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0205: Contractors Want Better Results Without Changing Anything

By Randal DeHart, PMP, QPA, Premier Contractors Accountant

This Podcast Is Episode Number 0205 And It Will Be About How Contractors Want Better Results Without Changing Anything Contractors Are Torn Between Over Or Under Managing Their Bookkeeping Contractors want to maintain control without making any changes. “Keep doing the same thing but expecting a different result.”   Throwing the receipts in a shoebox (behind or under the seat in the truck) is the favorite way to deal with paperwork. This is “Under Managing” and frustrates everyone around them who is playing “Where’s Waldo.” Job costing is nonexistent; bills are usually paid late, customers are unbilled, lost and forgotten. Micromanaging Every Detail Is An Over-Reaction From Years Of Doing As Little Bookkeeping As Possible To Get The Tax Return Prepared Just Don't Let Not Knowing What To Do Stop You From Making A Mess Of It Frustrated Contractors Call Me Every Day And Say: ·    I can’t get any reports ·    I don’t like the reports I am getting ·    My tax accountant is not answering all of my questions ·    How can I improve my business? Frustrated In House Bookkeepers Call Me and say they have inherited the “CRAP” from everyone who worked in QuickBooks before they arrived and are expected to produce good reports. Bookkeepers are expected to use: o    Old Equipment o    One Or Two Tiny Monitors o    Dot Matrix Printer (or equal – the noise an old printer makes when printing is unforgettable) Do you how long it takes to print on old equipment? Will it print a picture, jpg, pdf? It is a false saving to not buy new equipment. (What are 10 minutes costing you) Are you practicing “Seagull Management?” Fly in, make snap decisions without any facts, details or understanding of the paperwork after it leaves your hand and Flies out? Contractors Expect Good Reports, “You Know One When You See It” But No Clue What Is Needed To Get It There  Frustrated Spouses Call Me because spouses usually get “Seagull Management” from the contractor. The in-house Bookkeeper gets that and “Zap Management.” That is when people learn what to do by doing something wrong and getting "Zapped" by the contractor in the form of an insult or nasty comment and doesn't do much of anything at all. Under both styles, the core problem does not lie with whoever is doing the contractor bookkeeping the source is the Contractor and how the Contractor thinks about their business. How the Contractor reacts at the moment to a crisis? Making dozens or hundreds of decisions (moment by moment activity) every day is part of what being a Contractor is all about. In a way that non-contractors or even their employees do not understand. Embrace it and decisions will come easier.    Is Accounting A Valuable Component Of Your Contracting Company Or Is It An Expense? M.A.P. Vs. P.A.M. M.A.P. = Marketing Accounting Production “Success In Construction Is A Simple Discipline Practiced Every day” - Randalism This Is The Least Popular - and yet the most profitable way to operate a construction company. Contractors are thinking and acting like a business person. P.A.M. = Production Accounting Marketing “Failure In Construction Is A Few Simple Errors Repeated Every Day” - Randalism This Is The Most Popular - and yet the hardest and least profitable way to operate a construction company. Contractors are thinking and doing what they did while working for somebody else instead of thinking and doing what a business person does. Is Construction Accounting a necessary expense for Taxes Only and no value otherwise (many contractors think only in the “cost” as an “expense” and anybody can do the bookkeeping in 10 minutes a day or less? Are good Goods Tools important? ·    Computer, Monitor, Printer, Fax Machine, Scanner? ·    Desk, Chair, Good Lighting, File Cabinet? ·    Pens, Pencils, Paperclips, Paper, File Folders, Reams of Paper? ·    Telephone, Radio? ·    Central Heating And Air Conditioning? ·    Access to Clean Well Stocked Restroom? ·    Accounting Software On Your Desktop Computer, Laptop, Notebook? ·    Backup Cloud Storage, Flash Drive Or Other? ·    Is Payroll being processed using the IRS booklet? I have heard lots and lots of stories about all of these things or should I say lack of those things and more. Modern technology is for more than storing family pictures.   Contractors try to control bookkeeping details How does good Accounting add value to your business?   ·    What is worth to you? ·    What is the value of Your Time? ·    Knowing the Three “O's Financial Reports.” ·    Does It help in Keeping Your Customers Happy? ·    In Keeping Your Vendors and Suppliers happy and paid on time? ·    If know the answers to these questions is important; then having a properly setup Accounting System should be a priority. ·    If Low Price is King, then Shoebox Method and a Manual Bookkeeping System could be the answer. ·    Go to any office supply store and they may still carry the Bookkeeping Booklet with packages of forms. Free Or Low Priced Online Accounting ·    If Super Basic is a Free or Low Priced Online Accounting System is all you need to file taxes there are hundreds of them. ·    Basic Software is where QuickBooks comes into play. ·    QuickBooks can grow and expand as your contracting company grows. ·    QuickBooks is affordable for every business owner. Even Brand New Contractors starting out. ·    It’s most basic function is a checkbook, and from there it is really how much value do you want to from it? Think Transportation. How you got around as a child, pre-teen, teenager, young adult, older adult? ·    Walk Everywhere ·    Get a Skateboard ·    Bicycle ·    Moped ·    Used Car (Remember your 1st car?)   ·    New Car ·    Bigger Car ·    Van ·    SUV ·    Truck ·    Bigger Truck How you use QuickBooks is the same ·    Keep it simple – Check Book, Invoice Program ·    Add a little more to get a few reports, ·    Improve the setup a little more for Financial Statements ·    Better Financial Statements ·    Job Costing Reports Now as you add more detail (think a painting class, starts with a blank canvas) you need to provide data, receipts, invoices, customer payments, customer details. Accounting in its most basic form is “Garage In = Garbage Out” which sounds very tacky. It is unrealistic to expect Spouse, In-House Bookkeeper, or Outside Contractor Accounting Services to be able to provide good, clean, detailed reports without good information from the field, project manager, contractor. Everyone around you cannot guess what job the receipt goes to or why you bought it by looking a receipt. As a contractor, you understand clearly about the proper tools. My favorite tool is a three-pound sledgehammer. Why because it gives me the most leverage to pound the nail in. (of course, I can’t pull a nail out with it) My answer is a 16P nail works for everything. The funny thing is that Randal does not agree.   Randal has a specific framing hammer that was his favorite when he needed one all the time. I’ll bet yours is a very specific make, model of a nail gun if your trade is carpentry related.   My point is that the tools for the office are often the first to be cut, last to be upgraded and usually always considered unnecessary. In a bad economy, everyone makes choices on what is important. What to keep, what to chop. Which tool is the most important to buy? In that case, I will be the first to say tools for the field are the most important. As the budget improves; the business tools need to be added into the mix and move up to the top.   Providing Outsourced Accounting and Bookkeeping Services is one of the ways where we actually help with the budget. If bookkeeping is not your skillset, that is ok. We use QuickBooks; we know where to put the transactions into the software. It is optional for clients to have access to their QuickBooks file. We recommend they have access, but it is not required. If a client wants access to their QuickBooks file; then Intuit requires they own a current copy. If not – We explain where you can save money.    ·    Saving – Do not need to buy QuickBooks PC Version ·    Saving – Do not need to have a new Computer to support QuickBooks ·    Saving – Can Access QuickBooks from your existing PC | MAC | IPad | Tablet ·    Keep QuickBooks up to date with a proper setup for Construction Contractors ·    Keep QuickBooks up to date with the latest Sales Tax Rates (WA State Only) ·    Keep QuickBooks up to date, rebuilding the file on a regular basis. ·    Keep QuickBooks on a server, with a Commercial Host approved by Intuit.   ·    Provide annual financial statements for you to pass on to your Tax Accountant Look forward to chatting with you on “How We Can Help” and is it a good fit for both parties.     I enjoy chatting even when I have to explain that a Contractor’s company to too large to be an Outsourced Accounting Client. We chat and look for ways that are helpful, referrals that may be useful. Thanks to everyone who is finding the “Perfect” accounting solution on our FastEasyAccountingStore.com Thinking Happy Thoughts for everyone as we all dodge, bob and weave around the bad weather. About The Author: Sharie DeHart, QPA is the co-founder of Business Consulting And Accounting in Lynnwood Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations and offers insights on how to manage the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. http://www.fasteasyaccounting.com/sharie-dehart/ 206-361-3950 or sharie@fasteasyaccounting.com I trust this podcast helps you understand that outsourcing your contractor's bookkeeping services to us is about more than just “doing the bookkeeping”; it is about taking a holistic approach to your entire construction company and helping support you as a contractor and as a person. We Remove Contractor's Unique Paperwork Frustrations We understand the good, bad and the ugly about owning and operating construction companies because we have had several of them and we sincerely care about you and your construction company! That is all I have for now, and if you have listened to this far please do me the honor of commenting and rating podcast www.FastEasyAccounting.com/podcast Tell me what you liked, did not like, tell it as you see it because your feedback is crucial and I thank you in advance. You Deserve To Be Wealthy Because You Bring Value To Other People's Lives! I trust this will be of value to you and your feedback is always welcome at www.FastEasyAccounting.com/podcast One more example of how Fast Easy Accounting is helping construction company owners across the USA including Alaska and Hawaii put more money in the bank to operate and grow your construction company. Construction accounting is not rocket science; it is a lot harder than that, and a lot more valuable to construction contractors like you so stop missing out and call Sharie 206-361-3950 or email sharie@fasteasyaccounting.com Contractor Bookkeeping Done For You! Thinking About Outsourcing Your Contractors Bookkeeping Services? Click On The Link Below: www.FastEasyAccounting.com/hs This guide will help you learn what to look for in outsourced construction accounting. Need Help Now? Call Sharie 206-361-3950 sharie@fasteasyaccounting.com Thank you very much, and I hope you understand we do care about you and all contractors regardless of whether or not you ever hire our services. Bye for now until our next episode here on the Contractors Success MAP Podcast. Warm Regards, Randal DeHart | The Contractors Accountant Our Workflow Removes Your Paperwork Frustrations   For Contractors Who Prefer To Do Your Bookkeeping Fast Easy Accounting Do-It-Yourself Construction Accounting Store Is Open 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 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                                                             Contractors_Success_MAP, Contractors_Success_Marketing_Accounting_Production, Contractor_Bookkeeping_Services, QuickBooks_For_Contractors, QuickBooks_For_Contractors,Contractors_Success_Map_How_Contractors_Want_Better_Results_Without_Changing_Anything

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