Tag: accounting

Over the past several years, the construction industry has been going strong with plentiful amounts of work available. But with this growth comes the routine challenges of personnel, infrastructure, cash flow, etc. While all of these challenges are items you see and face everyday, another challenge may be arising that you need to be aware of as well: The day your deferred taxes are due! 

Construction Business Owner, May 2008

Technically Speaking

Q:

I've been running my own concrete construction company for ten years now. Recently our job volume has grown considerably. The trouble is, I am losing track of what is happening in the field. I need to know when and where problems might be surfacing, but I can't possibly oversee every crew and every field activity.

Construction Business Owner, May 2008

Editor's Note: Following is the fourth article in our ten-part series called, "Accounting Software Checkup: Ten Ailments That Can Hinder a Healthy Bottom Line," by Fred Ode, CEO, chairman and founder of Foundation Software. Each "ailment" will be discussed in detail to help you determine if your seemingly healthy business has an underlying problem.

Construction Business Owner, May 2008

Editor's Note: This is the fifth in our 2008 series of "Get Your Business to Work," written by our regular columnist George Hedley. In last month's article, George Hedley offered his first ten of twenty tips to boost your bottom line. Tips eleven through fifteen follow.

Ever been accused of being a sandbagger? Golfers who pad their handicap are often called sandbaggers. They keep their handicap artificially high so they get a few extra strokes from their opponents when playing match play. The term "sandbagger" comes from the concept of filling your golf bag with some sand so it's heavier than normal, causing you to get tired and not play up to your potential. In order to keep their handicaps comfortably higher than they should be, sandbaggers do little things like missing short putts on purpose when they don't need to sink them to win a hole.

Construction Business Owner, April 2008

Q:

My excavating company has outgrown our accounting software, and I'm looking to replace it. But after doing a "Google" search, I am more confused than ever. Apparently, some accounting packages also do estimating. Other products say they do accounting, estimating and project management. One appears to be mainly project management software with accounting modules added on. At this point, we really need a good job cost accounting system, but I'm thinking maybe I should buy an all-in-one package to serve our needs in the future. What's your suggestion?  And how would I find one that's right for my business?   

Lee

Construction Business Owner, April 2008

Q:

What else can I do to get my cash flow back?  My husband and I have a small welding business with five employees. We offer to take credit cards, and we have a credit line to help. I don't pay bills until they are due, but I am struggling every month.

I have to be very diligent about my collections. I have some general contractors (we are the sub) who will pay, but I have to call first. What do I tell my vendors?  I have told them that I will send a payment as soon as I get mine, but that just isn't acceptable. So, I borrow and borrow and borrow to keep everyone happy. When I do get money in, it is so late, that I usually need it to pay something else. And I can't get anything paid back on my credit line. I haven't used my credit line for the past three months. I have held people off until the last minute and have threatened collections to get contractors to pay.

Construction Business Owner, April 2008

Dear Jayme,

I want more interaction with our accountants. We ask for help and guidance, but I have to beg for a return phone call, and when they do respond, they speak a foreign language. I call and e-mail them, but they seem to be too busy for me. What can I do?

Damon

Construction Business Owner, April 2008

Editor's Note: Following is the third  article in our ten-part series called, "Accounting Software Checkup: 10 Ailments That Can Hinder a Healthy Bottom Line," by Fred Ode, CEO, chairman and founder of Foundation Software. Each "ailment" will be discussed in detail to help you determine if your seemingly healthy business has an underlying problem.

Construction Business Owner, April 2008

How much money are you making on that job that's wrapping up?  Not sure?  You're not alone. Unfortunately, many contractors-some who are quite successful-are not able to effectively measure their real profit on many jobs. In a business that is labor and material intensive, with razor-thin margins and innumerable variables, tracking real profit without a high degree of accuracy can be a fatal mistake.

Beyond just knowing where you stand so you can plan for the future-two important factors-the ability to stay in business and maintain good cash flow can be threatened if you are unable to show a lender or a surety that they are making money on their jobs.

Construction Business Owner, April 2008

Editor's Note: This is the fourth in our 2008 series of "Get Your Business to Work," written by our regular columnist George Hedley. In this article and the next, George Hedley will offer twenty tips to boost your bottom line. The first ten follow.

I recently received a phone call from a business owner who does concrete slab finishing and placing. His company is a subcontractor to concrete and general contractors. He supplies labor and equipment to pour and finish concrete slabs and sells his services by the square foot finished concrete. His customers decide on a job-by-job basis if and when they want to do the finishing themselves or use his company's services.