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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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