Dec 15, 2017
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). Sound familiar from listening to any of
the sales messages and webinars from the famous sales organizations
of 70’s, 80’s or 90’s. Anyone who has had a sales position and paid
on commission knows it is never as easy as the sales manager said
it would be. Very few people become successful with little or no
effort. For the rest of us, it takes work.
However, some things are very basic and never change. Want to lose
weight? Doctors answer is three very simple things to do and they
don’t cost a lot of money. The Doctor’s answer never changes.
Step 1: Eat Less
Step 2: Exercise More
Step 3: Repeat.
Yes, Contractors can make a Lot of Money as a Construction Contractor. Fast is a relative term.
Definition of Fast
Money
Collecting a job deposit is designed to Lock down the job, buy
material. It is always a good idea to use your client's money to
start the job. That doesn’t mean you have money to Party Hearty,
buy a bunch of tools or that brand new truck you want. In other
words, spend the money as fast as it comes in.
With normal business
expenses, the money will fly out of the checkbooks without any
extra help.
If you spend your job deposits in this manner, you get into a cycle
of “Borrow from Peter to pay Paul.” (author unknown) A favorite
phrase of the 60’s and 70’s. Older country music fans will remember
Merle Haggard’s If We Make It Through December.
https://www.youtube.com/watch?v=U9TByT3QlWc
What do I
mean? When you use the next job deposit to pay for
the expenses of from the last job that is a slippery slope to
financial disaster. Another common phrase is “Leverage Is Great
Until The Stick Breaks.” Or the child’s game of musical chairs.
When the music stops, someone
is without a chair. The same thing happens when the
economy turns as it did in 2008. Contractors were thinking (and
hoping) the recession would be a small dip and everything would be
back to normal by summer of 2009. That is not what happened for
most construction contractors.
Some construction contractors
had lots of work in the pipeline that was not affected by the
recession.
Many of them were cocky and thought other contractors are having a
hard time “Just didn’t know how to run a business” Unfortunately,
those same contractors were hurt badly when their pipeline of jobs
ran out.
Definition of Easy
Work
Easy work is any job that you know how to do easily. To a chef,
Thanksgiving Dinner for twenty or more is a simple task. To a
college student living in a dorm, shared apartment it might be an
impossible task.
Easy work for a highly skilled craftsman picking up a piece of
wood and working with it. We went to the fair and saw the wood
carvers. The skills the Woodcarvers used to make a recognizable
object using a chainsaw is amazing. Truly a case where people can
watch them work for hours seeing the magic.
Definition of a Few
Hours
Yes, Construction Contractors can work a few hours every day.
Usually, it is working any twelve hours or more any day of the
week.
Now You Can Begin The Job
Keep working at a pace
that makes up for any time spent watching out for
children, pets, and chatting with the Homeowner. The Homeowner
expects work to be completed on time or ahead of schedule no matter
how many interruptions you or your employees have.
End of the day
– Clean up the job site, so it is ready for use
this evening or clean and ready for work tomorrow. Pick up
all your tools and material (mobilize and demobilize)
Meet with the homeowner to
discuss rest of the project.
Assure them all is going well. Make notes of possible change orders
or add-ons. Do not forget to price out change orders. Homeowner’s
memory is much better at remembering when you say you will reduce
the price. Without something agreed to in writing – the extra money
they owe you is easily forgotten.
The increase in scope is
never forgotten. You Promised To Do [fill in the
blank]. If you think any of the changes are forgotten, wait, you
will hear the sounds of a grownup who is impersonating a
preschooler wanting a cookie. Water on the stone is an
understatement.
We have not even got
started on all the rest of the little things that
become automatic for Contractors.
Next is the paperwork side of all jobs.
Like most Construction
Contractors; you feel like you are waving the money
as it goes by. Rest Assured It is true in Washington State – where
Contractors are collecting and paying sales tax. The tax money is
just moving through the checking account. Borrowing State and
Federal tax money are very bad.
The same applies to Payroll
Taxes except the company must do a company match
for Social Security and Medicare (combined is 7.65% of gross wages)
Plus State Unemployment Insurance, State Worker’s Compensation,
Contractors License, Contractors Liability Insurance, Bond, Other
Specialty Licenses.
The business of being in
business as a Construction Contractors is a lot of
paperwork to keep track of, government forms to fill out and file,
pay taxes. Do I need to get a permit for this job? Is only one
piece!
Financials are
important to file Annual Federal Taxes. It matters
if you are a Sole Prop. LLC or S-Corp. The Individual Reports are
for the benefit of the Construction Contractor.
It is okay to do a job at
cost as a favor for your best friend, family, the
little old lady down the street as long as you plan for it, willing
and able to cover any overages. The catch is knowing in advance. It
is too easy for Construction Contractors to be not Profitable.
Contractors can easily forget
the cost of overhead. Costs of running a
Construction Company is more than Labor, Material, Subcontractor,
Permits, and Dump Runs.
Money makes the world go
round.
Contractors bring value to
everyone’s life they touch.
Wishing you and yours the
best in everything that comes your way!
Sharie
In Conclusion:
Helping Contractors around the world
is one of the reasons we added the FastEasyAccountingStore.com
Follow our blogs, listen to Contractor Success M.A.P. Podcast. We Appreciate Our
Visitors, Listeners, and Subscribers. – Thank You!!
Please feel free to download all the Free Forms and
Resources that you find useful for your business.
We are here to Help “A Little or A Lot” depending on your
needs.
About The
Author:
https://www.fasteasyaccounting.com/free-one-hour-consultation-bookkeeping
Sharie DeHart, QPA is the co-founder of Business Consulting And Accounting in Lynnwood Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations and offers insights on how to manage the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. http://www.fasteasyaccounting.com/sharie-dehart/ 206-361-3950 or sharie@fasteasyaccounting.com
I trust this podcast helps you understand that outsourcing your contractor's bookkeeping services to us is about more than just “doing the bookkeeping”; it is about taking a 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 to this far please do me the honor of commenting and rating the 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 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 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.
Enjoy your day.
Sharie
About The
Author:
https://www.fasteasyaccounting.com/free-one-hour-consultation-bookkeeping
Sharie DeHart, QPA is the co-founder of Business Consulting And Accounting in Lynnwood Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations and offers insights on how to manage the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. http://www.fasteasyaccounting.com/sharie-dehart/ 206-361-3950 or sharie@fasteasyaccounting.com
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