Contractor Success Forum

Send us Fan Mail

It can be challenging to get banks and bonding companies to want to work with contractors. What can you do about it? Can you stack the deck in your favor? Can you dress up your financial picture? Find out on this week's episode.

Topics we cover in this episode include:

• Why a good year-end  financial statement is important to bonding companies and banks
• Pay back Officer Loans  at the end of the year
• Inject capital at the end of the year
• Improve your working capital ratio
• Extend the terms of your line of credit
• Timing expenses and collections
• Be aware of bank covenants on your line of credit

LINKS

Visit the episode page at https://carpentercpas.com/banks for more details and a transcript of the show.

Find all episodes and related links at ContractorSuccessForum.com.

Join the conversation on our LinkedIn page: https://www.linkedin.com/company/CarpenterCPAs

FIND US ONLINE
Wade Carpenter, CPA, CGMA | CarpenterCPAs.com
Stephen Brown, Bonding Expert | SuretyAnswers.com

Join the Profit First for Construction community!

Find all episodes and related links at ContractorSuccessForum.com.

Join the conversation on our LinkedIn page: https://www.linkedin.com/company/CarpenterCPAs
   
FIND US ONLINE
Wade Carpenter, CPA, CGMA | CarpenterCPAs.com
Stephen Brown, Bonding Expert | SuretyAnswers.com

Send us Fan Mail

On a recent episode, we talked about working with a construction CFO. This week, we dive deeper into how to find the right person. We help you define what the CFO's job role is and get the maximum benefit out of the person who fills it.

Topics we cover in this episode include:

• How to know if you've hired a bad CFO
• Tracking cash flow problems 
• Optimizing existing low gross margins 
• Reducing high expenses
• Upgrading and automating your financial statements
• Identifying and executing cost reductions
• Managing financial audits
• Implementing Best Practices
• Enhancing existing financial relationships
• Providing future-focused planning
• Reviewing the numbers on the bids

LINKS

Visit the episode page at https://carpentercpas.com/CFOJob for more details and a transcript of the show.

Find all episodes and related links at ContractorSuccessForum.com.

Join the conversation on our LinkedIn page: https://www.linkedin.com/company/CarpenterCPAs

FIND US ONLINE
Wade Carpenter, CPA, CGMA | CarpenterCPAs.com
Stephen Brown, Bonding Expert | SuretyAnswers.com

Join the Profit First for Construction community!

Find all episodes and related links at ContractorSuccessForum.com.

Join the conversation on our LinkedIn page: https://www.linkedin.com/company/CarpenterCPAs
   
FIND US ONLINE
Wade Carpenter, CPA, CGMA | CarpenterCPAs.com
Stephen Brown, Bonding Expert | SuretyAnswers.com

Send us Fan Mail

You may have heard the term real revenue, but how do you define it? In construction, it's a powerful concept worth knowing, but what can you do with it and how can you use it to run your construction company? Let's talk about it.

Topics we cover in this episode include:

• What is real revenue and where does the term come from?
• Real revenue avoids confusion around job cost vs. overhead
• How real revenue lets you know if you're using the right overhead rate
• Real revenue and cash flow management

LINKS

Visit the episode page at https://carpentercpas.com/realrevenue for more details and a transcript of the show.

Join the Profit First for Construction community!

Find all episodes and related links at ContractorSuccessForum.com.

Join the conversation on our LinkedIn page: https://www.linkedin.com/company/CarpenterCPAs
   
FIND US ONLINE
Wade Carpenter, CPA, CGMA | CarpenterCPAs.com
Stephen Brown, Bonding Expert | SuretyAnswers.com

Send us Fan Mail

Why is it that insurance for equipment and vehicles is so expensive? Is there anything you can do to lower those costs? How about things like vehicle ratings, how does that play in your premium? Stephen is answering those questions and more on this week's episode.

Topics we cover in this episode include:

• Should your vehicle be on your personal policy?
• Costs for a commercial policy vs. a personal policy
• What goes into rating a vheicle and how can you get lower premiums?
• Having good drivers can lower your insurance rates
• How insurance companies use telematics
• Equipment insurance
• Is it cheaper to insure rented or owned equipment?
• Vehicles, equipment and loss control

LINKS

Visit the episode page at https://carpentercpas.com/vehicleinsurance for more details and a transcript of the show.

Join the Profit First for Construction community!

Find all episodes and related links at ContractorSuccessForum.com.

Join the conversation on our LinkedIn page: https://www.linkedin.com/company/CarpenterCPAs
   
FIND US ONLINE
Wade Carpenter, CPA, CGMA | CarpenterCPAs.com
Stephen Brown, Bonding Expert | SuretyAnswers.com

Send us Fan Mail

Could your process for paying other people sabotage your cash flow? Can streamlining your payables process lead to better job costing and faster billing? What does paying people have to do with collecting your own money? You might be surprised what a difference it can make when you fix those problems. Let's talk about it.

 Topics we cover in this episode include:

• How does paying people affect your cash flow?
• Why the accounts payable process is more complex for construction
• What is the true cost to get one accounts payable invoice out the door?
• Differences between a traditional company aond construction  accounts payable
• The importance of a good accounts payable system
• One billing mistake that could be wrecking your cash flow
• 10 quick tips to consider if you're fixing your accounts

LINKS

Visit the episode page at https://CarpenterCPAs.com/accountspayable for more details and a transcript of the show.

Join the Profit First for Construction community!

Find all episodes and related links at ContractorSuccessForum.com.

Join the conversation on our LinkedIn page: https://www.linkedin.com/company/CarpenterCPAs
   
FIND US ONLINE
Wade Carpenter, CPA, CGMA | CarpenterCPAs.com
Stephen Brown, Bonding Expert | SuretyAnswers.com

Send us Fan Mail

When it comes to banking, the construction industry comes with some nuances. And if you're using Profit First, you'll have even more specific needs. This week, we're talking with Deanna Zubrickas of Relay Financial, the official banking partner of Profit First. She shares how contractors implementing Profit First can more easily set up bank accounts, manage subcontractors, track expenses, and more.

 Topics we cover in this episode include:

• How to avoid spending hours at the bank to set up Profit First accounts
• How to make it easier to pay subcontractors 
• Relay helps you identify and track transactions
• Relay's Zero Liability Protection
• Relay's fee structure  
• Workflows in Relay
• Relay makes statement downloads easy
• Getting started with Relay and Profit First

DISCLAIMERS

Contractor Success Forum is an informational podcast and does not promote specific products or services. This episode is intended to be educational and does not represent an endorsement of the Relay platform. We recommend listeners do their own due diligence before signing up with Relay, or any other provider.

Relay is a financial technology company, not an FDIC-insured bank. Banking services and FDIC insurance are provided through Thread Bank and Evolve Bank & Trust; Members FDIC. The Relay Visa® Debit Card is issued by Thread Bank pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa® debit cards are accepted. *The interest rates and annual percentage yield on your account are accurate as of 05/16/23 and are variable and subject to change based on the target range of the Federal Funds rate. APY will vary between 1-3% depending on the balances held. Earn 1% APY on savings balances of less than $50,000, 1.5% APY on savings between $50,000 and $250,000, 2% APY on savings balances between $250,000 and $1,000,000 and 3% APY on savings balances of more than $1,000,000. There are no minimum balances or minimum deposits required to earn interest on your account.  

LINKS

Visit the episode page at https://CarpenterCPAs.com/relay for more details and a transcript of the show.

Join the Profit First for Construction community!

Find all episodes and related links at ContractorSuccessForum.com.

Join the conversation on our LinkedIn page: https://www.linkedin.com/company/CarpenterCPAs
   
FIND US ONLINE
Wade Carpenter, CPA, CGMA | CarpenterCPAs.com
Stephen Brown, Bonding Expert | SuretyAnswers.com

Send us Fan Mail

Has your company outgrown your basic bookkeeping? If your financial operations are becoming more complex and you feel like you're losing control, or if you're getting into federal contracting, it may be time to consider hiring a CFO. This week we're discussing when to do it, why you should work one who has construction industry experience, and whether to outsource or hire someone in-house.

 Topics we cover in this episode include:

• At what point do you need to hire a CFO?
• How a good CFO can help your company grow
• The importance of working with a construction-oriented CFO
• How a CFO helps with compliance and reporting
• A CFO knows your whole tax picture
• Questions to ask yourself if you think you may need to hire a CFO

LINKS

Visit the episode page at https://CarpenterCPAs.com/CFO for more details and a transcript of the show.

Join the Profit First for Construction community!

Find all episodes and related links at ContractorSuccessForum.com.

Join the conversation on our LinkedIn page: https://www.linkedin.com/company/CarpenterCPAs
   
FIND US ONLINE
Wade Carpenter, CPA, CGMA | CarpenterCPAs.com
Stephen Brown, Bonding Expert | SuretyAnswers.com

Send us Fan Mail

If you're considering buying a construction company, we've got more tips for you this week on the podcast. This episode focuses on insurance. Stephen and Wade discuss what you and your insurance agent need to know to analyze the risks before making the purchase.

 Topics we cover in this episode include:

• What your insurance agent needs from the seller
• Insurance with stock sales vs. asset sales
• What happens with insurance rates when one company buys another
• The importance of the seller's safety program
• Liability coverage for company vehicles
• Life insurance considerations for the company owner
• How much insurance is enough?

LINKS

Visit the episode page at https://CarpenterCPAs.com/newbuyer for more details and a transcript of the show.

Join the Profit First for Construction community!

Find all episodes and related links at ContractorSuccessForum.com.

Join the conversation on our LinkedIn page: https://www.linkedin.com/company/CarpenterCPAs
   
FIND US ONLINE
Wade Carpenter, CPA, CGMA | CarpenterCPAs.com
Stephen Brown, Bonding Expert | SuretyAnswers.com

Send us Fan Mail

This week on the podcast, we're continuing our series on buying and selling a construction company, with a focus on the difference between a stock sale and an asset sale. Tune in to find out about each type of sale and its implications for taxes, liabilities, and more.

 Topics we cover in this episode include:

• What's the difference between a stock sale and an asset sale?
• How the type of sale affects the liabilities you assume 
• Stock sales from a seller's and buyer's perspective
• Asset sale from a seller's and buyer's perspective
• The Asset Aquisition Statement
• The seven classes of assets and their tax treatment
• Buying a company that received an ERC

LINKS

Visit the episode page at https://CarpenterCPAs.com/stockvsasset for more details and a transcript of the show.

Find all episodes and related links at ContractorSuccessForum.com.

Join the conversation on our LinkedIn page: https://www.linkedin.com/company/CarpenterCPAs

FIND US ONLINE
Wade Carpenter, CPA, CGMA | CarpenterCPAs.com
Stephen Brown, Bonding Expert | SuretyAnswers.com

Join the Profit First for Construction community!

Find all episodes and related links at ContractorSuccessForum.com.

Join the conversation on our LinkedIn page: https://www.linkedin.com/company/CarpenterCPAs
   
FIND US ONLINE
Wade Carpenter, CPA, CGMA | CarpenterCPAs.com
Stephen Brown, Bonding Expert | SuretyAnswers.com

Send us Fan Mail

If you're thinking about selling your company in the next three to five years, you need to start preparing now to get the most value for your business. Today on the podcast, Eric Wilkinson joins us to talk about what you need to consider from a buyer's perspective as you get your company in the best shape to be sold.

 Topics we cover in this episode include:

• When owners wait too long to prepare their business to sell
• Owner involvement
• Number of employees in teh business that a new owner may have to replace
• The importance of good books and due diligence when selling your business
• Considering the reputation of the company
• Risk and the Employee Retention Credit
• The value multiple
• Consider getting a valuation done

LINKS

Visit the episode page at https://CarpenterCPAs.com/buyer for more details and a transcript of the show.

Contact Eric:
Eric Wilkinson | https://www.sandhillglass.com/

Join the Profit First for Construction community!

Find all episodes and related links at ContractorSuccessForum.com.

Join the conversation on our LinkedIn page: https://www.linkedin.com/company/CarpenterCPAs
   
FIND US ONLINE
Wade Carpenter, CPA, CGMA | CarpenterCPAs.com
Stephen Brown, Bonding Expert | SuretyAnswers.com