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.

Although not intentional, this could be considered a part 2 of last Friday’s blog/podcast episode or a continuation post dedicated to all brand-new contractors who just started their own company, to trade professionals who would like to restart their bookkeeping system, or simply to all our valued email subscribers – old and new.

The time, effort, and money you’ve put through in running your construction business is a testament of your commitment to this industry. So, let me start this guide by telling you to do what you do best and outsource the rest. The “rest” as you know, is where your cash flow and profit depend – construction bookkeeping and accounting.

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.

Inbound marketing is about creating valuable experiences that have a positive impact on people and your business. How do you do that? You attract prospects and customers to your website and blog through relevant and helpful content. Once they arrive, you engage with them using conversational tools like email and chat and by promising continued value. And finally, you delight them by continuing to act as an empathetic advisor and expert. - HubSpot

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, etc.), 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 compared to the traditional, physical presence of a brick-and-mortar store. As a Trade Contractor, you are no longer confined to your own neighborhood and push services directly to them, your online presence enables you to reach out and pull qualified leads towards your 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.

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.

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.

You started your service business doing what you love thinking all you had to do was get good jobs, finish the work promptly, and make a lot of money. Then one day you get a rude awakening that getting jobs done and doing the work was only a small part of being in the home service industry. What started as an adventure turned into something not as fun as you thought it would be. You are now experiencing the challenges of being self-employed: How can I generate more leads? How much should I charge for this job? What can I do to be more productive and increase my profits?

The secret is in thinking patterns and habits.

• Success is a few simple disciplines practiced every day
• Failure is a few errors in judgment repeated every day

Which goes to show you that almost any home improvement contractor can generate enough cash flow and profits from their business to turn their contracting company from a people-dependent money pit into a process-dependent cash cow, and have the freedom they dreamed of when they started contracting.

Today's Guest Article Is From Anastasia Harold (Coolfront Affiliate Manager)

If you’ve recently opened a service or contracting business, it can be tough to get everything perfect from the beginning. Some things are crucial to getting started right, while some other things can wait until you’re more established. Use these tips to avoid some common mistakes that can cost your business in the future:

Today more than ever, we live in a world where information is accessible at the touch of a button, a few clicks on your keyboard, or even a voice command. Although it's hard to predict where new technologies will lead us, one thing is sure: we are now all digitally connected. The internet has caused our businesses to thrive and survive, and there's no way of blocking its impact on our day-to-day lives. 

With that said, it is helpful to keep an eye out on these marketing trends that could influence how your target audience searches and consume data, along with actionable tips that could jump-start your new year "to-do list":