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

This Podcast Is Episode Number 0393, And It's About Overcoming Contractor Marketing Challenges Now that the internet has become an integral part of our daily lives, modern consumers no longer depend on television, radio, and print advertisements. We look and go through a plethora of information first, accessed through popular search engines (Google, Bing, and others), before deciding to make a purchase or hire a local service. Technology advancement allowed companies to promote and connect with a larger number of potential consumers than the traditional, physical presence of a brick-and-mortar store. As a contractor, you are no longer confined to your neighborhood and push services directly to them. Your online presence enables you to reach out and pull qualified leads towards your construction company. But what should you do when you don't have a marketing manager that handles this side of your business? I say work with what you already have and go from there. Grow your business and have your target clients

This Podcast Is Episode Number 0392, And It's About The Benefits Of Adapting To Technology For Your Construction Business If you have a task that you don't like to do, there's an app or software program to take care of it for you. It might take a few moments of your time to learn and understand how the software or app works, but doing so will save you valuable time and precious energy. It will also free you up to spend time on the tasks you love to do, not on all the paperwork and record-keeping that go along with running a business. When you run your own contracting or trade business, your life involves many long days being on job sites while managing projects, staff, and clients. There probably are not enough hours in the week for you to deal with all the issues that arise while keeping your clients happy and taking time out of your schedule to manage your business is probably the last thing you want to do. Thanks to a variety of online software companies, running your business is now a lot easier. You ca

This Podcast Is Episode Number 0391, And It's About Telltale Signs Of Bookkeeping Embezzlement And How To Prevent It Bookkeeping embezzlement stems from a feeling of entitlement and the need to get even. Your bookkeeper or accountant will steal if they feel confident they can get away with it and if circumstances allow for it due to weak integrity and a sense of "Redistributing The Wealth, But Not The Work Or The Responsibility."   It is estimated that the number of bookkeepers caught embezzling from contractors is less than one percent of the total. In most cases, the ones that are caught are rarely convicted because all too often, it is the contractor who has to spend thousands of dollars on forensic accountants and attorneys to prove the theft occurred.   In most cases, it is near impossible to persuade the authorities to prosecute when a contractor bookkeeper embezzles because it is often viewed as a "Victimless Crime."   In most cases, an in-house construction bookkeeper starts with good intentions, an

This Podcast Is Episode Number 0390, And It's About Contractors Need KPI, Not Get-Me-By Being in your own business can be the best time in your life. Alternatively, the worst time! No one starts a business, especially a contracting business, and have it rolling perfectly with a profit every step of the way. Between regulations, economic uncertainty, and other outside forces; always a learning curve. Picking a Get-Me-By Contractor's Bookkeeping Solution in many cases is using an Excel Spreadsheet and a shoebox, file folders all dumped into a file box and looking at the Online Banking once in a while. This accounting method is the "I still got money, so I must be okay." When you use today's Job Deposit To Pay For the material, labor, and subcontractors from the last job, it is also known as "Rob Peter To Pay Paul." Cash flow is never a problem until the sales stop; then it doesn't matter if it is the economy (your customers get laid off), domino effect (their customer didn't pay them), or you are unable to wo

This Podcast Is Episode Number 0389, And It's About Proactive Contractors Use Lien Services To Protect Cash Flow Proactive versus reactive are the two methods of getting something done. I find everyone works in a combination of both, I included. Proactive is scheduling and doing everything ahead of time. Nothing is ever waiting until the last minute. Reactive is more emergency driven and are things that need to be done now. As much as we plan, it would be best if you were flexible, adaptable, and reliant. Things happen that are beyond your immediate control. Those of you who want a predictable environment are employees working for a large employer where schedules are fixed, and they are doing the same things every day. It was a different mindset when you became a construction contractor. You wanted to be independent, and part of being independent is that there is no one telling you what to do or when to do it. Your suppliers and government agencies direct you and impose fines and penalties when you get off

This Podcast Is Episode Number 0388, And It's About What Does Your Accounting System Say About Your Construction Business? How many times a day do you hear from someone saying, “It’s Boring", or "I’m Bored.” It is a red flag that should light up your “Oh Crap” meter. Moreover, more important, whenever an employee says it. Because this usually means they are shortcutting the work versus the fact that you have so many right processes in place that the work is genuinely dull. Being bored is a factor in manufacturing jobs. I saw a special where a manufacturer described how the process is that they moved employees on a scheduled basis between workstations to help them avoid boredom and stay fresh throughout their workday. Proved to be a Win-Win for everyone. Studies found that alert employees have fewer accidents, which in turn reduces your cost of doing business and raises cash flow and profits. In accounting, you want to be boring. Good to be bored from the standpoint that everything is going smoothly. Anytime

This Podcast Is Episode Number 0387, And It's About Five Practical Ways To Get More Leads For Your Construction Business It's unexpected these days that people happen to find your business and become a client or customer with no work on your part. Your construction company has to grab people's attention, turn curious visitors into leads, and then convert those leads into sales. This means that the more solid leads you have, the greater your chances of making a sale. Solid leads are those contacts engaged in your business, fit your buyer persona, and are at least somewhat motivated to make a purchase or hire your services. Here are five great ways to develop more solid leads for your construction business: 1. Target your ideal clients You might want your business to be relevant to everybody, but the reality is that a specific target client is ideal for your construction business. Those clients are the ones who are most likely to be attracted to your services and, therefore, the most likely to purchase them.

This Podcast Is Episode Number 0386, And It's About Costly Bookkeeping Mistakes That Kill Profit And Growth Most construction business owners like you understand that effective financial management is key to your success. But lack of knowledge, frustration, and even avoidance can add up to your bookkeeping mistakes that derail future company growth. With everything contractors like you need to do every day, including weekends and holidays, it's too easy to let crisp, timely Financial Reports go unread, and in some cases, you may not fully understand what they are telling you when you do read them. Protect your construction business and reduce stress by avoiding these costly bookkeeping errors: Mixing personal and professional finances From day one, business owners should have a separate bank account to deposit their income and pay their business expenses. It's also crucial to designate a business-only credit card. Come tax time; separate statements will make submitting claimable expenses quick and easy while

This Podcast Is Episode Number 0385, And It's About Contractor Clients' Four Critical Words That Leads To Change Orders Are you sick and tired of customers continually changing stuff on you and creating delays or extra work? Is your customer leaving you "love notes" regarding minor changes they would like to make on the counter or someplace you can easily find them when you first arrive in the morning? Or the never-ending chain of emails. Or greeting you with "I/we thought we would like to have...." Do these notes, emails, or greetings send you into a mental or alone verbal rant about why they can't leave you alone to get your work done? Are you concerned they expect you to do the additional work for FREE, NO CHARGE, NA-DA, ZIP, ZERO? You needed to be compensated for your time and your crew's time, and you need to do it right away. Listen to your clients and watch out for these four critical words at the beginning of their sentence: While you're here anyway That should be included Since it's open anyw

This Podcast Is Episode Number 0384, And It's About A Guide To Construction Business Recovery In The Pandemic World As you well know, the COVID-19 pandemic is not just a public health issue; it's also caused lock-downs and resulting financial worries on a global scale.   Almost all business sectors have experienced declining profits, liquidity that is drying out, and even bankruptcy. Although the short-term outlook varies depending on your industry sector, all business leaders need to set up a strategy to guide their way towards recovery.    Nevertheless, the rough and tumble world of construction company ownership is not for the weak or the timid. It is an arena where the admission price is a lot of blood, sweat, tears, and long nights and lost sleep, with peaks of enthusiasm and depths of despair.   If you want some tips on hitting the ground running after the crisis, this guide will outline the steps to get your business back on track.  Assess The Damage Before taking any action, the first thing you need

This Podcast Is Episode Number 0383, And It's About 8 Common Challenges New Construction Business Owners Face Freelancers in all industries deal with the same problems due to the nature of their work. Most of you came from the skilled craftsman trades, some of you worked as a manager for a construction company.   Practically,  solo contractors manage every aspect of their business. For that, you have made an important decision to own and operate a construction company.    If you're thinking of dropping your career as an employee to start your own company, consider the following obstacles you will need to navigate. Unfortunately, problems beget more problems, and a shaky foundation quickly leads to a crumbly business and many regrets about starting in the first place.   1. Bad customers Customers who demand too much work for too little pay, clients who do not pay on time, and especially those who do not pay define our expectations for the next client. New contractors often do not know how to tell the differe

This Podcast Is Episode Number 0380, And It's About How To Grow Your Construction Network Without In-Person Events Networking can be a crucial way to keep your construction business growing.   Profitable contractors attend networking events not because they have nothing better to do; they do it because it pays off. You can either spend hours doing office tasks like bookkeeping or getting face to face with someone who may need your services. Meeting people gives you the chance to build and develop relationships, hire you, or refer you to someone who might.   Regardless of your industry or business size, it is hard to ignore the benefits of forming professional networks for potential partnerships, expanding your client base, and scaling up. However, while we are constantly reminded about the importance of networking, reaching out to grow your network isn't the same now, thanks to the COVID-19 pandemic.   Social restrictions to prevent spreading the coronavirus do not allow traditional networking approaches su

This Podcast Is Episode Number 0381, And It's About The Value Of Service Agreements In Your Construction Company It goes to the heart of the question of the difference between a customer and a client. Service agreement holders are more likely to be clients who add more value to your construction company because they represent your customer base's most loyal segment.  Every service agreement customer represents future work. In the meantime, service agreement clients are a source of cash flow and are predetermined to call you instead of your competition when repairs are necessary. Non-service agreement customers are more likely to be customers and fickle. They may call your contracting company for future work or decide to shop the competition and use the information they find to negotiate for a lower price. In some cases, they may not even remember you or your construction company name. Besides, your replacement sale close-ratio usually is higher with service agreement clients, and your overall pricing and rela

This Podcast Is Episode Number 0380, And It's About Contractors, Know What You're Good At And Generate More Leads The pressures of owning and operating a construction company can be, at times, almost unbearable. Unlike any other business, there's no "one size fits all" solution in your toolbox to fix your dilemma. Everything is created twice. First, in our minds, and when we do the work to bring them into physical existence. Take your power and take control of your ability to Be-Do-Have. You can re-write your scripts and take control and responsibility for the outcome of your Construction Company by using your imagination, conscience, and excellent implementation of your business plans. Concentrate Successful contractors know what type of contracting they are good at doing. SWOT Analysis is one of the tools we use in strategic planning for construction companies to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in determining the particular target market. Strengths - are projects tha

This Podcast Is Episode Number 0379, And It's About Five Ways To Increase Your Construction Business Profit First, we always ask our clients to decide what they want from their construction company. Do you want to get rid of the boss? Do you want to work in a more structured environment? Are you sick and tired of working for the boss's son or daughter? Do you want to make much money? Do you wish to make enough money to pay the bills and enjoy a vacation now and then? There are no wrong answers, whatever is right for you is the correct answer; however, you need a reason to do it otherwise when the going gets tough, and it will, you will either win or lose depending on your purpose. With a big enough reason, you will find a way to win.   For many small construction companies, the best way to improve profitability is to increase turnover, as there's no limit to sales, but there is a limit to how much you can reduce your costs.   Let's look at how you can focus on each of the five ways in our profit increase calc

This Podcast Is Episode Number 0378, And It's About The Value Of Unique QuickBooks Reports Specific For Contractors Some applications make almost everything easy, including accounting software. Too many contractors find out too late the adage "You get what you pay for" still applies.   Hundreds of contractors and regular bookkeepers have told us how simple QuickBooks is to use, yet they cannot understand why QuickBooks for Contractors is so hard to use, and it is getting harder every year. I agree with them.   Making a lot of money as a contractor is easy if you know what to do, and I don't mean your ability to produce more fieldwork than anyone else, although that does help.   Each contractor type has unique construction accounting needs, which means if the QuickBooks process is custom-fitted to each construction company's needs, it is a beautiful thing.   We have listened as our contractor clients have described to fellow contractors how "fast and easy QuickBooks is and what wonderful reports it generates,

This Podcast Is Episode Number 0377, And It's About Troublesome Customers Every Contractor Should Learn To Recognize And Deal With Customers are disloyal price buyers who purchase commodities and services with cost as their primary consideration. Clients are loyal value buyers who purchase goods and services with suitability as their primary consideration.   Every businessperson knows that customers and clients are not created equal. Clients are loyal, while customers will stray if they're offered a slightly lower price elsewhere. Some customers are demanding, while clients only call when they wish to hire you right away.   Every business must deal with a variety of customers and clients. But there are certain types of customers who do more harm than good to your construction business - they drain your resources while adding little to your revenue.    Your business strategy will determine which group you want to serve, and there is no right or wrong answer, just different approaches.   Here are five troubles

This Podcast Is Episode Number 0376, And It's About Brace Your Construction Business From Recession The pains caused by an economic downturn can be excruciating, which is why most of us dread it. A recession can mean massive layoffs, jobs becoming harder to find, and wages frozen, which means consumers hunker down and spend less-- often worsening the slowdown unknowingly.  For most businesses, especially small businesses, recessions can be brutal. Just take, for example, the Global Financial Crisis (GFC) that struck the world in 2008. Between December 2008 and December 2010, approximately 1.8 million small businesses shut down. When Investopedia looked into the financial crisis's impact on small businesses after a decade, they found out that business creation has not yet returned to pre-crisis levels.  As the battle against COVID-19 is far from over, global financial markets have been impacted, consumers are tightening their belts, and global demand is falling. All these signs point to one thing: the next eco

This Podcast Is Episode Number 0375, And It's About What To Do If Your Construction Business Is Operating At A Loss Operating at a loss means you’re spending more money than you’re making. And while it’s not uncommon, especially for new businesses, it’s still not an ideal situation and shouldn’t continue in the long term. Otherwise, you will eventually run out of cash reserves and be out of business. So the first thing you need to identify is why you’re operating at a loss. If it’s because you’re still in the start-up phase, then you might not need to worry too much as long as you’ve got enough cash to meet your costs. But if the losses are due to a decline in sales, then it’s time to review your construction business and, if necessary, get professional help. You’re operating at a loss if you: Don’t have enough money to pay your bills; You’re in overdraft without a plan to pay it off; You’re not selling as much as you anticipated. Do any of the above apply to you? Let’s look at ways you can remedy the situa

This Podcast Is Episode Number 0374, And It's About Questions To Ask As Your Construction Business Reopens As small business owners look to operations after reopening, there are some critical business questions to ask. These questions will help you determine what adaptations you want to keep, whether your construction business model is working, if there are additional changes you want to make to keep your company operational through future economic downturns.   It's not always fun to do this sort of examination, but the answers to these questions will help you make the best possible future decisions.   1. What worked and what didn't work in my construction business model? Almost all small business owners had to make changes to their business model. Whether it was hosting meetings with clients on Zoom or learning about encryption technology to allow employees access to sensitive information from home, most small businesses adapted in some way.   Ask yourself: Did I have to adapt to my construction business m