Oct 30, 2015
If you are a contractor you know how to get the work done. At the end of your day when your body is tired, your muscles are aching and you are too tired to move is when you ask yourself three simple questions:
1. Am I making money
or losing money?
2. Which jobs and customers are making me money?
3. Which jobs and customers are costing me money?
The Simple Answer Is to keep doing what you have always done and continue getting what you have always got. Don't pay any attention to your financial and job costing reports until it is time to file your annual taxes and gasp in dismay and horror while asking what happened?
It is like the two guys living in a farming community that started a business buying and selling bales of hay. They had a large truck which they used to buy the hay, load it and make deliveries to their customers. They bought and sold 500 bales of hay every day.
After a month one partner said to the other "If we buy a bale of hay for $10.00 and sell it for $10.00 we need a bigger truck if we are going to make any money!"
We see a lot of contractors, men and women with good hearts; good intentions and very intelligent doing something similar day-in-and-day-out and it cause us a lot of pain because we know there is a better way.
The Hard Answer Is early to bed, early to rise know your numbers and advertise. Knowing your numbers is painful! It hurts your brain for a short while because you are using a part of your brain that may have been sitting idle for a long while. Unless you are a recent university graduate and you studied hard and applied yourself.
Step #1 - Ask your bookkeeper or accountant or better yet your construction accountant for three reports
> Profit & Loss Enhanced
> Balance Sheet Enhanced
> Profit & Loss By Job.
You can see samples of them at
There is a lot of information contained in each of these reports
and like anything new if it is the first time you have seen them
there will be a considerable amount to digest and understand.
We find that even contractors with highly skilled financial backgrounds have a bit of trouble understanding these reports because of the vast differences between Construction Accounting and Regular Accounting.
The good news is any contractor who invests a small amount of time and money will be amazed at how much wealth can be gained from it.
My advice is spend a few minutes and look at them casually and then wait an hour or more and look at them again. Repeat the process by reviewing them every day for 10-15 minutes and make notes about anything that looks interesting.
Then set an appointment with your accountant and spend some time discussing them and asking questions.
Just be aware most accountants and especially qualified construction accountants will charge a fee above and beyond what you are paying to have them take care of your Contractor Bookkeeping Services.
For our clients Sharie can answer a few simple questions at no extra charge 206-361-3950. More in-depth analysis, business coaching and help with understanding financial and job costing reports will require one of our construction accountants and there is a fee for that.
I trust this podcast helps you understand that outsourcing your contractors bookkeeping services to us is about more than just “doing the bookkeeping”; it is about taking holistic approach to your entire construction company and helping support you as a contractor and as a person.
We understand the good, bad and the ugly about owning and operating construction companies because we have had several of them and we sincerely care about you and your construction company!
That is all I have for now and if you have listened this far please do me the honor of commenting and rating podcast www.FastEasyAccounting.com/podcast Tell me what you liked, did not like, tell it as you see it because your feedback is crucial and I thank you in advance.
I trust this will be of value to you and your feedback is always welcome at www.FastEasyAccounting.com/podcast
This is one more example of how Fast Easy Accounting is helping construction company owners across the USA including Alaska and Hawaii put more money in the bank to operate and grow your construction company. Construction accounting is not rocket science; it is a lot harder than that and a lot more valuable to construction contractors like you so stop missing out and call Sharie 206-361-3950 or email email@example.com
Thinking About Outsourcing Your Contractors Bookkeeping Services?
Click On The Link Below:
Need Help Now?
Call Sharie 206-361-3950
In closing, I want to caution you that we may or may not be a good fit for your contracting company. This guide will help you learn what to look for in outsourced construction accounting.
Thank you very much and I hope you understand we really do care
about you and all contractors regardless of whether or not you ever
hire our services.
Bye for now until our next episode here on the Contractors Success MAP Podcast.
Randal DeHart | Contractors Accountant