Does this sound like you? Maybe you started your company with a few friends and relatives as your earliest clients, and you thought your overhead expenses would be low since you worked out of your home. You made a decent living for yourself, hired a few sub-contractors per project, paid your suppliers, and earned a profit—at least that is what your tax preparer said.
Things begin to change, and the reality of the construction industry begins to dawn on you. Those early customers who were your friends because you could get faucets, fixtures, and materials at wholesale prices now tell you they were happy with your work. They want your construction company to do all their future work (and refer you to their closest neighborhood friends) as long as your price is lower than the other bids they are getting.
Yes, this kind of business builds your integrity, but at the same time, you are dirt-poor. Why? Because as a construction company owner, you now have overhead no matter what business entity you operate. It's not just office overhead; you have field overhead, too.
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Topics:
Outsourced Accounting For Contractors,
Construction Accounting,
MAP vs. PAM,
Contractor Marketing,
Outsourced Bookkeeping Services,
Outsourced Accounting,
Contractor,
Contractor Tips,
Contractor Operating Tips,
sole proprietor
Fraud can be a significant threat to businesses of all sizes in any industry. Construction companies are not spared and are even more vulnerable to various fraudulent activities, from bid rigging and inflated costs to payroll fraud and misuse of funds.
Many small business owners have become increasingly concerned about fraud after the pandemic. According to SAP Concur (An expense management solutions company), a staggering 85% of businesses surveyed expect the risk of fraud to continue. Making matters worse, many fraudulent acts originate from within businesses themselves.
What can you do as a construction business owner with three or more employees? You can start with essential internal controls that you can implement to safeguard your business:
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Topics:
Outsourced Bookkeeping Services Red Flags,
Outsourced Accounting For Contractors,
Outsourced Bookkeeping Services For Plumbing Contr,
Construction Accounting,
Outsourced Bookkeeping Services,
Outsourced Accounting,
Contractor,
Contractor Tips,
Contractor Operating Tips
Small construction company owners like you already have a time-consuming and challenging job running your business. If you're working on weekdays, you usually need the weekend to catch up on paperwork, pay bills, and manage any tasks you didn't get to during the week.
But this weekend is Christmas, and with it comes time to relax, focus on family and friends and take stock of what is essential in life. Phone calls from employees dealing with a minor crisis will pull your focus from your family, or your Christmas dinner will be taken over by business talk. Like the merry bells of Christmas, your cell phone will constantly chime with the sounds of urgent text messages and emails that must be dealt with. Clients will need your attention.
So, if you've been waiting for a sign or permission to pause, this post could be the one you're waiting for. It's easy to let the construction company take over your personal life, but as a small business owner, it's vital that you get some time away from work.
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Topics:
Construction Cash Flow,
Outsourced Accounting For Contractors,
Construction Bookkeeping And Accounting,
Do What You Do Best And Outsource The Rest,
Contractor Tips,
contractor delegation,
Switching Off During The Holidays
The daily processes and transactions involved in operating a general maintenance and repair contracting business can mean long hours of repetitive tasks and occasional oversights due to human nature. These days, you can use technology to take care of almost any issue facing your business.
Automating these tasks can result in significant savings in resources and eliminate mistakes caused by human error. The key, however, is to know which tasks should be automated and which ones warrant staff intervention and guidance. Let's discuss some of them:
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Topics:
The Contractors Account,
Cloud Based Bookkeeping Services,
Outsourced Accounting For Contractors,
Systems And Processes,
Construction Company Cash Flow,
Contractor Guidance
Most contractors are skilled technicians who learned their tradecraft in an apprenticeship program taught by a Master Technician, experience, or combination of these methods.
There is a way to learn to operate your contracting company from a Master Contractor.
With time, they developed a Paradigm, Mindset, Understanding, whatever word makes the most sense to you about how construction companies operate based upon their experiences.
In their experience, production, getting work done is the most important part of the business because they always do as employees.
Since all learning is based upon connecting new things to things we already understand, most contractors fall into the trap of only doing what they know and not learning what they don't know.
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Topics:
The Contractors Account,
Cloud Based Bookkeeping Services,
Outsourced Accounting For Contractors,
Systems And Processes,
Construction Company Cash Flow,
Contractor Guidance
There is a natural ebb and flow in the business cycle, which in regular times operates, somewhat predictable.
In normal times, contractors who pay close attention to their Five Key Performance Indicators financial reports and stay aware of the macro global economy and the microlocal economy can plan and earn an expected profit after paying themselves a reasonable salary.
The past two years have been anything but ordinary, and frankly, we are having a tough time with the economic forecasts models we follow, including our internal ones.
Something similar occurred from 1976 to 1980, and suddenly in early 1981, the national and global economy began to turn around, and there was a severe shortage of contractors and qualified construction workers.
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Topics:
The Contractors Account,
Cloud Based Bookkeeping Services,
Outsourced Accounting For Contractors,
Systems And Processes,
Construction Company Cash Flow,
Contractor Guidance
It’s been another excellent year for Fast Easy Accounting. We appreciate your support for those of you who have been with us through all these years; without our contractor clients, template customers, construction accounting academy students, email subscribers, podcast listeners, blog readers, and social media followers, we wouldn’t get to where we are today.
As we look back on our 2021, I hope your fondest memories will include the time you’ve spent with all the things you love and are passionate about. And because we love what we do and we are passionate about serving our contractor friends - for us, this year was all about empowering your contracting business by continually providing you with outstanding products, high-quality services, and dependable resources for your bookkeeping and accounting needs.
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Topics:
The Contractors Account,
Outsourced Accounting For Contractors,
Systems And Processes,
QuickBooks Construction Accounting,
Happy New Year
As a Construction Contractor, much of your world is Outside The Box. You make what seems impossible and turn it into a finished product; the whole house remodel, kitchen or bath remodel, new roof, install an attic fan, replace windows, deck, patio, hot tub, swimming pool, children's backyard playhouse.
The Handyman Contractor fixes "Things," which are very important to the clients who need them—fixing a door, hanging a closet rod, moving something, removing something. Compared to a Whole House Remodel, it may seem like you are not doing anything. The reality is that to the person who needed the work done that a few simple little things may change their whole world for the better. Your Work as a Handyman Contractor brings joy to their life. Be Proud of it. No job is insignificant, and no construction business is too small for us.
I want to be the person who says Merry Christmas! You have earned it.
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Topics:
The Contractors Account,
Invoicing,
Cloud Based Bookkeeping Services,
Outsourced Accounting For Contractors,
Systems And Processes,
Construction Company Cash Flow,
QuickBooks Construction Accounting,
accounts receivable for contractors,
Contractor Guidance
If you've been considering making a move to a cloud-based accounting system, you're not alone. Cloud technology has impacted many business functions, including efficiently managing your business's financial aspects.
Cloud-based accounting moves your accounting from being hosted on your computer's hard drive to an online platform. Cloud-based platforms like QuickBooks and Xero offer important features that save you time and money, freeing you to focus on other essential construction business activities.
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Topics:
The Contractors Account,
Invoicing,
Cloud Based Bookkeeping Services,
Outsourced Accounting For Contractors,
Systems And Processes,
Construction Company Cash Flow,
QuickBooks Construction Accounting,
accounts receivable for contractors
What is that old saying? “It Is Always Greener On The Other Side Of The Road”(author unknown)
It is always easier to look in hindsight and think “I should have done this” or “I could have done that”
All the advice from others about what you should of, could of, did do didn’t do is easy for the person who did not actually make any of the decisions. Some people excel at “Advising Not Actually Doing.”
You can’t change yesterday; only do a review and think about What Can I Do Today? And How Can I have a better tomorrow? Tiny changes can make a big difference. You can FIX SOMETHING and do nothing is a decision. (Sometimes taking a pause is the right decision to make)
The answer is Think, Plan, Do Something (Make a Plan, Work the Plan) or (Be, Do, Have)
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Topics:
Contractors Bookkeeping,
Outsourced Accounting For Contractors,
Do What You Do Best And Outsource The Rest