Tag: financial
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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.
Sharp or dull. Constant or intermittent. What's the worst kind of pain? Some contractors describe it as the feeling they get when trying to produce accurate financial statements on a regular basis.
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
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.
"I don't know how the job is doing." "I don't have any report to show that." "There is no data from previous jobs." These are comments that no contractor wants to hear.
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.
Construction Business Owner, March 2008
Many business owners view accounting as nothing more than an administrative headache. But good accounting systems and practices are powerful tools for managing your business. Accurate and timely financial reports can help you monitor your performance, control costs, improve profitability and manage cash flow.
Times have been very good for the construction community over the recent past. With the exception of the real estate market, all phases of construction seem to be operating on all cylinders. This has resulted in strong profits for many companies. However, all good things eventually end. Whether it is an economic slowdown or just a bad job or two, sooner or later good times come to an end. When this happens, are you in position to react quickly by cutting back in areas not essential to operations? Do you know what those areas?
Construction Business Owner, February 2008
Every business owner knows that feeling like no other: You’ve just landed new business, and it’s difficult not to boast a little about your company’s rising profits. But when was the last time you—or any business owner you know—boasted about cash flow? Healthy cash flow doesn’t exactly come with the same bragging rights as new business, and very few friends will be inclined to raise a glass to your business’s cash-flow situation, but keeping cash moving through your business is just as critical to success as new business and strong profits.
