year-round Value To Your Contracting Clients Markets are dynamic and continually evolving, so no business can afford to stand still. Many construction business owners have learned that in the last few months as COVID-19 spread around the world. No matter how excellent your products or services, they have a finite lifespan, so they must be developed, improved, or replaced if you're continuing to grow your business. New products, services, and ways of providing more value to your clients and prospects are the hallmarks of a go-ahead business. Improvements and extensions You can lengthen your services' market life through a process of continuous improvement in response to customer feedback. You can also work on extending your range through complementary products or services. However, there's a limit to the extent you can keep on refining, and in many cases – in the end, you'll need something new. Besides, if you are a trade contractor s

This Podcast Is Episode Number 0399, And It's About Smart Contractors Spend Money On Marketing Accounting And Production There is no better time to reflect and think seriously about your construction business. Excellent organization systems add considerable value to any business because they allow you to spend more time working on your business rather than on it. Year over year and regardless of the economy, one thing never changes; 20% of the contractors earn and keep 80% of the profits because they have a Business Process Management Strategy like our Contractors Success M.A.P. that tells them how, what, when, where and why to focus their limited resources on the M.A.P. = Marketing / Accounting / Production. As a construction company owner, investing your money in these three things can immensely help your business and help you protect it from slower times: Marketing Many construction business owners think marketing is about finding clients today, but a good marketing strategy looks to the future. Just bec

This Podcast Is Episode Number 0398, And It's About How To Avoid Overpaying Your Construction Business Tax Contractors want to maintain control without making any changes. "Keep doing the same thing but expecting a different result."  Throwing the receipts in a shoebox (behind or under the seat in the truck) is the favorite way to deal with paperwork. This is "Under Managing" and frustrates everyone around them who is playing "Where's Waldo?" Job costing is nonexistent; bills are usually paid late, customers are unbilled, lost, and forgotten. On the other hand, micromanaging every detail is an over-reaction from years of doing as little bookkeeping as possible to prepare the tax return. Knowing what to do, however, will stop you from making a big mess of it. Year-end phone conversations are usually out of frustration.  Contractors will call and say: I can't get any reports I don't like the reports I am getting My tax accountant is not answering all of my questions How can I improve my business? In-house boo

This Podcast Is Episode Number 0397, And It's About The Value Of Time And Bookkeeping For Construction Business Success Keeping track of sales, earnings, expenses, and purchases are fundamental to your construction business's overall health and sustainability. Effective bookkeeping produces the data you need to evaluate your current practices, anticipate challenges, and set attainable future goals. But despite their proven importance, many business owners dread and avoid accounting tasks. Smart Contractors know their time is more valuable spent meeting prospective clients, putting together bids, managing job sites, and many other things other than bookkeeping. So they find someone else to do it.  Any bookkeeping and accounting firm that does not know how to calculate complex algorithms that take into account fluctuations in the workload and generate a monthly fee that is fair to you and them they need to go back to school and take those courses on Decision Modeling, Statistical Analysis, and Business Process

This Podcast Is Episode Number 0396, And It's About Answers To Frequently Ask Questions About Our Bookkeeping Services One of the biggest concerns contractors have about outsourcing their bookkeeping to a cloud-based contractor accounting service like ours, is they think it means sending jobs off-shore rather than keeping your dollars in America where they can help other Americans. In too many cases, that is precisely what occurs.   Many contractors would like to subcontract out their bookkeeping services, and the two main reasons they don't is - fear of losing control and cost.   To paraphrase an old quote and adapt it to the construction industry, "It is not the strongest, toughest, hardest working construction contractor that survives, nor the most intelligent among them. It is the construction contractors that are most adaptable to change."   One of the Best Practices in any successful company is to do what you do best and outsource the rest. Why it makes sense to hire us? I listed your top concerns and

This Podcast Is Episode Number 0395, And It's About Eight Things Your Construction Invoice Needs To Get Paid Faster Without proper tracking and matching of income and expenses, most construction companies never know if they made a profit until the job is over. Due to your work's nature, as construction contractors provide services on a per-job operation, issuing invoices make it all the more challenging and complicated than it has to be. The good news is that it doesn't have to stay that way.    What should you include on your invoices to get paid faster? Even if you've been running your business for a while, you might be missing other information that you should include. So here is a step-by-step guide on what to include on your invoices.   1. Make your invoice look professional. Add your logo and use professional fonts, styling, and colors that complement your brand. Modern accounting software platforms allow you to set up invoice templates, saving you reinventing the wheel each time.  2. Label your invoi

This Podcast Is Episode Number 0394, And It's About A Contractors Guide To Dealing With Customers Who Refuse To Pay All construction contractors have experienced bad debt's financial pain, which is defined as a customer who refuses to pay no matter what you do.   I've been there before, and it will probably happen again in the future. Owning and operating any business, including accounting, means sometimes you provide goods and services and not get paid.   When you sat for an exam or a school test and knew the material forwards and backward, it was fast and easy. The exams and tests for the classes you struggled with were the opposite.   In your construction company, it is the same. It would help if you had the answers to develop understanding, which allows us all to let go of the past and move forward. Separate The Good From The Bad Not everyone who never pays you is a bad person. Sometimes things happen which are beyond their control. We have clients who have experienced situations beyond their control in