Getting approved for a business loan or line of credit is more complicated than qualifying for a personal loan. Small construction business owners must be adequately prepared to meet with a lender to present their business in the best possible light and ready for the money they need.
Think of all the times:
- You loaned money to a friend or relative
- Provided labor and materials for somebody's home or business without a deposit check
- Did change order work that you never got paid for doing and never will
- Gave a subcontractor/employee an advance on their paycheck, and you never got paid back
Multiply that by 100,000, and you will understand why banks seem so tight-fisted about loaning money.
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Topics:
Cash Flow,
Bookkeeping,
Contractor Cash Flow Problems,
Financing Secrets Revealed,
Banking
In the business world, cash flow remains the lifeblood that keeps your operations running smoothly. Whether you're a start-up finding your feet or a seasoned business in the construction industry, managing and maintaining a steady cash flow can be challenging. But a few small changes can make a world of difference to your cash flow and overall revenue.
Your business needs cash. Cash keeps your company in operation and enables it to grow, so you should know how much your business needs to survive. Although many think the answer is linked solely to operating expenses, this isn't true.
No single factor determines how much cash every construction business needs to have on hand. Somewhere between 3-6 months of operating expenses is an excellent baseline to start from, but there's more to it than that.
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Topics:
Cash Flow,
Bookkeeping,
Contractor Cash Flow Problems,
QuickBooks Construction Accounting,
Improve Construction Cash Flow
A fractional CFO, or Chief Financial Officer, is a finance professional working part-time, retainer, or contract. They bring the experience and expertise of a high-level CFO to your business – without the cost of hiring a full-time, in-house employee.
Fractional CFOs service several clients simultaneously, typically on a part-time, retainer, or contract basis. Their specialty is providing outsourced CFO services to small and medium businesses.
Because their financial management skills are so well-developed, it's common to bring one on board to help navigate a challenge.
Every construction business can benefit from dedicated financial management expertise, but very few small companies have the means to hire someone full-time—particularly in the lean early years.
Unfortunately, it's those first few years when a company is just starting up that establishing good habits with managing financial resources is so important, and, over time, can even make or break a construction business.
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Topics:
Bookkeeping,
Outsourced Accounting,
QuickBooks Construction Accounting,
Fractional Construction CFO,
Construction Chief Financial Officer
Many entrepreneurs operate with their business processes and systems in their heads. They know what they must do daily and how they want to get things done.
Unfortunately, when a construction business grows, and staff need to be hired – or the owner needs to take time away from the company – it's an absolute liability not having processes and systems documented in one place.
To be in business and to remain in business, become a business person! To run a construction business, you must be business-like. It's not sufficient just to be very good at what you do. Many people who are 'very good at what they do' have failed. The familiar cry: "I'm far too busy for that," is also no excuse. Are you 'too busy' to be a competent businessperson? If so, your construction business won't last long. You must continue to develop your business skills.
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Topics:
Bookkeeping,
Outsourced Accounting,
QuickBooks Construction Accounting,
QuickBooks Do-It-Yourself construction Bookkeeping,
Construction Accounting Academy
Not everyone knows construction accounting, and it is easy to assume all accounting is the same. Even if you have outsourced your financial functions, as a small construction business owner, having a solid understanding of critical financial concepts is crucial to work with your advisor and 'speak their language". This article outlines several essential concepts that every small business owner should know.
Construction is a tricky business, and people's failure is expected. Most of our clients have either failed or come very close. It doesn't matter how many times you are knocked down; it only matters that you learn your lessons, get up, and go again. We noted these lessons years ago, owning and operating our construction company. By building a system and gaining insight from us, you can pick up from our mistakes, which you don't have to go through and can start avoiding before it comes crashing down.
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Topics:
Bookkeeping,
Outsourced Accounting,
QuickBooks Construction Accounting,
QuickBooks Do-It-Yourself construction Bookkeeping,
Construction Accounting Academy
Bad Bookkeepers Have 38 Traits In Common
It is important to understand the difference between Professional Bookkeepers, Regular Bookkeepers and Bad Bookkeepers.
- Regular Bookkeepers learned most if not everything they know about bookkeeping by experience and by letting you pay for their education in the form of excess taxes, fines, penalties, un-invoiced work, overpaying bills and late fees. It is painful for them and you. They have good intentions and do not want to cause contractors any grief and they are sincere with their apologies. Of the thousands of Regular Bookkeepers I have met they all have good hearts and really do mean well.
- Bad Bookkeepers also learned most if not everything they know about bookkeeping by experience and by letting you pay for their education in the form of excess taxes, fines, penalties, un-invoiced work, overpaying bills and late fees. It is painful for you but not for them. They have bad intentions and will cause contractors as much grief as possible and are quick to blame everyone else when something goes wrong. Of the dozens of Bad Bookkeepers I have met they all have a bad opinion of contractors and business in general.
On to the 38 traits
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Topics:
Bad Bookkeepers,
Professional Bookkeepers,
Bookkeeping,
Construction Bookkeeping,
Bookkeeper
Rule #1 - Work expands to fill the time allowed for it or the outer edge of what business owner will tolerate
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Topics:
Bad Bookkeepers,
Cheap Bookkeepers,
Professional Bookkeepers,
Seattle,
Bookkeeping,
Bookkeeping Services,
QuickBooks For Contractors,
Construction Accounting,
Construction Bookkeeping And Accounting,
QuickBooks,
contractors bookkeeping and accounting,
Accounting,
Bookkeeper,
QuickBooks Setup
