This Podcast Is Episode Number 0248, And It Will Be About Contractors Need To Reward Themselves  It's the Holiday Season which means everyone is so busy thinking of everyone else. Wrapping up the end of the year, getting one more thing done that makes sense. I want to be the person who says Merry Christmas! You have earned it. Many of Holiday movies are variations of “Scrooge” based on “This Is Good” and “That Is Bad.” Anyone who has not had any challenges in life has been either extremely lucky or in a very protected bubble.  Congratulations To You Construction Contractor On Your Success! Please send me all your extra four-leaf clovers. If your favorite Happy Leprechaun is not too busy, I will take a little extra Magic. I can never have too much Magic or Sunshine. Life Happens. Challenges Happen. Some Good, some bad depending on the perception of the event. We can all look back and see what we might have done differently. The question is, Did we make a decision? Did that decision seem to be the best decision to make based on the information on hand at that time? If you and I make a thoughtful decision (not a knee-jerk reaction), then it is a good decision. Sometimes we think I should have, could have, if and only, but, because and [fill in the blank]. These are negative thoughts that are not useful. All negative thoughts just drag you down into a bad mental place. I offer The Serenity Prayer As A Beacon Of Truth: http://thelordsprayer.net/serenity.html God grant me the serenity to accept the things I cannot change; courage to change the things I can; and wisdom to know the difference….. Between religions, the name of God may change; however, from my viewpoint, the message of the prayer is the same all over the world no matter what religion is your choice. The key is you have a choice to believe, what you want to believe and how to practice your faith. The sun rises and sets for each one of us every day. Embrace Life Enjoy The Day – Moment By Moment. Do Something Fun. Watch The Sunset. Listen To The Birds Sing. Hear A Train Whistle. Rejoice In The Laughter Of Children for at that moment they are embracing their world with complete abandonment. Smile. Think Happy Thoughts. The Simplest Things Are Free. Every day, everyone can find a reason to be frustrated if they are looking from that particular view. The other driver is driving too slow, too fast, recklessly, music is too loud, passing out hand gestures, honking their horn, on their cell phone, texting, car issues of smoke from the tailpipe, car smells, bad tires, no headlights. The list of things to be annoyed about is endless; no one is exempt. While we are annoyed, there is nothing more dangerous than someone is crossing in the middle of the street, at night, wearing all dark clothes, either being clueless of the danger or playing chicken with cars. Drivers, everywhere at some point during the day or nighttime hours will see happen repeatedly. It used to be when we heard someone who appeared to be talking to themselves, that they were (to put it politely) a little troubled in the head (an old-fashioned saying). Now with cell phones and wireless headsets or earpieces, it is a little harder to pick out the people who appear to be talking to invisible friends. It is easy to listen to the news and become depressed, agitated, or thinking the challenges of the day are hopeless to overcome. Mother Teresa said it best. We the willing, led by the unknowing, are doing the impossible for the ungrateful. We have done so much, with so little, for so long, we are now qualified to do anything with nothing.- Mother Teresa of Calcutta. http://www.beliefnet.com/quotes/christian/m/mother-teresa-of-calcutta/we-the-willing-led-by-the-unknowing-are-doing-th.aspx Now that we have defined the problem – What is the solution? Think Lemonade. Shift in thinking – Are you thinking Inside The Box or Outside The Box? Life is a...

This Podcast Is Episode Number 0247, And It Will Be About Why Did You Open Your Construction Contractor Company What is that old saying? “It Is Always Greener On The Other Side Of The Road”(author unknown) 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.   Why did you decide to become a Construction Contractor? Fast Money Easy Work Few Hours 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...

This Podcast Is Episode Number 0246, And It Will Be About Business Systems: Your Guide To Nine Small Business Trends Today's Podcast Is Based On A Guest Article From Betty Moore Great can be the Level of our returns when we are informed on various trends needed to structurally run any business size. From the biggest commodity to the smallest, biggest service providers to the smallest. Every successful entrepreneur can testify that these trends are inevitable tools for a constant and successful business growth. So, here are nine small business trends which you may want to apply to your business. Building your own construction company easily. Learn from experts! Building your customer base: This is very important for any small scale business to grow. This can be achieved through various advertising means. Find out what it takes to get your product out there and, known to the targeted audience. Then, the next is managing your customers. This includes getting a tool which will merge both offline and online customers to maximize profit. Social media is a very good idea. Most small businesses want to get on internet advertising. Not Just internet sources but, rather telephone sources can also be merged. Distance Or Remote Workers: A force in business which has been so effective in today’s world is the creation and the flexibility of remote workers. This is in relation to the fact that flexible environment of work create an increase in productivity. Young talented employees can be sorted to work from home or online position for the division of labor and enhancement of productivity, this help in the delivery services or product to the public. Personnel Training As manager of a small business venture, It is more productive to build your team. Until the team becomes an expert, training should not be under looked. This is a smart investment to starting your team, teaching them, educating them. It’s smart to start investing on training programs, in training your young talents today. Millennial team members want to develop. As a small business, development is crucial. We cannot afford not to grow. Training promising talents is the company’s future. This means that a budget should be made on this aspect as regards personnel training. Digital Stores Creating a wonderful website with all accessible products and services of the company should be put in place to meet demand of the consumers. Of course, business with rich website content always attracts buyers. This is an important tool for every small business that need to increase its sales, a functioning website, fully operated and controlled by the service team. Also, it should include an efficient payment method to allow customers pay for goods and services without stress. 24/7 Customer Care With an increasing demand on goods and services, small businesses should be able to cater for customer’s need. It will maintain the company’s customer base if customers are treated with value, support, and attention. Little businesses seeking to grow into multi-national giant must keep up with customer service. This is should be reachable at all time. Continuous Research A continuous Product research is ideal for quantitative and qualitative delivery of goods or service. Every upcoming business must create or set out a budget for better research team workers. With our research team, we are able to reduce cost and increase productivity. Location Marketing: Location marketing is a type of marketing system that uses phone location to reach out to the available customers. Sends information on available services and goods in a given location. This is unique in product advertisement. Customers become aware of your product simply be mobile phone SMS services. As people become aware, your product or service is brought to their notice. Small businesses should take opportunity of this trend, buy into it and use it efficiently. Big companies use this medium of advertisement to tap into stream...

This Podcast Is Episode Number 0245, And It Will Be About Unique Secrets To Starting A Highly Profitable Handyman Company  Basics of Starting Your Handyman Company Sometimes it hard to know where to begin when starting any Construction Company including a Handyman Company. First Place to decide what type of contracting business do you want to start. For many contractors, the Place To Begin is to choose to be a handyman. Why do I suggest a Handyman? No one expects a Handyman to have the skills of a High-End Finish Carpenter. It will give you an opportunity to try many things. Learn how to make simple repairs. Determine what you like to do and learn the skills associated with that trade. Many states have a basic license for the Handyman. The best place to learn about starting up and operating a highly profitable Handyman Company is Dan Perry Handyman Startup. Here is a link to his online course that is only open twice a year. Get on the list. The next steps are all about Company Structure. We recommend being an S-Corp because it has several benefits over any other structure like LLC, C-Corp, and Partnership. Many Tax Accountants And Lawyers Suggest Setting Up Your Company As An LLC They like it because it is simple and cheap to set up in the beginning and they do not care how much you will be overpaying on your Income Tax! In most cases, they will set up your Handyman Company to be taxed as a Sole Proprietor, which means you will pay payroll taxes on all the net profit. In the first year in business, this might be almost nothing. The problem is that a Handyman Company Owners and Construction Contractors never go into business with the idea of NOT MAKING A PROFIT. The difference between a Not Profitable Company and a Profitable Construction Company can be a few jobs that went well and paid before the end of the year.   You cannot go back to the IRS and say – I changed my mind, and now I want to be treated as an S-Corp for this year because I made a profit. It doesn’t work that way. For an LLC – forms must be filled out early in the new year for that year and can be treated as an S-Corp every year going forward.   When a Handyman Company Owner or a Construction Contractor chooses to be an S-Corp in the beginning, then no one gets confused on what you expect. An S-Corp is always treated as an S-Corp. Just a quick heads up; Corporate Officers must take a reasonable salary (W-2 income) and the balance either as dividends or invests it in retirement accounts. It defeats the purpose to be in business if a Corporate Officer takes payroll for every dollar taken out of the company. If you want to be paid like a regular employee, then save yourself a headache and be an employee for someone else. Being in business is full of challenges, some fun, and others not so much fun. Decisions are made every day (many days it feels like every minute of every day). As the Owner, there is no one to tell you what you supposed to do or what you have to do. Of course, there are nasty letters, phone calls, or fines and penalties when do you not pay what you are supposed to pay by the due date. When choosing a name for your Handyman or Construction Company, I recommend that the Corporate Identify is more general and not an exact match to the Trade Name you may be using.  Why – because as an S-Corporation you can evolve and change what you do and keep the same Corporate Structure. We started out as Construction Contractors, at one time we were General Contractors and at some point changed to being predominately a Specialty Trade Contractor. Individual changes within that space, we worked New Construction, Remodel, Service, and Repair - all of which were slightly different.   Employees that were fantastic in New Construction did not do well in Residential Remodel projects, or Commercial Tenant Improvement (TI) Projects and Vice versa. An entirely different group of employees loved service and repair but were...

This Podcast Is Episode Number 0077 And It Will About QuickBooks Setup For Contractors We Fix Bad QuickBooks For Contractors Setup Issues. Did someone setup QuickBooks by trying to follow the built in template inside QuickBooks and you figured out you cannot get any of the financial and job costing reports you need to operate and grow your construction company? Let us handle your QuickBooks setup for your contracting company because accurate QuickBooks contractor reports are what profitable contractors use to help them steer their construction company through the ups and downs of the business cycle. We Do QuickBooks Setup For Construction Beginning With Year 2000 And Up Click Here For QuickBooks Setup Templates For Contractors · QuickBooks Pro 2000 And Up · QuickBooks Premier 2000 And Up · QuickBooks Premier Contractor 2000 And Up · QuickBooks Premier Accountant 2000 And Up · QuickBooks Contractors 2000 And Up · QuickBooks For Contractors 2000 And Up · QuickBooks Enterprise Contractors 2000 And Up · QuickBooks Enterprise For Contractors 2000 And Up Contractors, house builders, residential and commercial remodeling company owners let us take care of QuickBooks setup for your contracting company because owning and operating your construction company means you need clear and concise Financial Reports, Job Costing and Job Profitability Reports to survive and thrive. The size of your construction company is not as important as how much money you earn from it. Our internal research shows a properly run construction company with annual sales between $500,000 and  $5,000,000 can generate as much or more cash, profit and equity than most construction companies with annual sales between $5,000,000 and $10,000,000. It has to everything to do with strategic planning, understanding and using the right QuickBooks reports the right way. There are thousands of QuickBooks reports and hundreds of add-on software that can generate thousands more; however there are only five Key Performance Reports and a few Job Costing and Job Profitability Reports that will provide what you really need to achieve your goals. The same QuickBooks contractor reports the profitable contractors use are available to every all four types of contractors from the one-person “Dog and Pickup Truck” to the "Enterprise" level contractor. For more on this go to www.FastEasyAccounting.com/4 Which QuickBooks Reports Will Help You Increase Sales And Profits? The reports that stand the test of time are: · The Five Key Performance Reports, (KPI) Reports. Cash Report, Receivables, Parables, Profit and Loss and Balance Sheet. For more on KPI Reports click here · Job Cost Reports, Job Profitability Reports. For more on this go to www.fasteasyaccounting.com/reports What Makes QuickBooks Contractor Reports Valuable? Understanding and using the information they provide to make strategic and tactical decisions to increase sales and profits in your construction company. What if I told you there is buried treasure in your backyard and all you need is a treasure map to find it and dig it up, would you be interested? Of course you are! Proper QuickBooks Setup Is Your Treasure Map If your QuickBooks setup was done by a QuickBooks Expert in construction accounting and maintained correctly you are riding high and living well! If not, we can fix just about any QuickBooks setup by performing a QuickBooks cleanup and importing all of the transactions. The Chart of Accounts is the foundation and if your Chart of Accounts is not setup right you will not have anywhere to put the transactions. The Short List Of Essentials In Our QuickBooks Setup Which You Can Review In Detail At www.FastEasyAccounting.com/setup or www.FastEasyAccounting.com/QBS ·  User Permissions ·  Company Information Window ·  Chart of Accounts Direct Construction Costs ·  Chart of Accounts Indirect Construction Costs ·  Chart of Accounts Work-In-Progress For Land...

This Podcast Is Episode Number 0244, And It Will Be About What To Ask An Accountant When Meeting One For The First Time Today's Guest Article Is From Karen Watson Professional Bookkeeper Currently Works At Balancing Books Bookkeeping ----------------------------------------------------------------------------------------------- "Running a business is a piece of cake” – said no one ever. Achieving success requires you to study a lot of things. Assuming that time and effort is needed is an understatement. Running a business covers a lot of areas such as product, price, promotion, and place. Accounting is another essential part of the business. It’s a system that keeps your finances in top shape. After all, building a business is about earning assets, not increasing liabilities. If the specifics of accounting isn’t your forte, then hiring an accountant is a good option for you. However, deciding to acquire accounting services is not cheap. You need to know if the services offered are worth every penny. If it’s your first time to hire an accountant for your business, you probably have little to no idea of what to expect. As a rule of thumb, once you’ve scheduled a meeting with an accountant, it’s best to prepare several questions for him or her. In this way, you can establish a professional long-term relationship with each other. At the same time, be able to understand each other’s expectations. Here are some questions to help you warm up conversations when meeting an accountant for the first time: 1. “What’s the best way to contact you and how often should we meet?” Some business owners are hesitant to hire an accountant because some of them seem to disappear after a few months of getting paid. To prevent this from happening, here are tips: Discuss methods of communication and work schedule with your accountant. Take time to schedule appointments, through Skype or other channels, so both of you can clear out your schedules. Use your initial meeting to decide if you’re going to meet weekly, monthly or bimonthly. 2. “How much do you charge?” Know precisely how much hiring an accountant will cost you on your first meeting. Include any fees to be paid for your accountant to budget your expenses properly. Keep in mind that not all accountants charge the same price. Some require a set fee, while some are charged per hour. 3. “How can you help me during tax season?” Educate the accountant of the current status of your business—where you’re at, what your available resources are, and what your plans are in reaching your long-term goals. Ask the accountant what he or she could contribute to the business, especially during the tax season. Your accountant should update you of new tax laws which you can maximize. 4. “What extent of changes should I inform you?” As much as you want your business to be planned out, there will be instances when you’re required to make quick decisions. Discuss things that your accountant should and shouldn’t know. For example, if you’re planning to expand your business to another location in the coming months, inform your accountant about this beforehand. If you think that your decision will involve business’ financial resources, the accountant should be informed about it. The earlier you inform him or her about it, the more time you both have to plan out for the possible consequences. 5. “How can you help me improve my business’ financial health?” Accountants can do more than just computing losses and doing your tax. Again, you’re paying for their service to make sure that you put all their skills to good use. As experts in financial situations, you can ask your accountant to create a financial plan for your business. Since accountants are professionals in the field, your plan will be more accurate and likely to be error-free. 6. “Am I making basic accounting mistakes?” It’s a right decision that you hired an accountant during the...

This Podcast Is Episode Number 0243, And It Will Be About Highly Profitable Contractors Continually Improve Their Processes Successful Contractors Improve Processes All Year Long As the end of the year approaches it is time to see about loose ends in paperwork and forms. Ask employees to review their taxes withheld to date. Do they want to make any adjustments for this year? Every Contractor Wants To Avoid Fines, Penalties And Overpaying Taxes Review your Cash On Hand. Do want to make any new purchases of tools or equipment before the end of the year?  Can you get financing (example six months same as cash)? Check out Paypal Credit offers. From now to the end of the year it will seem like almost everything you could want will be on sale Fun Stuff is upgrading your phone. Fun Stuff is adding new apps to your new phone. Fun Stuff is being familiar with your existing office equipment.   Change that happens with all the new Fun Stuff may come with some challenges Learning how to use the new app that looked so easy in the description. Need to transfer all your existing contacts to the new cell phone. Latest software update causes your office equipment or favorite software to no longer work properly. Challenges for everyone is the effects of the data breaches the last couple of years.   Businesses are adding additional security features. Some of them can be quite annoying and frustrating to deal with so let’s avoid them when we can.   Saved passwords and bookmarks on your commonly used sites are no longer saved. Security key needed to be received and entered before you can access accounts. Stronger Passwords required which are longer and more complicated. Additional security questions before you can log in. Passwords that need to be changed every 90 days. Software that requires a Static IP Address. Need to add compatibility mode for access. Multiple Login Screens with passwords. Enhanced Anti-Virus Software. Enhanced Firewalls. Owning and operating a Construction Company means you are continually balancing the need for good equipment and software against the money you have available to spend. New technology is fantastic. New technology always is a combination of Features and Benefits versus the Cause and Effect of implementing and learning how to use it. For all research done ahead of time; nothing is very seldom 100% smooth in the process. Which is why we always recommend doing one tiny change at a time. Recently we upgraded several computers in our office and discovered that Windows 10 Pro does not like and will not work with several of our older printers and scanners. Cause and Effect, we needed to add to the project new scanners and printers. Because we expected this might happen; it was not a crisis.   We want to know what software is working for you. If there is something better out there, we want to be using it too. Software changes and has updates on a regular basis. Over the years some of our favorite software has made improvements that have not always been improvements. Sometimes the next update fixes the fixes. We are always looking for ways to improve and pass on any tips we have learned.    The old saying “Beauty is in the eye of the beholder” (author unknown) really applies to software, technology, tools, and equipment.   Every Construction Contractor has his or her favorite brand of tools. It may be one brand for this and a different brand for that. Whether it is the vehicle, size, make or model to the smallest tool in the tool bag everyone has their favorite. The tool fits in your hand just right and is easy to use. When You Are Deciding To Buy Tools And Equipment Factor In The Economic Costs With The Purchase Price And What Ten Minutes A Day Wasted Costs Your Contracting Company This week has been our traditional Seattle RAIN plus lots of wind gusts. The way your Truck or Van feels when you are driving is just right (in good weather or bad) your seat is...

This Podcast Is Episode Number 0242, And It Will Be About How Can Cause and Effect Analysis Help You Solve Business Problems Today's Guest Article Is From Lori Wade Content Writer And Career Specialist For College Students  ----------------------------------------------------------------- Problems happen in any business. When it comes to small businesses, about two-thirds of them actually survive 2 years, half of them survive 5 years, and only one-third survives 10, according to data provided by Fundera website. The statistics for large businesses is probably as saddening as this one. The problems are what causes businesses to fail. At the same time, fearing problems is not the way out. Instead, business owners need to learn from them as well as learn how to solve them. The challenge lies in how do you solve them. There are plenty of people, who start brainstorming all the possible solutions - and do it until it’s too late. While brainstorming can work for many, it needs to be followed by actions in order to deliver the result. But if you were told that it’s possible to find a quick and effective solution using a certain methodology, would you prefer it to brainstorming? If the answer is «yes», you should try cause and effect analysis, also known as a Fishbone Diagram. Why is a Fishbone Diagram effective? In order to find a solution to a certain problem, you need to analyze it thoroughly, identifying all the causes that led to a certain situation and trying to build a solution for each of the cause and for the problem in general. Using a diagram not only requires you to come up with a list of these causes - it also helps you to visualize the situation better, seeing it as a whole and noticing all the weak spots. It also allows breaking big problems into smaller ones, solving them bit by bit. On top of that, it enables creative thinking, which is a great skill to build and strengthen. How is a Fishbone Diagram used? 1. Identify the problem. What is the problem you’re facing? Identify it in details, not only briefly describing the problem but also outlining the situation in general, possible reasons and consequences, departments or employees who are either responsible for the problem or for its solution. You might be facing a couple of problems at the moment. If these problems are a part of a bigger one, describe this biggest problem. If they aren’t, use a different diagram for each problem. Once a problem is defined, place it in the «head» of a Fishbone Diagram. 2. Identify the causes of the problem. Now it’s time to add some «bones» to the «head». Ask yourself or (and) your team, what exactly did cause this problem to appear? Maybe it’s the people that did something wrong. Maybe your business processes didn’t go well. Maybe you received a bad supply or experienced a malfunctioning of a sort. Maybe it’s the finances. Find all the reasons that can be there, but be sure to focus on the main ones only. Once you do so, add them to your Fishbone Diagram. 3. Identify the smaller causes. Now when you have the main causes of the problem, you probably can divide them into smaller ones (assuming you aimed for the big reasons from the start). Why did each of the causes happen in the first place? For example, you produce something - and your last products didn’t sell well enough. One of the causes is a poor promotion. You can come up with the following sub-causes for this case: not enough people responsible for promotion; not enough investments into the promotional process; the marketing team did something wrong; the design and the description of the product didn’t impress the target audience and so the promotion failed; and so on. Or you can come up with the totally different sub-causes. But once you do, add them to your Fishbone Diagram like shown below: Now you have the whole picture ahead of you. If you did everything right, you also see it in details, easily spotting all the...

This Podcast Is Episode Number 0241, And It Will Be About Unique Highly Profitable Contractors Use Job Costing And Financial Reports  Successful Contractors Find Keys To Growth And Profit In Their Accounting Halloween is the official Kickoff of the Holiday Season. Kids dress up as anything from Princesses to Pirates and every TV character in between. Time of smiles, giggles and lots of “pixie dust” and “magic wands.” Time for “Santa and his reindeer” to visit the malls with a fresh supply of Cookies and Candy.   Wait, let's not forget Thanksgiving with Turkey, Dressing, Yams, Mashed Potatoes, Gravy, Fruit Salad, Pumpkin Pie, Ice Cream and lots of Egg Nog. All of this leads to us in January wishing we ate less and exercised more in hopes to keep the pounds on and matched by the pounds off for a net gain of Zero.     Software and the desire to do everything with our phone is the “Grownup’s Version” of the Candy Store all year long. With a couple of clicks on my phone, I want to Buy Something Pay For Something Get Paid Immediately From My Customer Have all of the money go in or out of my bank account Now how do I then make all the transactions magically go to an accounting system Give me nice detailed reports Help me make simple and complex decisions. Begin with the end in mind. Construction Contractors want to know Job Costing on some projects but not on others. How does a Construction Contractor keep it simple to those around them who need to pick up all the loose pieces of paper (paper receipts or electronic documents)?   Start by thinking about the source and how the supplier can help Home Depot, Lowes, Major Suppliers will email the priced invoice to you. On each of the invoices is a line with a for the Purchase Order. Purchase Order crosses over from Packing Slips to final priced invoice. If the Construction Contractor is willing to Tell The Order Desk something (example job name, customer name, customer address), then there is a foundation for job costing reports. Putting all of the receipts for a single job in a Job Folder or Job Envelope will help if you need to make a material return, find a part number, serial number, color used.   Many online Project Management, Estimating, Invoicing or Scheduling Programs will allow pictures to be uploaded. Before and After pictures are great. Helps the Construction Contractor look back or the project for missing items that need to be billed. Resell value of the project to the customer.     In a “Manual Accounting System” or an “Excel Based Accounting System,” all the loose receipt are being added up. If a Construction Contractor loses or files their recap sheet, it is then harder to figure out it a specific job made any money. All the notes are in the folder and who knows where the folder is.  A favorite tool of mine is TSheets TSheets is an electronic timecard that can track employees in real time with GPS tracking. Are employees on the Job Where You Expect Them To Be?   One tracking method inside TSheets is tied to Workers Comp requirements for your state.   Do you have to report hours by Plumbing, Electrical, Heating, Drywall, Framing, etc.?   Web Based Online Time Card For Construction Contractors Links To QuickBooks Job Costing   Click On The Image Below To Calculate Your Savings! Fast Easy Accounting Your Certified TSheets Consultant   For Construction Contractors Across The U.S.A! Finally! Construction Contractors have a way for your construction workers to submit accurate time cards chock full of the data needed to generate useful Job Costing Reports without the hassle of pen and paper and the excuse that it takes too long because it can be done on their smartphone! Another method of tracking is tied to tasks that would help with future Estimating.   Think instead of Kitchen, Master Bath, Main Bath, Powder Room, Deck, Family Room, Den, Man Cave, Patio,...

  This Podcast Is Episode Number 0240 And It Will Be About Construction Accounting Secrets For New Contractors Construction Accounting Basics For Construction Contractors Construction Accounting is not a natural mindset for Construction Contractors. Construction Accounting has own language. Regular Accounting the language is Income Minus Expenses Equals Net Profit. Construction Accounting is Income Minus Cost of Goods Minus Overhead Equals Net Profit. That simple little thing called Cost of Goods Sold is the primary difference between Regular Accounting and Construction Accounting. Understanding that difference and how it relates to Job Costing and Job Profitability can get contractors like you firmly on the road to financial freedom. Then comes Construction Accounting. Income is added up to have Total Income. Cost of Goods Sold included more than the cost of material. Total Income less Total of Cost of Goods Sold equals Gross Profit.   Expenses include a variety of overhead related items. Gross Profit less Total Expenses equals Net Ordinary Income.   Net Ordinary Income Plus Other Income and Less Other Expenses equals Net Income. Financial Reports have a lot of information on them. Your tax accountant will calculate the depreciation. When a contractor purchases a small tool, and it is an expense. What determines whether a tool is an asset or expense is the cost of the tool (not its size of the tool or piece of equipment) Any tool or equipment that costs less than Five Hundred Dollars is considered an expense. The Internal Revenue Service expects that it will last less than one year and not repairable or the cost of purchasing a new tool will be less than the cost to repair it most of the time it is not feasible to repair. These days it is hard to find anyone who can do repairs on small tools. The neighborhood hardware store is usually a True Value Hardware or Ace Hardware. I can only think of a few larger Hardware Store that might send the tool out for repairs. Smaller communities may have repairs as a common option.        As a contractor you may purchase a tiny tool (in size) but huge in price meaning it cost over Five Hundred Dollars.  These type of tools need to be depreciated. Congress approves an accelerated depreciation (Section 179) where most items can be depreciated at a 100% in a single year. This benefits small contractors as the annual threshold is usually higher than they spend on tools and equipment. Each of these larger tools needs to be listed in the Accounting Software (we use QuickBooks Desktop In the Cloud) and we can setup QuickBooks for Contractors in a way that makes it fast and easy for the day to day contractor bookkeeping to get done. Why – Because the Tax Accountant decides on what can group and which tools and equipment need to be itemized individually. The rules differ depending on the item on how much can be depreciated on a single line and which items may have internal caps.   Short Answer - In other words, How many lines and How many pages does it take to get to 100%. If taking all of the depreciation available does not make sense to take it a single year the Tax Accountant may decide to use traditional depreciation rules. Using the thought that if taking 100% of the available depreciation doesn’t help you – don’t waste the depreciation deduction. Spread it out over several years. What is Cost of Goods Sold In Construction Accounting? Contractors often ask us can they buy our Chart of Accounts with Cost of Goods Sold and import them into their QuickBooks Desktop file or their QuickBooks Online file. The answer is yes! Click Here for QuickBooks Desktop Chart of Accounts With Cost of Goods Sold Click Here for QuickBooks Online Chart of Accounts With Cost of Goods Sold Direct Costs are tied to the jobs (field labor, material, and other cost items) Office material (pencils, paper, toner, etc. are overhead) Yes, an...