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

This Podcast Is Episode Number 0353, And It's About Six Effective Ways To Save Money As A Construction Business Owner   We are always looking for ways construction contractors like you save time and money. These tips will help you make a noticeable difference to your bottom line.   Reduce staff costs   Without a doubt, having someone to help deal with routine tasks can significantly improve productivity. The rub is that hired help is often too expensive for small business owners.   Internships can be a real win-win: a student gets hands-on experience assisting you with marketing, accounting, or administrative work, and you get time-saving help for free.     Think thin Small business owners are often advised to trim down their offerings to a niche market. You can save money by applying that same thinking to how you do it in your construction business.   For instance, subcontracting can allow a service-based business owner to keep a narrow focus on the work they do while attracting more customers. Taking on m

This Podcast Is Episode Number 0352, And It's About A Construction Contractor's Optimal Guide To Profiling Clients   Easily an essential first step in establishing your construction company is to define your clients so that you have the information you need to attract the right audience and generate valuable traffic to your website.   Understanding your customers and what makes them tick is the key to any successful construction business, particularly if you are paying out large amounts of money to drive relevant traffic.   One of the most practical ways of defining your prospects is by building client profiles that represent the typical types of customers that you are aiming for. As a result, you'll be able to home in on a more specific target audience, communicate with your audience in a more relevant and personalized manner, and, ultimately, generate more revenue.   Every business caters to a specific demographic, and while some audiences might be vast, it is still essential from a marketing perspective t

This Podcast Is Episode Number 0351, And It's About Collaboration - Why It's Essential To Your Construction Company Many elements are vital to a growing construction business. A financially-astute leader is one. A confident and motivated sales team well-versed in your construction company's service line is another. But starting and growing a business requires more than employees with extensive functional skills and appropriate personal characteristics.   Growing a construction business requires collaboration - the deployment of employees in a way that allows them to work together to problem-solve and act with a shared sense of urgency.    When this occurs, group members come to leverage the strengths of one another as they work to achieve shared objectives vital to the construction company's growth. Also, mutual learning takes place, which increases the probability that each employee's performance will evolve from good to better and then best. In turn, a company's performance improves as well.   As collabor

This Podcast Is Episode Number 0350, And It's About How To Find And Keep Top Construction Employees We all know the usual process of finding new employees. Advertise a job,  read resumes, conduct a telephone interview, conduct a face-to-face interview, then choose someone. The steps to recruiting new talent have been the same for decades, leaving many construction business owners to think these are the only way to find new employees.    There are many top-notch employees that you might not find if you don't change your strategy, however, these days there are many new and exciting ways to connect with possible staff and attract qualified employees to your business. All you have to do is be willing to be creative in your thinking.    Get your current employees on it Besides you, who knows better what you need in an employee than your current employees? Not only do they know what you need, but they can also vouch for the people they recommend. Using an employee referral program can save you the costs associated

This Podcast Is Episode Number 0349, And It's About Home Maintenance And Repair Service Company Automation And Technology The daily processes and transactions involved in operating a home maintenance and repair service business can mean long hours of repetitive tasks and occasional oversights due to human nature. These days, you can use technology to take care of almost any issue facing your business.    Automating these tasks can result in significant savings in resources and eliminate mistakes caused by human error. The key, however, is to know which tasks should be automated and which ones warrant staff intervention and guidance. Let's take a look at some of them.   Lead Capturing, Nurturing, and Scoring Automating your lead development process can do wonders for your service-based company's conversion rates. Both hot and cold leads require attention and targeted engagement to convert into paying customers. Using automation software can help sales reps to guide prospects to end of the sales cycle strat

This Podcast Is Episode Number 0348, And It's About Construction Business Blueprint For Updating Plans And Setting Goals When you own a small construction business, it's vital you understand how money flows into and out of it. At a basic level, you need to know where your income comes from and what your expenses are. At a deeper level, knowing how money moves through your business can help you make strategic decisions about growth, invoicing, and debt management.    The consequences of not understanding money can be drastic—poor financial management is one of the main reasons businesses fail. That's why you need to understand cash flow.    What is cash flow? [Starting Cash + Cash In - Cash Out] = Cash Flow Before you can start to understand your cash flow, you need to know what cash flow is. Cash flow refers to the movement of money into and out of your business. It's fundamentally understanding how much money is coming into your business (your income, loans, and transfers of personal funds into the company

This Podcast Is Episode Number 0344, And It's About How To Achieve Business Success With A Construction Accounting Mentor As the year ends and another page is turning, it is important to learn and listen from trusted people who have come to assist you and guide you in your personal and professional endeavors. Your construction business's financial board, mainly your accountant, is one of them.   Ideally, you and your accountant are more than just an "adviser" and a "client" to each other. With your combined skills, expertise, and a shared mission to support a thriving business, you're more like strategic partners.    The key to achieving success in any partnership is, of course, healthy communication. Before the year ends or at your next meeting, be sure to ask your construction accountant these four important questions:   1. What's my best strategy for increasing revenue? Every construction business owner strives to improve profit margins – but the best way to quickly and sustainably grow revenue will

This Podcast Is Episode Number 0346, And It's About Common Bookkeeping Pitfalls And The Value Of Outsourced Accounting Although most construction company owners recognize the importance of careful financial management, few want to spend their time dealing with numbers. Unfortunately, not keeping a close eye on your income and expenses can be very costly for a business.   Here are five of the most common bookkeeping pitfalls, and some simple tips for getting back on track. 1. Mixing business and personal All too often, contractors adapt a "buy now, sort later" approach to expenses, using the same credit card for personal and professional purchases. At the end of the month, they're left poring over statements, trying to sort things out. Mixing business and personal expenses cost extra hours of bookkeeping each month and muddles your overall financial picture. Avoid this pitfall by using a separate credit card and bank account for business, and being disciplined about separating expenditures. 2. Neglecting t

This Podcast Is Episode Number 0345, And It's About Construction Business Blueprint For Updating Plans And Setting Goals As another year winds down, it's a good time to reflect on your recent construction business successes – and consider what you'd like to achieve in the coming twelve to fifteen months. One tiny change in your process can help you grow your Construction Company.   Entrepreneurs are typically highly creative and optimistic; as a result, they often have difficulty narrowing down their ideas from among all the exciting possibilities, whether it's an opportunity to expand to a new market or choosing a better time management strategy.    Set priorities As you update your business plan, focus on what's most important for your construction business to achieve this coming year. Then break your goals down into smaller tasks, maximize productivity, and enjoy the little successes that lead to significant changes. (More on this below) Keep in mind Randal's Contractor Success M.A.P. (Marketing-Accoun

This Podcast Is Episode Number 0344, And It Will Be About Quotes Vs. Estimates And Insights To Contract Negotiations   The nature of some types of businesses makes it challenging to come up with a standard price list. For tradespeople and construction company owners like you, what's required in terms of time, skill, labor, and materials frequently vary from job to job. Offering an estimate or quote provides potential clients with a customized figure for what they can expect to pay based on what will be required to complete a specific project. Quotes A quote is a legally binding fixed price a company prepares for a client; as such, they should always be in writing. A quote should summarize the work to be performed and include a detailed breakdown of all the costs and the final total, including taxes.  Once a business offers a quote and a client signs off on it, the price cannot change even if the job ends up costing more than initially anticipated. For this reason, it's crucial to always quote as accurately

This Podcast Is Episode Number 0343, And It Will Be About Efficient Business Systems And The Value Of Documenting Your Processes   Too many construction businesses fall over because the owner has not established efficient business systems. This typically happens because the construction company owner is so caught up in the day-to-day operations that the fundamentals of proper business management get forgotten. Often too, it must be said that the owner doesn't like bookkeeping or other administrative tasks, so these get put on the back burner. The symptoms are familiar, and their results disastrous: Poor or non-existent record-keeping.  Tax obligations are not met.  Invoices go out late, and debts remain uncollected.  There is one cashflow crisis after another.  Goods and services are incorrectly costed and priced. Any of these factors can lead the business down the slippery path to failure, but all are avoidable. The whole point about putting in sound systems is that they free you to spend more time working

This Podcast Is Episode Number 0442, And It Will Be About Understanding Construction Accounting Terms And Why It Matters Hiring an accountant is widely considered best practice for small business owners. But delegating financial analysis and reporting doesn't mean thoroughly checking out of the process each month or quarter. On the contrary, it's recommended that business owners work closely with their accountants throughout the year to better understand their financial position and make smart plans for future growth. We have discussed time and again the importance of knowing the difference between Construction Accounting and Regular Accounting. For the sake of our new readers, blog subscribers, and podcast listeners, I'll be providing you with some basic accounting knowledge so you can have more informed, insightful discussions with your financial advisors before the year ends. 1. Cash Flow  Do you have more cash flowing into your business each month than you payout to cover costs and expenses? If so, you

This Podcast Is Episode Number 0441, And It Will Be About Improving Client Relationships With CRM In The Construction Industry   Many complex moving parts are involved in operating a profitable construction company, but at its core, business success hinges on just one thing: customer relationships.    This is why Customer Relationship Management software is vital for contractors who want to grow their business.   A CRM solution helps your construction company nurture and improve client relationships by maintaining centralized data on all your leads and existing clients. With access to a history of customer transactions and communications, your team can make their next move with confidence while offering highly personalized customer service.   Construction business owners know that to find a loyal client base, they have to stand out from their competitors. One of the best and easiest ways to do that is to have outstanding customer service. How you treat your customers reflects your entire business. People thi

This Podcast Is Episode Number 0340, And It Will Be About Inbox Productivity - Email Management For Your Construction Company Be honest: is email helping or harming your construction business?   Remember when email was new and novel, and everyone thought it would vastly improve communication while freeing up time? It did improve communication - especially in the construction industry, where you have a team working on the field and in the office - on some levels, and freed up employee time at first. Now, however, email has become a productivity killer.   Construction business owners and workers have to wade through hundreds of emails in their inbox each day. Many contractors working on-site, choose to deal with email as it comes in rather than all at once. This takes the focus off their work and makes it difficult to concentrate on their tasks. The problem with email in the construction industry A significant issue with email is that contractors tend to feel that they have to read and respond to every work e

This Podcast Is Episode Number 0339, And It Will Be About 10 Hidden Construction Contract Traps And How To Avoid Them A new contractor meets an experienced customer, and money changes hands and not the way you expect it.   Typically, this is what happens when you first get started: You bid on a project, and you are the low bidder. You are given the client's standard contract, which contains the client's favorite set of commercial terms and conditions, to sign as a condition of getting the project. You close and sign the contract because you don't want to ask for changes in the terms or consult your construction attorney. You put the signed contract in your bottom desk drawer and pray hard nothing will happen during the project that will cause you ever to have to reread the contract.   Before it is too late, consider these traps to look out for: 1. Poorly defined scopes of work create claims and disputes. 2. The completion schedule is too short and exposes you to monetary damages for failure to finish on ti

This Podcast Is Episode Number 0338, And It Will Be About Calculating Costs And The Value Of A Construction Bookkeeper   Owning a construction business means you understand that bookkeeping is just one of those mundane, nasty, dirty, aggravating, grubby little chores you get stuck with along with its rotten scoundrel cousin the Monthly/Quarterly Tax Reports.  If you have employees - look out! On top of everything else you have payroll to process, in some cases, you may decide to provide cash advances to your employees to keep them focused on the job and not on personal issues, and finally there are all the Payroll Taxes you need to keep track of and file the reports for on a regular basis. Smart Contractors know their time is more valuable spent meeting prospective clients, putting together bids, managing job sites, and a whole lot of other things other than bookkeeping. So they find someone else to do it.  Just like there are skilled construction workers and clowns trying to pass themselves off as skilled w

This Podcast Is Episode Number 0336, And It Will Be About Practical Procedures To Boost Your Construction Business Profitability Cost is what you see; the profit potential is what you don't see.  High-profit construction company owner's focus on both and understand that "It Takes Money To Make Money."   Strategy comes from the office. Fieldwork is vital - labor, material, and subcontractors get things built, maintained, and repaired; however, efficient operations and fast workers who give 110% cannot overcome lousy strategy. Office and field are separate but equal. Each skill-set requires different working styles and different cultures. It is your profession as the business owner to help everyone come together and understand each other's job and how it fits in the grand scheme of things.   Successful contractors understand how and why the business cycle of construction works through implementing these actionable steps:   Examine all your processes   Take a long hard look at your construction company and lis

This Podcast Is Episode Number 0336, And It Will Be About Top Reasons Why Contractors Have A Hard Time Loaning From The Bank Contractors want money; banks want to lend money, what's the problem?   Think of all the times: You loaned money to a friend or relative Provided labor and material for somebody's home or business without a deposit check Did change order work that you never got paid for doing and never will Gave employees an advance on their paycheck that you never got paid back Multiply that by 100,000, and you will begin to understand why banks seem so tight-fisted about loaning money. Banks stay in business by loaning money and earning interest. They work hard to find people and companies that have good credit so they can lend money and get paid back in a timely fashion, with all of the interest due to them. Do your best to avoid raising any red flags:   Your Profit & Loss and Balance Sheet Reports do not conform to financial industry standards The financials tell the banker your bookkeeper d

This Podcast Is Episode Number 0335, And It Will Be About The Scientific Remodeling System   Today's Guest Article Is From David Hawke and Randall Soules A real remodeling system designed to generate more wealth with less work. I know it sounds like a cliché, and possibly even far fetched, but in this podcast episode, you’ll hear how this system came to exist and what gives its users the path to more wealth with less work. That said, success is not a guarantee. It does take work, but if you have the desire, the Scientific Remodeling System will give you the systems and processes needed to not only thrive as a remodeler but also have the money and freedom to enjoy a personal life with friends and family. Remodeling contractors are a rare breed. Typically they are tradespeople who make the jump into a business owner. They are very tied to the outcome of each project and love the feeling of giving life to the space they’re working with.  It’s as much an art as it is business. And that is why it’s difficult to

This Podcast Is Episode Number 0334, And It Will Be About How To Make More Money In Construction With SWOT Analysis   Developing a comprehensive strategy for your construction business can be about as much fun as wrestling a pig in the mud because: It is slippery and hard to get control over it. It will wear you out and frustrate you to no end. You will swear it is a complete waste of time. Your contractor buddies who are barely making a living will think you're crazy. In the end, you will be thoroughly worn out, exhausted and mentally drained. What separates wealthy contractors from poor contractors? It's not a lack of opportunities to bid jobs or get leads because getting leads is easy. It's not lack of ambition because every contractor I know is active and ready to get busy. It's not a lack of intelligence or the ability to develop a production method and follow it to the end. It's not lack of money because if you follow my process, you know how to overcome that using O.P.M. (Other People's Money) Th