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

This Podcast Is Episode Number 0362, And It's About Cybersecurity Tips For Construction Business Owners   It's natural for small business owners to think that they won't be victims of cyber attacks. Most of the news surrounding hacking and data breaches involve large corporations, but that is because that's where a high number of victims are affected. Hackers may find they have an easier time going after small businesses and start-ups that aren't prepared for a security breach.    So while they might get less information from a small business, thieves will have an easier time accessing that information. If your construction company keeps any time-sensitive information on a computer network—whether that is personal information, credit card details, or other vital data—you need to ensure your cybersecurity is top-notch, so you, your business and your clients are fully protected.    Here are some tips for enhancing your cybersecurity.  1. Keep your employees informed  The unfortunate truth is that human error

This Podcast Is Episode Number 0361, And It's About What To Do When Your Construction Company's Supply Chain Faces Disruption   Having a family-owned construction business in times of uncertainty, we spent many sleepless nights wondering how we were going to make payroll. Where would our next job come from? Would it be profitable, or would something terrible happen to cause us to go bankrupt?   If your company relies on material suppliers in various geographic locations, it's likely that at some point, your construction business will face a supply chain disruption. Whether that disturbance is caused by a virus, regulatory lockdown, international tensions, changes in local laws, or a natural disaster, there will probably be scenarios in which your suppliers or transporters face obstacles that affect your company.    Here are some steps you can take to respond to such situations and even prepare ahead of time for them.    1. Know your supply chain   An essential first step to any preventive or reactive plan is

This Podcast Is Episode Number 0360, And It's About 7 Ways To Improve Construction Workplace Productivity The success of any business, large or small, depends considerably on nurturing an efficient, productive workplace.  Some contractors and construction company owners believe in maximizing production by driving everyone from the laborers to the Project Managers to work harder, longer, faster, hustle, and run. And if they are giving less than 110% to the company, they are not doing enough. 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.   Below are some of the most effective methods of managing a productive, happy workplace while increasing output: Establish Accountability Productivity depends on every employee's understanding that the jobs they do come with specific responsibilities, and that their actions have consequences. Employees that lack accountability are more likely to slack off,

This Podcast Is Episode Number 0359, And It's About How A Business Dashboard Can Help You Drive Your Construction Company Business dashboards are a valuable business intelligence tool, offering an "at-a-glance" big picture view of a company's performance.   Some construction business owners use a dashboard to track KPIs (Key Performance Indicators) relevant to just one aspect of their business, such as sales growth, marketing, or financial data. Others rely on an executive dashboard for an overview of data culled from various sources (e.g., their accounting software, CRM tools, and website analytics).   The great advantage of a dashboard is that it presents and compares complex data drawn from several sources using visual tools (i.e., tables, line graphs, and bar graphs). With access to this consolidated data – information that would take hours to compile and analyze on your own – business owners are empowered to make more informed real-time business decisions.   Here are a few more reasons to consider inves

This Podcast Is Episode Number 0358, And It's About Tips For Getting Your Construction Business Through Tough Times If you're a small business owner whose construction company hasn't gone through hard times, that's great, but it's likely to happen at some point. As much as we dream about being brilliant enough in this industry that we'll never face slow times, there are many things beyond our control that can negatively affect our organization.   Here are six tips for getting your business through difficult periods so you can look forward to many more years of construction business ownership:   1. Take care of your employees   Workdays lost to sickness are a considerable cost to the company and a threat to productivity. Regardless of health threats and virus spread, the workplace itself is a source of infection, and you can reduce the risk of causing absence in your employees by implementing control measures to ensure the environment is clean and safe.   Introduce a culture that dictates employees take res

This Podcast Is Episode Number 0357, And It's About Annual Tax Return Pointers For Construction Contractors Preparing for tax season is a year-round endeavor. Well-organized small businesses are better positioned to minimize their tax bill while avoiding penalties associated with missing or inaccurate information.   Tip number one for construction company owners is to update financials every month, using a streamlined software or cloud-based system. This way, come tax time, everything you need is all in one place.    Second - The Profit And Loss Balance Sheet is what Tax Accountants use.   The numbers on these reports offer a summary snapshot of your business. They are referred to and reviewed over and over by banks and others.   Below is a copy of the "Schedule C” it is the standardized format from the Internal Revenue Service.  Besides the bottom number, what does it tell you? I suspect minimal information. Why? Because the Internal Revenue Service has rules/regulations/restrictions about their forms and a

This Podcast Is Episode Number 0356, And It's About Contractor Networking - How To Connect With Local Business Owners Making a few good local business connections can go a long way in helping your construction business grow. Networking can spark mutually beneficial partnerships, lead to new opportunities, and attract more clients through word of mouth.   In the age of social media, small business owners may think networking isn't as valuable as it used to be. On the contrary, it's just as crucial for people to get to know your face out and about in the community as it ever was. And fellow business owners are much more likely to refer you once you've met in person or have worked with you in the past.   We have previously put together an article about Networking For Construction Contractors within the industry. This time, our focus is on connecting with local business owners. Here's how to start networking more effectively with business owners in your neighborhood. Pay it forward One of the simplest ways to co

This Podcast Is Episode Number 0355, And It's About Bookkeeper, Accountant, And CPA For Contractors - Understanding Roles The tax season is here. This is when most construction company owners think about getting their construction bookkeeping system in order, so they can file their annual tax return for the previous year.   Keep in mind that each branch of accounting serves a different function similar to how it works in construction. There are framers, rough carpenters, and finish carpenters, and all three works with lumber, yet in most cases, the skill sets to do everything are rarely found in the same person.   If you're like many construction business owners, you may not be exactly sure of the differences between a construction bookkeeper, a construction accountant, and a Certified Public Accountant (CPA)  - and whether you should hire one, or all.   An established, growth-focused construction company will employ the services of both an accountant and bookkeeper. The two professionals work in tandem to e

This Podcast Is Episode Number 0354, And It's About Why Your Construction Business Needs You To Say No Being open to new possibilities is a positive trait shared by most construction company owners —but saying yes to all the people you meet and opportunities that come your way can get you into trouble.   When we over-commit—especially when we take on projects that don't benefit our business—our stress can hit the roof. It's much hard to be productive when we're feeling burned out and resentful.   One of the most impactful changes you can make in your construction business is to form one simple habit: give yourself time to weigh the cost and benefit before making any decision, and politely decline any opportunity that doesn't align with your goals.   If you're feeling stressed and less productive than you'd like, it's time to get better at saying no. Here's how: First, check your business plan. Your business plan is more than a record of the year's goals and projections. It's a living document designed to hel

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

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

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

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

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

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

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

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

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

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

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