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

This Podcast Is Episode Number 0322, And It Will Be About How To Build A Construction Company That Can Grow Without You   Perhaps more.    An alarming number of construction company owners are being ripped-off and driven into bankruptcy. That sounds harsh, but it's true. Whenever we see a contractor heading towards a problem, an issue, or a big disaster, we immediately raise the alarm. We are cautious about doing it so when we say there is a potential problem, our clients know we are serious.   Contractors by nature are tenacious, resilient and have a tremendous amount of "Grit And Determination To Succeed" which means they are not easily disturbed or prone to react hastily or rashly at the first sign of trouble. This is just one of the many qualities I sincerely admire about these wonderful men and women. Most of our contractor clients will listen carefully and thoughtfully when we offer advice and words of wisdom because they know, like and trust us and are aware that everyone on here at Fast Easy Accounti

This Podcast Is Episode Number 0321, And It Will Be About How To Build A Construction Company That Can Grow Without You   If you are the typical construction contractor trying to keep track of your construction projects, meetings, tasks, and conversations without the tools and technologies you could be living in a nightmare. You can either keep on "Powering Through"- spend your life endlessly chasing details, missing appointments, suffer untold losses in cash flow and profits; or you can start developing a plan and work on your business.   You may be getting your construction projects done with sheer will-power, but the lack of processes, business plan, and strategy will eventually wear you down.   Successful contractors improve processes all year long. Your construction company can benefit from this system that other successful contractors are using now, which means there is no need to "Reinvent The Wheel." As your construction company grows and evolves, your processes can support the controlled and planned

This Podcast Is Episode Number 0320, And It Will Be About What Every Contractor Needs To Know About Profit And Growth Coaching When my partner, Sharie DeHart and I, were running construction and plumbing service and repair businesses beginning in the early 1970s until 2000 we felt we did not need to pay anybody to tell us what to do because we knew exactly what to do.   After several very painful and extremely costly mistakes, we found the adage "Experience Is The Best Teacher...And The Most Expensive" to be oh so true!   We found ourselves, our family, employees, and suppliers were all riding on our Roller Coaster of Surprises, some good, some bad. On occasion, we would wake up screaming bloody murder only to discover it was the middle of the afternoon, and we were not asleep!   After a while, we decided perhaps there was truth to "If you think education is expensive, try ignorance." I will admit I was a bit arrogant thinking since I was raised in a family of contractors that I knew a lot about construction.

This Podcast Is Episode Number 0319, And It Will Be About Increase Traffic And 30 Content Ideas For Construction Blogs Go through a quick search of construction/home service-based businesses near you, whether it’s a Handyman, Plumber, Painter, or a Framing company, or better yet google your competition and look at their information. Does it link to their websites? And if so, do they maintain a blog? How many people, including you, search the web for information before making a decision – buying equipment, booking a hotel, or eating at a restaurant? While a company website establishes your credibility as an industry leader, blogging presents an excellent opportunity for you to develop a relationship with your audience, strengthens your reputation as an authority in your field, and helps you stand out from the competition. You care enough to provide your prospects and followers relevant and useful information that they can practice and apply. When creating content, ask yourself these questions: • What is the pu

This Podcast Is Episode Number 0318, And It Will Be About Establishing Your General Contracting Business - T.I.P.S. On Starting It Right Running a business for general contractors like you is an overwhelming yet fulfilling task because there are so many things only the company owner can and should do. In most cases, when the owner's spouse contacts us, it is because they are trying to help with the business, but they know they need outside assistance, so there is more quality time with the family. Most contractors, and small business owners, in general, haven’t realized that what you don’t know can keep up at night. Instead of focusing your efforts in maintaining your relationship with your past clients and building a new one, you were up wondering whether you’re making or losing money. Today more than ever, it is necessary to have a properly set-up accounting and bookkeeping file and maintain it. Someone with the knowledge and training combined with an understanding of construction to Set-Up, Clean-Up, Tidy-

This Podcast Is Episode Number 0317, And It Will Be About Five Basic Construction Accounting Tasks To Complete Every Month   Proper construction accounting is all about the details. The answers you need to operate and grow your company are in reports. Everything starts with cash because "cash is fact, profit is an opinion." All transactions in the bank account of your construction accounting system no matter if it is QuickBooks or Xero, must be assigned to the proper accounts: Income Job Deposits Payroll Taxes Cost of Goods Sold (Direct and Indirect Costs including Labor, Material, Other and Subcontractors) Other costs including permits, plans, bills from suppliers, and purchases on your personal credit cards Overhead These tasks form the solid foundation of your small business. As a small business owner, you have more important things to do than to keep your own books. We take care of your books for you, so you can get back to the job of running your business and generating profits.  1. Bank Reconciliation

This Podcast Is Episode Number 0316, And It Will Be About Contractor Tactics On How To Avoid Payment Problems Construction companies need short-term liquid working capital such as cash, lines of credits, loans, owner financing, credit cards, supplier accounts, and other forms of money to conduct daily operations. Small construction companies with annual sales volume less than $10,000,000 and other requirements enjoy some benefits that are not always available to larger firms. Likewise, larger firms can leverage economies of scale. The larger your construction business grows, the more likely you could end up operating as a bank without the hundreds of ways to generate revenues from fee income and interest calculation that banks use. The most popular method designed by investors and developers and shrewd business people who understand the concept of divide and conquer is for contractors to get little or no down payment for a construction project, do all the work, including change orders and then try to collect

This Podcast Is Episode Number 0315, And It Will Be About Bookkeeping And Accounting Solutions For The Busy Contractor   The calls, emails, messages, and walk-ins that our company deal with every day come from construction contractors, spouses or significant other, construction bookkeepers, advisors, students, and financial planners among others. I do my best to offer support even if it does not lead to an immediate request for our services. The pressures of running a construction company are tremendous. Incoming money is usually unknown, but expenses and bills are due now. You are not alone; many contractors feel the same way. Owning a construction company is so much different from just working for another construction contractor, and in most cases, new contractors had no idea what is involved in the business end of the operation before they started. To make a lot of money in contracting, you need these three things, and that means paperwork: Since you got into the construction business because of your skil

This Podcast Is Episode Number 0314, And It Will Be About Proven Tax Reducing Opportunities For Your Construction Company Accounting has two sides: Internal Accounting (Management Accounting) - for making money. Its purpose is to help you operate and grow your business profitability. External Accounting (Tax Accounting) - for paying taxes. Its purpose is to prepare tax forms, report your income, and make sure you pay your fair share of taxes. Understanding the difference will impact your company's financial health and wealth. Both groups of accountants must know the relationship between your internal bookkeeping and the Internal Revenue Service, and the importance of paying the right amount of taxes. There are a lot of professional bookkeepers, accountants, and tax preparers and they all serve a different role in your business. In-House Bookkeeping Contractors who do not earn a lot of money see bookkeeping as overhead which costs money and therefore is a drain on profits so they get a cheap computer, tiny mon

This Podcast Is Episode Number 0313, And It Will Be About Construction Company Technology Practices To Reduce Financial Management Cost There is a thread of success weaved into the fabric of the most successful, wealthiest, consistently most profitable house builders, general contractors, residential remodel contractors, flipper house contractors, commercial tenant improvement contractors, sub-contractors, specialty contractors, handyman, architects and designers and over 100 other types of contractors and construction-related companies - they adapt to a continually changing environment. Everything in the Universe is in balance, and parts of it are easy to see and understand and some parts are hidden in plain sight and require some effort to see and understand. Your ability to look beyond the initial statement and understand the hidden meaning why successful contractors adapt to change to survive and thrive will serve you well. The truth is the most successful, wealthy, highly profitable construction contract

This Podcast Is Episode Number 0312, And It Will Be About Job Costing For Small Construction Companies - The Key To Profitability  Job Costing, in its simplest terms, links the money you spent on a job against the money you received to do a particular job. It is the process of tracking all the costs related to a project to determine its profitability. A common misconception is that Job Costing is only for large contractors with a dozen employees. Since keeping track of all costs and expenses involves a lot of additional work for contractors and field workers, and most construction company owners do not see an immediate benefit, some contracting businesses still haven’t implemented Job Costing procedures despite the financial risks. In Construction Accounting, there are two types of Cost of Goods Sold (COGS) – Direct Construction Costs and Indirect Construction Costs. Both are equally important in generating useful Job Costing Reports.   (Everything that is not Overhead or Other Income and Expense falls unde

This Podcast Is Episode Number 0311, And It Will Be About Five Common Security Questions Contractors Ask Before Hiring Our Service  Right now, if you are like most construction company owners, your construction accounting records are in an unlocked file cabinet, or worse, sitting on someone's desk. As an accounting firm, our client's privacy and security remain our top priorities and are continually looking at ways to develop and evaluate our system to prevent breach and network holes. We utilize 128-bit Secure Socket Layer encryption which ensures that all data passed between the web server and browsers remain private and integral. There are two levels of restrictions and passwords must be entered before you can get your data file. At Fast Easy Accounting, Cloud Security is not an option- it is a fundamental requirement. We only use Intuit Approved Commercial Hosting Services. We have taken steps to select the best to ensure that your data is as secure as that found for online banking and financial instituti

This Podcast Is Episode Number 0310, And It Will Be About Contractor Bookkeeping: Outsource Or Do It Yourself I would like to start my blog post by asking you to reflect on your WHY. Pause for a while and think about the reason or reasons why you started your business. I highly doubt that your answer is rooted in accounting tasks or involved any type of bookkeeping project at the slightest. It is apparent that you’re passionate about what you do and you love working in the construction industry, be your own boss, and have the freedom you’ve dreamed of. I admit, small business owners - like myself, have learned to make the most of the resources we have. And as an entrepreneur, tend to take on the challenge of wearing multiple hats. Marketing your business, answering phone calls, responding to emails, scheduling appointments – to name a few. However, I am reminding you now that being a company owner and doing your accounting and bookkeeping requires a totally different skill set from being a construction expert

This Podcast Is Episode Number 0309, And It Will Be About Profit Draining Invoice Errors Contractors Make Without Realizing It Creating an invoice for the entire project seems like it is the simplest way to track payments and have the current balance. The harsh reality is that if all of the work is NOT done, accounts receivable is reflecting a balance due that is NOT REAL. Without proper tracking and matching of income and expenses, most construction companies never know if they made a profit until the job is over. However, 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 difficult than it has to be. The good news is that it doesn't have to stay that way. Consider the following invoicing errors contractors make and take actionable steps on how to avert them. Format You and your entire staff need to stick to a single standard invoice template that everyone will use throughout the job transaction. Not only will

This Podcast Is Episode Number 0308, And It Will Be About Three Things You Need To Deliberate When Starting A Contracting Company Would you like to start a construction company but can’t seem to move forward with your plans? There are a number of people who pass advice on how to start a profitable construction company, however, very few have actually done it. Hardly any of the ones that had done so had a clear understanding of where they were making or losing money, some have never gotten past the point of owning a J.O.B. (Just Over Broke) into a real company with employees who actually generated more money than they cost starting up. I am one of the few that has done it all and hopefully, this article will be of use to you. First, make sure you are open to a Paradigm Shift. According to the Merriam-Webster online dictionary, a paradigm shift is an important change that happens when the usual way of thinking about or doing something is replaced by a new and different way.   Three Steps To A Paradigm Shift Un

This Podcast Is Episode Number 0307, And It Will Be About How To Prepare Your Construction Business To Go From Local To Regional Scale The construction industry offers a lot of opportunities. Entrepreneurs developing a construction business have an insatiable desire to grow and expand. Even though this domain offers a lot of opportunities, it brings also a lot of challenges in the same package. Therefore, when you decide to expand your construction company from local to regional, there are a lot of things you need to consider. This article is going to show which strategies you can apply to have a successful transition. First, you should understand why you need to expand your construction in another city. Below you can find a list of questions you should answer before deciding if you are prepared for this move. Steps to Follow Before Expanding on a Regional Level What are your customers asking?  A successful construction business is the one that develops long-term relationships with its clients. When you sta

This Podcast Is Episode Number 0306, And It Will Be About How To Manage Late Payments For Builders, An Expert Guide One major headache for builders are the late payments of invoices. Builders seldom get the payment for their completed construction work at the right time and date. Professionals have recorded multiple payment cases and the slow paying issues are at the top of it. The unacceptable idea is that contractors seem like the last person to receive the reward for their hard work. Can you imagine finishing a building work without receiving a penny? Disappointing, isn't it? Cash flow is king! Numerous startup builder companies are depending on paid invoices of clients. These payments are the bloodline of the entire business. Therefore, unpaid invoices can affect the production of work. If you feel like your client is giving you a hard time with obtaining the payment, check out the following ways to secure the deal. 1. Review the signed construction contract First, always remember not to settle with a si

This Podcast Is Episode Number 0305, And It Will Be About 5 Ways Drone Technology Is Revolutionizing The Construction Industry Technology is shaking almost every facet of our personal and professional lives. Whether you are a tech enthusiast, a tired engineer or a corporate cog who loves the status quo, you can barely live without technology today. Automation, construction accounting software & accounting software, computerization, and artificial intelligence are now the order of the day. Then there is the drone technology. Initially, drones were used for aerial photography. But today, drones are finding broad applications in the construction industry. They are changing the way project managers operate a product. Drones make things accessible across different sectors of building development and infrastructure. Here is a quick round up of how this technology is revolutionizing the building and construction industry around the world. 1. Faster Site Surveillance and Inspection As a project manager, you nee

This Podcast Is Episode Number 0304, And It Will Be About Why Trade Shows Are Valuable To Your Construction Business (Featuring Seattle Home Show Spring 2019) Organizations and industries, no matter the career discipline, is fully invested in coordinating and taking part in conferences, summits, expos, and exhibits. Industry trade fairs are remarkably relevant to construction company owners because it leverages traditional marketing practices without being intrusive (because your target market comes to you), fosters real, solid relationships, and promotes camaraderie among your associations. Trade shows humanize your brand and company and add value to your business in general because it is: Experiential There’s a reason why global companies capitalized on the emotional connection; it’s more than just the product - it’s the experience. As Randal puts it, the homeowner doesn’t want the drill, but she wants a hole in the wall to hang the picture frame. Consumers’ emotions play a significant role in influencing

This Podcast Is Episode Number 0303, And It Will Be About Construction Bookkeeping And Accounting - Expectation Vs Reality Construction Bookkeeping is something you need to understand first, then learn. Over the years, hundreds of people have told us how easy QuickBooks is to use and how hard QuickBooks For Contractors is to use, and that is so true. Here is what I see repeated many times among construction companies: You usually hire an “office admin with experience in QuickBooks," ask your spouse or significant other to do it for you, or you try your best and do it yourself. Some would take the time to hire an in-house bookkeeper – not knowing what they need is a Construction Bookkeeper/Accountant. There is a world of difference between Construction Accounting and Regular Accounting. Construction Bookkeeping And Accounting - Expectation Vs Reality Posted by Randal DeHart on Fri, Feb 22, 2019 Find me on:  Facebook LinkedIn Twitter Google+   Share Construction Bookkeeping is something y