This Podcast Is Episode Number 0199 And It Will Be About Contractors Are Self Motivated To Be Successful A person makes the decision to become a contractor. It’s easy. Now you are the boss; no one to tell you what to do, how to do it when to do it. Yes – It’s easy.  It’s Morning, Are you ready? In Washington State being a contractor is fee-based. If you are not choosing one of the mechanical trades, there are usually no addition tests or licensing. Each state has different rules. Some states have a General Contactor’s test that confirms you have the most basic construction skills. Others states start most contractors out under a Handyman License.     What are some of the things you thought about being when you grew up and out on your own? From a small child, preschooler, then from grade school kid to the teenager to the adult.   I suspect you and your friends you never played contractor and customer; and yet life happened. Most people pick up a few “Handy Skills” from living in a house, condo or apartment. Simple common things that need to be fixed starting with hanging pictures on the wall (now it is the TV) Add the surround sound, link your equipment together. Buy furniture, table and chairs, end tables, bed, take it out of the box and ASSEMBLE. The word ASSEMBLE is in almost every box. Add shelves, installing cabinets, changing light fixtures. Again, the word ASSEMBLE.  Go to the garage and add a few tools to work on the truck. Get a lawn mower, edger, wheelbarrow, and suddenly you have grown your “Do-It-Yourself Skills.” It actually happened over time, one task at a time.   Whether it happened because of most things the landlord took too long to come; it wasn’t part of what the landlord did (move, assemble furniture), or you own your first home, current home, and you are “oops” The Owner.   If you want something done you that cannot do – You need to call a Contractor, Landscaper, Pest Control. So the range of skills you have continues to increase. You may find all things mechanical easy.   My Father would tell stories about how as a small child I would help him work on cars. Dad said, I got quite good at changing out carburetors (I don’t remember any of this). But it might explain how I can hear “funny noises” that never seems to happen when I take the car to the mechanic. I guess he taught me by “ear” to hear when the car was out of tune. Maybe too, it would explain why I would rather shop for good quality Truck Tires than spend time at a Makeup Counter.   Now, my brother he became a mechanic. He is the Happiest when he is under the hood of a car. Could I have become a mechanic? Yes, Probably. Would Randal have supported it? Yes, he would have then and now. I just never thought about it as an Opportunity. The Opportunity of being a Contractor is a gift. It doesn’t matter if you are a One Man Band – Doing all of the work or have a larger business with Subcontractors and / or Employees.     There are many paths that lead a person to become a contractor Trainee, skilled employee trusted employee, management, co-owner, owner Embracing the Opportunity to buy an existing business from someone else Embracing the Opportunity to be part owner of an existing business Embracing the Opportunity to start a business from scratch   The Why you became a Contractor is as varied as the number of the contractors that exist. Parent is or was a contractor, and you became a contractor as a matter of tradition or by default Career Changer who is thinking about career paths chosen and wants to do something different An employee in another industry and Lost Your Job and needed to do “something.” Many Contractors started out as being an employee for someone else.  There is no risk as an employee and a guaranteed paycheck.  Usually, more reasonable hours as employees can go home based on time served.   ...

This Podcast Is Episode Number 0198 And It Will Be About Contractors Ready Start Go Happy New Year New Year’s Day is the day to make New Year’s Resolutions and a start fresh. It is a reset button for every Contractor business on January 1st of every year. The previous tax year ends on December 31st. Final expenses for December will be coming in by email or US Mail. What is New? What is The Plan? What is Next Target? Did you meet Last Years Goals? What is Different From Last Year? Is there anything you Plan On Changing? Did You Take The Polar Challenge? “Polar Challenge” has a whole new meaning when someone says “Go Jump In The Lake”.  Many look at the Polar Challenge as a way to cleanse the body and have a fresh start to the New Year. Others yet just want to do something fun and wacky with their friends. New Year’s Resolutions I have ever seen have been was all about doing More of This and Less of That To Have More Things or To Reduce The Stuff You Already Have A To Do List and A I’m Going To Stop Doing That Plan to lose weight – Eat Less, Exercise More Go On Vacation or Have A Stay Vacation Make More Money – Cut Expenses Buy Something or Sell Something Dream of Winning The Lottery Plan Something Special Enjoy Your Day Enjoy Life New Year’s Resolutions - Did You Make A List?  Keep It Simple. When making your New Year’s resolutions write them down. Even in the most general terms with a few details. Start with a few notes, outline or a brief memo. Resolutions should not be so detailed and complex that it becomes a chore you before you even get started. If you make it a Chore then it will never get done. A project with too much detail becomes tedious, makes you frustrated, irritated and never gets done. Maybe the New Year’s Resolution is the following: Be, Do, Have. Be Kind Do The Work Have Peace of Mind Choose your own goals on what and how much details your New Year’s Resolutions should be. If you want to write a full-blown Business Plan For Your Contracting Comany; put it on the list. For a very detailed oriented person; writing a business plan will easily become a complex report with graphs and charts. For others, it is a big step to create New Year’s Resolution of more than three things. New Year’s Resolutions do not have to be big, long, or complex. Your mind will think about your goals, fill in the blanks, guide you on the next thing to do. Answer the call Being available to [fill in the blank] Committing the time needed Doing the job or task Effortless seeing the next step Finding the solution to long and short term problems Going Forward and choosing the best option and not second guess it. Happy to be alive I chat with Contractors every day. They tell me their stories. About their challenges in running a business, keeping up with the bookwork (accounting and bookkeeping). About estimating and bidding jobs, doing the work and collections from clients. Having or not having employees. Paying their taxes. To help you – I have written your New Years Resolution for you. Sharie’s New Year’s Resolution For Contractors I want Gross Sales of [fill in the blank] for the year I want a newer Truck and Equipment for my business I want to have nicer customers and to be nicer to those who are not nice to me I want to have this much money [Fill In The Blank] to spend on a Family Vacation I want my spouse to work at an Outside Job only if she wants to [not because she has to] I want my family to be healthy and happy throughout the year I want Peace of Mind and to have Less Stress In My Life I want The Gift of More Time Time To Do The Things In My Life That I Want To Do Time To Be With The People To Whom I Want To Do Those Things Time To Do Nothing At All but Think and Enjoy the Peace and Quiet That Surrounds Me Resolutions Are Personal - Do you post them somewhere or put them away? For most of us, starting small and being successful is more positive than “Huge Ironclad...

This Podcast Is Episode Number 0197 And It Will Be About Contractors Last Minute Payroll Deadline For 2016 Happy New Year 2017!   It’s almost the end of the year and time to decide if your employees deserve a Bonus. You may call it a Generic Employee Bonus, Christmas Bonus, Holiday Bonus or Year End Bonus Giving An Employee Bonus Comes Down To Cash Flow Here Are Some Key Questions To Ask Yourself: Can I afford to give a bonus? Can I afford to give a Bonus to my employees? Do I want to give a Bonus to each of my employees? How do I decide how much Bonus should I give? Reality Check - Is Bonus Taxable? Starting with the last question first. In most cases, it may be taxable. All forms of Income including Bonus is income to your employee. All income is subject to State, Federal Payroll Taxes and is part of the employee’s W-2.   The most common are to give your employee a set amount known as a ‘Net Check”. It would not quite seem the same to say here is your bonus for $200.00 but the actual check received is for $169.04. Your employee is going to think you are tacky, cheap and you can afford to give them a Big Bonus.   Instead, what you give the employee is a check for $200.00 and the company pays all the payroll taxes. The value of the bonus is a lot higher when a check is grossed up (meaning you the employer pays all the taxes, company half, employee half of Social Security, Medicare, Federal Withholding, State, Local Taxes) Review all the outstanding Employee Advances When an Employee Advance is given, are the employees automatically setup on a repayment plan? Or, in your mind, the Money is a Payroll Advance with a loose payment plan. You are expecting to sit down and work out something more defined later. Later is 5 Minutes before you give them the check.     Did your employee think the money was a non-taxed bonus? Did your employee think Non-taxable reimbursement because (fill in the blank)?    Did your employee think was a Gift because (fill in the blank)?   Did your employee think it is a net payroll check? If your employee leaves, quits or gets fired, they usually expect their employee advance is paid in full. Either as a gift or was actually, all unpaid Employee Advances were net payroll checks. Usually, employees think all Payroll Advances as Net Payroll checks if they are planning to collect Unemployment.   As payroll, the amount of the check will increase their projected State Unemployment Benefits. Thinking of all my own clients over the years and with my clients with payroll; it has been by exception that the former employee will send money to cover an outstanding payment plan.   Without a written payment plan signed by the employee, Washington State does not allow the employer to withhold the remaining balance out of the employee’s final payroll check.   Sometimes an employee starts out as a 1099 Contactor. It can be a shock when converting a 1099 Contactor to a W-2 Employee for both the employee and the employer. Everyone is used to no taxes being taken out.      IRS Rule is anyone receiving over $600 or more for the calendar year needs to receive 1099 form 1099 Contractor need to meet the rules of being an Independent Contactor (Trade Contractor or General Contractor) otherwise they can be classified as an employee with back payroll taxes due.   Some states it is more common for Contactors to have mostly 1099 Contractors over formal W-2 Employees. All 1099 Contactors including your Trade Contractors and General Contractors need to be providing you with a W-9.  https://www.irs.gov/pub/irs-pdf/fw9.pdf  In 2016 IRS expanded list of those who receive 1099’s to include Attorneys.   Quick Note: Merchant Service Providers, Online Merchant Service Providers are required to provide 1099’s to their clients.     IRS intends to levy increased penalties in 2017 for...

This Podcast Is Episode Number 0196 And It Will Be About Merry Christmas From One Contractor To Another Merry Christmas from One Contractor To Another Merry Christmas to all.  Everyone celebrates the Holiday Season in his or her own way. Even the “Bah Hum Bug” people get pleasure out of their “Bah Hum Bug”ness.  Enjoy, Embrace, Be Glad, Be Joyful and maybe a Little Sad. (No one is up and happy a 100% of the time)  Do something nice for others. A smile is easy; it’s always with you, and it’s FREE. It can be a simple thing.  Perfect Example. Last weekend a young man waited specifically to open the door at the Post Office.  Did he have to? No.  Did I need the door opened? No.  Were my arms full of packages? No. But he turned and waited patiently for me to cross the parking lot so he could open the door.  Why? That act of kindness was important to him.   Why? My reaction was to thank him politely. And I smiled in appreciation.  My reaction could have been different, nasty, snarky; but it wasn’t    Getting my door opened happens to me often throughout the year not just at the Post Office.  Where Men of all ages (young or older) will specifically wait, or hurry to open the door for me before I get there. A couple of years ago a man said as he opened the door (at the Post Office) because he was compelled to wait and open the door for me.  It was nice, but again not really necessary.  Do I have an invisible sign that says “Open The Door” for her because she will appreciate it?       The only cost for anyone is a little time and a little effort.  I will never recognize any of these men if I saw them again.  They do it so effortlessly that I am sure they never remember the faces of the people they open the door for.  (I say, People, because I suspect their character is such that they automatically open doors for everyone they meet)  Another easy act of kindness is to Drive Carefully.  Use turn signals, leave space between you and the next car, letting the impatient driver cut in front of you. If you can see them; you can react.  Another act of kindness is to Watch Out For Pedestrians who cross in the middle of the block.  Pedestrians will cross the street after dark while wearing dark clothes even when the crosswalk is nearby. The jogger with lots of reflective gear may look a little funny in the daylight; but they are safer because we can see them on a dark, rainy night. We are in Seattle are so we get lots of dark, rainy afternoons, evenings and nights.      Courtesy to Others Who Work while we are shopping, looking at all of the Holiday Lights then come in from the cold to the restaurant or coffee shop. Being friendly is nice. Being loud, obnoxious and messy is fun for the people doing it; not so fun for the staff and other patrons or customers around them.  Several articles have been written this year about the increasing number of people who make reservations at multiple locations then never show and never cancel.  Then we wonder why that restaurant has fewer and fewer staff. Why we are asked to wait when we see lots of empty tables. Restaurants are trying to treat the reservation as “real” and not overbook.  This trend about reservations is happening more and more for traditional holidays. An example of two is Valentine’s Day and Mother’s Day. As Christmas and New Year’s Eve and New Year’s Day approaches I can see where this is a time of both dread and joy for owners and their staff. Choices need to be made: How Many Staff should be working?  What Special Items should be served?  How Much Food to prepare?  How Much Variety?  Stay Open Late?  Merry Christmas and Best Wishes Of Joy This Holiday Season.  For Me each year The Holiday Season Begins January 1st and Ends December 31st Treating everyone a...

This Podcast Is Episode Number 0195 And It Will Be About Assisted Do-It-Yourself Construction Accounting   Fast Easy Accounting Do-It-Yourself Construction Accounting Store Is Open For Business Most Contractors Setup QuickBooks Desktop Version In One Of Three Ways: #1 EZ Step Interview inside QuickBooks Setup #2 Asked Their Tax Accountant To Setup QuickBooks #3 They Attended A How To Setup QuickBooks Class Or Seminar And they all run into the same problem QuickBooks does not work the way they want it too. The Answer: #1 Click Here To Buy An Entire QuickBooks Setup For Your Specific Contracting Company #2 Click Here To Buy Just The Chart Of Accounts For Your Specific Contracting Company Or Keep Reading And Find Out Why QuickBooks Is Not Working And How Our Do-It-Yourself Solution May Be The Answer You have been searching for long and hard. Our QuickBooks Setup and Stand Alone Chart of Accounts Store For Construction Contractors has packages with 200 to 1100 accounts specifically designed for Contractors all across the USA Including Alaska and Hawaii and cover a wide spectrum of contractor accounting needs.   #1 If You Did QuickBooks EZ Step Interview You Have A Size Problem! The Chart of Accounts In The EZ Step Interview Is Designed To Sell QuickBooks, Not For You To Use QuickBooks The EZ Step Interview For Contractors Chart Of Accounts Has 33 Accounts, And It Does Not Have: 1.    Fixed Asset Accounts to track Vehicles, Tools, Equipment and Accumulated Depreciation. 2.    Other Asset Accounts to track Security Deposits, Notes Receivable, and Retention. 3.    Credit Card Accounts to track Purchases, Payments, and outstanding balances. 4.    Other Current Liabilities Accounts to record Loans, and Customer Job Deposits. 5.    Long Term Liabilities Accounts to track Vehicle / Equipment Loans, Back Taxes, Lines of Credit. 6.    Equity Accounts to track your Net Worth and Owners Time On Jobs for Job Costing purposes. 7.    Income Accounts to track Sales, Change Orders, Reimbursed Costs, Overhead & Profit, Markup, Refunds, Mileage, Consulting, Discounts, and more. 8.    Cost of Goods Sold Accounts to track Direct and Indirect Costs, Labor, Material, Other Costs, Subcontractors, Disposal Fees, Fuel, Vehicle Repairs, Small Tools, Depreciation and more. 9.    Expense Accounts to track Marketing, Technology, Travel and Entertainment, Shop Rent, Personal Development Seminars, Books, DVD, Online Training, and many more expenses. 10.    Other Income Accounts to track money that comes into your business but not directly related to the type of Contracting work you do. For example Gain on Sale of Assets, Trade Discounts, Fee Income, Bonus From Customer, Scrap Metal, Interest Income, and Rebates. 11.    Other Expense Accounts to track money that goes out of your Contracting Company but not directly related to the type of work you do. For Example Loss on Sale of Assets, Credit Card Interest, Loan Interest, Penalties, Late Fees, and more. #2 If Your Tax Accountant Setup QuickBooks, You Have A Tax Problem! Tax Accountants Are Wonderful People With One Purpose; Prepare And File Your Annual Income Tax Returns. Tax Accountants Typically set up QuickBooks Chart of Accounts to map directly into their tax software which makes it easy to download from the bank which can destroy a Contractor's Company because nothing ends up in QuickBooks where it is supposed too and causes Contractors to make bad decisions based upon bad Financial and Job Costing Report. Tax Accountants Can kill more cash flow and profit in your construction company in less than an hour using a messed up QuickBooks file to prepare your construction company annual tax return than you can make up for in sales and hard work six months, if not six years. Saving you money on your...

This Podcast Is Episode Number 0194 And It Will Be About How To Find Your Ideal Customer Profile As A Contractor Today's Guest Article Is From Hannah West Representing Modernize.Com When it comes to branding your contracting business, you probably have a checklist that includes a logo, a website, print advertising, and customer outreach. But these essential efforts are in vain if you don’t deeply consider the audience you’re attempting to reach. Customer profiles are the perfect tool for understanding the people who will seek your services and what they want from you as a contractor. Home Improvement Leads offers advice for fleshing out those profiles in order to market your business more effectively.   Think about What You Offer Before you can know your customers, you have to know yourself. Consider your services and your mission. What sets you apart from other contracting companies? Do you offer eco-friendly construction and renovation services? Do you specialize in luxury homes? Do you work primarily on residential properties, commercial, or both? Do you go out of your way to train each employee in excellent customer service? Do you give a percentage of profits to charity? Know your goals and strengths, but be flexible as you research out to potential customers. After all, the business is about meeting their needs. Survey Your Audience If you’ve already started building a customer base, reach out to those current customers. Ask for honest feedback regarding your services. Perform a survey and ask direct questions, giving them the opportunity to elaborate as opposed to giving strict yes or no answers. Ask questions such as: ●    What made you choose our company over others? ●    On which social platforms are you active? ●    Would you say that you use those platforms to find services? ●    How often do you seek home renovation services? ●    What do you do for a living? ●    Was it easy to find information about our company and get in contact with us? ●    What do we do that other contracting companies don’t do? ●    When it comes to receiving information, do you prefer email, mail, or phone calls? Once you know more about what your ideal customer is looking for and how they find it, you can start building a more in-depth customer persona.   Building Ideal Customer Profiles Well-executed client profiles help you relate to your customers and internalize who they are as well as their goals. But before you go deep, use the information customers have offered to flesh out some basic background info for the profiles including age, gender, income, field of work, and whether the person resides in a suburban, urban, or rural area. Build onto that by including the reasons they might seek out your services, how often they have reason to seek out your services, and what obstacles may stand in their path. Each profile should be broad enough to represent a whole segment of your customers, but specific enough to be helpful when creating marketing strategies. For instance, you may have a persona of a 30-something woman who makes most of the design and decor decisions for her home, wants to improve her home’s value and aesthetic, and uses Pinterest to find inspiration. You may have another persona representing a 50-something male-skewing demographic who strictly gets recommendations for contractors from trusted friends and colleagues and only seeks out services for needed repairs. Give your personas names and faces to humanize them. These are the people you want to reach out to, and they can help you figure out how to do it right. All you need to do is listen. Call out the most important elements of the visual. Include “Tweet this!” links that mention key points and vital takeaways from your visual. About The Author: Hanna West   Hannah West writes professionally...

This Podcast Is Episode Number 0193 And It Will Be About Leveraging Credit Increases Your Contracting Company Cash Flow Accepting Credit Cards Can Immediately Increase Sales And Profits* Contractors Accepting Credit Cards Make More Money *We do not provide merchant services. We suggest you start by contacting you bank and doing your own research. I know from many years while we were contractors it paid off handsomely so I am simply passing on a mere "scrap of information" to help you get more cashflow and profit. Unplanned Emergencies - Are stressful now add "how am I going to pay for this" to the mix and the anxiety increases exponentially! For most people cash in short supply which leaves using a credit card, getting a bank loan or selling something to raise cash as their best options? For Example - Homeowner with leaking roof is going to get it fixed right away because rain water is damaging the interior of their home including some irreplaceable sentimental treasures including items passed down from parents and grandparents. Who Will They Call? - You I hope! If you are their contractor and you are actively working and the contractor they like and trust. Accepting All Credit Cards - Makes you the hero because they get instant financing and your Electronic Armored Car takes your money to the bank. "Everybody wins, your client gets roof fixed, they earn airline miles and other perks and you made a sale which you could have easily lost to a competitor that accepts credit cards. Add On Sales - Will more than make up for any fees you pay to accept credit cards. Prove it to yourself by asking twenty contractors that accept credit cards why they do and then ask twenty that don't and make up your own mind. In our past construction businesses when we accepted credit cards the profits increased over 100% and if I told you how much I guarantee you would not believe it! Create additional cash flow by accepting credit cards. Why? Everyone uses credit cards. When was the last time you wrote a paper check? When you go to the Grocery Store, Drug Store, Office Supply Store, Post Office, Gas Station or your Favorite Restaurant; do you use your checkbook or your debit or credit card? How often do you use an Electronic check when paying your bills? Do you even have a book of checks for your checking account? Many of us would say “No” – why do I need a checkbook when I have the routing number, and checking number, or I pay all my bills using Online Bill Pay. Not a problem, I setup automatic payments. I don’t write checks because [fill in the blank with your answer]. It is the Holiday Season, time for Skiing, next is Spring Break, then it is Summer Vacation full of fun, shopping, eating and travel. Are you going to write a check, pay by debit or credit card? More and more places decline to accept checks especially if you are from Out Of Town. I want those reward points. Credit Cards are here – Every year I write fewer paper checks than I did the year before. I also know to make the system work effectively there has to be a seller and a buyer.   Where would you be if you were out of town doing something special and everywhere you went you were told: “We Don’t Accept Credit Cards”? Oh, maybe you carry lots of cash – Just in case. Perfect!           Comcast sent out a postcard expecting an increase in the use of credit cards in 2017. Comcast was suggesting business need a faster internet connection to deal with the increased Online Traffic. If their information is true, then maybe the banks will be offering credit to more people and raising the credit limits for their existing customers. This suggests the economy may be improving.     As a Contractor, don’t you want some of that new business? Some contractors feel that taking credit cards costs too much, that there is not enough margin to still make a profit. For years’ studies, have shown that...

This Podcast Is Episode Number 0191 And It Will Be About Special Thank You To All Contractors This Thanksgiving Holiday The time flies between each of the holidays. It is a time to reflect on the years so far and catch up.    The magical time of year begins with Halloween, Thanksgiving, Christmas then finally New Year’s Eve. Halloween is a time to see Happy Children out trick or treating. Randal and I go to the local Mall, sit at the Food Court and watch babies, toddlers, and bigger kids enjoy the night of Trick or Treating. Fantastic to see parents dressed up and having as much fun as the kids.   Thanksgiving is when we give Thanks for being an American.   Taking a moment to think back to the challenges for the Pilgrims coming to America. They decided to make the journey with no guarantee of success. To build homes, plant crops, take care of animals. Then later everyone who decided to move West by wagon train, horse or on foot. I am Grateful For Them! I think about my Grandparents, my Great Grandparents (and Randal’s). What was life like when they were children? Where did they come from and how did they get to where they were?   The family’s oral history seems so inadequate. My father shared so much, but now it seems like so little. Be glad for the simple things we take for granted. Going to the grocery store, deli, restaurant for dinner.  Living indoors with electricity and indoor plumbing, a car to drive, a bridge to cross the water or a ferry. Modern Times. I am all for living in the city with the gas station and grocery store just down the street.  Appreciate reliable electricity with Tree Contractors trimming powerlines year around to help prevent outages. Grateful for the Lineman who repair power lines when there is a storm, so we have electricity. Thank You Contractors for going so I can stay home safe.     Thank you to the road crews, police, fireman, lineman, tree crews, plumbers and electricians who go out when the news says “Stay Home” and to all the other Contractors and Emergency Services I have not mentioned. Christmas is the time of Good Cheer. Seeing Lights and smiling children dressed up for pictures with Santa at the nearest shopping mall. Faith that as the year ends; that the New Year will be a better happier, more peaceful time.   Everyone who goes to Times Square and other places around the country and the world to wish in the New Year. The countdown to the New Year is a joy for everyone who participates.  It is ringing in the New Year, New Beginning, New Hope and for some the time to make a Fresh Start.   Contractors Make Our Lives Better Contractors build and maintain the things that make our lives better. They build the factories for the factory workers to work in. The Rancher and Farmer whom you don’t think about being a contractor. The Rancher and Farmer build and repair buildings, fences and maintain the equipment.  Learn to be a Jack of All Trades, raise crops and animals and battle the elements.  Heat, Wind, Rain, Snow and Forest Fires, or Grass Fires – they see it first. The more remote their location, the more diverse the skills.     Why are they so special to me? My Grandfathers – One of Each, One Rancher, and One Farmer. In the city – Most of us only see a piece of their lives at The Fair in the comfort of a well-lit, heated barn with animals behind fences or gates. The Rodeo is entertainment where the Cowboy show off the skills learned in “real life” with real life consequences. At the Farmers Market, we tend not to think about what it takes to grow the food we eat. Especially not a lot of thought when looking at prepackaged meat in tidy rows in the grocery store.   Safe driving this Thanksgiving Weekend. It’s about friends and family. The ones we are celebrating with, those to whom we are not; and finally to those who are with us in spirit only. Most of us (no...

This Podcast Is Episode Number 0191 And It Will Be About Contractors Need Bookkeeping Beyond Get-Me-By Picking A Get Me By Contractor’s Bookkeeping Solution in many cases is using an Excel Spreadsheet and a shoebox, file folders all dumped into a file box and looking at the Online Banking once in a while. This accounting method is the “I still got money so I must be okay.” When You Are Using Today’s Job Deposit To Pay For the material, labor and subcontractors from the last job. It is also known as “Rob Peter To Pay Paul” Cash flow is never a problem until the sales stop; then it doesn’t matter if it is the economy (you customers get laid off), domino effect (their customer didn’t pay them) or you are unable to work due to being hurt on the job or get sick (flu or a more serious illness).    Problems Arise When You Want To Do Any One Of The Following: Get a Line of Credit at the bank to expand or buy equipment Attempt to get a commercial lease for equipment Setup a 30 Day account at a major supplier Buy a new vehicle for personal or for the company Buy a new house or Refinance existing home Answer questions on Liability Insurance Audit During The Insurance Audit The insurance company may want copies of quarterly and monthly tax reports. The Low Premium is based on “low sales” and “low payroll”; at audit time it is the adjustment in the “Actual” Premium. If all the numbers are equal or less, there is not usually a credit. To verify income Insurance Company is going to want to see copies of State Revenue Reports and any payroll reports.   State Agencies May Want To Do An Audit On Your Business Some states suggest you get a “Voluntary Review.” Depending on the auditor this may go smoothly. In other cases, it can turn into a full-blown audit. The audit can have a date range of several years, not just the current or previous year. In addition to Quarterly Tax Returns, you, the contractor can be asked to provide the Check Register, Customer Invoices, Employee Timecards and Paystubs, plus the State Revenue and State and Federal Payroll reports. In other words; they want everything to cross check what you told one agency over another. State agencies are looking at your customer and vendor list to add to their list of companies to go after next. Banks Want Detailed And Summary Financial Statements Bank wants current and year to date financial statements, and previous year’s tax Federal Tax Returns. The loan officer will in most cases ask for the application and financials be provided even when they know that the bank is not lending to anyone for whatever you are asking for. (Example: Working Capital). See Unique Construction Company Financing Secrets Revealed.     The Application Process Can Be Many Pages Long And they can feel very intrusive. Before you invest time and energy - Verify The Bank Is Lending To Contractors. Then ask is the Bank Lending For Working Capital, Vehicles, Equipment or Whatever you need the loan for. What is the debt to income ratio’s and more? Don’t Be Afraid To Ask: What is the bank looking for to be able to say YES! Tax Accountant Uses your “Get Me By Documents.” When your Construction Company is small, you may find a tax accountant willing to take your “Get Me By Documents” and do a work around to file your taxes. Don’t expect them to do that Year, After Year, After Year when suddenly you have grown to make over $100,000 in sales and above. They have the reasonable expectation that you are getting it together and if you don’t then the burden of finding all of your deductions is not on others. Every missed receipt may be a business deduction that is missed and causing you the Contractor to pay more taxes than necessary.   Get You By Contractor’s Bookkeeping Can Be Easily Solved We have clients who are Brand New Companies that are Weekend Warriors, Handyman, Trade Contractors and General Contractors. In this economy,...

This Podcast Is Episode Number 0190 And It Will Be About Contractor CFOs Struggle To Achieve Valuable QuickBooks Reports Contractor CFO’s are in a constant struggle between having all of the documents needed for data entry and providing the tools for the Office Manager | Bookkeeper need to do the job. Owners want answers to the following questions Am I making any money? Where am I making any money? Why isn’t there a report that at the push of the button gives me all the answers? When Your Company Was New, The Answers Were Not As Important As They Are Now The CFO wants to provide the answers; goes to the Office Manager | Bookkeeper and asks why don’t we know the answers to these questions. Depending on the answers received whether the CFO goes away happy or just goes away. If the CFO is happy then goes back to the Owner and gives the explanation as to why the reports are accurate (based on information in QuickBooks) If the CFO may realize there is a problem and discusses with the Office Manager | Bookkeeper on changes needed to improve the reports presented to the owner. If the CFO realizes that the bottleneck in good reports is with the incoming documents; then the answer is going back to the Project Manager or other Field Staff to make changes. “Garbage In = Garbage Out.” The Office Manager | Bookkeeper cannot provide reports when the incoming receipts are not coded to a specific job or time cards are sloppy and excess time is spent trying to figure out when and where the field staff spent their time. It is very frustrating to try and read scribbled time cards or guessing. Newer phones have a schedule feature, so most employees always know to the minute how many hours have been worked in any given time period. It is only the Office Manager | Bookkeeper who is in the dark. A Good CFO Has To Make The Business Case That Better Equipment Will Save Time And Money Good equipment for the Office Manager | Bookkeeper will help make their job easier and more productive. An example is a newer computer, with large dual or triple monitors, dedicated scanner and a printer with built-in memory. Most Televisions can act as computer monitors. Larger screen saves on eye strain and headaches which makes staff more productive which makes you money and increases cash flow. Software should include the current version of QuickBooks, Adobe Software, Microsoft Office, Cloud-based CRM and Cloud based Construction Time Cards For Smart Phones. Payroll is a project that needs to be done accurately and can take hours to complete. We recommend T-Sheets for time cards; because when used properly it will produce historical data on jobs. T-Sheets can eliminate the chaos to employee timecards. Employees enter from any phone. For Construction Contractors Across The U.S.A! When Are You, The Contractor Part Of The Problem Instead The Solution? It’s too easy for an Owner to think that office tools as “Just An Expense” and are not needed to be upgraded. The computer is not broken, there not need to upgrade QuickBooks (it never changes). Let’s not forget that squeaky chair that won’t turn and the 19” computer still works (ignore the green tint) Why Do You Have A Smart Phone Instead Of The Old Flip Phone? Field tools are a given. The truck has a rack for ladders and lumber. Vans have shelves and bins; is tall enough to stand up in which will save wear and tear on employee's knees. Less strain on knees can save or postpone possible Worker’s Compensation claims. Worker Comp claims lead to increased premiums. Once the Tools and Equipment are updated, then it is much easier to see which employees are productive. In the Field – Who is bringing their jobs in on time, under budget is good. Jobs without any warranty work and having signed billable change orders adds to the bottom line. A Good CFO Can Determine Which Employees Are Worth Investing In Additional Training Office Managers | Bookkeepers, fall into several categories: Productive...