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0119: What Is Ten Minutes Costing Your Construction Company
Ten Minutes Waste Kills Construction Company Profits
Profit Drain #1 In-House Bookkeeper
Until Your Construction Company - Reaches at least $5 million in annual sales you cannot afford to hire a qualified bookkeeper or construction accountant.
For Example - You Hire someone with bad habits which is a Cheap Bookkeeper part-time at $15.00 an hour for 10 hours a week thinking you will save money. The problem with that is you may not understand the true cost to have them on your payroll, including overhead, is closer to $25.29 per hour.
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!
Profit Drain #2 Cheap Tools And Equipment
Cheap Tools And Equipment - Cost a lot of money that you cannot see; out-of-sight means out-of-mind. Invest in the best tools and equipment you can afford because in the short run you will save money. Construction workers who take pride in their work produce better results faster with fewer repairs if they have quality tools and equipment.
For Example - Your best construction worker asks for a tool:
• It costs $1,200.00
• It will save ten minutes a day in labor
• It will last three years
• The standard response is the company can't afford it!
Highly Profitable - Construction company owners will ask their construction accountant to calculate the projected the Return on Investment (ROI) is and then consult their Strategic Business Plan to make an informed decision.
In This Example - It may make sense to finance the purchase even if it means using a credit card at 12% interest because the net return is $3,289.36 which is 245% ROI.
Two Contractors Doing Similar Work - For similar customers with the related direct and indirect construction costs will have massively different KPI Reports including the Profit and Loss Statements. Size matters when it comes to piles of money and bigger profits!
Construction Success is a few simple disciplines practiced every day
Construction Failure is a few errors in judgment repeated every day
Listen to this Podcast for more…
If you are Thinking About Outsourcing Your Contractors Bookkeeping Services you are invited to download a guide to finding the right contractor bookkeeping service to fit your particular situation at www.FastEasyAccounting.com/hs
Call Sharie now 206-361-3950 or [email protected] and schedule your no charge one-hour consultation.
View all episodes
By Randal DeHart, PMP, QPATen Minutes Waste Kills Construction Company Profits
Profit Drain #1 In-House Bookkeeper
Until Your Construction Company - Reaches at least $5 million in annual sales you cannot afford to hire a qualified bookkeeper or construction accountant.
For Example - You Hire someone with bad habits which is a Cheap Bookkeeper part-time at $15.00 an hour for 10 hours a week thinking you will save money. The problem with that is you may not understand the true cost to have them on your payroll, including overhead, is closer to $25.29 per hour.
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!
Profit Drain #2 Cheap Tools And Equipment
Cheap Tools And Equipment - Cost a lot of money that you cannot see; out-of-sight means out-of-mind. Invest in the best tools and equipment you can afford because in the short run you will save money. Construction workers who take pride in their work produce better results faster with fewer repairs if they have quality tools and equipment.
For Example - Your best construction worker asks for a tool:
• It costs $1,200.00
• It will save ten minutes a day in labor
• It will last three years
• The standard response is the company can't afford it!
Highly Profitable - Construction company owners will ask their construction accountant to calculate the projected the Return on Investment (ROI) is and then consult their Strategic Business Plan to make an informed decision.
In This Example - It may make sense to finance the purchase even if it means using a credit card at 12% interest because the net return is $3,289.36 which is 245% ROI.
Two Contractors Doing Similar Work - For similar customers with the related direct and indirect construction costs will have massively different KPI Reports including the Profit and Loss Statements. Size matters when it comes to piles of money and bigger profits!
Construction Success is a few simple disciplines practiced every day
Construction Failure is a few errors in judgment repeated every day
Listen to this Podcast for more…
If you are Thinking About Outsourcing Your Contractors Bookkeeping Services you are invited to download a guide to finding the right contractor bookkeeping service to fit your particular situation at www.FastEasyAccounting.com/hs
Call Sharie now 206-361-3950 or [email protected] and schedule your no charge one-hour consultation.