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The motto of this week's episode is: there's nothing gross about gross margins. We're defining gross margin (we also touch on gross profit, net profit, markup, and the differences between all of these often confusing terms). We'll also fill you in on why gross margin is important and why consistently tracking yours is crucial.

 Topics we cover in this episode include:

• What is gross margin?
• The difference between gross profit and net profit
• Markup vs. margin
• What you can learn from your gross margin
• What can cause swings in gross margin

LINKS

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

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

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Building a bond program is not just about being able to go after bigger jobs. A partnership with a bonding company you trust provides valuable information on the jobs you're bidding and is an important piece of your strategic growth plan. This week, Stephen shares some useful advice for building your bond program.

 Topics we cover in this episode include:

• Partnering with a great bonding agent is key
• Be proactive and honest with your bonding agent
• Listen to your bonding agent's perspective on potential jobs
• Year-end planning for your bond program
• Start getting financial statements before you need bonds
• Newer contractors can get bonds based on personal credit

LINKS

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

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

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When done properly, a cashflow projection or forecast can not only help you secure bonds and banking, but it can also serve as a roadmap to building a great business. This week, we're offering some practical advice on this useful tool: who should do it, how often it should be done, and how it might look different for construction companies.

 Topics we cover in this episode include:

• Why you might need a cash flow forecast (even if you have a lot of money in the bank)
• How far out and how frequently you should do a forecast or projection
• Using long-term cash flow projection as a planning tool
• How to boost your bonding capacity with accurate cash flow projections
• Cash flow projection considerations unique to the construction industry

LINKS

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

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Find all episodes and related links at ContractorSuccessForum.com.

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

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The year is coming to an end, and for many contractors, that means working with your CPA to get financial statements. These statements can be done at four different financial assurance levels with various indications for your business. Learn about each on this week's episode.

 Topics we cover in this episode include:

• What is a financial assurance level and why might I need one?
• Reasons contractors may need an audit 
• Why you should do your research before paying for an audit
• Term Audit
• Review level
• Compilation level
• Preparation level

LINKS

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

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

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What's going on in the surety industry? Is now a good time to try to get bonded? Stephen has some useful insights and updates for you, including thoughts on why now is a great time to work on building a relationship with a bonding agent if you haven't already.

 Topics we cover in this episode include:

• Whether we're in a soft or hard surety market right now
• What a hard surety market is and what causes it
• When is the best time to build a relationship with a bonding company
• How to get started if you want to get bonded 

LINKS

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

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

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Financial ratios are useful tools that translate your accounting data into information that allows you to keep a pulse on the health of your construction company. This week we're discussing the top five ratios and how to use them in your business.

 Topics we cover in this episode include:

• Ratios and year-end planning
• Working Capital and the Quick Ratio
• Days of Cash
• Debt to Equity Ratio
• Underbillings to Working Capital Ratio
• Net Income after taxes
• Return on assets
• Backlog Gross Profit

LINKS

Visit the episode page at https://contractorsuccessforum.com/constructionratios 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/contractor-success-forum

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

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Even on a team that you trust, theft and fraud sadly occur too often when a company doesn't have the right internal controls in place. This week, we're sharing the top five controls you can begin implementing today to protect your business and yourself.

 Topics we cover in this episode include:

• Common warning signs of theft or fraud
• Segregate duties related to financials
• Regularly review your financial statements
• Require employees to take time off
• Consider hiring an outside controller 
• Implement controls on financial decisions
• How Profit First can help

LINKS

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

Find all episodes and related links at ContractorSuccessForum.com.

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Watch video versions of our show on YouTube

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

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While performance bonds ensure a job gets completed, payment bonds guarantee that subcontractors and suppliers get paid for their services and materials. This week, we're covering everything you need to know about filing a payment bond claim: when to do it, what information to include, and what happens once the claim is filed.

 Topics we cover in this episode include:

• When are payment bonds required?
• When should you file a payment bond claim?
• What information to provide when filing a payment bond claim
• Why contractors should take payment bond claims seriously

LINKS

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

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Rob Williams, Profit Strategist | IronGateESS.com
Wade Carpenter, CPA, CGMA | CarpenterCPAs.com
Stephen Brown, Bonding Expert | McWins.com

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

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This week, special guest Ariela Wagner from SunRay Construction Solutions joins us to talk about liens, bonds, and getting paid. Ariela shares some amazing tips to help you confidently manage your lien and bond claim rights and avoid costly mistakes.

 Topics we cover in this episode include:

• Preliminary Notice Requirements 
• Lien differences across state lines
• Federal vs. State Requirements
• Working with a company like SunRay to manage lien and bond claim rights
• How to avoid waiving your lien rights
• The power of communication and documentation

LINKS

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

Visit https://SunRayNotice.com to learn more about Ariela and the services her company offers.

Visit https://www.sunraynotice.com/resources to access the 50 States Lien Laws and other free resources.

Find all episodes and related links at ContractorSuccessForum.com.

Join the conversation on our LinkedIn page: https://www.linkedin.com/company/contractor-success-forum

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

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Debt can be a useful tool for growth in your construction business when handled correctly. This week we're discussing the different types of debt, when it makes sense to use it, and the best ways to pay down debt without negatively affecting your cash flow and profitability.

 Topics we cover in this episode include:

• What is smart debt?
• Debt, starting a new business, and survival mode
• How much debt is too much when it comes to bonds and banks?
• How Profit First looks at debt
• Long-term vs. short-term debt
• The best strategies for getting out of debt 

LINKS

Visit the episode page at https://contractorsuccessforum.com/debt 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/contractor-success-forum

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