THIS PODCAST IS EPISODE 569, AND IT'S ABOUT HOW NOT TO UNDERCHARGE YOUR CONSTRUCTION CLIENTS * Contractors like you know how to pound nails, pour concrete, build homes and commercial structures, bend pipe and pull wire, install roofs, lay carpet, paint walls, and perform a thousand other tasks. So why are you not enjoying the same standard of living as other professionals? Because you are doing all of those things for anybody and everybody who asks you to. *   * Too many contractors are overworked, undervalued, and underpaid. We seek to change that for as many contractors as possible as we know how almost every sound, solid, hardworking, well-intentioned contractor is going out of business or barely scraping by, and that has to end here and now. *   * * * * First, I must address how this could be an internal cause, such as how you deem your self-worth. Imposter syndrome is a common problem affecting people in various industries, including construction. For those who don't know, imposter syndrome is the feeling that you're not good enough or don't deserve your success despite evidence to the contrary. This can lead to undercharging clients, which is bad for business and perpetuates the cycle of feeling like an imposter.  In construction, imposter syndrome can manifest in many ways. You may feel like you need more experience or the proper education or training. You may be comparing yourself to others in the industry who seem more successful or knowledgeable. Whatever the case, it's essential to recognize that these feelings are common and don't have to hold you back.  However, when imposter syndrome leads to undercharging clients, it can have serious consequences. Not only are you undervaluing your work, but you're also potentially setting yourself up for failure. If you need to charge more to cover your expenses, you may need help to make ends meet or even go out of business.  Here are a few tips:  1. Recognize your value: Remember that you have something valuable to offer your clients, whether it's your experience, expertise, or unique perspective. Feel free to charge what you're worth.  2. Focus on your strengths: Instead of comparing yourself to others, focus on your strengths and what sets you apart. Could you highlight these strengths in your marketing and client interactions?  3. Get support: Talk to others in the industry who may have experienced imposter syndrome. Join a professional organization or mentorship program to connect with others who can offer support and guidance.  Now that this mental dilemma is tackled, let's examine your systems and processes. WORKING IN YOUR BUSINESS IS A JOB (JUST OVER BROKE) WORKING ON YOUR BUSINESS IS WHERE MONEY IS MADE What if you could do both? Work in your business and have a higher standard of living.  Because most small construction businesses focus on survival, you pay close attention to the bottom line. This makes sense, but it also leads to being seriously overworked. Contractors like you are under increased pressure to cut their prices to get enough work, which means they need to reduce costs. What to do? 1. Accept that you have to raise your prices at some point It's a daunting task to consider raising your prices, as the danger of losing customers will be front of mind. But the bottom line is this: you can only deliver quality service if you're charging enough. It's that simple. If you're spinning your wheels trying to make up for the difference, you'll lose customers anyway. You won't be able to deliver the excellent service you're known for if you're constantly overworked trying to find profits elsewhere.  2. Understand what's costing you Consider your business costs at least once per year. Check which products or services are making money and which aren't. Then, take it further and pinpoint each area's breakeven position. You will then be able to decide how much more you need to make to be profitable and comfortable. Evaluate all avenues – supplies, staff wages, bills, rent and utilities, training, etc. Doing this regularly lets you see which areas cost you more over time. Those that cost you more will likely benefit from a price increase.  3. Bookkeeping A construction bookkeeper is an expert at managing, sorting, and recording your business's financial transactions. They've spent time developing their skills and experience and seen and resolved bookkeeping-related issues that you may encounter. Their expertise makes them more efficient at managing those issues. Your bookkeeper helps you maintain accurate records and understands your financial circumstances. They allow you to assess how to make critical business decisions, such as whether now is an excellent time to grow or when you should hold back. Your construction accountant can provide insight and advice on how to charge appropriately for your services based on your financial records and industry trends and help you take advantage of those opportunities. Final thoughts Imposter syndrome is a common problem, but it doesn't have to hold you back in your construction business. By recognizing your value, focusing on your strengths, and seeking support, you can overcome imposter syndrome and build a successful and fulfilling career in construction. You work hard as a small business owner and deserve compensation for the time you put into your business. As you work in your field, you gain more skills, experience, and knowledge, which translates to more value. If your construction company is better than it was a year ago, it's time to charge accordingly. Don't undervalue yourself. Remember, as we always say, contractors like you deserve to be wealthy because you bring value to other people's lives. PS  * We offer FREE RESOURCES to help you save time and money that you can download and print now.  ABOUT THE AUTHOR: Sharie DeHart, QPA, co-founded Business Consulting And Accounting in Lynnwood, Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations. She offers insights on managing the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. Call 1-800-361-1770 tel:18003611770 or sharie@fasteasyaccounting.com

10m

Mar 29, 2024

THIS PODCAST IS EPISODE 568, AND IT'S ABOUT THE POWER OF CORE VALUES IN YOUR TRADE BUSINESS * As a construction company owner, you're the architect of your business's vision and culture. But some of the foundation often needs to catch up in the hustle to improve services, chase sales, and keep the lights on. Core values—those guiding principles that shape your company's identity—are more than words on a wall or a statement in a handbook. *   * Getting leads and doing the work is only part of the answer. Not answering them and acting on the knowledge is why many construction companies wither and die. They focus on the wrong areas to innovate or improve. They focus on the wrong enemy and threat. As a result, they need to catch up on what they could be doing to succeed and prosper over time. *   * Is the elevator pitch you used a year ago – even six months ago – still accurate? Unless you are crystal clear on who you are as a construction company, whom you're here to serve, and what you hope to achieve in the next one to three years, it will be hard to come up with meaningful goals. *   * * * * * These aren't just buzzwords to sprinkle throughout your website—your business's core values can act as the compass for your business, sharpening much about it. If your brand needs tweaking to reflect where your construction business is today and where you want it to go, start there. *   * LET'S DIVE INTO WHY CORE VALUES ARE CRITICAL TO YOUR ENTREPRENEURIAL JOURNEY. *   * 1. CORE VALUES ESTABLISH A COMPANY CULTURE. *   * A company without defined core values is like a boat without a rudder—adrift without direction. Sure, you're moving, but where? *   * CORE VALUES FOSTER A SENSE OF IDENTITY AND PURPOSE *   * Your core values anchor your company's culture. They define your company's personality. When employees understand and live these values, it unifies them. *   * GUIDE DECISION-MAKING AND CONDUCT *   * Values should be your company's moral compass, setting the course for how you want your team to operate in every situation. From difficult decisions to everyday choices, they help your team stay true to the company's ethos. *   * 2. ATTRACT AND RETAIN TALENT. *   * In a competitive job market, your company's values can attract like-minded individuals. *   * APPEAL TO EMPLOYEES WHO ALIGN WITH THE VALUES *   * Millennials, and now Gen Z, not only seek employment but also meaningful work. They are drawn to companies whose values match their own. When you promote your business's core values, you'll find it easier to recruit those who are best suited for your team. *   * INCREASE EMPLOYEE ENGAGEMENT AND LOYALTY *   * Employees who connect with your values are more likely to be engaged in their work and committed to the company's long-term success. This engagement translates to higher levels of staff retention, and engaged employees are much less likely to look for a job at other companies. *   * 3. THE CURRENCY OF TRUST: BUILD TRUST AND REPUTATION. *   * Consumers want to buy from companies they believe in. *   * DEMONSTRATE INTEGRITY AND AUTHENTICITY *   * When your core values drive your business practices, you stand out as a company that's not just about profits but about people and principles. This authenticity in business operations builds a strong foundation of trust with your customers. *   * In a world of cynicism, displaying your core values shows that you mean what you say. *   * ENHANCE CUSTOMER TRUST AND LOYALTY *   * A company that walks the talk regarding values will create loyal customers who return for repeat business and refer others to you. *   * 4. PROVIDE A FRAMEWORK FOR DECISION-MAKING *   * One of the trickiest parts of leading a business is knowing which opportunities to chase and which to pass up. *   * HELP PLAN ACTIONS AND INITIATIVES *   * Clear core values make evaluating opportunities easier and aligning them with your company's long-term strategies. *   * GUIDE STRATEGIC PLANNING AND GOAL-SETTING *   * Strategic plans also benefit from a values-driven approach. Your values help you set more meaningful, impactful, and achievable goals that resonate with your business mission. *   * 5. DRIVE BUSINESS SUCCESS. *   * Ultimately, businesses are run by people. And it is people, working together under common values, that power growth and success. *   * CREATE A COHESIVE AND ALIGNED TEAM *   * When everyone's values align with the company's, you create a culture of respect, understanding, and support. *   * SET THE FOUNDATION FOR LONG-TERM GROWTH AND SUSTAINABILITY *   * A business founded on strong core values can withstand market challenges and changes in leadership. It's the foundation for building a resilient, adaptable, and sustainable business. *   * IN THE CONSTRUCTION INDUSTRY, where safety, teamwork, and accountability are of utmost importance, having a set of core values can help establish a healthy and productive work environment, build trust among team members, and ensure that all stakeholders are aligned toward a common goal. Core values can also help attract and retain top talent, as employees who share the same values as the company are more likely to be engaged and committed to their work. *   * IN CONCLUSION *   * Integrity is the overarching essence of core values.  Core values are not mere internal branding nor a dusty document to be rolled out during public relations crises. They are the heart of your construction company. *   * In crafting core values and integrating them into your business strategy, you're not just creating a checklist of moral standards; you're shaping your company—its culture, impact on the world, and its legacy. *   * In every action, every decision, and every interaction, your values should be the guide that keeps your construction business on course. *   * So, if you haven't already, now is the perfect time to sit down with your team and chart the values that will define your business. PS  * We offer FREE RESOURCES to help you save time and money that you can download and print now.  ABOUT THE AUTHOR: Sharie DeHart, QPA, co-founded Business Consulting And Accounting in Lynnwood, Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations and offers insights on managing the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. Call 1-800-361-1770 or sharie@fasteasyaccounting.com  

10m

Mar 22, 2024

THIS PODCAST IS EPISODE 567, AND IT'S ABOUT THE SECRETS TO STELLAR CLIENT SERVICE IN THE CONSTRUCTION INDUSTRY * Customer service is the heartbeat of any successful business. The unsung hero transforms a potential disaster into an opportunity and a mere transaction into a lifelong relationship. In the narrative of customer loyalty and retention, service is the protagonist. *   * Your approach to customer service has the power to attract and retain clients. As a construction business owner, client service is critical to your company's success. It is essential to understand what your clients want and how you can provide the best service possible to meet their needs. *   * * * * Why stellar customer service is key The importance of customer service for loyalty and retention cannot be overstated. Positive experiences build stronger emotional connections with customers, leading to repeat purchases or the client hiring you again, enhanced brand loyalty, and positive word of mouth. Stellar customer service is the hallmark of success in a booming digital economy. If you have a website or are marketing your trade business online, you are part of this, or you use platforms where competitors lurk one click away.  One of the most critical aspects of client service is communication. It would be best if you communicated effectively with your clients to understand their requirements, provide updates on the project's progress, and ensure they are satisfied with the work.  You should also be responsive to their queries and concerns and provide timely and transparent information.  Another crucial factor in client service is managing expectations. It is vital, to be honest and realistic about what you can deliver and to ensure that your clients understand what they can expect from you. This will help avoid misunderstandings and ensure your clients are happy with the result.  Good Customer Experience is Key A recent Zendesk report found that 3 in 4 consumers are willing to pay more for good customer service. This is a clear signal that in a market cluttered with varying product specifications, prices, and services, customer experience can be the factor that differentiates you from the competition. Retention Customer retention is cost-effective (five to 25 times less expensive than acquiring new customers) and promises a more predictable revenue stream. As a business, your job doesn't end at the point of sale—it means nurturing and retaining your customers. Crafting your customer service strategy Mastering the art of customer service requires a well-rounded strategy. Let's break it down: Excellence breeds loyalty When you deliver exceptional service, you invite customer loyalty, which fuels a positive cycle of customer lifetime value. From thank-you notes to responsive support, every interaction is an opportunity to reinforce a customer's decision to choose your brand. Accessibility is vital Clients shouldn't need a treasure map to find your service. Information, contact details, and assistance need to be at their fingertips. Accessibility is paramount through a user-friendly website, a seamlessly integrated app, or a robust social media presence. The power of empathy Empathy is the currency of customer service. It's walking in your client's shoes, understanding their pain, and making it suitable. An empathetic approach can turn a disgruntled customer into a brand advocate. Metrics You can't improve what you don't measure. Customer satisfaction metrics like Net Promoter Score (NPS), customer effort score, and customer satisfaction score are valuable tools to provide insight. Customer Service in Practice: Tools and Techniques It's time to delve into practical customer service applications. 1. Omnichannel Customers are diverse, and so are their preferred service channels. From social media to chatbots and the phone, an omnichannel approach ensures that customer service is available and tailored to meet them where they are. 2. Proactive Service Don't wait for customers to come to you with issues. Be proactive. Send out surveys, ask for feedback, and offer service tips before they ask. 3. Flexibility No two customer issues are alike, just like your projects, and neither should their solutions be. Empower yourself (or staff) to make decisions and resolve problems creatively. Sometimes, the most memorable experiences come from the most unusual solutions. 4. Always be learning Customer service is a moving target. Encourage a culture of learning and evolving. Share success stories and pain points within the team or contractor friends in the industry. This will both boost team spirit and also lead to collective wisdom. 5. Turning service into a marketing asset Quality workmanship is also essential for exemplary client service. Providing high-quality work that meets or exceeds your client's expectations will help to build trust and loyalty. Ensure you use quality materials and employ skilled workers who take pride in their work.  Beyond its immediate role, impeccable customer service can also be a marketing tool. POSITIVE REVIEWS: the ultimate trust signal Good service brings good reviews, which in turn attracts new customers. Reviews are often seen as more trustworthy than a brand's self-presentation. WORD OF MOUTH: Satisfied customers are the most effective salespeople. They tell their friends and family about their great experiences, and with the power of social media, they can say it to the world. CUSTOMER TESTIMONIALS: When accurate, unscripted customer stories take the limelight, the message becomes compelling and human. Conclusion: the end or just the beginning? Remember, every interaction with a customer is a chance to shine, and every problem is an opportunity to excel. You'll retain customers and create loyal brand ambassadors by making customer service a core business value.  It is crucial to show appreciation for your clients. Simple gestures such as thanking them for their business, sending a personalized note or gift, or providing follow-up support can go a long way in building solid relationships.  Your clients will remember your service long after the project is done. PS  * We offer FREE RESOURCES to help you save time and money that you can download and print now.  ABOUT THE AUTHOR: Sharie DeHart, QPA, co-founded Business Consulting And Accounting in Lynnwood, Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations and offers insights on managing the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. Call 1-800-361-1770 or sharie@fasteasyaccounting.com    

12m

Mar 15, 2024

THIS PODCAST IS EPISODE 566, AND IT'S ABOUT MARKETING YOUR CONSTRUCTION BUSINESS: HOW TO MAKE IT WORK FOR YOU * Marketing your construction business is crucial for its growth and success. You can use various strategies to promote your business, such as creating a website, networking, social media marketing, and advertising. Additionally, sponsoring events and collaborating with other companies can help you reach a wider audience.  *   * I understand how daunting it can feel for construction business owners like you; we've been there. Whether you're new to the game or have been in business for a while and haven't quite cracked the code, navigating the marketing world can be overwhelming. But it doesn't have to be. Your business deserves to be seen, heard, and thriving—with the proper guidance, you can make marketing work for you. Let's unravel the puzzle, starting from square one. *   * * * 1. Defining your target audience Know thy client: the key to tailored marketing. * Before you shout your brand from the rooftops, you must know who you're calling to. Understand the demographics and psychographics of your ideal customer. Are they young professionals, parents, or retirees? What problems do they face that your product or service can solve? The better you know your customer, the better your marketing will resonate. *   * 2. UNCOVER DATA GOLD WITH MARKET RESEARCH *   * Don't rely on guesswork. Dive into market research — it's how you find the "who" and the "why" of your business. This doesn't have to be a complex, expensive ordeal. Start with online surveys or asking family, relatives, and friends in your neighborhood, as well as interviews, social media insights, and competitor analysis. The information you gather here will be invaluable. *   * 3. SET CLEAR GOALS THAT SPARK DIRECTION THE BEACON OF YOUR MARKETING JOURNEY * Without clear objectives, your marketing can feel scattered, like throwing darts in the dark. Your goals should be specific, measurable, attainable, relevant, and time-bound (SMART). Are you aiming to increase website traffic by 30% in six months? Or boost sales by 15% at the end of the year? These goals keep you focused and make success less vague. *   3. DEVELOP A MARKETING STRATEGY Mapping out your move * Once you've defined your target audience and your goals, it's time to set your marketing strategy. Your marketing strategy is the "how" behind your goals. Identify which channels your audience frequents. If you're targeting working millennials, perhaps Instagram is for you. A well-thought-out marketing strategy aligns your business objectives with the most effective messaging and channels. *   * 4. CONSISTENCY IS KING *   * Branding isn't just a logo or a tagline. It's the sum of all your customer interactions and experiences with your small construction business. Create a content calendar to ensure your brand is visible across all marketing platforms and your message remains consistent. This calendar should include blog posts, social media content, email campaigns, and any other touchpoints relevant to your audience. *   5. Crafting compelling content The art of the story * Your content should inspire, educate, or entertain — ideally, all three. Write as if you're speaking to a friend, addressing their problem with your service as the solution. Your content is the thread that weaves your story with your customers. Remember, compelling content isn't just about words. Images and videos can support your message. *   * VISUALS – THE SILENT SWAY *   * Humans are visual creatures. In fact, 90% of the information transmitted to the brain is visual. High-quality, eye-catching images and videos can convey your message faster and stickier than words alone. Share photos of your "before and after" service provided or a video demonstrating its benefits. The more senses you engage, the deeper your marketing will resonate. *   6. Execution and monitoring: making it happen and seeing it through Take the plunge * It's showtime! Execute your marketing plan with gusto. Use CRM (Client Relationship Management) tools like HubSpot for email campaigns to save time and stay on track. Remember, marketing is a marathon, not a sprint. Consistency and perseverance are key. *   * 7. LEARNING FROM YOUR RESULTS *   * Every marketing initiative is a learning opportunity. Use Google Analytics, social media insights, and customer feedback to monitor how your campaigns are performing against your goals. Identify what's working and what's not, and adjust accordingly. The more you learn, the smarter your marketing will become. *   * A WORD OF ENCOURAGEMENT AND EMPOWERMENT: YOU'VE GOT THIS! *   * Marketing can be a rollercoaster, with its ups and downs, but you've already taken the crucial first step – you're learning and adapting—trust in your journey, your construction business's uniqueness, and the value you provide. With persistence, creativity, and strategic thinking, your marketing activities will start to feel like second nature. *   * EMBRACE THE ADVENTURE *   * Think of marketing as an adventure. You're the explorer, and every campaign is a new frontier. It's okay if there's trial and error and even better if there's growth. You're an integral part of the narrative, and your customer eagerly awaits your next chapter. *   * Remember, word-of-mouth referrals can also be a powerful marketing tool, so be sure to provide excellent service, build relationships with your clients, and ask for their feedback and referrals.  *   * Now, take these steps, make them your own, and enter the world of marketing with confidence. *   * Your construction business isn't just another face in the crowd — unique, valuable, and deserving of a spotlight. Let's make that happen. PS  * We offer FREE RESOURCES to help you save time and money that you can download and print now.  ABOUT THE AUTHOR: Sharie DeHart, QPA, co-founded Business Consulting And Accounting in Lynnwood, Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations and offers insights on managing the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. Call 1-800-361-1770 or sharie@fasteasyaccounting.com

11m

Mar 08, 2024

THIS PODCAST IS EPISODE 565, AND IT'S ABOUT DIY CONSTRUCTION ACCOUNTING ERRORS AND WAYS TO IMPROVE YOUR PRACTICES Many small construction business owners tend to handle their accounting and bookkeeping, especially when they've just started. However, keeping track of the finance side of the business– everything from income to expenses to tax compliance– can be overwhelming. *   * Mistakes can happen quite quickly and can have costly consequences for your business. Below are five of the most common Do-It-Yourself accounting errors you should avoid. *   * * * 1. Unorganized Records It takes excellent organizational skills to do your bookkeeping and accounting right. You must record every transaction, keep receipts or digitize them for future reference, calculate taxes accurately, and more. If your records are not kept organized and updated, you'll likely miss something, which could get you into trouble during the tax season. 2. No Accounting Schedule As a construction business owner, there are many other things you need to attend to, and accounting can easily be pushed to the bottom of your seemingly endless To-Do list. Yet, setting an accounting schedule to add your recent income and expenses into your records is extremely important. If daily updating is not possible, at least dedicate some time once a week to do your accounting. 3. Unreconciled Accounts Regularly check if your bank account reflects the same balance as you record your cash flow and other financial data in your books. If you find a gap, there is likely a mistake somewhere that you need to find or even a fraudulent transaction. Taking immediate action will help you prevent worse problems further down the line. 4. Failing to Take Into Account Small Transactions It can be easy to forget about minor transactions, such as the office supplies you picked up on your way to the office or the freebie you sent a loyal customer. However, no matter how small you think the transaction is, keeping a record and getting a receipt is essential. In case of a tax audit, you will need to be able to present records of ALL business expenses, even these small ones. 5. Not Backing Up Data and Using Accounting Software Imagine if the laptop where you store all your financial data was stolen, lost, or broken beyond repair, and you don't have a backup. You need to redo everything from scratch, which could be a massive waste of time. If you're still using a spreadsheet or paper ledger to keep track of your business finances, you might consider upgrading to a cloud-based accounting software such as Xero or QuickBooks. By migrating to the cloud, you can easily back up your accounting data and access them wherever and whenever necessary.  These cloud-based accounting systems integrate well with your bank account and other valuable construction business apps. The results are streamlined processes, less manual work, enhanced efficiencies, and better overall business performance.  Spend Less Time on Your Books and More Time on Your Business While being aware of these common accounting mistakes could help you avoid them, the most convenient and efficient way to stay on top of your business finances is to entrust your accounting to the experts. Our team of experienced accountants can integrate the most suitable cloud accounting software for your business and even train your in-house staff on its proper implementation. I admit that small business owners - like myself have learned to make the most of our resources. As an entrepreneur, I tend to take on the challenge of wearing multiple hats, managing your business, answering phone calls, responding to emails, and scheduling appointments. However, I am reminding you now that being a construction company owner and doing your accounting and bookkeeping requires a different skill set from being a construction expert in your field.  When it comes to your financials, it would be wise to take a step back and let someone specializing in bookkeeping do it for you. Ensure that they are not just accountants or bookkeepers; they are construction bookkeeping and accounting professionals. STILL CONTEMPLATING WHETHER TO OUTSOURCE OR DO IT YOURSELF? HERE ARE THE QUESTIONS TO DETERMINE WHICH ONE IS RIGHT FOR YOU: DO I HAVE EXPERIENCE IN BOOKKEEPING AND ACCOUNTING? OUTSOURCE: Working with a knowledgeable and experienced bookkeeper specializing in your industry will save you time setting up your system and processes, making it easier to get started. DIY: You may have a bit of a learning curve. Start by familiarizing yourself with construction bookkeeping and accounting processes. Create a system and an everyday routine for managing your paperwork. WHAT KIND OF SOFTWARE AND APPLICATIONS SHOULD I USE? OUTSOURCE: Your construction bookkeeper will be able to help you determine which accounting software will work best for your business, provide you with extensive training and support, and share tips and tricks on optimizing it. Fast Easy Accounting supports several different software and applications. In particular, QuickBooks or Xero for construction depends on how you get paid, the work your company does, and if you need Job Costing. DIY: This is where it gets tricky. As I have mentioned, using a particular software depends on your contracting business, what you need out of it, and how much time you are willing to devote to learning and using it. Remember that using more popular and in-demand software and applications has a significant advantage in case of issues. Tech support should be readily available; if not, a quick Google search can lead to video tutorials and community answers. HOW DO I GENERATE FINANCIAL REPORTS? OUTSOURCE: Contractor Financial Reports such as Profit and Loss, Balance Sheet, Cash, Receivables, Payables, Job Costing Reports, and Job Profitability Reports all depend on proper bookkeeping set up from Day 1. It's easy to pull a report based on the entries and use it whether you want to understand when and where you are making money or you need to present your financials to the bank or CPA. DIY: It is easily accessed and generated from your accounting software. The real question here is, how reliable are your reports? For instance, a generic chart of accounts with your QuickBooks software is not customized to your construction business needs; thus, transactions are often assigned to improper categories, resulting in inaccurate reports. Final thoughts We offer construction bookkeeping and accounting solutions at our online store. We have QuickBooks and Xero setup templates for those who would like to do their own bookkeeping; we have packages available to choose from when you need to outsource it to us or opt to have an in-depth review of your current bookkeeping setup. Let us take charge of your books while you focus on growing your business. We help a little or a lot, depending on your needs. I look forward to being able to assist you with any option that best fits your construction company.  PS  * We offer FREE RESOURCES to help you save time and money that you can download and print now.  ABOUT THE AUTHOR: Sharie DeHart, QPA, co-founded Business Consulting And Accounting in Lynnwood, Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations and offers insights on managing the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. Call 1-800-361-1770 or sharie@fasteasyaccounting.com  

12m

Mar 01, 2024

* THIS PODCAST IS EPISODE 564, AND IT'S ABOUT COMMON CONSTRUCTION BUSINESS PITFALLS AND HOW TO OVERCOME THEM * Construction Company owners like you have probably experienced life-changing events in the past few years, as many of our clients did. Are you struggling to keep your construction business afloat? Do you find yourself facing the same issues over and over again? It's common for construction businesses to meet various challenges, but if you're not addressing them properly, they can quickly become pitfalls.  *   * * 1. POOR CASH FLOW MANAGEMENT  *   * One of the biggest challenges for construction businesses is managing cash flow. You need cash to buy materials, pay workers, and keep your business running. However, you may be in a cash crunch if you don't correctly deal with your cash flow. To avoid this, you should create a cash flow forecast and regularly update it. This will help you anticipate cash flow issues and take steps to address them before they become a problem.  *   * * * * 2. FAILURE TO ADAPT TO MARKET CHANGES  *   * The construction industry is constantly changing, and if you don't adapt, you may struggle to keep up with the competition. For example, if new regulations are introduced, and you don't adjust your business practices to comply with them, you may lose out on business. Keep an eye on industry trends and be willing to adapt as needed.  *   * 3. POOR PROJECT MANAGEMENT  *   * Construction projects are complex and require careful planning and execution. If you don't manage your projects correctly, you may experience delays, cost overruns, and other issues. Ensure you have a solid project management plan and that everyone on your team understands their role.  *   * 4. LACK OF COMMUNICATION *   * Communication is vital in any business but especially important in the construction industry. Your team must communicate effectively to ensure projects are completed on time and budget. Ensure everyone on your team understands the importance of communication and has the tools they need to communicate effectively. *   * 5. FAILURE TO INVEST IN TECHNOLOGY *   * Technology is transforming the construction industry, and if you're not investing in it, you may fall behind. For example, construction management software can help you streamline operations, reduce errors, and improve communication. Explore the different types of technology available and determine which can help you run your business more efficiently.  *   * 6. NOT DELEGATING/OUTSOURCING TASKS *   * As much as we all might like to think of ourselves as superheroes who can handle anything and everything, the truth is that we're all human. Sometimes, even the most capable among us need a little assistance, and that's nothing to be ashamed of. Knowing when to delegate tasks can be one of the most important skills you can develop as a leader or even a responsible adult. *   * Knowing when to ask for help – whether from family members, friends, co-workers, or specialists – can save you time, reduce stress, and improve the quality of the result. So, if you feel overwhelmed by a project or task, don't hesitate to ask for help. It might just make all the difference in the world. *   * 7. LISTENING TO BAD ADVICE *   * When you're a small construction business owner, you get used to people giving you advice. While the advice is almost always well-intended, it's not always good. *   * THESE ARE USUALLY THE TOP TWO TIPS THAT WELL-MEANING PEOPLE GIVE TO CONSTRUCTION BUSINESS OWNERS: *   __ __ *   * Money is a good thing. But that doesn't mean you should say yes to everyone who enters your door. Not every person who approaches you is suitable for your business. If your gut tells you something is off—maybe the person is very demanding or constantly questions your prices—it's in your best interests to say no. *   * It's not necessarily about the client, either. You might be very busy, and taking on another project means you'll give them subpar service or use your valuable personal time. *   * If possible, turn them away graciously by explaining that you're very busy and cannot give them the attention they deserve. Consider recommending another business for them that they could turn to. *   * Don't say "yes" to everyone who walks through the door just because they're a paying customer. *   __ __ *   * It's often in your best interests to address an unhappy customer and their needs. But some clients will never be happy, no matter what you do, especially in the construction industry. It's okay to try to make things right with them, but you risk word getting out that you'll bend backward to make customers happy. That encourages more unhappy people to come your way. Or it encourages people to find reasons to be disappointed so they can get additional benefits from you. *   * If it's a normal part of a routine that customers constantly complain and get some reward, you need to examine your business. If the customers are correct, then it's time for some changes. If they aren't right, stop treating them like they are. *   * When someone offers advice on your construction business, ask what credibility they have to share their insights. Have they owned their own business? Do they know the industry you work in? Have they learned lessons you could learn from? Was their business similar to yours? *   * FINAL THOUGHTS *   * Running a construction business can be challenging, but with proper planning and execution, you can overcome common pitfalls. The truth is that owning a construction business means you must continually adapt and innovate to thrive. *   * Remember, just because someone offers advice doesn't necessarily mean they are relevant to you. And just because they provide the advice—or just because it is a common saying—doesn't mean you have to follow it. *   * Contractors like you need results - not advice. Let me know if you want to discuss how you can operate and grow your construction company. PS  * We offer FREE RESOURCES to help you save time and money that you can download and print now.  ABOUT THE AUTHOR: Sharie DeHart, QPA, co-founded Business Consulting And Accounting in Lynnwood, Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations and offers insights on managing the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. Call 1-800-361-1770 or sharie@fasteasyaccounting.com

10m

Feb 23, 2024

THIS PODCAST IS EPISODE 563, AND IT'S ABOUT UNLOCKING NEW CONSTRUCTION CLIENTS AND MARKETS * For a business to thrive and grow, it needs a strategic plan and the ability to find new customers and continually tap into promising markets. However, this can be easier said than done in a highly competitive trade industry. *   * With time, the quality of your work will speak for itself, which is the most valuable testimonial of all. While your good reputation preceding you is undoubtedly essential, there are a few other ways that you'll want to market your services to ensure that you have a steady stream of work. *   * THE UNTAPPED POTENTIAL IN EXISTING MARKETS *   * Start by re-evaluating your existing customer base. Profiling them will help you more accurately define your target consumers.  *   * * Strategic Marketing is essential for any business to attract new clients, and the construction industry is no exception. Effective marketing strategies can help you reach your target audience and showcase your expertise. Some of these include: __ __ Personas: your marketing's best friend Personas bring your target customers to life. If your service's ideal customer is a 40-year-old stay-at-home mom and a husband in the tech industry looking to update their kitchen, create a detailed profile reflecting their lifestyle, income, concerns, educational background, and other key demographics. The deeper your understanding of your target customer, the easier it will be to find others who fit the same profile. Expanding your business horizons Look at where your customer personas are located. Could different geographical regions hold potential for you? If so, conduct thorough consumer demand research in these locations. If the demand is significant, devise a strategy to serve these customers. This could mean extending your services to locations outside your city if the project will pay well. Integrating vertically or horizontally Depending on your current position in the market, you might find opportunities to expand by buying out competitors or partnering with complementary businesses to increase your reach and customer base. Networking can help you build relationships with potential clients and other businesses in your industry. Attend industry events, join local business associations, and participate in community events to build your network You can also consider partnering with other businesses or contractors to expand your reach and attract new clients. The digital landscape: have an online presence A robust website or a business page is a valuable way to reach more clients. A responsive website design could be beneficial if your business customers mostly found you through a Google search on their phone (that's why it's essential to ask how they found you during your first chat). Your website is your storefront, so make sure it's professional, easy to navigate, and highlights your services and expertise. Increase visibility in the real world Make sure your construction business's name and logo appear on any equipment you use, and make clothes for yourself or your crew to wear when they're out and about in the world. It may be smaller than a billboard, but driving and walking around letting people know who you are, what you do, and how to contact you will go a long way to marketing your trade business. If people become familiar with your business name, they'll likely turn to you when needed. * ANALYZING YOUR COMPETITORS *   * It's essential to know what your competitors are doing. By researching their marketing strategies, you can gain valuable insights into what works and doesn't in your industry. This can help you make informed decisions about your marketing efforts and stay ahead of the competition. One way to start is by analyzing your competitors' websites, social media profiles, and advertising campaigns. Look for patterns and themes in their messaging, branding, and target audience. Re-evaluate your marketing strategy What actions are you taking to attract new clients? Consider brand promotion through conferences or customer surveys. Enhance your online presence on relevant websites and social media platforms. Showcase your work, engage with your followers, and connect with potential clients. You could even set up a formal referral program, as most customers will refer your business to others. Encourage satisfied clients to refer you to their friends and family, and consider offering referral incentives. You can also ask for testimonials and showcase them on your website and social media to attract new clients. Consider offering promotions and discounts to attract new customers and encourage repeat business. Exploring new markets If you feel you've maxed out growth opportunities in your existing market, it might be time to cast your net wider. Perhaps your expertise could transfer to consulting or different sectors like B2B, which could be viable options. This could require some tweaking of your marketing approach and product offerings to cater to other pain points, problems, and priorities. Partner with other businesses in your industry or outside but still relevant to what you do - like Real Estate Agents, Photographers, and Local Community Artists and Influencers, to offer joint promotions, share leads, and cross-promote each other's services. In Conclusion As a construction business owner, it's important to increase your local visibility, understand your target audience, and create a message that resonates with them. Of course, don't forget to measure your results. Finding new clients and markets is an exciting journey that could unlock doors to business growth. It requires careful planning and strategic actions, but the rewards could be significant with the right approach. P.S. * We offer FREE RESOURCES to help you save time and money that you can download and print now.  ABOUT THE AUTHOR: Sharie DeHart, QPA, co-founded Business Consulting And Accounting in Lynnwood, Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations and offers insights on managing the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. Call 1-800-361-1770 or sharie@fasteasyaccounting.com

11m

Feb 16, 2024

THIS PODCAST IS EPISODE 562, AND IT'S ABOUT IMPROVING PRODUCTIVITY AND LEADERSHIP MENTALITY AS A CONTRACTOR * As a construction business owner, improving productivity is essential to your company's success. But you may often find yourself pulled in different directions by competing responsibilities. At some point, we all experience that. *   * Classifying tasks and tackling the most time-consuming ones can feel daunting. But why is it so hard for us to start – or even finish – seemingly insignificant tasks? Why do these tiny tasks become the bane of our existence, tempting us into procrastination limbo?  *   * * * Let's explore why we get stuck on even the most minuscule duties and how that might hold us back. Understanding the psychology behind procrastination Procrastination plagues many people. It's a common problem that often leaves people feeling frustrated with themselves. But what if we could understand the psychology behind procrastination and use that knowledge to overcome it? At its core, procrastination is linked to negative emotions like stress, anxiety, and fear of failure. By avoiding or delaying a task, we temporarily alleviate these unpleasant feelings.  However, this relief is short-lived and ultimately only creates more stress. By being aware of this pattern and learning how to manage negative emotions, we can break free from the cycle of procrastination and become more productive. Breaking down the task into small, manageable parts When faced with a daunting task, it can feel overwhelming even to know where to start. However, the key is often found in breaking down the task into small, manageable parts. By dividing larger projects into smaller, more achievable tasks, we can focus our attention and energy on one step at a time, leading to a greater sense of progress and accomplishment.  Whether working on an estimate on a project or a personal goal, taking a moment to map out the necessary steps and tackle them individually can make all the difference in achieving success. So next time you're feeling stuck, take a breath and ask yourself: what's the next small step I can take? Using rewards as incentives to get started Sometimes, all it takes is a bit of extra motivation to get things done. That's where rewards can come in handy as an incentive to get started. Whether it's a tasty treat, a fun activity, or even some well-deserved relaxation time, a reward can give you that extra push to begin tackling a task.  Studies have shown that implementing a reward system can increase productivity and help you achieve your goals faster. So why not give it a try? Choose a reward that suits you and your task at hand, and see how much more motivated you feel to get started. Finding out what your specific procrastination triggers are Have you ever found yourself staring blankly at your to-do list, unable to muster the motivation to tackle any tasks? Identifying your procrastination triggers can be the key to overcoming it. Maybe certain types of tasks are more daunting to you, or you get easily distracted by social media or other forms of entertainment. Whatever it may be, pinpointing your personal procrastination triggers can help you create a strategy to combat them and finally get back on track.  Developing a plan and timeline for success Success isn't something that happens overnight. It requires careful planning and a well-thought-out timeline. Whether it's starting a business or working towards a personal goal, having a plan in place is essential.  The first step in creating a successful strategy is to define your goals and establish the time frame you want to achieve them. It's crucial to take the time to map out the smaller steps needed to reach your ultimate objective and assign realistic deadlines to each of them. Along the way, it's also essential to evaluate your progress regularly and make necessary adjustments to your timeline or plan. With a clear strategy and timeline in place, success is within reach. Planning to avoid distractions or delays In our fast-paced world, distractions seem to lurk at every corner. The constant buzz of notifications, the temptation to check social media, and the never-ending stream of emails can quickly derail our day. The solution? Planning to avoid these distractions and any potential delays. By setting clear goals, creating a schedule, and arranging your workspace in a way that helps you focus, you can reduce the distractions that come your way and stay on track toward achieving your objectives. With some forethought and discipline, you can turn your day from one filled with distractions and delays to one of focused productivity. Letting go of perfectionism and allowing yourself to make mistakes Perfectionism is a trait that can drive people to do their best, but it can also become an obstacle to personal growth. The constant pressure to achieve flawlessness can lead to fear of failure and deflection, ultimately limiting your potential. Accept that mistakes are a natural part of the learning process, and they give us experience and insight that we wouldn't get otherwise. Embracing imperfection requires a shift in mindset, but by acknowledging our flaws and being willing to make mistakes, we can move forward with confidence and creativity. How can this improve your Leadership Skills? Construction Companies have two basic leadership styles: wait until an urgent situation occurs and react like a firefighter or develop business processes that allow the company to respond calmly and direct resources and solutions to the issues like a traffic police officer on a sunny afternoon. FIREFIGHTER LEADERS - Operate in one of three mental states: __ __ TRAFFIC DIRECTOR - Leaders operate in one of four mental states: __ __ THE GRAPH BELOW - Is similar to the diagram shown in The 7 Habits of Highly Effective People Habit 3: Put First Things First, by Stephen R. Covey, to demonstrate this principle. As illustrated in the Time Management Matrix above, we spend our time in one of four ways. This matrix defines activities as URGENT / NOT URGENT / IMPORTANT / NOT IMPORTANT.  In conclusion Ultimately, it is essential to remember that there is no one-size-fits-all approach to overcoming procrastination. People are inherently different and have different needs and motivations regarding goal setting and habit formation. The key is to be patient with yourself and accept that change takes time. By determining which tasks are the most important to you and your construction business and scheduling your day based on those criteria, you can ease the pressure caused when you have a long list of activities to take care of. If bookkeeping is on your list, call me and let me know how I can help. PS  * We offer FREE RESOURCES to help you save time and money that you can download and print now.  ABOUT THE AUTHOR: Sharie DeHart, QPA, co-founded Business Consulting And Accounting in Lynnwood, Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations and offers insights on managing the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. Call 1-800-361-1770 or sharie@fasteasyaccounting.com.

11m

Feb 09, 2024

THIS PODCAST IS EPISODE 561, AND IT'S ABOUT EASING YOUR BACK OFFICE BURDEN ONE PAYROLL AT A TIME * As a construction business owner, you have a lot on your plate. You need to manage your employees, oversee projects, ensure compliance with regulations, and keep your clients happy. Amidst all this, you may be tempted to handle your payroll to save costs and maintain control. *   * At face value, it seems like a great idea. If you're a small business owner with just a few employees, you probably think hiring a payroll specialist is an expense you can avoid. *   * You feel that you can handle it yourself. You intend to keep your staff paid right and on time. What could go wrong, right? Well, lots, actually. And before you know it, it's now a costly mistake, and you need to spend more money to make it right. *   * * * Why doing your own company payroll is not a great idea: *   * 1. TIME-CONSUMING *   * Payroll processing is a time-consuming task that requires attention to detail, knowledge of tax laws, and expertise in accounting. As a construction business owner, your time is better spent growing your business and focusing on your core competencies.  *   * If you don't have a finance background, you'll likely spend a substantial amount of time calculating employees' work hours, computing taxes and other deductions, creating payslips, processing, and filing. *   * And even if you have a bit of a background in bookkeeping, are you sure you want to spend your precious time doing these tasks instead of focusing on the core aspects of your business? *   * By delegating payroll processing to a professional, you can free up time for strategic planning, marketing, and business development.  *   * 2. RISK OF ERRORS  *   * Payroll processing involves complex calculations and compliance with federal, state, and local regulations. Any payroll mistakes can result in penalties, interest, and legal liabilities. By outsourcing payroll to a professional, you can reduce the risk of errors and ensure compliance with regulations.  *   * A payroll specialist knows the ins and outs of taxes, overtime, contributions, sales commissions, and bonuses. The bottom line is that another professional can do it better, and while they're at it, you can get back to doing what you do best– like growing your business! *   * 3. COSTLY MISTAKES  *   * Payroll mistakes can be costly for your business. For example, you may be subject to penalties and interest charges if you fail to withhold the correct taxes. Similarly, if you misclassify employees as independent contractors, you may be liable for back taxes, penalties, and legal fees. *   * Sure, you can learn about relevant tax adjustments and benefits procedures if you want to. But then again, you'd be spending more time educating yourself, not to mention the possibility of making costly mistakes. Payroll processing requires expertise in accounting, tax laws, and compliance regulations. As a contractor, you may not have the time or resources to keep up with the latest changes in payroll regulations.  *   * A professional construction bookkeeper can help you avoid costly mistakes and protect your business from financial risks. You can benefit from their expertise and ensure compliance with regulations.   *   * 4. IT'S AGGRAVATING *   * There's no denying that payroll processing can be stressful, especially when you don't know what you're doing. Reduce stress and spend more time on business activities that drive profits and growth. You can also eliminate the risk of burnout and improve your work-life balance.  *   * BETTER PRACTICES *   * Payroll is one of those things that starts simply enough. You create your construction business, outsource contractors, or hire part-time crew, and things tick along. It's straightforward and sufficient to keep everything in line at first, but what happens to most companies is that they grow! *   * This is a great thing, but it also means that payroll becomes more complicated. As such an essential aspect of your business, payroll must run smoothly. Getting paid is, after all, the primary reason that most people come to work. *   * Still not quite ready to outsource? How about try this approach: *   * 1. SIMPLIFY *   * Keep things as simple as possible wherever you can. One way to do this is by switching to direct deposit. This will drastically reduce the work put into issuing and tracking payments. *   * 2. SCHEDULE *   * At least once per year, and preferably more, it's crucial that you (or your payroll professional) take some time to create a payroll calendar. Highlight any dates that may cause a lag in your employees' pay. *   * It will also allow you to plan for any potential shortcomings or other issues arising from holiday closures or oddities in the calendar. Making a payroll mistake is a surefire way to lower employee morale, so it's essential to be aware of these dates ahead of time. *   * 3. AUTOMATE *   * The computer can be your best friend. Finding the right software to help with payroll can automatically take care of simplifying and scheduling, freeing up valuable time for your payroll specialist. *   * It also eliminates the potential for human error in payroll processing and creates a crystal-clear picture of your finances. Many options are available these days that are easy to learn and straightforward to maintain. *   * 4. BRUSH UP *   * Payroll rules and regulations can change frequently and for any number of reasons. It's important to stay informed on any changes in your region and proactively plan for them. *   * A lot of time can go into correcting a payroll error, so know what's happening to avoid this. With more and more employees being hired remotely, it's also important to be aware of any regulations on those geographically located in a different area from your business. *   * 5. GET HELP *   * If hiring a full-time in-house payroll staff is impractical, you can always come to us and let us take care of your payroll. Whether you need weekly, fortnightly, or monthly processing, our team is flexible enough for you. *   * As construction accounting specialists and payroll experts, we can make your employees happy with timely and accurate wages, maintain tax compliance, and significantly ease your back office burden. *   * IN CONCLUSION *   * Payroll is most effectively managed when it's simple, straightforward, and coordinated. When it starts getting tough to keep it that way, it's likely a sign that your company has grown and you're ready for more robust support. *   * Outsourcing payroll to a construction accounting professional can save time, reduce errors, avoid costly mistakes, benefit from expertise, and reduce stress. This will allow you to focus on growing your business and achieving your goals. PS  * We offer FREE RESOURCES to help you save time and money that you can download and print now.  ABOUT THE AUTHOR: Sharie DeHart, QPA, co-founded Business Consulting And Accounting in Lynnwood, Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations and offers insights on managing the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. Call 1-800-361-1770 or sharie@fasteasyaccounting.com

11m

Feb 02, 2024

THIS PODCAST IS EPISODE 560, AND IT'S ABOUT SCALING AND ADAPTING BUSINESS STRATEGIES AMID THE COST OF LIVING CRISIS * When you're ready to take your construction business to the next level, you might start thinking about "scaling." No, it's not just a fancy term for growth; it's about doing more with less. Scaling is about increasing your revenue without proportionately increasing your resources—fancy yet practical, right? It's like sending an email: your effort is the same whether you send it to 100 people or 100,000.  *   * But, as of now, we also probably feel like we are in the thick of a cost-of-living crisis. This challenges entrepreneurs and is a nerve-wracking time for many small construction business owners. *   * If you've had sleepless nights worrying about how you'll pay your suppliers or support your staff, you're not alone. You've likely already considered where to cut costs, but it seems impossible when suppliers raise prices.  *   * * But don't despair just yet! There are strategies to stretch your dollar further, and they're not always about trimming expenses. What are the tricks to scaling and adapting effectively? Efficiently using your resources without emptying your pockets, the MAP way (Marketing-Accounting-Production). So, how can you make this happen? Let's get into it. 1. LOOK AT WAYS TO BRING OR RETAIN MORE MONEY INTO YOUR BUSINESS. Knowing exactly where and when money is coming from your business, is the first step to seeing where you can save costs. You could be paying for services you don’t even use or simply aren’t worthwhile. Take it one step further and ask yourself if the products or services you pay for add value to your construction business. Spending more when you're looking to save might seem counterintuitive, but investing in marketing can yield profitable results in increased sales. There will be short-term costs, but effective marketing can substantially contribute to a positive cash flow in the long run. During uncertain times, empathy goes a long way. Understanding your customers' fears and concerns can inform strategies to drive sales. Depending on their situation, you might be able to offer more services or adjust prices without adverse reactions. As inflation rises and suppliers hike prices, it's crucial to respond accordingly or risk bearing the brunt of the impact. 2. DO WHAT YOU CAN WITH THE THINGS UNDER YOUR CONTROL WHILE MONITORING EXTERNAL INFLUENCES. Resist the urge to slash expenses indiscriminately. Cutting back in the wrong areas might hinder the growth of your construction business. Make it a priority to retain your staff if you have any, exploring other places to trim costs or increase revenue instead. You can't control everything about your business, but you can stay aware of external factors that might impact buyers' behavior. Don't get lost in complexity. More complexities equal more chances for things to go wrong, time wasted, and resources spent. If you're scratching your head trying to understand a process or a tool, chances are, so are your employees and customers.  Keep it simple to keep control and keep everyone on the same page. Do you know how competing businesses cope with the cost of living crisis? Can you see what kind of strategy they've adopted? Understanding their strategies can provide insights about your place in the market and potential customer perceptions. 3. EMBRACE TECHNOLOGY. The daily processes and transactions involved in operating a general maintenance and repair contracting business can mean long hours of repetitive tasks and occasional oversights due to human nature. Automating these tasks can result in significant savings in resources and eliminate mistakes. However, the key is knowing which tasks should be automated and which ones warrant staff intervention and guidance.  The future is here, and it's all about automation. Some tools can take care of your administrative tasks, saving time and effort. From invoicing to project tracking, automation can streamline your process, making your construction business more efficient and leaving you with time and energy to spend in other areas. Check the activities you perform regularly and explore whether there's a tool that could automate them.  Nobody enjoys chasing after debts, yet doing so can significantly boost your business, especially in challenging times. Here are some ways to streamline the process: __ __ 4. USE THE SITUATION TO YOUR ADVANTAGE. There's a silver lining in every cloud. Reduced sales? Use this time to review and streamline your business processes. Examine the reasons for changing sales patterns and adapt accordingly. Take out the guesswork and let data guide your decision-making. We're in the information age, and there's a metric for nearly everything. Know what's working and what's not by looking at how customers engage with your website or which marketing campaigns are most effective.  Making decisions based on solid data is more critical than ever. Use actual business data, not assumptions, to create your strategies. Don't create an approach based on what you  is happening, but on what is  happening. As the saying goes, "The numbers don't lie". BEFORE MAKING DECISIONS, KNOW YOUR NUMBERS! Your data remains a reliable constant in an unstable economic and consumer landscape. Accurate, in-depth financial data is crucial to making informed business decisions. A good construction accountant can provide the right solutions at the right time. Their expertise in your business can be instrumental in improving its financial health. They can help interpret the numbers, understand the situation, and guide your future steps. Final thoughts  Scaling your construction business is all about smart growth. It's growing your revenue without increasing your expenses at the same rate.  Imagine increasing customer retention with minimal effort from your end. It's possible if you scale your offerings. Consider automatic renewals, subscription models - maintenance work if you're a plumber or repeatable pricing packages. Not only will these save you time from manual work, but they'll also boost customer loyalty. The secret to effective scaling and adapting lies in maintaining simplicity, embracing automation, making data-driven decisions, and fine-tuning your offerings.  It's not just about working hard but about working smart. For further support navigating your construction business through the cost of living crisis and beyond, please contact us. We're here to help you. PS  * We offer FREE RESOURCES to help you save time and money that you can download and print now.  ABOUT THE AUTHOR: Sharie DeHart, QPA, co-founded Business Consulting And Accounting in Lynnwood, Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations and offers insights on managing the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. Call 1-800-361-1770 or sharie@fasteasyaccounting.com  

12m

Jan 26, 2024

THIS PODCAST IS EPISODE 559, AND IT'S ABOUT MASTERING TONE FOR CONSTRUCTION COMPANY CONNECTIONS Mastering the right tone is critical when connecting and communicating with people in the construction business. Whether you're writing an email, making a phone call, or meeting in person, how you present yourself can make all the difference in building strong relationships with clients, colleagues, and partners.  Research suggests that as much as 93% of communication is non-verbal, so it's unsurprising that the tone and meaning of emails and messages are misinterpreted as much as half the time. For small construction businesses, email is frequently the preferred way to communicate with new leads, customers, and employees – but if you haven't mastered your tone, the meaning of your message may be lost. In the worst-case scenario, you may even unintentionally offend your audience. * Follow these tips to improve your tone when writing emails or other business communications. 1. Adapt to your audience Tone reflects the writer's attitude toward the reader, so you'll use a different tone depending on whether you're asking a bank officer for a loan or your client to respond to your change order question. Your relationship and purpose will help you decide on your word choices, which might be serious and formal, or relaxed and fun. Using active voice will bring your reader right to the point. Taking care always to use courteous language will keep them on the side.  2. Be clear and concise Avoid using jargon or technical terms such as' load-bearing walls' or' footings' that may not be familiar to everyone you're communicating with. Instead, try to use plain language that is easy to understand and gets your point across effectively.  If it's in written form and you doubt how an email may be interpreted, hit save and return to it a day later – or ask a colleague to read it and provide some feedback. These additional tips can help you write emails that get read and avoid offense or confusion: __ __ 3. Be professional and respectful Use proper grammar and spelling, address people appropriately in all your interactions, and avoid confrontational or aggressive language.  What to do when delivering a negative message: The tone becomes a more significant challenge if your message contains terrible news. After all, there is no way around creating unpleasant feelings in some circumstances. You can, however, avoid insult to injury by following these tips: __ __ Drafting a style guide this January for a fresh start will help make your construction company's "tone rules" clear to staff, help build greater brand recognition with a consistent voice, and help you avoid the wrong tone in your communications. Start by defining your tone. Is it casual, fun, formal, serious, or quirky? Come up with five words that describe the tone of your brand. Then, list words that may and may not be used in your marketing emails. To illustrate exactly what you're aiming for with tone, include some sample text in your guide – perhaps some of your company's collateral or examples of marketing emails you'd like your construction business to emulate. Selling your services to homeowners involves art and creativity. Words are powerful, and visuals are captivating; combine them with your preferred business tone to make a fascinating webpage to attract the right audience. You can also learn a lot by looking at your competition – pay attention to where they advertise, how they present their advertising, and the tone they use in their written material. Subscribing to competitor newsletters or regularly checking their websites is a good way of keeping up-to-date from a distance. Remember, through it all, being an active listener is the key. One of the most valuable gifts one can give another person is to listen with empathy and understanding and let them speak until they are finished. Final thoughts Being personable and approachable in connecting with others is essential. Don't be afraid to inject a little bit of personality or humor into your messaging, as long as it's appropriate and doesn't detract from the overall professionalism of your communication.  Whether you're communicating with employees about company issues, hoping to negotiate a rent reduction with the landowner, or changes to credit terms to your banker, by mastering the tone in your construction business communication, you can build stronger relationships, avoid misunderstandings, and ultimately achieve tremendous success in your work. * PS  * We offer FREE RESOURCES to help you save time and money that you can download and print now.  ABOUT THE AUTHOR: Sharie DeHart, QPA, co-founded Business Consulting And Accounting in Lynnwood, Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations and offers insights on managing the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. Call 1-800-361-1770 or sharie@fasteasyaccounting.com

10m

Jan 19, 2024

THIS PODCAST IS EPISODE 558, AND IT'S ABOUT PRACTICAL TAX SEASON TIPS FOR CONSTRUCTION BUSINESS OWNERS * Tax season can be a bit overwhelming for construction business owners, especially with many things to keep track of in our industry. But don't worry; we're here to help! We know that construction businesses have unique tax considerations that can be tricky to navigate, such as complex accounting and bookkeeping challenges and issues related to payroll and sales taxes.  *   * That's why staying informed about the latest tax laws and regulations is essential, as well as working closely with a qualified construction accountant and tax professional who can guide you through this process and ensure you comply with all applicable tax rules and regulations.  *   * Preparing for tax season is a year-round endeavor. Tip number one for construction company owners is to update monthly financials using a streamlined software or cloud-based system. *   * This way, come tax time, everything you need is in one place. Well-organized small businesses are better positioned to minimize tax bills while avoiding missing or inaccurate information penalties. *   * * Here are four more ways to take the stress out of tax time and maximize your return. __ __ Small businesses typically benefit from a wide range of tax credits. From special allowances for research and development to programs that supplement wages for student employees and apprentices, knowing which credits apply to your business can save you a tax bundle. It's also essential for business owners to be savvy about deductions. After all, you want to keep as much of your hard-earned revenue as possible. Often-overlooked items you may be able to deduct include: - Seminars, classes, or conventions you attended to improve your professional skills; - Unused inventory that you've donated to charity (an excellent reason to consider donating your overstock rather than paying for storage) and - Capital assets, such as office furniture, computers, and equipment. Speak to your accountant about the deductions you can plan for each tax year. * __ __ If you run your business out of your home, you may be able to claim a portion of expenditures like utilities, insurance, property tax, and rent. But you must keep good records and receipts to justify why you've allocated business costs to your home office. The same goes for home office computers and mobile phone expenses. Tax authorities will want to see how you've separated these assets from personal and professional use when you claim them as work expenses. Want to claim drive time as a work expense? Ensure you submit a log of your business-related mileage to demonstrate how your personal vehicle was used professionally. __ __ This should go without saying, but construction business owners are hit with severe penalties for filing taxes late yearly. Missing the deadline can have a range of negative repercussions, including: - Added interest to amounts owing, plus a late payment penalty; - Losing your claim to a refund; - Loss of credits toward retirement or disability benefits and - Delay of loan approvals (lenders require a copy of your filed tax return to process your application). __ __ A survey of small business owners found that a full quarter don't understand their tax obligations. What's more, 27% only speak to their accountant at the last minute, just before the filing deadline. Having trouble? You don't have to go through it on your own again. Set yourself up for success this year by following these four pillars of painless tax preparation: 1. Commit to clean bookkeeping from day one Year-round, effective bookkeeping is the best way new business owners can minimize tax season stress. With the wide range of accounting software, there's no reason to rely on time-consuming manual methods that leave room for error. All-in-one options like Xero and QuickBooks automate your most important bookkeeping processes, including: __ __ With your financial records in one place and up-to-date, you're better positioned to maximize your refund while avoiding penalties associated with incorrect or incomplete tax returns. 2. Capture every business expense Each year, 21% of small business owners claim less than half of their business expenses, primarily because they don't have a reliable system for documenting expenditures while on the go. Without carefully logged receipts, entrepreneurs must forfeit valuable tax deductions, sacrificing cash they could funnel back into their business. Cash in on claimable expenses using a mobile app to record receipt data, track mileage, and generate expense reports. As a bonus, many of these tools sync with your all-in-one accounting software. 3. Separate business from personal Right from day one, small business owners should divide their personal and business expenses. Differentiating between the two will make it much easier to claim deductions on your tax return – and support those claims in case of an audit. Recommended steps to separate your business and personal finances include: __ __ *   * 4. Always consult with an accountant Not sure exactly what you can claim as a business expense? Are you wondering which accounting software to use or how to interpret local tax regulations? Consult with a construction accounting professional to put your mind at ease – well before the filing deadline! In addition to managing the nuts and bolts of tax preparation, regular meetings with an accountant will help you continuously improve construction bookkeeping practices and better understand the financial workings of your small business. Final thoughts  Those organizational strategies you commit to now will promote positive relations with your local tax authorities – and the long-term financial health of your construction company. Technology has made it easier than ever for small business owners to file for themselves, but when it comes to thoroughness and accuracy, nothing can replace the expert advice of an accountant. Consult a business professional specializing in construction bookkeeping and accounting well in advance to ensure you get the most out of your tax return and that your documentation is complete. Conversely, accounting fees are often tax deductible, and I do not charge phone chats/consultations. Don't stress too much! Let me know how I can help you. PS  * We offer FREE RESOURCES to help you save time and money that you can download and print now.  ABOUT THE AUTHOR: Sharie DeHart, QPA, co-founded Business Consulting And Accounting in Lynnwood, Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations and offers insights on managing the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. Call 1-800-361-1770 or sharie@fasteasyaccounting.com

11m

Jan 12, 2024

THIS PODCAST IS EPISODE 557, AND IT'S ABOUT BECOMING A BETTER PROJECT MANAGER BY IMPROVING COMMUNICATION SKILLS * In the construction industry, communication takes many forms, including written reports, drawings, emails, and face-to-face meetings. Each form of communication has its own set of advantages and disadvantages. For example, written reports and illustrations provide a permanent record of information, but they may not be as effective in conveying complex ideas as face-to-face interactions.  *   * Understanding how construction business owners and project managers, like you, if you do both (a one-person company), adapt to their environment, and facilitate procedures could make your company run smoother because there is no money in workplace chaos. *   * * However, the thinking patterns and comfort zone of a well-trained staff or subcontractor are defined by the following: __ __ Effective leaders are conditioned to avoid emergencies by being proactive and having systems to deal with emergencies. After the crisis has passed, they are ready to evaluate the emergency's root cause and implement change in the system to avoid a repeat performance. That's why excellent communication is crucial in the construction business workplace. With so many moving parts and various stakeholders involved, clear and concise communication is necessary to ensure everyone is on the same page and working towards the same goal. Poor communication can lead to costly errors, delays, and safety hazards.  To become a better leader and improve communication in the construction business workplace, it is essential to establish clear lines of communication and ensure that everyone understands their roles and responsibilities.  Regular meetings and check-ins can help keep everyone informed and up-to-date on project progress and any changes or issues. It is also important to encourage open and honest communication, where team members feel comfortable sharing their concerns and ideas without fear of retribution. This can help to foster collaboration and creativity, leading to better outcomes for everyone involved.  One way to improve and encourage collaboration and clear communication in your workplace is by practicing simple ways to improve it: 1. ALWAYS MAINTAIN CONTROL OF YOUR EMOTIONS IN STRESSFUL SITUATIONS Leaders are often called upon to make difficult decisions under circumstances that are not ideal. If you can keep a cool head and calmly make decisions in a crisis, the people around you will begin to recognize you as the go-to leader when new or challenging situations arise. 2. REMAIN FOCUSED ON THE CONVERSATION AT HAND When you are in the middle of working on a project, it is easy to get tunnel vision that prevents you from focusing on what is happening around you. When someone engages you in conversation, always try to stay focused on what they are saying.  Occasionally, repeat your understanding of what the other person just told you. Not only will this behavior make them feel you value their input enough to listen, but it will also increase their respect for you as a leader/coworker. 3. PAY ATTENTION TO YOUR BODY LANGUAGE It is important to remember that your body language can be just as essential as what you say. If you are in the middle of a conversation with someone and they see you furrowing your brows or not making eye contact, they could walk away with the impression that you are disinterested or angry with them. Try to maintain a neutral expression when conversing with your staff or coworkers. 4. DO NOT INTERRUPT People approach you when you are a leader because you have the answers. However, it can be easy to speak without a complete understanding of what is being asked and provide someone with incorrect information. Always allow the other person to finish their thought and ask their question in its entirety so you can give a thoughtful, helpful answer. 5. DO NOT MAKE SNAP JUDGMENTS WHEN SPEAKING TO SOMEONE Occasionally, leaders are sought out when someone has made a mistake or poor business decision. If someone you are leading comes to you and admits they have done something wrong, try your best to withhold judgment. Sometimes, this will require you to listen to their side of the story and reschedule a meeting later in the day or week to discuss a more productive course of action. Other times, it may be as simple as asking them for their solution and addressing it from that angle. 6. BE CONSISTENT WITH YOUR FEEDBACK Always consistently seek opportunities to offer cheerful and negative feedback when leading people. Many issues in building sites can be prevented by merely mentioning positive behavior when you see it and constructively pointing out negative behaviors as they occur in hopes of ending there. FINAL THOUGHTS If you are looking for ways to lead more effectively, communicating better is one of the most accessible and valuable skills you can learn. Effective communication will help you gain the trust and respect of individuals around you, one of the most valuable assets you can acquire. Overall, effective communication is essential for success in the construction business workplace. By establishing clear lines of communication, encouraging open and honest dialogue, and utilizing the right communication tools, construction teams can work together more efficiently and effectively to achieve their goals. * As we move forward, let's focus on improving our business practices, streamlining our processes, investing in our employees, and, more importantly, ourselves. We can succeed tremendously by providing our team with the necessary tools, training, and support to excel in their roles.  *   * *   PS  * We offer FREE RESOURCES to help you save time and money that you can download and print now.  ABOUT THE AUTHOR: Sharie DeHart, QPA, co-founded Business Consulting And Accounting in Lynnwood, Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations and offers insights on managing the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. Call 1-800-361-1770 or sharie@fasteasyaccounting.com

11m

Jan 05, 2024

THIS PODCAST IS EPISODE 556, AND IT'S ABOUT REST AND RESET FOR CONSTRUCTION CONTRACTORS AND BUSINESS OWNERS * To be in business and to remain in business, become a business person! To run a business, you must be business-like. It's not sufficient just to be very good at what you do. Many people who are 'very good at what they do' have failed. The familiar cry: "I'm far too busy for that" is no excuse. Are you 'too busy' to be a competent businessperson? If so, your construction business won't last long. You must continue to develop your business skills. *   * To be a businessperson, you have to make an effort to become something of an 'all-rounder,' not just a specialist player. You can offer outstanding goods or services, but if you don't develop sound business systems, you are not a fully rounded businessperson, and your business will be in danger of failing. *   * * Having a system in place is your key to enjoying a stress-free holiday. There's no need to be overly anxious about your construction business during this period (this week, between Christmas and New Year, for instance) as long as you have a few basic precautions. It's never too late to start building a system; you never know when you might need a break for a momentous occasion or your health and well-being. Back up all your important documents and information and store the backups in a secure place off-site. It also makes sense to take this one step further and check that you can restore your systems from your backup. Arrange for a responsible staff member or someone independent of your business to monitor your premises (if you have one). Alternatively, install security systems if you haven't already: fire alarms/sprinkler systems and break-in monitoring by a security firm. This is something to consider if you haven't done this yet. It's also good to ensure you have appropriate insurance coverage and that your insurance policies haven't lapsed. Practice the Art of Delegating - yes, this is possible even if you're a one-person company. You can outsource small tasks and hire a specialist for a more specialized job in many ways. A virtual assistant can communicate and respond to inquiries, emails, and social media. A construction bookkeeper can take care of your last bits of receipts and payroll. You can also: __ __ As a construction business owner, taking time away from work is essential. But worrying about whether staff are meeting deadlines and suppliers are happy translates to more stress and less time enjoying your holiday. With some staff communication and planning beforehand, you needn't worry that your business won't be able to cope in your absence. If you can't switch off from work mode or something urgent pops up, technology can be a great way to check in and ensure things are ticking along. Is it time to start over? For those of you who are using this week to rethink your administration and paperwork processes, I might be able to help you clear some bookkeeping blunders. Sometimes, a contractor's QuickBooks (or bookkeeping) file is a hopeless mess, and fixing it would cost more than simply starting over would cost. Here is a list of warning signs that can help you decide: __ __ Time flies when everyone is busy. Start now and review your records for the following items: __ __ __ __ YEAR-END ACCOUNTING CLEAN UP __ __ __ __ Tax Accountants do "workarounds" to file your annual taxes. At some point, the Tax Accountant may refuse to clean up and deal with the Lack of Good Records or Messy Records. Tax accountants will have more clients who want their taxes done as the economy improves.  A good tax accountant can do Many Simple or Less Complicated Returns in the same amount of time it takes to do a Messy, Complex Business Return. More Tax Returns become more complex than is necessary because the documents or lack of records make them messy and complicated to deal with.  A tax accountant will assume you gave them everything you had. In reality, you gave The Tax Accountant only what You thought The Tax Accountant needed versus all of the records that might save you additional money in taxes.  A sound accounting system will help you decide better what to buy and what jobs to accept. When did you afford to take payment plans from your clients? When is the need or ability to raise your prices? Only you can decide if the lack of good records was worth the low price. Final thoughts If you're taking time over the holidays, really take time. Don't take time off but then spend that time constantly checking for work-related texts and emails or attending meetings. Put your cell phone away. Stop checking your email. Set an outgoing email that lets people know when you'll respond to their messages, and change your voicemail to note your days off. That way, you can rest, relax, and enjoy your break. As the year ends, whether you are resting or restarting, don't wait until the last minute to get your accounting in order - start early to avoid any potential issues or penalties. Let me know if you need help with your year-end accounting. Contact us to find out how we can help you bring more balance to your business. The New Year is three days away. Are you ready? PS  * We offer FREE RESOURCES to help you save time and money that you can download and print now.  ABOUT THE AUTHOR: Sharie DeHart, QPA, co-founded Business Consulting And Accounting in Lynnwood, Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations and offers insights on managing the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. Call 1-800-361-1770 or sharie@fasteasyaccounting.com   *  

11m

Dec 29, 2023

THIS PODCAST IS EPISODE 555, AND IT'S ABOUT THE BENEFITS OF OUTSOURCING FOR CONSTRUCTION COMPANY OWNERS * Outsourcing can offer a range of advantages for small construction businesses in today's competitive market. Not only does it reduce costs and free up valuable time for owners to focus on growing their business, but it also provides access to skills and expertise that may be unavailable in-house. Small construction businesses can streamline operations, increase productivity, and scale faster than ever by working with external professionals or firms who work in certain areas.  *   * Because a small business focuses on survival, you pay much attention to the bottom line. This makes much sense, but it also leads to being seriously overworked. *   * Contractors are under increased pressure to cut their prices to get enough work. And that means they need to reduce costs. New technologies and approaches in cloud computing for construction accounting give forward-thinking contractors a fantastic ability to get more for less -but in most cases, contractors' heads are still stuck in 1990, thinking they have to do everything themselves. *   * * * Here are some benefits of outsourcing for small businesses and how they can help your business succeed. The advantages of outsourcing for small construction businesses As a small business owner, you want to ensure that every aspect of your company is running smoothly. Outsourcing can benefit your business, including cost savings, access to special skills, and increased efficiency. By outsourcing specific tasks, you can free up time and resources to focus on core business functions. Outsourcing can also help you keep up with the latest industry trends and technologies, giving you a competitive edge in your market. So, if you want to grow your small business, consider whether this is a viable option to help you succeed. 1. Identify which services and tasks are suitable for outsourcing. When outsourcing, you must carefully consider which services and tasks are suitable for delegating to third-party providers. Factors such as the nature of the work, the level of expertise required, and the cost-benefit analysis must all be considered. For example, routine administrative tasks like data entry or customer service may be easy to outsource. Still, more complex tasks like software development or legal assistance may require a more strategic approach. Ultimately, outsourcing can offer numerous benefits to construction companies, including cost savings, improved efficiency, and greater flexibility. Still, it's essential to identify the right areas to outsource to magnify these benefits. 2. Review the cost-benefit of using a freelancer or third-party service provider. When outsourcing specific tasks, businesses have two options: hiring a freelancer or contracting a third-party service provider. Each option has pros and cons that business owners should consider before deciding. On the one hand, hiring a freelancer can potentially save money since they typically charge less per hour than a full-service agency. However, freelancers may not have the same experience or resources as a third-party provider, which could lead to lower-quality work or additional costs down the line. On the other hand, contracting a third-party provider may be more expensive upfront, but they often have a team of experts with years of experience and access to top-of-the-line technology. Ultimately, the cost-benefit analysis will depend on each business's needs and the outsourced tasks. 3. Discuss different payment options when hiring a freelancer. When hiring a freelancer, one of the critical things you must consider is how you will pay them and what payment options are available. Fortunately, several payment options can help you pay your freelancer easily and securely. These options include paying through platforms like PayPal or Stripe, using wire transfers, paying with credit or debit cards, or even choosing to pay by cryptocurrency. Each payment option has advantages and disadvantages, so choosing the one that suits your needs and budget is essential. Whether hiring a freelancer for a one-time project (like your company website) or on a long-term basis, choose a payment option that provides a safe and hassle-free experience for you and your freelancer. 4. Evaluate potential contractors' quality by researching their past work. When finding the right contractor for your projects, researching their past work is crucial in evaluating their quality. You can review their portfolio of completed projects and read reviews from previous clients to gauge their satisfaction with the contractor's work. It's also important to check if the contractor is appropriately licensed and insured and to ask for references from previous projects. By taking the time to research potential contractors thoroughly, you can ensure that you're working with a reliable and qualified professional who will deliver high-quality work on time and within budget. 5. Learn how to manage an outsourced team effectively for maximum results. As companies expand and seek cost-effective solutions, outsourcing has become a widely accepted practice in the business world. However, managing a team that is not located in the same office or even in the same country presents some unique challenges. Developing effective communication, delegation, and collaboration strategies is crucial to get the best results from an outsourced team. By establishing clear goals, providing regular feedback, and fostering a culture of transparency and accountability, you can ensure that your outsourced team is fully engaged and aligned with your business objectives. With the right approach, managing an outsourced team can increase your company's productivity, innovation, and growth. OUTSOURCE YOUR CONSTRUCTION BOOKKEEPING ANYTHING NOT RELATED TO YOUR CORE CONSTRUCTION BUSINESS IS AN OUTSOURCING CANDIDATE. When I say, "outsource your contractor's bookkeeping," I do not mean turn it all over to us or any other contractor's bookkeeping service because this never seems to work well. No, I'm talking about outsourcing specific bookkeeping services related to data entry, bills, payroll processing, and preparing Quarterly Tax Returns. It is crucial that you keep control of your money. Outsourcing a contractor's bookkeeping is one of the ways to avoid bookkeeper embezzlement. Never let an outsider pay the bills, print checks, and authorize payment for payroll or any tax payments. I suggest looking at every part of your internal contractor bookkeeping service and asking yourself a simple question: is this a unique and critical part of our construction company, and is it something only we do? If so, it stays in-house and needs the brightest minds you have working on it. If not, it is a candidate for outsourcing, and you need to look at it more closely. Outsourcing a competent construction bookkeeper is a sound business decision as it gives you access to expertise and guidance you might not otherwise have, and it frees up your time and money to take advantage of other business opportunities.  In conclusion Outsourcing can be a cost-effective and efficient way for construction business owners to manage their administrative tasks and focus on growing their business. It is essential to carefully consider each potential service provider's advantages and disadvantages to ensure they meet your needs. Additionally, use references and research contractors' past experiences to guarantee that you get the best possible fit. Finally, take the time to manage your outsourced team correctly so that everyone reaches maximum effectiveness in their jobs. Now might be the perfect time to evaluate whether outsourcing suits your business needs. Everyone celebrates the Holiday Season in his or her way. Enjoy, Embrace, Be Glad, Be Joyful, and maybe a Little Sad. No one is up and happy 100% of the time. Do something nice for others. A smile is easy; it’s always with you and FREE. It can be a simple thing. Treating everyone a little nicer will make the day's challenges more manageable. I invite you all to join me in the Celebration of the Holiday Season of Living Well and being Happy.   Merry Christmas to one and all! PS  * We offer FREE RESOURCES to help you save time and money that you can download and print now.  ABOUT THE AUTHOR: Sharie DeHart, QPA, co-founded Business Consulting And Accounting in Lynnwood, Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations and offers insights on managing the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. Call 1-800-361-1770 or sharie@fasteasyaccounting.com

13m

Dec 22, 2023

THIS PODCAST IS EPISODE 554, AND IT'S ABOUT MANAGING WORK-LIFE BALANCE AS A CONSTRUCTION BUSINESS OWNER * Wellness is an important aspect of life for everyone, especially construction contractors like you. Given the physically demanding nature of the work, contractors must prioritize their physical and mental health. Proper nutrition, exercise, and adequate rest are all necessary for maintaining a healthy body and mind. Additionally, taking breaks and managing stress can help prevent burnout and promote well-being. By prioritizing your health, contractors can feel better and perform better on the job. *   * However, maintaining a healthy work-life balance can be difficult for a small construction business owner, as most know. You may work long hours, sacrificing personal time and family obligations to keep your business running smoothly. The duties and responsibilities of running your own business often take priority, no matter how personal pursuits are essential for your well-being.  *   * * * But, with the right strategies and mindset in place, it is possible to strike an effective balance between working hard on your business and making time for yourself. *   * SET BOUNDARIES *   * As much as we might love our jobs, we must remember that our mental and physical health always comes first. One of the best ways to ensure we care for ourselves is by setting boundaries for our work schedule. For example, taking regular breaks throughout the day can help us avoid burnout and increase productivity when we return to our tasks. Or, if we know that specific tasks require more energy and focus, we can set aside clear days to tackle them.  *   * Create a schedule that allows you to dedicate specific hours to work and specific hours to personal time. Avoid checking emails or answering work-related calls during your personal time, and encourage your employees to do the same.  *   * By sticking to a schedule that puts our well-being first, we can remain motivated and engaged in our work for the long haul. *   * DO WHAT WORKS FOR YOU *   * Ever feel like you have a million things to do and not enough time in the day to get them done? Trying to keep track of everything can be overwhelming without some system in place. That's why it's important to identify what works best for you and create a plan that keeps you on track and productive. Maybe you're a fan of to-do lists, or maybe you prefer to use a digital calendar. Perhaps you find that breaking tasks down into smaller, manageable steps helps you stay focused. Whatever it is, take the time to figure it out and stick with it. Your future self will thank you for it! *   * SORT OUT WHAT IS IMPORTANT AND WHAT IS URGENT *   * We often juggle multiple tasks and try to complete them all at once. This approach can often lead to suboptimal results or burnout. A better system is to sort our tasks based on their importance and urgency, focusing on the most important or urgent tasks first. This way, we can ensure that we are progressing in the right direction and achieving our goals.  *   * Identifying the most critical and urgent tasks may require time and effort, but it will pay off in the long run with increased productivity and reduced stress levels. So, next time you feel overwhelmed with a list of tasks, take a step back. *   * LEARN TO DELEGATE *   * As much as we all might like to think of ourselves as superheroes who can handle anything and everything, the truth is that we're all human. Sometimes, even the most capable among us need a little assistance, and that's nothing to be ashamed of. Knowing when to delegate tasks can be one of the most important skills you can develop as a leader or even a responsible adult.  *   * Knowing when to ask for help – whether from family members, friends, or co-workers – can save you time, reduce stress, and improve the quality of the result. So, if you feel overwhelmed by a project or task, don't hesitate to ask for help. It might just make all the difference in the world. This will help you manage your time more effectively and allow you to enjoy your personal life. *   * REST *   * It's easy to forget the importance of rest and self-care. But the truth is that getting enough sleep and practicing activities like yoga or meditation can be crucial to our overall health and well-being. A good night's sleep can help boost our mood and energy levels, and it's also been linked to a reduced risk of developing chronic health conditions.  *   * Similarly, self-care activities like yoga or meditation can help us feel more relaxed, reducing stress and anxiety. So, if you've been neglecting your sleep or self-care routine, now is the perfect time to prioritize them. Your body (and mind) will thank you for it! *   * MAKE TIME FOR FAMILY AND FRIENDS *   * Yes, I have to mention this! It's easy to get caught up in work and forget to set aside time for the people we care about. Not only does it help us avoid burnout, but it also strengthens our relationships with those we love. Whether it's a weekly family dinner or a monthly game night with friends, committing to these moments of connection can profoundly impact our mental health and overall well-being. So, next time you feel overwhelmed by work or life, remember the people who matter most. They'll be there to lift you when you need it most. *   * FINAL THOUGHTS *   * Take the steps necessary to establish successful systems for yourself and reap the benefits! Whether that means setting boundaries, delegating tasks, or even taking time off to spend with family and friends, design a process that works best for you. This works to your advantage, especially during the holiday or when loved ones need you the most. *   * Achieving a work-life balance as a business owner in the construction industry is an ongoing process. Continuously evaluate your schedule and priorities to ensure you're making time for work and personal activities. It's important to remember that balancing work and life should be a priority – so don't forget to take care of yourself as you continue to strive for success! You deserve it. PS  * We offer FREE RESOURCES to help you save time and money that you can download and print now.  ABOUT THE AUTHOR: Sharie DeHart, QPA, co-founded Business Consulting And Accounting in Lynnwood, Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations and offers insights on managing the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. Call 1-800-361-1770 or sharie@fasteasyaccounting.com  

11m

Dec 15, 2023

THIS PODCAST IS EPISODE 553, AND IT'S ABOUT HOW TO AVOID YEAR-END CONSTRUCTION BOOKKEEPING CHAOS * * As the year comes to a close, it's important to start thinking about your bookkeeping tasks to ensure a smooth transition into the new year. Deadlines are fast approaching, but it doesn't have to be stressful.  *   * Have you given your bookkeeper, wife, partner, accountant, or tax accountant the information needed to complete your reports? Accountants need good information to create detailed reports and save money on your taxes. *   * Here is where the expression "Garbage In Equals Garbage Out" comes into play. It is impossible to create Job Costing Reports when all anyone knows is the deposit amount on the bank statement.   *   * * It's the Mad Dash To The End Of The Year as a contractor recently described their Year End Madness to prepare his documents for the Tax Accountant. Are you in this cycle? I have great news for you - it is preventable. 1. Review your accounts:  Make sure all your accounts are reconciled and up-to-date. This includes bank accounts, credit cards, and any other accounts.  In Construction Accounting, not everything is an expense. Not every item, tool, material, or customer enters the Chart of Accounts. In some cases, Class Tracking is helpful, but most of the time, it is used to make up for a poor Chart of Accounts or as a "workaround" for an accounting product not designed to have Job Costing Reports or Cost Of Goods Sold. Giving your bookkeeper only your bank statements and saying "Fix It" – I Want Job Costing Reports, I Want To Know Details is not enough. Doing it the way you have always done it – expecting a different result isn't how it works. 2. Review your files: Go through your year's costs and ensure they are all properly categorized. This will help you with your tax reporting and better understand where your money is going.  One of the most overwhelming parts of the end of the financial year is finding all the invoices, receipts, and reports you need to file your taxes correctly. Pay attention to how easy it was—or wasn't—to find what you needed this past year. Did you have to search 15 different places for all your receipts? Did you have a combination of online and physical invoices? Did you have clearly labeled folders for everything? Did you leave everything for the last minute? If you search high and low for every piece of paper you need, you might want to consider revising your paperwork so it's easier and less time-consuming to manage. Can you keep track of everything through software and apps? Is there technology or equipment that can help you? Is it worth investing in a filing cabinet? The effort you put now into sorting your paperwork will pay off hugely every year when you can quickly and easily find all the information you need. Let's face it; you'll come up against the end of the financial year every year, so you may as well be systematic about it. 3. Collect your receipts: Ensure you have all your receipts from the year. This includes receipts for business expenses, charitable donations, and any other tax-deductible expenses. Every missed receipt that is a business expense is a missed deduction. Bookkeeping is all about tracking the money. Money In, Money Out is just following the checkbooks. Accounting is entering into an Accounting System that creates a Profit and Loss and Balance Sheet for the Tax Accountant to do the Annual Taxes. (Every successful contractor should have a Tax Accountant do their annual tax return) 4. Reflect on your year: The end of the financial year is a perfect time to reflect on how the past year went. Celebrate the big successes, but remember to focus on other victories. Even if you didn't meet your financial targets, did you survive a particularly tough year? Did you manage to pivot your construction business and try a new model? Did you take some risks and learn from them? Did you grow your business or expand your offerings? It's great to have goals for each year and celebrate when you achieve them, but it's also essential to look at where things didn't go according to plan and how you grew from those situations. You may need to refine your business plan if you're not meeting your financial targets or rethink how you arrive at your goals in the first place. Do this before you start planning the year so you can revise your strategies in the future. 5. Plan for the new year: Take some time to plan for the new year. This includes setting goals, creating a budget, and thinking about any changes you may need to make to your bookkeeping processes.  Now that you've reflected on what went well and what went sideways, you can better plan for next year. Research upcoming events and schedule your marketing calendar. Plan to address slow times or busy periods. If you didn't meet your financial targets last year, either change how you set your goals or your strategies for achieving them. At Fast Easy Accounting, we have an entire department, The Project Management Department, that questions every bit of our CONTRACTORS BOOKKEEPING SYSTEM every day and continually finds new and better ways to improve it and make it more valuable to Contractors like you no matter where you are in the USA Including Alaska and Hawaii.  For clients, we added a document management system that links with many banks and credit card companies across the country (adding more all the time). We still use our original Document Management System behind the scenes. The two companies have figured out how to work together to benefit us and our clients. Change is not always easy, but we are so glad we did. The same applies to you, the construction business owner. As you figure out ways to be more efficient, better pricing, and prove a better product and service, your cash flow and profits will increase massively, which means more money in the bank to operate and grow your Construction Company and more freedom to do the things you want to do with your life! Final thoughts By following these tips, you can ensure that your end-of-the-year bookkeeping is completed accurately and efficiently, giving you a head start for the new year. We are also here to help. We are not here to beat up on you for "How You Have Done It." You know it's messy and missing stuff. We know it, too and we want to help figure out the gaps.  PS  * We offer FREE RESOURCES to help you save time and money that you can download and print now.  ABOUT THE AUTHOR: Sharie DeHart, QPA, co-founded Business Consulting And Accounting in Lynnwood, Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations and offers insights on managing the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. Call 1-800-361-1770 or sharie@fasteasyaccounting.com  

10m

Dec 08, 2023

THIS PODCAST IS EPISODE 552, AND IT'S ABOUT WHY ONLINE REVIEWS MATTER AND WAYS TO DEAL WITH NEGATIVE FEEDBACK * In today's digital age, online reviews hold immense power and influence over the success of small construction companies. With easy access to social media, Google reviews, and review websites, customers can easily voice their opinions and experiences with your business online. Most people searching for a local construction company - whether they need a plumber, painter, or general contractor, will check their online reviews before deciding.  *   * Positive reviews can help establish credibility, build trust, and attract new customers. Conversely, negative reviews can damage a company's reputation and deter potential customers. Given the importance of online reviews, small construction companies should aim to provide excellent service and encourage satisfied customers to leave positive reviews. *   * As a small business owner, you must understand the importance of online reviews, as they will impact your brand image, sales, and customer loyalty. *   * * BOOST YOUR BRAND IMAGE Online reviews are the first point of contact between your business and potential customers. Positive reviews can improve your brand image and credibility. When customers leave positive reviews, they help build an excellent impression of your brand, which can lead to increased sales and customer loyalty. A study conducted by BrightLocal found that 85% of consumers trust online reviews as much as personal recommendations. So, having a positive online reputation can make a big difference in the success of your small construction business. IMPROVE YOUR SALES Online reviews can directly impact your sales. Positive reviews can help you attract new customers, while negative reviews can drive potential customers away. Positive reviews indicate that your business is reliable, trustworthy, and provides excellent customer service. You should encourage customers to leave positive reviews and respond professionally and promptly to negative ones. GAIN INSIGHT INTO CUSTOMER EXPERIENCE Online reviews can provide valuable insights into customer experience, which can help you improve your business. Reviewing them lets you identify areas to improve customer service, products, and business operations. Also, reviews can help you understand your target audience and what they value most about your business. Addressing customer feedback shows that you are willing to take the necessary steps to improve your business, which can enhance your online reputation and attract new customers. INCREASE CUSTOMER LOYALTY Customers appreciate businesses that value their feedback. Responding to customer reviews and addressing their concerns shows you care about their experience with your business. When customers feel heard and appreciated, they are more likely to return and become loyal customers. Ways to deal with negative online feedback/review: Leave the negative review up A negative review doesn't have to be the end of the world. Although customers like to see five-star reviews, they understand that perfection is almost impossible—and probably a sign that something is "too good to be true." In that sense, having a customer or two provide negative feedback gives more credibility to the positive reviews. Customers expect to see a couple of negative reviews. If they're in amongst positive feedback, the negatives won't hurt you much and may increase your legitimacy if handled well. Respond to the review honestly Customer complaints are a way to build trust with your potential clients by allowing you to respond honestly and professionally. Did something go wrong that was out of your hands? Offer an apology and explain what happened. Was there a misunderstanding? Take the opportunity to clear it up. Has the reviewer requested additional information or a solution? Respond online to show what you've done to address the situation. Did the reviewer misunderstand a policy? Explain your policy and invite them to contact you with further questions. Doing so shows readers that you take their concerns seriously and are willing to take responsibility when things go wrong. Learn from negative reviews If you see the same concerns repeatedly in the online feedback, it may be time to review your services. Negative reviews give you insight into areas where your customers feel your business could make changes, so take the time to consider what you're being told. You can improve your offerings or communicate better with clients to manage their expectations. Thank them for their feedback, let them know you're taking their concerns seriously, and explain your next steps. In summary A solid online presence with positive reviews can give you an edge over competitors. It shows that you're reliable, trustworthy, and provide quality work. Encourage satisfied customers to leave reviews on platforms like Google, Yelp, and Facebook. This can help increase the number of reviews and boost your overall rating.  However, remember never to pay for or incentivize customers to leave positive reviews. Make it part of your process to encourage customers to leave reviews by simply asking for them. Monitor and ensure you respond to any negative reviews professionally and promptly. If possible, ensure your responses include an apology, a statement about your commitment to your clients, and a way to continue the conversation offline if further communication is needed. Doing so will show potential customers and clients that you care about their feedback and are willing to take responsibility. It will also allow you to move the conversation to a more private forum if the reviewer isn't happy with your response. PS  * We offer FREE RESOURCES to help you save time and money that you can download and print now.  ABOUT THE AUTHOR: Sharie DeHart, QPA, co-founded Business Consulting And Accounting in Lynnwood, Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations and offers insights on managing the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. Call 1-800-361-1770 or sharie@fasteasyaccounting.com  

10m

Dec 01, 2023

THIS PODCAST IS EPISODE 551, AND IT'S ABOUT RECOGNIZING THE VALUE OF CONSTRUCTION CONTRACTORS IN OUR DAILY LIVES * * I was taking a moment to reflect on the challenges for the Pilgrims coming to America. They decided to make the journey with no guarantee of success. To build homes, plant crops, and take care of animals. Then, later, everyone chose to move West by wagon train, horse, or on foot. I am grateful for them! I think about my Grandparents and my Great Grandparents. What was life like when they were children? Where did they come from, and how did they get to where they were? THE FAMILY'S ORAL HISTORY SEEMS SO INADEQUATE. My father shared so much, but now it looks like so little. Be glad for the simple things we take for granted: __ __ Modern times. I am all for living in the city with the gas station and grocery store just down the street. I appreciate reliable electricity, and tree contractors trim powerlines year-round to help prevent outages. I am grateful for the linemen who repair power lines during a storm so we have electricity.     img https://www.fasteasyaccountingstore.com/ * *   * THANK YOU, CONTRACTORS, FOR GOING TO WORK SO THE REST OF US CAN STAY HOME SAFE.    * Thank you to the road crews, police, firemen, linemen, tree crews, plumbers, and electricians who work when the news says "Stay Home" and to all the other contractors and emergency services I have not mentioned. CONTRACTORS MAKE OUR LIVES BETTER Contractors build and maintain the things that make our lives better. They built the factories where the factory workers work. The rancher and farmer, whom you don't think about as contractors, construct and repair buildings and fences and maintain equipment. They learn to be jacks of all trades, raise crops and animals, and battle the elements. Heat, wind, rain, snow, forest fires, or grass fires – they see it first—the more remote their location, the more diverse their skills.    WHY DID YOU DECIDE TO BECOME A CONSTRUCTION CONTRACTOR? Fast money, easy work, few hours, or all those reasons? Yes, contractors can make much money in this industry. Fast, however, is a relative term. DEFINITION OF FAST MONEY Collecting a job deposit is designed to lock down the job and buy materials. While using your client's money to start the project is always a good idea, that doesn't mean you have money to party heartily, buy a bunch of tools, or buy that brand-new truck you want.  The money will fly out of the checkbooks with everyday business expenses without extra help.  If you spend your job deposits in this manner, you get into a cycle of "Borrow from Peter to pay Paul." (author unknown) This was a favorite phrase of the '60s and '70s. What do I mean? Using the deposit from the next job to pay for expenses from the last job is a slippery slope to financial disaster. Another common phrase is "Leverage Is Great Until The Stick Breaks."  It's like a child's game of musical chairs. When the music stops, someone is without a chair. The same thing happens when the economy turns, as in 2008. Contractors thought (and hoped) the recession would be a slight dip and everything would return to normal by the summer of 2009. That is not what happened for most construction contractors.  Some construction contractors had lots of work in the pipeline unaffected by the recession. Many were overconfident and thought other contractors had a hard time because they "just didn't know how to run a business." Unfortunately, those same contractors were badly hurt when their pipeline of jobs ran out. DEFINITION OF EASY WORK Easy work is any job that you know how to do quickly. Preparing Thanksgiving dinner for twenty or more is a simple task for a chef. However, it might be impossible for a college student living in a dorm or shared apartment. DEFINITION OF A FEW HOURS Yes, construction contractors can work a few hours every day. Usually, they work twelve hours or more every day of the week. It is only a few hours to: __ __ As you begin the job: __ __ Keep working at a pace that compensates for any time spent watching out for children and pets or chatting with the homeowner. The homeowner expects work to be completed on time or ahead of schedule, no matter how many interruptions you or your employees have.  End of the day – Clean up the job site so it is ready for use this evening or clean and ready for work tomorrow. Pick up all your tools and materials (mobilize and demobilize) MEET WITH THE HOMEOWNER TO DISCUSS THE REST OF THE PROJECT. Assure them all is going well. Make notes of possible change orders or add-ons. Do not forget to price out change orders. Homeowners remember that unless you agree to a price reduction in writing, you are not obligated to reduce the price. THE INCREASE IN SCOPE IS NEVER FORGOTTEN. You Promised To Do [fill in the blank]. If you think any changes are omitted, wait; you will hear a grownup impersonating a preschooler wanting a cookie. Water on the stone is an understatement.   Like most Construction Contractors, you feel like you are waving the money as it goes by. Rest assured, it is true in Washington State, where contractors collect and pay sales taxes. The tax money is just moving through the checking account. Borrowing State and Federal tax money is very bad.  The same applies to payroll taxes, except the company must make a company match for Social Security and Medicare, pay state unemployment insurance and state worker’s compensation, and obtain a contractor’s license, contractor’s liability insurance, bond, and other specialty licenses. The business of being in business as a construction contractor involves: __ __ Financials are essential for filing annual federal taxes, whether you are a sole proprietor, LLC, or S-corp. The individual reports are for the benefit of the construction contractor. __ __ FINAL THOUGHTS You couldn’t change yesterday; you could only review it and think about what you could do today. And how can you have a better tomorrow? Tiny changes can make a big difference. Sometimes, taking a pause is the right decision to make. Money makes the world go round. It is hard to buy gas or groceries with hope and a promise. It is not unreasonable to expect to be paid for your work. Contractors like you bring value to everyone's life you touched. I am rooting for your success and wish you and yours the best in everything that comes your way. PS  * We offer FREE RESOURCES to help you save time and money that you can download and print now.  ABOUT THE AUTHOR: Sharie DeHart, QPA, co-founded Business Consulting And Accounting in Lynnwood, Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations and offers insights on managing the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. Call 1-800-361-1770 or sharie@fasteasyaccounting.com  

13m

Nov 24, 2023

THIS PODCAST IS EPISODE 550, AND IT'S ABOUT BECOMING A BETTER CONSTRUCTION LEADER BY PRACTICING GENEROSITY * If you have been lucky enough to encounter generous people, you understand they have a unique gift for garnering the respect and admiration of individuals around them. When you are a leader, having a positive relationship with the people who follow you is a huge asset you cannot put a price on.  *   * In the construction business, generosity and helpfulness are two fundamental traits that can make a business successful. When contractors are willing to share their knowledge and expertise with others, it creates a sense of community and fosters growth and success for everyone involved. Additionally, when contractors are generous with their time, resources, and even their finances, it can significantly impact the success of other businesses and individuals.  *   * * * t is the right thing to do and being generous because it is something you value are two different things. If you want your generosity to be compelling, it must come from a place of sincere care and concern for those you lead. Being generous to others not only lowers their anxiety and increases their appreciation for you, but it also adds to your happiness and health. *   * 2. LOOK FOR MOMENTS TO BE GRATEFUL. *   * Being grateful could be as simple as sending a brief, personal thank-you email when the occasion arises. You do not need to create a large display or spend much money to make people feel valued. Simply watch for positive behavior in others, and when you see it, make a mental note to acknowledge it and express your gratitude. *   * 3. FIND OPPORTUNITIES TO GIVE BACK TO YOUR COMMUNITY. *   * Depending on your resources and the capacity to lead others, the extent of your reach may vary, but don't let that stop you from finding ways to give back to your community. Most homeless shelters have standing requests for donations of socks, bottled water, coats, and blankets. Speak to your company to gauge their interest and help organize a supply drive or fundraiser to give back to your community. When the people you lead see you being generous, it displays your character and often increases their respect for you. *   * 4. BECOME MORE HOPEFUL. *   * Naturally generous people are often idealists. They perceive how the world around them should be and believe in the goodness of people. Becoming an optimist could be a struggle if you are naturally pessimistic, but it is not insurmountable. Next time a challenge arises on the team you are leading, go above and beyond to believe the best in others and trust that the outcome will be positive even when it may not look that way on the surface. *   * 5. LOOK FOR OPPORTUNITIES TO TRUST OTHERS. *   * Trusting others may not seem like a quality of a generous person; however, one of the most remarkable ways you can be generous with others is by trusting them enough to allow them to take the lead on things that matter to them. Trust their ideas and, more importantly, their ability to complete the task. When you loosen your grip as a leader and trust the people around you to do what needs to be done, they will see you as a more trustworthy, generous leader. *   * There are many ways to express generosity toward others. When you look for opportunities to be more understanding and helpful, the people you lead will feel more secure following you. A leader needs to gain trust and respect; one of the best ways to do that is by being generous as often as possible! *   * AND WHAT'S THE MOST GENEROUS THING YOU CAN DO FOR YOURSELF? HIRE HELP! *   * If you're like most construction business owners, there are never enough hours in the day to complete every task on your list. *   * Often, you must prioritize what you need to do right now – deal with a client, estimate a project, attend an event – and what you know you should do for the ongoing growth of your business. *   * It sounds simple, but many entrepreneurs' self-sufficient, independent nature can make it difficult to get comfortable delegating responsibility. Finding the right people to relieve the burden of doing everything all the time is the only way a business can scale and reach its potential. *   * Think carefully about how you spend your days. Are you still at the point where you want to – or need to – do it all? The ultimate success of any company is to reach the point where it can run without you so you can enjoy a holiday, pass the business on to a family member, or sell it. Start outsourcing the tasks you like the least - it could be managing your online presence or bookkeeping, for instance, so you can spend more days with the things that matter and the people you love the most. *   * FINAL THOUGHTS *   * Developing new business habits takes time and commitment – but the payoff is well worth it! Generosity can help you become a better construction business owner. It means going above and beyond what is expected of you and being kind and empathetic toward your employees, clients, the community, and yourself. When you approach your business with generosity, you create a culture where everyone feels valued and respected. This, in turn, can lead to increased productivity, better client relationships, and a positive reputation within the industry.  *   * So, if you're a contractor looking to positively impact your community and build strong relationships with others in the industry, consider being generous and helpful whenever possible. It may lead to tremendous success and satisfaction in the long run. PS  * We offer FREE RESOURCES to help you save time and money that you can download and print now.  ABOUT THE AUTHOR: Sharie DeHart, QPA, co-founded Business Consulting And Accounting in Lynnwood, Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations and offers insights on managing the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. Call 1-800-361-1770 or sharie@fasteasyaccounting.com  

10m

Nov 17, 2023

THIS PODCAST IS EPISODE 549, AND IT'S ABOUT CONSTRUCTION COMPANY BUDGET VS. CASH FLOW Finding some certainty can make all the difference in the unpredictable construction business world. While the future remains a mystery, budgeting and cash flow forecasting tools can significantly reduce uncertainty, allowing you to anticipate challenges, learn from past events, and enhance your ability to navigate your business. BUDGET VS. CASH FLOW: THE CRUCIAL DISTINCTION A common misconception is that a budget and cash flow are interchangeable. A budget is a projection of future possibilities, enabling you to consider various sales and expense scenarios. On the other hand, a cash flow provides a record of actual expenses and sales revenue that flow into and out of your business each month. Although they often deal with the same data, their applications differ. * Budget and cash flow are both essential concepts in construction management. However, they serve different purposes and are used in different ways. A budget is a financial plan that outlines expected income and expenses for a specific period. In construction, budgets are typically created for individual projects or a company. The purpose of a budget is to help managers plan and control expenses, set goals, and allocate resources. On the other hand, cash flow is a measure of the amount of cash coming in and going out of a business over a specific time.  In construction, cash flow is significant because it can be used to determine whether a project is financially feasible and whether there is enough cash on hand to pay for expenses. Budgets and cash flow are related but not the same thing. A budget is a plan, while cash flow measures actual cash transactions. A project can be under budget but still experience negative cash flow if expenses exceed income.  Conversely, a project can be over budget but have positive cash flow if income exceeds expenses.  You might budget $1,000/MONTH for online costs, whereas in the cash flow, you'd record the actual amount spent. Despite their distinct uses, cash flow and budgeting are often maintained on the same spreadsheet or similar accounting software for ease of use and comparison. THE ADVANTAGES OF BUDGETING AND CASH FLOW FORECASTING Incorporating budgeting and cash flow forecasting in your construction business has numerous benefits. They help predict and manage potential cash surpluses or shortages, plan for tax obligations, time new equipment purchases, determine when to buy in bulk, and even identify when you might need a small business loan or a line of credit. Budgeting and cash flow forecasting are essential tools for any construction business. They provide a clear picture of the company's financial health and help identify potential problems before they occur. By creating a budget, companies can plan their finances more effectively, set realistic goals, and allocate resources to maximize profitability.  This is particularly important in the construction industry, where projects can be complex and costly. Cash flow forecasting is equally essential, enabling businesses to understand their cash position and ensure they have sufficient funds to meet their obligations. This is particularly critical in construction, where delays or unexpected expenses can quickly impact cash flow. By forecasting cash flow, businesses can plan for these contingencies and ensure they have the necessary funds available when they are needed.  One handy feature is the ability to track expenses and highlight any unusual cost increases or decreases. This allows you to take prompt action to address the issue. Additionally, these tools can help monitor sales levels and flag any underperforming areas of your business. PRACTICAL TIPS FOR EFFECTIVE BUDGETING Preparing an annual budget requires sufficient time – allocate at least two or three months for this process. Update your budget each month based on the actual cash flow. Remember that the sales forecast is often the most challenging part. If you're new to the construction business, examine separate estimates for different products or geographical areas and note any seasonal patterns in your company and industry. SENSITIVITY ANALYSIS: A PROACTIVE APPROACH A sensitivity analysis, often called 'what if' scenarios, can help you understand how different outcomes affect business performance. This analysis allows you to review the effects of changes in your revenue or costs.  THE POWER OF REGULAR UPDATES Regularly comparing your actual expenditure against your budget enhances your ability to predict future costs accurately. Reviewing and updating your budget and cash flow forecasts at least once a month or more frequently if your business environment changes quickly is good practice. * Having a construction accountant on board can be incredibly beneficial when managing finances in the construction industry. One of the critical advantages of having a construction accountant is their ability to help with budgeting and cash flow.  *   * A construction accountant can assist with creating a budget that takes into account all of the costs associated with a construction project, from materials and labor to permits and fees. By having a detailed budget, contractors can better manage their cash flow and avoid surprises down the line.  *   * Additionally, a construction accountant can provide ongoing financial analysis and reporting, allowing contractors to stay on top of their finances and make informed decisions about future projects and investments. With the help of a skilled construction accountant, contractors can better manage their finances and set themselves up for long-term success. In summary Budget and cash flow are essential in construction management but serve different purposes. A budget helps managers plan and control expenses, while cash flow helps determine whether a project is financially feasible and whether there is enough cash to pay for expenses. Budgeting and cash flow forecasting are potent tools to help construction businesses like you manage your finances more effectively, plan for the future, maximize profitability, and guide your business decisions. However, their value lies in their regular review and updating, ensuring their figures remain current and reflect your construction business's financial health.  * PS *   * We offer FREE RESOURCES to help you save time and money that you can download and print now.  ABOUT THE AUTHOR: Sharie DeHart, QPA, co-founded Business Consulting And Accounting in Lynnwood, Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations and offers insights on managing the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. Call 1-800-361-1770 or sharie@fasteasyaccounting.com

11m

Nov 10, 2023

THIS PODCAST IS EPISODE 548, AND IT'S ABOUT THE TRUE VALUE OF NETWORKING TO CONTRACTORS AND THE COMMUNITY * * The ability to network is a fundamental part of running a business. Running a business in isolation is difficult, so it helps to have expert partners and acquaintances available to share ideas with. *   * If you're looking to network with construction industry professionals, there are several ways to do so. *   * 1. ATTEND INDUSTRY EVENTS: Look for construction industry conferences, expos, and trade shows in your area. These events often have networking opportunities, such as meet-and-greets or after-hours social events. *   * Conferences are a way to actually meet in person, so the results can be hard to beat. Most conferences have time set aside for networking, allowing you to meet everyone in your niche. More work might involve getting to a conference, but the networking opportunities alone are often worth it. Best results can often be gained by creating a good impression in person, followed by an online contact. *   * * 2. JOIN INDUSTRY ORGANIZATIONS: There are many professional organizations for people in the construction industry, such as the National Association of Home Builders, the Associated General Contractors of America, and the Construction Management Association of America. Joining one of these organizations can give you access to networking events and other resources and benefits. *   * 3. CONNECT ON SOCIAL MEDIA: LinkedIn is an excellent platform for connecting with other professionals in your industry. You can also join LinkedIn groups related to construction and participate in discussions to connect with others. *   * Podcasts are popular now, so you should consider creating one for your niche audience. Regarding networking, though, a podcast can introduce your personality to relevant experts. Getting an interview might be your priority, but you can get better results if they are tempted to contact you directly. Discussing important industry news and updates will be attractive to industry leaders who are passionate about their niche. *   * An interview will give you direct contact with an expert, allowing you to make an impression and promote their brand. You might not get every consultation you desire, but most experts seek ways to promote themselves and will oblige. If you can approach them with a credible website, there is a good chance you can get some of their time. *   * Social media is perfect for networking, mainly when people are open to communicating directly. If you find an active expert in your niche, respond to their questions or comments. By making good contributions, you will quickly be noticed. *   * 4. ATTEND LOCAL BUSINESS EVENTS: Many cities have local chambers of commerce or other business organizations that hold networking events. These can be a great way to meet other professionals in your area and make connections.  *   * 5. VOLUNTEER OR GET INVOLVED IN YOUR COMMUNITY: Volunteering for a local charity or community organization can connect you with other professionals who share your values and interests. This can be a great way to make connections and build relationships. *   * When you get a chance, volunteer at your kid's school (or a local school if you don't have children of your own). They may need to make props for a school play or a quick paint job. This will open doors for you to meet parents and teachers who might need home service repair or remodeling. *   * Remember, networking is about building relationships, not just collecting business cards. Be genuine, be interested in others, and follow up with people after you meet them to continue the conversation. *   * There are all kinds of groups dedicated to networking. Some are highly structured with performance requirements, exclusive membership, and the payment of dues. Others are free form, come as you please, and no charge. *   * Not every group is suitable for every kind of business. You will find that some groups may not have connections in the market you are seeking to attract. You will find that some groups have rules that just don't fit with how your business works. *   * Yet one factor is often overlooked when considering a networking group: does this group offer more long-term or short-term value? *   * When focusing on short-term value, you see each group member only as a prospect. This limits the business potential of the group because you can't reach beyond the people in the room. If there are only 50 members, and 25 of them fit your prospect profile, what do you do once you have presented to all 25? You can either quit that group to start all over again with another group, or you can take a long-term value approach. *   * The long-term value of networking groups lies in building strong trusting relationships that will give you influence beyond the people in your immediate group. *   * DISCOVER NEEDS *   * If you are like most people, you are already pretty clear about what you need. You may not be clear on what your business connections need. Do you know anyone who is a good prospect for them? Can you recommend or offer services that will help them? Find out what your contacts need and act to fulfill those needs. *   * BE GENEROUS *   * Stop looking at every person in your networking group as a potential sale. Especially early on, be more concerned about what you can give than what you can get from these meetings. *   * Give materially by sponsoring group events, donating to fundraising efforts, or bringing in some bagels for the meeting. Give your time and effort by contributing to a service position, or be free with great ideas and a welcoming smile. *   * Especially give liberally by helping others make valuable connections. If you can help one of your group members by introducing yourself, do it. If you are generous, the effort will come back to you. *   * BUILD TRUST *   * People seek out people they can trust. Cultivating trust takes time and effort, but is worth it. When it comes to business, trust is based on three factors: *   * Value – do you consistently bring value to the relationship? *   * Dependability – are you the real deal? Can you be depended upon? *   * Consistency – are you consistent over time? It is harder to develop trust if you are an occasional participant or just passing through. *   * Hold regular one-on-one meetings with group members. Get to know them, and they will get to know you. *   * Networking groups provide valuable business allies who can open doors and remove obstacles. Cultivate relationships instead of just asking for sales appointments. Because strong relationships build strong businesses over the long term, this is the most valuable approach to networking. *   * By implementing these methods, networking will become far more accessible. One of the problems with networking is the effort it can take for no results, but these methods all involve adding value. When an expert can see that you are being helpful first, making a connection becomes smoother.  All it requires is a few people with a reputation to support you, with this social proof adding to your status. *   * PS *   * We offer FREE RESOURCES to help you save time and money that you can download and print now.  ABOUT THE AUTHOR: Sharie DeHart, QPA, co-founded Business Consulting And Accounting in Lynnwood, Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations and offers insights on managing the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. Call 1-800-361-1770 or sharie@fasteasyaccounting.com  

11m

Nov 03, 2023

THIS PODCAST IS EPISODE 547, AND IT'S ABOUT ESSENTIAL BOOKKEEPING PRACTICES FOR CONSTRUCTION START-UPS * Starting a new construction business is exciting but has its fair share of responsibilities. One of the most critical responsibilities is maintaining accurate records of your business transactions. From saving receipts to processing employee payroll, every money-related detail should be documented. It's not just about keeping things tidy; it's about understanding the financial health of your business and meeting all your tax obligations. *   * DON'T UNDERESTIMATE THE BASICS *   * Some small businesses continue to rely on traditional systems, like pen, paper, and a trusty shoebox. Although it may seem outdated, this method can work well for businesses with few transactions. These businesses might not have the latest payment technology and could be invoicing customers or receiving immediate cash or cheque payments. In such cases, they must maintain a record of all receipts, past, present, and future jobs, and a log of their customers and transactions. *   * * * In fact, to this day, most of our local construction clients will drop by our office to hand over their receipts, invoices, and paperwork in shoeboxes, envelopes, or plastic containers. *   * Of course, if you're serious about your business, you might want to consider using a more accurate system. *   * THE POWER OF SPREADSHEETS *   * In the digital age, spreadsheets offer a simple and effective way for construction start-ups to keep track of their financial activities. A spreadsheet can be a cost-effective alternative when starting or operating a part-time business with a limited budget. As your business grows and becomes more complex, you can transition to specific accounting software. *   * With a spreadsheet, you can set up a basic accounting system to track invoicing, perform calculations, and even set up a budget. *   * EMBRACE ACCOUNTING SOFTWARE *   * For those more serious about their business, subscribing to accounting software might be the best option. Modern accounting software often links directly to your bank account, making it an efficient way to document all necessary transactions. It also reduces the risk of errors and offers features like generating professional invoices, tracking debts, and ensuring everything is entered accurately for your accountant during tax season. *   * If you opt for a cloud-based solution, you'll enjoy real-time access to your accounts, increased data security, and the flexibility to access your financial data anytime, anywhere. *   * When you become a client, accounting software and training are included in your subscription. The best part? You can access it 24/7, know how much it will cost, and you are not forced to sign an annual contract and pay a fine if you change your mind; if you're unhappy with our services, you can cancel it anytime. *   * STAY ON TOP OF YOUR CASH FLOW *   * Regardless of your accounting system, a good strategy will enable better decision-making based on real-time financial insights. Identifying cash flow trends can help drive your construction business growth by revealing your most profitable products and services, biggest clients, highest costs, and more. The ability to monitor these trends places you in a better position to improve your profits and spot potential growth areas. *   * Financial management is vital to running a successful contracting business, but entrepreneurs often start their business with little understanding of making solid financial decisions.  *   * Managing your finances is more than bookkeeping and paying taxes, which are crucial to a sustainable business. It's about managing cash flow, preparing for income fluctuations, and having the resources to take advantage of opportunities. *   * HERE ARE SIX PRACTICAL MONEY MANAGEMENT TIPS YOU SHOULD FOLLOW IF YOU'RE A FIRST-TIME ENTREPRENEUR OR EVEN IF YOU ARE A SEASONED RESTARTING CONSTRUCTION BUSINESS OWNER TO INCREASE YOUR CHANCES OF SUCCESS. *   * 1. HAVE A BUDGET *   * Having a budget is essential in being on top of your finances. Knowing how much money you have, how and where you spend it, your limits on how much you'll spend, and where the money comes from gives you crucial information about your profitability. That data can then help you make vital operational decisions about your construction company—such as where you need to save money and where you can spend more. *   * Having a budget and accurate records helps keep your business and finances on track. Every important financial decision should be weighed against your budget. *   * 2. START AN EMERGENCY FUND *   * Your emergency fund doesn't have to hold much money, but it is there for you in case of sudden emergencies. Even highly successful companies have periods where they struggle financially—often due to circumstances well beyond their control, such as market shifts. An emergency fund can help your business survive during times when income drops. It can also provide you with needed cash to take advantage of an unexpected opportunity. *   * 3. DON'T SPEND TOO MUCH *   * New construction business owners might feel tempted to grow their businesses too quickly, make significant but unnecessary purchases, or hire too many people before they have financial stability. *   * Wait until you have a steady, reliable cash flow to make significant changes to your company. At least initially, it's important to focus on the necessities for running your business and get to know your business cycle. Don't spend large amounts of money until you know when your busy periods are and when the slower times tend to occur—and how drastically they affect your finances. *   * Plan for massive expenditures and establish guidelines for when you'll start spending more money, for example, after a set period of stable income. Then, stick to the rules you've set out for yourself. *   * 4. HIRE AN ACCOUNTANT *   * An experienced accountant can help you understand tax laws and take advantage of deductions. Without an accountant, you could face an unwelcome and unexpected surprise when your taxes are due. You can also make costly mistakes if you do your taxes. *   * Tax regulations can affect everything from your company's ownership structure to the best ways to spend your money so you can decrease your financial obligations at tax time. Hire a construction accountant and get to know them well so they can give you tax advice that meets your needs. *   * 5. KEEP YOUR BUSINESS AND PERSONAL FINANCES SEPARATE *   * It can be enticing to mingle your business and personal finances, especially if your business is small. However, doing so means you don't have accurate financial information about your construction company or yourself. *   * It's also vital to pay yourself an income from your business. This helps ensure you're financially stable. Combining your business and personal finances means you aren't paying yourself. You keep whatever is left over after everything else is paid for. This leads to situations where your business becomes unsustainable because all your money goes into the company, leaving you with nothing to live off. *   * Open a business bank account and draw your salary from that. *   * 6. MAINTAIN A GOOD CREDIT SCORE *   * Good credit is essential for construction business owners. It establishes your creditworthiness and enables you to apply for loans, open accounts, and maintain a steady cash flow. You must know your credit score and maintain a good rating. *   * If your credit score is poor, focus on paying bills on time and double-check to ensure your credit report is accurate and up-to-date. *   * WRAPPING UP *   * As a construction start-up, your primary task is to evaluate your construction business needs and choose an accounting system that allows you to track your cash position accurately, keep precise records for tax purposes, and identify cash trends. *   * Consulting with your construction accountant can be an invaluable first step. They can advise on the best system and ensure it's compatible with their processes. Remember, your financial records are the lifeblood of your construction business, and keeping them in perfect order is integral to your success. *   * Do you want to discuss what system will best suit your needs? I am here to help. Fill out the form on the right (or below, for mobile users), and I'll get back to you shortly. ABOUT THE AUTHOR: Sharie DeHart, QPA, co-founded Business Consulting And Accounting (Fast Easy Accounting) in Lynnwood, Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations. She offers insights on managing the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. Call 1-800-361-1770 tel:18003611770 or sharie@fasteasyaccounting.com  

13m

Oct 27, 2023

THIS PODCAST IS EPISODE 546, AND IT'S ABOUT SEVEN SURE-FIRE WAYS TO GROW YOUR CONSTRUCTION BUSINESS   ONCE YOUR CONSTRUCTION BUSINESS IS UP AND RUNNING, IT’S ESSENTIAL NOT TO REST ON YOUR LAURELS. SUCCESSFUL BUSINESS OWNERS ALWAYS LOOK FOR WAYS TO GROW AND MAXIMIZE THEIR PROFITS. WE’VE COMPILED A GUIDE AND CHECKLIST TO HELP YOU IDENTIFY WAYS TO GET THE MOST OUT OF YOUR CONTRACTING COMPANY. *   * 1. GROW YOUR SALES *   * CONTACT YOUR BEST CLIENTS. *   * One of the easiest ways to increase sales is to sell more to your existing clients. For example, you could try contacting every customer and offering a complementary product or service they might need now. You could also determine when clients need maintenance checks. *   * CREATE A CLIENT LOYALTY SCHEME. *   * You’re looking to create a customer care program using customer contact software and implementing a customer loyalty scheme. *   * * * COMMENCE A CONTACT NURTURING PROGRAM. *   * Can you make more effective use of your database of customers and clients by maintaining regular contact through newsletters (physical or email), phone calls, personal visits, or attendance at conferences and trade fairs? Do you advise them of special offers or tell them about any products and services they have not previously bought? *   * DEVELOP A SOCIAL MEDIA CAMPAIGN. *   * If you’re not on social media, now’s the time to start. It’s one of the most essential marketing tools and one of the cheapest (and often accessible). *   * RUN WEBINARS/DEMONSTRATIONS. *   * By doing this, you’re positioning yourself as an expert in your industry, creating brand awareness and customer trust. It’s also a great way to network among industry peers and meet potential customers. *   * ATTEND AND EXHIBIT AT TRADE SHOWS. *   * These are important for the same reasons you’d run webinars and demonstrations, but trade shows also offer the chance to get your product to new customers, increase word-of-mouth advertising, and add more to your customer database. *   * CROSS-SELL COMPLEMENTARY PRODUCTS/SERVICES. *   * Learn the fine art of cross-selling, which suggests to customers that whatever they’re buying from you would be of more value if they purchased a complementary item.  *   * 2. GROW BY DEVELOPING NEW SERVICES *   * RESEARCH NEW IDEAS AND SEE IF YOU CAN UPDATE CURRENT SERVICES. *   * You’re looking to identify any new products or services that a) complement those already existing and b) your customers have indicated they’d be interested in buying them from you. Any new product needs to complement what you already sell, not be a substitute. Otherwise, there is no growth in sales. *   * CHECK FINANCIAL FEASIBILITY *   * It’s essential to ensure there’s a demand and that you can create the product. Diversifying into new products is a medium to high-risk growth strategy because new products and services cost time and money to source or develop. *   * TEST WITH CUSTOMERS *   * From friends and family to more formal focus groups, testing your product in your target market and recording and analyzing the results is essential. You’ll be able to determine if the demand exists and if there are changes you could make to the product or service before taking it to market. *   * PROTECT INTELLECTUAL PROPERTY *   * The last thing you want is your brilliant idea and all the work that went into creating it nixed at the last minute because someone else beat you to the patenting, copywriting, and trademarking. Equally, you don’t want to steal someone else’s idea, so protect your IP and ensure you’re not breaching anyone else’s. *   * 3. GROW BY IMPROVING PROFITS *   * IMPROVE EFFICIENCIES *   * Technology’s great here – there are many ways you can use it to make your processes more efficient. So review all your systems and look for ways they can be improved. The better the system, the more efficient and productive it will be. Look at your customer base. Do you have habitually late or non-paying customers? It might be time to ditch them. *   * INCREASE PRICES *   * Increasing prices widens your margins and raises the cash you might need for business growth. You should always seek to increase your prices over time to improve your profit margins and keep up with inflation. Make sure you communicate to your customers the reasons for the price increase. It’s essential to convince your target market that your products or services are worth the additional cost, so consider ways to justify a price increase and focus on the benefits. *   * STREAMLINE DEBT COLLECTION SO THERE’S MORE CASH COMING IN. *   * Make sure you’re always paid on time. If your customers owe you money, the faster you can obtain it using effective collection tactics, the better. Ideally, you want to reduce the chance of bad debts and pressure on your business’s cash flow. *   * 4. GROW YOUR CAPABILITY *   * ASSESS YOUR CAPACITY TO HANDLE EXPECTED GROWTH. *   * This is especially important if you need additional equipment or space. Capacity building is about working on your business’s ability to do more internally – such as speeding up production or improving your systems and processes. *   * RETRAIN CURRENT STAFF IF YOUR BUSINESS’S GROWTH REQUIRES NEW SKILLS. *   * Exploring the available training options is a good idea if your current staff would benefit from retraining instead of taking on a new employee with those skills. It’s crucial to discuss retraining with your team to ensure they can fit it into their schedules. *   * REVIEW YOUR TECHNOLOGY *   * What you’re looking to do is determine if you need to upgrade internal systems or software. Ensure that your systems can administer your business and that its sales can handle expected growth. *   * 5. GROW BY UPDATING YOUR CONSTRUCTION BUSINESS MODEL *   * DEVELOP A STRATEGIC ALLIANCE TO GAIN SHARED ADVANTAGES. *   * Consider entering a strategic alliance with successful distributors or complementary businesses, as you may be able to expand your business’s reach and win new customers more cost-effectively. *   * PURCHASE A COMPETITOR *   * Not only will you expand your customer database, but you’ll also get access to their staff and suppliers. Odds are that your competitor has unique strengths your business can benefit from. You’ll be able to open up to new and diverse markets as you add more value for your customers. And, because you already know the industry, acquiring a competing business should be a safe investment if everything checks out once due diligence is complete. *   * 6. GROW STAFF EXPERTISE *   * INVESTIGATE TRAINING COURSES YOUR STAFF CAN ATTEND *   * As your business grows, so should your staff expertise. You and your employees must be well-trained in how to use them. Aside from in-house training, look at educational institutes and the courses they offer to determine if any of them complement your business. *   * RUN IN-HOUSE SEMINARS ON NEW TECHNOLOGIES. *   * If you’ve installed new software that your staff will need to use daily, ensure they’re up to speed by training them in-house. You might want to get a specialist on the new software to conduct the training, or if you’re an expert, you can do it yourself. This applies to any new technology you’re introducing to your business. *   * 7. GROW YOUR CASH RESERVES *   * FREE UP INTERNAL CASH. *   * You want to avoid seeking a loan or outside investment here. Reduce the number of withdrawals you’re making, or look at leasing equipment only when needed instead of buying it. If you can achieve growth without borrowing to do it, so much the better. *   * WEIGH UP THE RISKS VERSUS REWARDS TO ASSESS WHETHER YOU NEED A LOAN. *   * It could be that there’s no other option than to borrow money to finance your business growth, but you should carefully consider whether it’s worth it in the long run. *   * FINAL THOUGHTS *   * Successful construction businesses don’t rest on their laurels. You should always be on the lookout for ways to add to or improve your service, which is where continuous research and development is essential.  *   * Remember, growing a business takes time and effort, so stay focused and be patient. ABOUT THE AUTHOR: Sharie DeHart, QPA, co-founded Business Consulting And Accounting (Fast Easy Accounting) in Lynnwood, Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations. She offers insights on managing the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. Call 1-800-361-1770 tel:18003611770 or sharie@fasteasyaccounting.com

13m

Oct 20, 2023

THIS PODCAST IS EPISODE 545, AND IT'S ABOUT THE IMPLICATIONS OF RISING INTEREST RATES FOR CONSTRUCTION CONTRACTORS * In the construction business world, one constant factor you are likely to encounter is change, particularly in the financial landscape. One such change that can bear significant implications for small businesses is rising interest rates.  *   * Understanding how this impacts your construction business and identifying solutions to counteract these effects can be vital to sustaining and growing your company. *   * When interest rates go up, borrowing money becomes more expensive. This can impact your ability to make a profit on construction projects. You might have a more challenging time getting financing for new projects and have to pay more for the funding you get. Fewer people may be looking for your construction services when the economy slows due to rising rates. *   * * Interest rates have a ripple effect on various aspects of business; let's dive deeper: Decreased consumer spending A crucial repercussion of rising interest rates is that homeowners invariably allocate more of their income to repay the increased mortgage rates and other loans. As a result, there's less disposable income for them to spend — this isn't great news if you are in an industry deemed non-essential or not a priority by the consumer. Difficulty in accessing credit Lenders may enforce stricter requirements, such as more equity or personal guarantees, in response to high business loan rates. This makes long-term and short-term debt more expensive and more complex to obtain. Increased operational costs The ripple effect of interest rates can also increase your operational costs. Your employees (if you have any) might demand a pay rise to cope with their increased living costs, and essential business partners might pass on their increased costs to you, raising the price of your whole supply chain. Uncertainty in predicting future costs Rising interest rates can make it difficult to predict the cost of future borrowing or the cost of existing business loan rates, making it harder to plan your finances and future investments. If lenders are not confident of your business viability or see your construction business as high risk, funding debt will cost more, and interest payments will be higher. Because high interest can put added pressure on your cash flow, this will likely worsen your situation. Your next steps Regardless of your business's financial challenges, strategies, and resources are always available to help you overcome them. If you're worried about the rising interest rates, don't stress - plenty of options are available. For instance, you can check out financing options with great rates and terms. It's also always a good idea to have a solid financial plan to help manage any potential impact of rising interest rates. There are also several strategies you can employ to mitigate its impact: 1. REFINANCE YOUR DEBT: If you have an outstanding debt with a high interest rate, consider refinancing it to a lower rate. This can help you save money on interest payments over time. Refinance high-interest products like credit cards. 2. Negotiate with lenders: If you want to take out a new loan, try negotiating with lenders to get a better interest rate. You may get a better deal with a good credit score or a strong business history. Secure new loans with a longer fixed term to protect against further unexpected increases. 3. Increase revenue: One of the best ways to combat rising interest rates is to increase your income. This can help you cover the cost of higher interest payments and keep your business profitable.  4. Cut costs: Look for ways to cut costs in your business to free up cash flow. Delay major purchases that could drain your cash reserves. This can help you pay down debt and reduce the impact of rising interest rates. Discuss with your suppliers how to work together to offset interest rate increases. 5. Diversify your investments: Consider investing in various assets, such as stocks, bonds, and real estate. This can help you spread out your risk and minimize the impact of rising interest rates on your overall portfolio.  Evaluate how susceptible your construction company is to the effects of rising interest rates and take action accordingly. Immediate steps can include paying off debts that may incur higher interest costs and investigating any government support you may be entitled to. In summary As interest rates rise, business owners in the construction industry may face challenges. Higher interest rates mean borrowing money becomes more expensive, making it harder for business owners to finance their projects. This can also lead to a decrease in consumer spending, which can reduce demand for construction services.  In addition, rising interest rates can increase the cost of materials and labor, which can further impact the profitability of construction businesses. As a result, it's essential for construction business owners to stay informed about interest rate trends and to be proactive in managing their finances to mitigate any potential negative impacts. Final thoughts While nobody knows your contracting business as well as you do, seeking expert financial advice right away is crucial for your survival in economic distress. Contact me for tailored advice so we can navigate the unsteady financial times. I look forward to chatting with you, and hopefully, it will help you understand your current situation and also help you consider your options, implement concrete action plans, and minimize your exposure to further risk through practical strategies. Take a deep breath and know that you've got this! ABOUT THE AUTHOR: Sharie DeHart, QPA, co-founded Business Consulting And Accounting (Fast Easy Accounting) in Lynnwood, Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations. She offers insights on managing the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. Call 1-800-361-1770 tel:18003611770 or sharie@fasteasyaccounting.com  

9m

Oct 13, 2023

THIS PODCAST IS EPISODE 544, AND IT'S ABOUT WHY BANKS WON'T LEND MONEY TO YOUR CONSTRUCTION BUSINESS Getting approved for a business loan or line of credit is more complicated than qualifying for a personal loan. Small construction business owners must be adequately prepared to meet with a lender to present their business in the best possible light and ready for the money they need. Think of all the times: __ __ Multiply that by 100,000, and you will 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, companies, and contractors with reasonable credit risks they can lend money to and get paid back promptly, with all of the interest due to them. Do your best to avoid raising any of these red flags. #1 Your Profit & Loss and Balance Sheet Reports do not conform to financial industry standards #2 The financials tell the banker your bookkeeper doesn't understand Construction Accounting #3 The preparer's signature on the annual tax returns is not from a qualified tax specialist #4 You have no access to a Construction Accountant, not even for quarterly check-ups #5 You don't have a formal documented Business Plan with a budget and projections   If you have already raised some or all of these red flags, no worries; we can help you fix most of them. Bankers love chatting with accountants because we speak the same language as homebuilders, who love talking with sub-contractors and building material suppliers. After all, you all speak the same vocabulary. The Risk Management Association (RMA) 1914-  the Robert Morris Club (RMA) was formed to help businesses and bankers exchange credit information. It was named after Robert Morris, a signer of the Declaration of Independence, and was believed to be the primary financier of the Revolutionary War. The RMA developed several tools; among them was a system of Ratios that we use today to study the financial statements of all companies in all industries. The banking and lending industry has enormous databases and artificial intelligence software from places like The Risk Management Association, allowing them to separate reasonable contractor risks from bad ones. It generates recommendations based on algorithms much more complex than any gambling casino and with a much higher payoff. One of the keys to getting a banker, lender, or bonding company to consider your construction company for financing is how your financial statements are presented. In particular, your construction company's Profit & Loss and Balance Sheet. A banker, lender, or bonding agent logs into their RMA account, fills out electronic forms, answers questions about your construction company, and inputs specific numbers in specific blanks taken directly from your construction company's Profit and Loss and Balance Sheet. Any construction accountant knows precisely how to set up QuickBooks correctly for this process.  If a contractor gives their banker, lender, or bonding agent a set of financial reports that do not conform to the RMA requirements, they may or may not try to extrapolate the numbers needed using Excel or some other program. In most cases, they are polite and thank you for "applying" before giving you the "We will let you know as soon as we know anything" speech. I know this because I have heard it from many bankers, lenders, and bonding agents who are frustrated. After all, they know you are an excellent client and know you are a person of integrity who can be trusted to pay the loan back on time, with all the interest. The RMA and other reports show where your contracting company stands concerning other contracting companies serving similar geographic and demographic markets. Each major category, Sales, Cost of Goods Sold, Overhead, Other Expenses, and Other Income, is rated on a scale of top 25%, middle 50%, and bottom 25%. Ideally, all the numbers on your Profit and Loss and Balance Sheet fall somewhere in the middle 50%. Whenever a contractor "forgets" to declare all their income or "overstate their expenses," it will appear as a red flag. Finally, a Z-Score is compiled, a formula for predicting bankruptcy. Edward I. Altman published it in 1968. The procedure may be used to predict the probability that a firm will go into bankruptcy within two years. Although not 100% accurate, it is a valuable tool, similar to a tape measure, which is not 100% accurate yet still practical. This is why sometimes a contractor with excellent credit cannot get a loan or line of credit, and yet another contractor with only good credit can get financing. Prioritize these three things for a smoother loan application: Your business risk profile One of the most essential parts of any business loan application is demonstrating to a lender that your company can make regular payments and repay the loan in full. If your business is profitable, you can show you're at low risk by presenting cash flow statements, a detailed business plan, and your good credit history. Some of the most common reasons a bank won't grant a loan to a small business are a lack of security (e.g., no business assets), a poor or non-existent credit history, business inexperience, and a weak business plan. Know your credit score It's highly recommended that you review your credit score before you apply for financing. That way, you'll know whether it might be better to wait until you're in a better position to qualify. Check that your report is complete or free of any errors that can affect your score. Your credit report includes your payment history for credit cards, equipment leases, mortgage or office rentals, electricity, phone fees, and other business expenses. A simple omission – say your internet provider, whom you always pay on time, isn't included in your payment history – can result in your credit score being lower than it should be, so be sure to correct any errors immediately. Before you apply for financing If you suspect a lender will decide your business is too high risk for a loan, or you've been denied financing, apply for business credit instead. Your spending limit may be low, but a credit card will allow you to build a good credit history. Pay off your balance – or, at the very least, make your minimum payment each month. Keep up with your other financial obligations, such as personal loan payments, rent, leased equipment, and any income taxes owed. Apply for a loan in six months to a year, and you'll have a much better chance of approval. Before you apply, be sure you have all the documentation needed to support your loan application. Include in your portfolio copies of business banking statements, financial reports, a detailed business plan including projections, and a well-researched marketing plan. It would be best if you also were prepared to discuss with a lender why you need to borrow the amount you're asking for, the term length, and how your business can afford to repay it. Make a strong case for funding by demonstrating profitability, a good credit history, and a solid business plan, and you'll be in an excellent position to qualify for the funds you need to grow your business. Final thoughts Hopefully, you have gained insights into the banking, lending, and bonding industries. 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. Reach out to me and let's chat about your construction business; whether you need a little help or a lot, I'm just a message away. ABOUT THE AUTHOR: Sharie DeHart, QPA, co-founded Business Consulting And Accounting (Fast Easy Accounting) in Lynnwood, Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations. She offers insights on managing the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. Call 1-800-361-1770 tel:18003611770 or sharie@fasteasyaccounting.com  

13m

Oct 06, 2023

THIS PODCAST IS EPISODE 543, AND IT'S ABOUT BETTER PRACTICES FOR MANAGING AND MAINTAINING CONSTRUCTION BUSINESS CASH FLOW * In the business world, cash flow remains the lifeblood that keeps your operations running smoothly. Whether you're a start-up finding your feet or a seasoned business in the construction industry, managing and maintaining a steady cash flow can be challenging. But a few small changes can make a world of difference to your cash flow and overall revenue. *   * Your business needs cash. Cash keeps your company in operation and enables it to grow, so you should know how much your business needs to survive. Although many think the answer is linked solely to operating expenses, this isn't true. *   * No single factor determines how much cash every construction business needs to have on hand. Somewhere between 3-6 months of operating expenses is an excellent baseline to start from, but there's more to it than that. *   * *   *   * Initiate a discussion with your lenders if interest only or deferred payments on outstanding debts are possible. *   * REQUEST MORE FLEXIBLE PAYMENT OPTIONS *   * It never hurts to ask, especially if you've been transacting with your vendors for a long time and you've established a certain level of mutual trust and confidence. You can request more flexible payment options or longer payment terms. *   * TAP INTO AVAILABLE CREDIT LINES *   * Take advantage of available lines of credit and place the funds in interest-bearing accounts. *   * Assessing your cash flow is fundamental to better understanding your business's financial health. *   * Let's dive into some practical strategies you can implement to boost your cash flow. *   * MAKE INVOICING A PRIORITY -GET PAID FASTER AND AGGRESSIVELY FOLLOW UP ON INVOICES. *   * Receiving speedy payments is crucial to improving your cash flow. If you typically invoice your customers, consider offering them an incentive to pay earlier than the standard 30-day payment period. A small discount of 5% could encourage them to settle their bills within ten days. *   * Small businesses in the construction industry are at risk of having their clients not pay them on time—or at all. Being too passive in collecting unpaid invoices or reminding clients when payment is due will not help you collect the money you need to pay your bills. *   * Sending out reminders of due invoices can speed up getting you paid and encourage clients considering not paying you to reconsider. Reach out to clients if necessary to discuss payment options. Even a payment schedule is better than no payment at all. *   * Invoicing should be a regular part of your business day. Adopting a same-day or next-day invoicing practice can ensure you're on top of your receivables. Additionally, consider emailing invoices as a supplement to regular mail. *   * If you have customers who are habitually late, don't hesitate to remind them regularly about payments. *   * USE BUSINESS CREDIT CARDS. *   * Using business credit cards to pay suppliers or make purchases can also help manage cash flow. Most credit cards offer a grace period, sometimes up to 25 days, allowing you to settle the statement balance without incurring interest. Some even come with cash-back features. *   * WATCH FOR SCOPE CREEP. *   * Scope creep occurs when clients or stakeholders change a project's goals or deliverables. Almost all projects experience some form of scope creep, but too many changes to a project can severely impact your bottom line and hurt your cash flow. *   * Make sure the terms of your project are set out clearly, and let clients know that any changes to the project will result in additional fees. If clients attempt to change the project, you can remind them about the original agreement and the extra costs. If they insist on making the changes, you can charge the agreed-upon amount. *   * INVEST IN TODAY'S TECHNOLOGY. *   * Investing in modern bookkeeping software or invoice management services can help streamline your receivables and expedite customer payments. While it may seem like an additional cost, this investment can offer tremendous cash flow benefits in the long run. *   * Many software solutions can help you understand your company's cash flow. They can help you build projections and get a real-time view of how your business is doing. This information can then be shared among company managers so everyone knows how the company is doing financially and where strategies need to be put in place or altered to get you back on track. *   * Additionally, invoicing and project management software can encourage faster, more manageable payment from clients and keep projects on budget. This will also improve your cash flow. *   * CONSIDER DELEGATING THE FINANCIAL TASKS. *   * Many construction small business owners become self-employed because they have construction skills, not because they want to be businessmen. The financial aspects of a construction business are complex and take much time and planning. That can add demanding responsibility to the business owner. *   * Hiring someone to take care of the financial aspects of your business or even to advise you about the decisions you face can take the stress off you. That's precisely how we can help. Having someone on your side with the financial expertise and construction experience to assess your business, advise you about your cash flow, and help you secure funding. With the time and money you'll save, it will be worth it in the long run. *   * FINAL THOUGHTS *   * Remember, cash flow is king in the business world. Assessing your cash flow is fundamental to better understanding your construction business' financial health. Implement these simple yet effective strategies to maintain a positive cash flow and drive your business toward success. *   * Need help with managing your cash flow? Get in touch with us now. ABOUT THE AUTHOR: Sharie DeHart, QPA, co-founded Business Consulting And Accounting (Fast Easy Accounting) in Lynnwood, Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations. She offers insights on managing the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. Call 1-800-361-1770 tel:18003611770 or sharie@fasteasyaccounting.com  

10m

Sep 29, 2023

THIS PODCAST IS EPISODE NUMBER 542, AND IT'S ABOUT WHAT IS A FRACTIONAL CFO AND HOW CAN IT HELP YOUR CONSTRUCTION BUSINESS? * A fractional CFO, or Chief Financial Officer, is a finance professional working part-time, retainer, or contract. They bring the experience and expertise of a high-level CFO to your business – without the cost of hiring a full-time, in-house employee. *   * Fractional CFOs service several clients simultaneously, typically on a part-time, retainer, or contract basis. Their specialty is providing outsourced CFO services to small and medium businesses. *   * Because their financial management skills are so well-developed, it's common to bring one on board to help navigate a challenge. *   * Every construction business can benefit from dedicated financial management expertise, but very few small companies have the means to hire someone full-time—particularly in the lean early years. *   * Unfortunately, it's those first few years when a company is just starting up that establishing good habits with managing financial resources is so important, and, over time, can even make or break a construction business. *   * Outsourcing a CFO is affordable for business owners like you who recognize the need for a financial expert with construction business experience. CFOs provide top-level advice when needed, offering incredible value and cost savings to companies focused on growth and long-term success. But what happens when you hire a CFO without a construction business experience? At the very least, you and your CFO would constantly struggle between having all the documents needed for data entry and providing the tools to the Bookkeeper to deliver the reports correctly. As a construction business owner, you want answers to the following questions: __ __ Furthermore, a financial challenge sometimes comes beyond your team's skill or experience level. This is where a fractional construction CFO can be of great benefit. Some of the issues they assist with include: __ __ Hopefully, these situations don't come up often, but when they do, it's beneficial to have an expert on your side to guide you through. Your small construction business might want to consider the benefits of working with a fractional construction CFO. Achieving goals A fractional CFO can help you realize your dreams by deciphering the numbers. They will look at where you are now and help you plan where to go next. This includes: __ __ There are plenty of ways a fractional CFO improves your operations. The specific skills and experience they provide will clarify your situation and help you achieve what you want. Managing growth Taking your construction business to the next level can seem daunting. You want to grow but don't want to risk your success by taking on too much or making a damaging misstep. A CFO will help you navigate the steps ahead. If you're already growing at a rate that makes you feel like losing control, they will help you retake the reins. A fractional CFO will help by: __ __ Ultimately, a fractional CFO is helpful to guide you through the growth process so that you can feel confident as your business expands. High-level decision making A CFO can analyze your construction company finances and provide expert advice to help you make more informed, strategic decisions for ongoing profitability. That senior-level financial oversight can help you understand any risks or weak spots, identify opportunities, and create a realistic and actionable business plan that steers the company precisely where you want it to go. Managing risk Your business is an asset that needs protection from any potential risk that may threaten its ongoing success. A fire or flood, cyber attack, or employee theft can all cause long-term damage if you don't protect your business. A CFO can undertake a risk assessment and ensure that you invest wisely, have appropriate insurance, and secure sensitive data, equipment, and inventory. Field tools are a given. The truck has a rack for ladders and lumber. Vans have shelves and bins; they are tall enough to stand in, saving wear and tear on employees' knees. Less strain on knees can keep or postpone possible Worker's Compensation claims. Worker Comp claims lead to increased premiums. Once the Tools and Equipment are updated, it is much easier to see which employees are productive. In the Field – Who is bringing their jobs in on time, under budget is reasonable. Jobs without warranty work and signing billable change orders add to the bottom line. Simple Efficiency is a "Win-Win" for everyone: __ __ EVERYONE WINS WHEN: 1. The Contractor Owner knows the accounting records are accurate and can make decisions 2. The CFO can be confident that clients are billed, and no one is paid twice. 3. The Office Manager or Bookkeeper can easily track Job Costing and Timecards 4. The Field Staff stays on top of the job and gets signed Change Orders 5. The Customer is happy with an excellent job without any warranty work. Final thoughts When you hire a fractional CFO, you decide how often their services are required and only pay for the services you need. Hiring a financial expert on contract is a cost-effective solution for construction businesses that only need part-time support. Staying on top of your company's financial management is a struggle for many small business owners, who spend much time attending to clients and profit-generating activities. Working with a team of accountants, bookkeepers, and a CFO can help you better manage the most critical aspect of your business for ongoing growth: your bottom line. ABOUT THE AUTHOR: Sharie DeHart, QPA, co-founded Business Consulting And Accounting (Fast Easy Accounting) in Lynnwood, Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations. She offers insights on managing the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. Call 1-800-361-1770 tel:18003611770 or sharie@fasteasyaccounting.com  

11m

Sep 22, 2023

THIS PODCAST IS EPISODE NUMBER 541, AND IT'S ABOUT THE VALUE OF DOCUMENTING EFFECTIVE CONSTRUCTION BUSINESS SYSTEMS * Many entrepreneurs operate with their business processes and systems in their heads. They know what they must do daily and how they want to get things done. *   * Unfortunately, when a construction business grows, and staff need to be hired – or the owner needs to take time away from the company – it's an absolute liability not having processes and systems documented in one place. *   * To be in business and to remain in business, become a business person! To run a construction business, you must be business-like. It's not sufficient just to be very good at what you do. Many people who are 'very good at what they do' have failed. The familiar cry: "I'm far too busy for that," is also no excuse. Are you 'too busy' to be a competent businessperson? If so, your construction business won't last long. You must continue to develop your business skills. *   * To be a businessperson, you must try to become an all-rounder, not just a specialist player. You can offer outstanding goods or services, but if you don't develop sound business systems, you are not a fully rounded businessperson, and your construction business will be in danger of failing. Remember that other stakeholders in your business - such as the building material suppliers who give you credit and the bankers who extend loans and financing terms, are constantly assessing your business skills. If you consistently pay people late or can't meet the duration of your debt agreements, they will draw obvious conclusions about your business skills. Here are the top five reasons to record your company processes and systems so your business can run more efficiently and effectively even when you're not there. 1. Improve efficiency When you sit down to record your processes and systems, you may discover gaps where improvements could be made. You might find better ways to perform routine tasks, reducing bottlenecks and eliminating extra steps. You may decide that some tasks are too time-consuming, and you'd save time and money switching to an automated solution. Reviewing how you do things as you record systems can help create better systems, improving productivity. 2. Support staff training When hiring new talent, a systems manual can dramatically reduce the time you spend training. Documenting your processes can also ensure that jobs are consistently performed to a high standard. Sharing your procedure guidelines can help new employees and casual staff quickly get up to speed on expectations and give them a reference to check before asking questions. 3. Sell your systems Develop a unique turnkey system that other construction businesses can implement to save time and cut costs, and you can increase profits by selling your operating manual. Those documented processes are part of your company's intellectual property and can be licensed like your brand name. 4. Getaway One of the perks of running your own business is setting your schedule. But without systems, it can be challenging to get away for a vacation, let alone retire. To build a company that can run without you, you need to be able to delegate the tasks and processes to someone else with confidence that they'll be performed correctly and consistently. Another excellent reason to make sure your systems are recorded and your manual is updated regularly. 5. Sell your business When it comes time to sell your construction business, you'll get top dollar if you can provide a buyer with an operating manual. A potential buyer wants to know that the company will continue to run smoothly without you throughout the transition period and that institutional memory will be retained when there's staff turnover. The greater ease with which someone can step in and operate the business, the greater the value and the higher your compensation when you're ready to sell. As we've seen, several excellent reasons exist to review your systems and record them, even if you're just starting. You might update it yearly, just like your business plan, to discover best practices and ensure it maintains its usefulness to you and your staff. Too many businesses fall over because the owner has not established efficient business systems. This typically happens because the business owner is so caught up in the day-to-day running of the business that the fundamentals of good business management get forgotten. It must be often 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 are disastrous: __ __ Any of these factors can lead the business down the slippery path to failure, but all are avoidable. The whole point about using sound systems is that they free you to spend more time working ON your business, not in it. How good business systems will help you? Good systems will make your construction business more substantial, efficient, and manageable. They will also make your business far more attractive to future buyers because if you have developed clear operating and procedure manuals, the business will be seen as an independently viable unit and less dependent on you. Consider, for instance, what makes franchises so successful: they are designed so that people can buy a proven system and operate it after minimal training. They can do this because the business procedures are captured in simple, clear operating manuals. You don't have to be an expert at everything in your construction business. For example, you might hate bookkeeping. Okay—but do get someone else to do it for you; don't rely on a shoebox for your accounts! And you should at least understand the processes and the overall accounting picture, even if you don't want to do the 'drudge work' yourself. Final thoughts Large, profitable construction companies have known and used some form of Business Process Management (B.P.M.) for hundreds of years. We've always used M.A.P. to help our clients find the treasure hidden inside their construction business. (You can download our free toolkit here if you haven't done so). Having poor systems is the road to stress and burnout. On the other hand, good business systems will enable you to work smarter, not harder. They free you to work on your business rather than in it. That way, you're more likely to avoid burnout, and you'll be able to take time off work because you can train others to follow your documented systems and procedures. Build a better construction business and liberate yourself from it. ABOUT THE AUTHOR: Sharie DeHart, QPA, co-founded Business Consulting And Accounting (Fast Easy Accounting) in Lynnwood, Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations. She offers insights on managing the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. Call 1-800-361-1770 tel:18003611770 or sharie@fasteasyaccounting.com    

12m

Sep 15, 2023

THIS PODCAST IS EPISODE NUMBER 540, AND IT'S ABOUT KEY FINANCIAL CONCEPTS FOR CONSTRUCTION COMPANY OWNERS * Not everyone knows construction accounting, and it is easy to assume all accounting is the same. Even if you have outsourced your financial functions, as a small construction business owner, having a solid understanding of critical financial concepts is crucial to work with your advisor and 'speak their language". This article outlines several essential concepts that every small business owner should know. *   * Construction is a tricky business, and people's failure is expected. Most of our clients have either failed or come very close. It doesn't matter how many times you are knocked down; it only matters that you learn your lessons, get up, and go again. We noted these lessons years ago, owning and operating our construction company. By building a system and gaining insight from us, you can pick up from our mistakes, which you don't have to go through and can start avoiding before it comes crashing down.  *   * Get that one thing working, then move on to the next one. What is the most annoying thing you can quickly fix? We talk about accounting because that is our primary focus. Start with the basics: __ __ Basics of income and expenses As a construction business owner, you must understand how you generate and spend money. This way, you can maintain fiscal responsibility while also promoting business growth. Income statements (Profit & Loss) versus cash flow Business owners should always stay on top of the latest cash flow analyses and projections to make smart short-term financial decisions. Remember, a P&L doesn't tell you if you can pay your bills or how liquid your business is. Keep that in mind! Operating cash flow Understanding a company's operating cash flow is vital for assessing its performance and cash runway. Gross sales versus net profits As a small business owner, paying attention to sales and expenses is vital to ensure a healthy and well-managed business. Remember, gross sales don't equal net profits. Understanding every expense, knowing the industry averages, and having enough cash to thrive long-term are crucial. Reading a balance sheet It's important to understand the line items on a balance sheet. Taking a deep dive into these details can provide valuable insights into your financial well-being. Soon, you will instinctively know if something doesn't look right. Return on equity This concept helps us decide whether to keep investing in the business or look into other investment options. You see, there are always opportunity costs to consider for every investment. MATERIALS A construction contractor may purchase material and resell it to their customer. Thereby thinking it is a reimbursable expense. (You lose money when doing this).  Remember all invoices to the Customer (Retail, General Contractor, Spec Builder, Developer) are income. Every line item on a customer invoice is ALL INCOME. If the words are on the invoice, then the invoice is either taxable or non-taxable based on other factors. Washington State, for instance, has a clear explanation.  Purchases for the material are Cost of Goods Sold or are expenses if you are short-cutting your accounting. I have seen financial statements backed out because they will reflect reimbursable income as a negative number, thereby showing it as a deduction. (The net effect is double dipping on the expense side.) The cause is that the accounting software is not correctly set up.  Cost of goods sold It's imperative to clearly understand the cost involved in producing your products or services. If you're unsure how much it costs to provide your services, it's hard to know how much you'll have left to cover your overhead expenses. For example, a material receipt arrives at the regular bookkeeper's desk from a lumber supplier, and they open the QuickBooks contractor file, look up the supplier to determine how the previous lumber purchase was coded, and proceed to code the new transaction the same way. The problem is that each transaction is unique and could go into any of a dozen accounts or item codes depending upon whether it is a direct cost, indirect cost, WIP, retention, warranty, overhead, administrative, or other costs, or simply an expense. The cumulative effect of these bookkeeping errors in one month can do enough damage to the financial and job cost reports to bankrupt a contractor eventually. Accounts payable and accounts receivable Managing cash flow through digital tools for accounts payable (AP) and accounts receivable (AR) is crucial. After all, cash is king for small businesses! No - the company with the most Accounts Receivable or Accounts Payable does not win a prize. __ __ Working capital Monitoring working capital is vital for ensuring the business has enough funds to operate smoothly. You can get loans if you can't get enough working money because of seasonality or other external factors. A working capital ratio between 1.2 and 2 signifies a healthy business to lending companies. The operating capital ratio shows the percentage of assets to liabilities, i.e., how often a company can pay off its current liabilities with its existing assets. The working capital ratio calculation is Working Capital Ratio = Current Assets / Current Liabilities. We are deeply passionate and committed to the construction industry and want to support you, our clients, and our readers to achieve your definition of success. Whether you're a contractor, owner, spouse, business professional, bookkeeper, or accountant, we understand your frustrations because we've been where you are now and are here to help. We have proudly produced 12 classes in our Construction Accounting Academy. Each course was designed for QuickBooks users from all levels - Beginner to Experienced. Our goal is to provide the student with suitable and valuable information to build a construction accounting system specific to their type of construction business and company role. As with every type of business, having the right tools can help you work efficiently and effectively. The key to your business profitability lies in understanding the critical concepts of construction accounting. Now that the tools are available online and accessible 24/7, it's up to you to leverage and implement the power of knowledge. To wrap things up A solid understanding of these key financial concepts enables you to make informed decisions, effectively manage your finances, and strategically drive your businesses' growth and long-term success. With financial acumen, you can identify expansion opportunities, mitigate risks, and build a sustainable foundation for your business ventures. Don't navigate your finances alone – we're here to help. ABOUT THE AUTHOR: Sharie DeHart, QPA, co-founded Business Consulting And Accounting (Fast Easy Accounting) in Lynnwood, Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations. She offers insights on managing the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. Call 1-800-361-1770 tel:18003611770 or sharie@fasteasyaccounting.com  

12m

Sep 08, 2023