Mar 11, 2016
This Podcast Is Episode Number 0155 And It Will Be About Cheap Contractor Bookkeeping Is The Most Expensive Bookkeeping
All Highly Successful Contractors Like
Saving Money Where They Can But Not On Cheap Tools, Equipment,
Material And Bookkeeping
Because That Always Costs Them Profit Dollars In The End:
- Cheap tools break which slows the work down, increases labor costs and in the end costs more than quality tools.
- Cheap equipment breaks down more often, increases labor costs and also costs more than quality equipment.
- Cheap material is one of the causes for warranty work which drains profits and runs up labor and material costs.
- Cheap Contractor Bookkeeping can cost more than the previous three combined because of what you don't see.
The Cost Of Cheap Tools, Equipment And Material
Cheap Tools And Equipment - Cost a lot of money that you cannot see; out-of-sight means out-of-mind.
When contractors like you invest in the best tools and equipment you can afford in the short and long run you will save money. Construction workers who take pride in their work will always produce better results faster with fewer repairs if they have quality tools and equipment. And they will tend to stay with your construction company longer which will help you earn more profits.
At 10% Profit You Need To Sell $15,544.20 More To Maintain Profit
Margin
For Example - Your best construction worker asks for a tool which costs $1,200.00, will save ten minutes a day in labor and last three years the most common response is "We can't afford it...make do with what you have...it is a poor craftsman who blames his or her tools".
When someone suggests "buying a tool to save money" most contractors hear "spend my hard earned money". These knee-jerk reactions come directly from the part of our brain called the "amygdala". It is what causes us to react to circumstances rather than respond them. It is also known as the "Fight or Flight" decision center.
Break the cycle of "doing the same
thing you have always done and getting the same thing you have
always gotten" by simply "Stopping And Thinking".
Cheap Contractor Bookkeeping
Until Your Construction Company - Reaches at least $5 million in annual sales you cannot afford to hire a qualified bookkeeper or construction accountant full-time to put on your accounting staff and don't be fooled; there is no such thing as a part-time qualified bookkeeper or construction accountant.
For Example - If you try to save money by hiring someone who says they have 10 years of experience ask one simple question:
How Much Money And
Time Have You Invested Books, Classes And
Seminars
To Hone Your
Construction Accounting Skills Or Even Regular
Bookkeeping
In The Past Ten Years
And What Was The Last One You
Attended?
Anytime a bookkeeper whom is interested in joining our team of Highly Qualified Professional Construction Bookkeepers and they tell me they have several years of experience I ask that question and in 98% of the time the answer none.
As you know the basics of just about trade from butcher, baker, candlestick maker, framer, plumber, electrician, HVAC, roofer, concrete finisher can be learned in six months. However it takes 10,000 hours of training and practice to begin to become skilled in construction bookkeeping or become a Journeyman in any construction trade and then a minimum of 100 hours a year to stay current with the trends in a given trade.
So let's look at the true cost of a bookkeeper with bad habits who is a Cheap Bookkeeper that you hired part time at $15.00 an hour for 10 hours a week thinking you will save money.
The True Cost Of A Cheap Bookkeeper At $15.00 Is Close To $25.29 Per Hour Click Here For The Math.
For A Rough True Cost Of Your Bookkeeper Double The Hourly Wage
You Pay Them
Every Ten Minutes Your Bookkeeper Wastes Costs You Money!
Every Ten Minutes A Day Of Unproductive Office Labor:
Could Cost Your Company $273.93 Every Year
At 10% Profit You Need $2,739.30 More Sales To Maintain
Profit Margin
Everybody Loses When A Contractor
Goes Out Of Business Or Worse Yet Bankrupt!
It May Seem Harsh - In order to survive and thrive as a contractor you must make certain your employees are focused on their job during the time you are PAYING THEM TO WORK!
You must do whatever it takes to enforce the rules of engagement for producing results at your contracting company or be prepared to work for some other contractor and live under their rules.
In Some Cases - We can do more work for less money by providing you with real construction bookkeeping and accounting + payroll processing + monthly and quarterly tax reports + year end W-2, W-3 + profit and growth management consulting + financial and job costing reports + paperless data storage and more at a lower overall cost and as an added bonus show you how to make more money than you are now!
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 Remove Contractor's Unique Paperwork Frustrations
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.
You Deserve To Be Wealthy, Because You Bring Value To Other People's Lives!
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 sharie@fasteasyaccounting.com
Thinking About Outsourcing Your Contractors Bookkeeping Services?
Click On The Link Below:
This guide will help you learn what to look for in outsourced construction accounting.
Need Help Now?
Call Sharie 206-361-3950
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.
Warm Regards,
Randal DeHart | Contractors Accountant