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

This Podcast Is Episode Number 422, And It's About Digital Disaster Recovery For Your Construction Company Sales are about addressing your customers' needs and problems. By understanding the issues clients face, you can show them how your service solves their problems.  Here are some tips for asking the right sales questions to better understand and help your customers.  1. Don't jump into sales questions right away. Sales aren't just about making a sale, although that's certainly part of it. Instead, sales are about building relationships. That's how you make a sale today and encourage repeat business tomorrow.  When you start asking questions, don't begin by asking questions about the sale specifically. Instead, ask questions that develop a relationship and give you a chance to get to know the client better.  For example, ask questions about their long- and short-term goals. After that, move into questions about the issues they face and what solutions they currently use. Then, find out what does and does no

This Podcast Is Episode Number 420, And It's About Digital Disaster Recovery For Your Construction Company Emergencies can happen in the blink of an eye. Gmail, Yahoo, MSN, and social media are all in the cloud. When disaster strikes, flood, fire, theft, earthquake, or a lousy bookkeeper deliberately destroying business records or computer crash, you are protected against data loss by these online programs. Buy another computer, set it up, and you are back in business.   What about your bookkeeping records? Your customer list? Who owes you money? Who you owe money to? Payroll? Employee advances and loans?   Job deposits, sales tax reports due, the list goes on. You never realize how much you depend on your Construction Accounting System until it is gone forever!   What about your contracts, bids, other hard copies of documents you use to operate and grow your construction company?   When you run your own contracting or trade business, your life involves many long days being on job sites while managing projec

This Podcast Is Episode Number 420, And It's About Optimizing Your Construction Business Website for Local Searches   For most construction businesses, increasing sales during this time will be very beneficial and may provide some much-needed cash flow relief.    Local search engine optimization (SEO) is an integral part of any online marketing strategy for traditional businesses which serve a specific geographical area.   Local SEO works in much the same way as standard SEO, although some significant differences are considered. Taking the time and trouble to optimize your website for local is essential since about a fifth of desktop queries and more than half of mobile searches have local intent.    To capitalize on this fact, you'll need to make sure that your website appears in local searches. Fortunately, local SEO is somewhat more straightforward than regular SEO, which is significant because it is less competitive.   The first step to optimize for local searches is to include your regional keywords,

This Podcast Is Episode Number 419, And It's About Becoming A Better Construction Manager By Developing Accountability The success of any business, large or small, depends considerably on nurturing an efficient, productive workplace.   While improving employee productivity should always be a priority when the ultimate goal is a sustainable and profitable business, the process is easier said than done.   Being a better construction business owner is not just about the habits you practice in front of others. It is often about the habits you practice behind closed doors that make you an easy person to follow.   Whether you work alone or managing a group of people, practicing accountability matters. Accountability is a touchy subject that can make many people feel uncomfortable, but it protects you as a leader and can exponentially increase the level of influence you have over a corporation or group of followers.    Here are a few ways you can develop the kind of accountability that makes you a better construct

This Podcast Is Episode Number 418, And It's About Steps Construction Company Owners Can Take To Avoid Employee Fraud Billing schemes. Skimming. Check-tampering. Employee fraud is a real risk for businesses with fewer than 100 employees. In fact, according to the Association of Certified Fraud Examiners, small businesses lose almost twice as much per scheme to occupational fraud. If you Google Search "Construction Bookkeeper Embezzlement," you will see thousands of hits, and most of the problems construction companies suffered could have been avoided if the owner had known about and followed a few simple guidelines. Unfortunately, until a contractor has gotten to know us, they tend to think of us as just another contractor's bookkeeping service. This means some contractors think we are crazy to suggest that any trusted employee, especially an in-house bookkeeper, would steal money from their company, and so they ignore us until it was too late. Be aware of the "Employee Theft 10-10-80" Rule Discovered over m

This Podcast Is Episode Number 417, And It's About Winning Tactics For Contractor Paperwork You started your contracting company to have fun, be your own boss and do the work you love. Now you are overwhelmed with paperwork, and the fun is gone!   One of the biggest struggles construction business owners deal with is the overwhelming amount of paper they have to organize as part of their everyday tasks. Invoices, receipts, bills, contracts, client records, pay applications, insurances, licenses - are just among the few in the seem to be never-ending "etc."   Keeping essential documents is necessary. Most contractors go from one extreme to the other. One extreme is saving everything for decades, and the other is tossing everything out.   What to save? What to toss out? At Fast Easy Accounting, we no longer need to print and save every document in file folders and keep adding new file cabinets. Our paperwork processes ensure your happiness and peace of mind knowing that your papers can be retrieved electronic

This Podcast Is Episode Number 416, And It's About If My Construction Business Is Making A Profit Where Is The Cash Some construction business owners find themselves in the difficult position of running a business that appears to be profitable but still having no money in the bank. It's a critical situation to address. After all, a lack of adequate cash flow is one of the leading causes of small construction business failure.    Here are three reasons why profitable construction businesses have little money in the bank and what company owners can do to handle these tricky situations.  1. Using business money for personal reasons Owners may be using their business bank account as a personal bank account, withdrawing the money as they see fit. Of course, business owners need to earn a living. Instead of using the business account as a personal account, you should give yourself a wage and transfer that from the business account to your personal account at set intervals. If your personal money runs out, you can

This Podcast Is Episode Number 415, And It's About Proven Practices To Collect Construction Client Payments Effectively All construction contractors have experienced bad debt's financial pain, which is defined as a customer who refuses to pay no matter what you do. We've been there before, and it will probably happen again in the future. Owning and operating any business, including accounting, means sometimes you provide goods and services and not get paid. Knowing The Answers Helps "If you know the answers, the questions will not bother you" - Randalism. When you sat for an exam or a school test and knew the material forwards and backward, it was fast and easy. The exams and tests for the classes you struggled with were the opposite. In your construction company, it is the same; you need the answers to develop understanding, which helps us all let go of the past and move forward. The larger your construction business grows, the more likely you could end up operating as a bank without the hundreds of ways to

This Podcast Is Episode Number 414, And It's About Leading Contractors Successfully Through Major Organizational Change We are all currently experiencing and adapting to present pandemic times. We've probably adjusted our business model to cater to our clients, new and existing. Construction business change is almost always a good thing, but often poor management means that the workforce becomes disengaged and the change process painful. In the worst cases, this results in irreparable damage being done. It doesn't need to be this way. Follow these steps and empower yourself to lead your contractors through significant organizational change successfully. 1. Understand the change Make sure you understand precisely what is changing and how it affects your people. Speak to whomever you need to ascertain this properly. You need to know what the impact is on your people and the jobs they do.  Educating yourself will mean you're better equipped to communicate with your staff. It will give them confidence that you a

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

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

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

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

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

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

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

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

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

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

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