December 02, 2021

Getting financially fit for next year’s builds with Carla Merrill

44 minutes

Solid financials keep builders in fighting shape to handle the day-to-day and big picture challenges thrown at the construction industry.

In this episode of “The Building Code,” Zach and Charley pick up financial pro-tips from Carla Merrill, a consultant who helps builders integrate their financials with software like Buildertrend and CoConstruct.

Carla offers practical advice for builders looking to better organize or order their books to protect their profits and reputation.

WHAT ARE THE KEY PRACTICES OF A FINANCIALLY FIT CONSTRUCTION COMPANY?

“Statistically, it's been proven that builders who track their cost on a daily basis usually finish their projects on time and within budget. And so, you do have to have that job costing component set up in order to be able to do that. So a financially healthy (company) would be one who is regularly, whether that's daily or at least weekly, tracking their estimated versus actuals, which can be done on a budget page in Buildertrend. (A company) who's staying on top of their upgrades and additions and price changes by using tools such as change orders and purchase orders so that they don't fall behind on that, and they don't end up eroding their profit as the project is progressing, which can easily happen. And then they're integrating actually with QuickBooks so that they can see it.”

WHAT’S ONE TACTIC BUILDERS SHOULD FOCUS ON BEFORE THE END OF THE YEAR TO GET THEIR FINANCIALS IN ORDER?

“I always tell people the end of the year is a perfect time to figure out what your overhead costs are and make sure that you're taking that amount and that you're allocating it to your projects.”

Plus, tune in to hear Catie Brown of Buildertrend’s data and research team highlight how builders can instill a growth mindset in their organization.

LINKS AND MORE