More Secrets From Our Experiences With Successful Contractors
We Serve Several Highly Profitable Construction Companies and some not as profitable ones. The differences in operations between the two groups are very small and yet the profit picture is massively different. The highly profitable contractors earn at least twice as much profit on each dollar of sales than average contractors and they enjoy more free time away from work.
There are a number of trade secrets and specific Business Process Management (BPM) systems that some of our contractor clients use to generate astronomical profits that we are not allowed to share. Quite a few came from our past experiences as contractors that they invested dearly in our Contractor Business Coaching Programs to acquire and were combined with their own special insights.
Sometimes their investment advisors and bankers find it hard to believe they are generating such unusually high profit margins and yet the numbers speak for themselves and the bankers can verify business banking activity.
What we can share is something that has been going on for hundreds if not thousands of years and is so simple that it hurts me to know that most contractors who need more cash flow and profit will do it and contractors who don't need more cash and profits do it regularly.
Invite Your Construction Bookkeeper To A Jobsite For Half A Day
It has to be the person who is a construction bookkeeper, not a regular bookkeeper because the difference between construction accounting and regular accounting is night and day. A qualified construction bookkeeper understands things a regular bookkeeper does not for example:
Job Labor Costs And Utilization Factors
Job Material Inventory Costs
Supply Chain Management Costs
Subcontractors / Specialty Contractors
Percentage Of Completion
Change Order Management
Direct Construction Costs
Indirect Construction Costs
Construction Phases - Underground / Rough-In / Finish
Schedule of Values
Equipment Mobilization And Demobilization
There are dozens more differences between construction accounting and regular accounting. The point is you need someone who is up to speed with construction and can add value from a strategic point of view.
The First Time A Contractor Sees For Themselves the hidden cost savings and new profit opportunities revealed before their very eyes, inside their construction company, that they have full control over and realize it is real, not a magic show put on for their intellectual entertainment, it opens up a whole new vista in their paradigm of what is possible!
We do something similar for some of our contractor clients. It is extremely profitable for the contractor in terms of dollars and cents and in employee / employer relations and we benefit massively by keeping up to date on the latest trends in the construction industry.
Most of our staff has experience in construction so we arrange with the contractor for someone from our office to ride along with a one of their crews for a half day to observe and make notes.
The contractor has our full attention and in most cases we can identify a few fast and easy simple production processes or supply chain improvements which if implemented could add hundreds and in some cases thousands of dollars to the bottom line annually.
Since we are doing all of their construction bookkeeping services in the cloud everyone including the contractor is able to monitor the financial reports over the internet everyone can see for themselves what is and is not working.
Thanks to cloud computing and reasonable air fares we are able to do this for our contractor clients anywhere in the U.S.A. If you would like more information please feel free to contact Sharie 206-361-3950 or by email: firstname.lastname@example.org
QuickBooks Expert Specializing In Construction Bookkeeping Services
About The Author:
Randal DeHart, PMP, QPA is the co-founder of Business Consulting And Accounting in Lynnwood Washington. He is the leading expert in outsourced construction bookkeeping and accounting services for small construction companies across the USA. He is experienced as a Contractor, Project Management Professional, Construction Accountant, Intuit ProAdvisor and QuickBooks For Contractors Expert. This combination of experience and skillsets provides a unique perspective which allows him to see the world through the eyes of a contractor, Project Manager, Accountant and construction accountant. This quadruple understanding is what sets him apart from other Intuit ProAdvisors and accountants to the benefit of all of the construction contractors he serves across the USA. Visit http://www.fasteasyaccounting.com/randal-dehart/ to learn more.