Construction Company Bookkeeping For Contractors All Across The USA Including Alaska And Hawaii

The Number One Thing You Need To Know About Your Construction Business

Posted by Sharie DeHart on Fri, Jan 03, 2020

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) versus how much is leaving (your expenses, taxes, and loan payments).

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Topics: Construction Cash Flow, Cash Flow, QuickBooks Do-It-Yourself construction Bookkeeping, Contractor, Contractor Tips, Contractor Operating Tips, Construction Systems And Processes

Common Bookkeeping Pitfalls And The Value Of Outsourced Accounting

Posted by Sharie DeHart on Fri, Dec 20, 2019

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.

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Topics: Outsourced bookkeeping, outsourced construction accounting and bookkeeping, Accounting, Contractor, Contractor Tips, Contractor Operating Tips, Construction Systems And Processes

Construction Business Blueprint For Updating Plans And Setting Goals

Posted by Sharie DeHart on Fri, Dec 13, 2019

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.

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Topics: Contractor, Contractor Tips, Contractor Operating Tips, Construction Systems And Processes

Efficient Business Systems And The Value Of Documenting Your Processes

Posted by Sharie DeHart on Fri, Nov 29, 2019

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 ON your business, not in it.

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Topics: Contractor, Contractor Tips, Contractor Operating Tips, Construction Systems And Processes