We’ve got a number of things going on for June, all about payroll. See how ComputerEase can make your life easier. Continue reading
Do you question whether the equipment in your construction fleet is profitable or if you should be renting equipment as needed instead? Do you have a piece of equipment that often sits idle for months and don’t know whether to sell it or hold onto it – just in case? Continue reading
A great writer once said, “Beginnings are always messy,” and this is often true in the construction industry. Some of our most trying events happen at the beginning of a new project, which can make the whole project messy from day one. However, with the proper plan, potential pitfalls can usually be avoided. Continue reading
The construction industry is a difficult one – full of strategic planning, tight deadlines, demanding customers and lean margins. In some projects, just 2-3 percent can be the difference between profit and loss.
However, construction companies that navigate this industry expertly have learned to surround themselves with others who understand the business – especially their CPA firm. You look for subcontractors who have experience in a particular type of work; your CPA firm shouldn’t be any different. Don’t settle for just any old number-cruncher. To be on target in this business, you need a CPA that understands construction. Continue reading
In the construction industry, cash flow is essential to staying viable in a competitive market. Even some of the most profitable construction firms have gone out of business because of poor cash flow management.
Perhaps the reason cash flow is so difficult in construction is that by the time a job is awarded, significant resources have already been invested into it – from the time spent on the lengthy bidding process, to manpower on the job site, to purchasing materials and renting equipment. Often, these expense are incurred months before ever seeing a payment. Continue reading
Section 179 Deductions and Bonus Depreciation have been used extensively in the construction industry. Both grant your company big savings on taxes as a result of any major equipment purchases you’ve made in the tax year. Accounting and project management software is included in the equipment that qualifies, and it’s been one of the most popular routes that contractors have taken to seize this opportunity. Continue reading
Last year, we had the privilege of hosting a webinar alongside Matt Mauller, Vice President of Neace Lukens Insurance Agency. At the time, we were in what he called a “soft market” for insurance. Premiums were low, and he told us how to take advantage of the market by either renegotiating with our brokers our kicking them to the curb and finding a new one. You can recap that information by viewing our previous webinars. Since that time, the insurance market has taken a hard turn. Premiums are going up, and it’s making life tougher for contractors. Luckily, Matt Mauller is coming back this year to co-host another webinar, “7 Tips to Keep Your Premiums from Skyrocketing.” Matt will tell us about the current market, how we got there, and what you can do to prevent your premiums from following the upward trend.
This webinar is a must-see for contractors, and it’s absolutely FREE. Space is limited, so be sure to register today!
Some of our customers take ComputerEase Construction Software to a basic level and then stop. They only use 50% of the software’s potential. We want to fix this by offering two full days of training on ComputerEase in Cincinnati, Ohio on September 20th and 21st.
You have completed the hard work – the hours setting up the software are behind you. Now, with a little more education, you can take full advantage of the software’s potential. This advanced training course is a compilation of the best ideas from over 6,000 contractors using ComputerEase over the past 30 years.
It’s time for you to become an expert on ComputerEase. Did you know that over the past 2 years ComputerEase has added over 300 new features to the software? How many of these features are you using? Attend this class and we will make sure you are using all of them.
To learn more or register for the class, visit the Event Signup Page.
Most contractors start out having the owner act as the project manager on jobs, which makes it easy to oversee a job and make sure nothing is going terribly wrong. With success and growth, the “owner as PM” model starts to become unrealistic, and deadly mistakes start to crop up. Some problems are minor, but some are deadly to your bottom line. Here are the deadliest mistakes, and how to avoid them:
3. Using a Cost-to-Cost Method for Work-in-Progress Reports
If you’ve incurred $50,000 in costs on a $100,000 bid item, does that mean the item is 50% complete? Not necessarily. Yet many contractors make this mistaken assumption, leading bonding companies and bankers to be on the lookout for it. The amount of cost incurred often has nothing to do with how far along a job is. Sharp contractors know that unexpected costs arise, so measuring their percent complete by cost is probably the worst method.
Avoid this mistake by using units in place or an estimate of hours needed to complete, or anything other than cost when you’re drafting a work-in-progress report. Once you know the estimated percentage of completion, you can recalculated the estimate by adding actual costs to date to the projected cost derived by your informed estimate. With projected costs, you can know what your profit is likely to be when the job is complete.
2. Not Knowing Where You Stand on a Job
If you’re a project manager and you don’t know where you stand on a job, you may be under the false assumption that all is well, your job is on track, and you’re making money. Your estimator has a responsibility to give you a break down of the hours and units used in his estimate so that you can project the hours to complete. For example, if the estimate is to complete 1000 square feet in 500 hours and you’ve completed 500 square feet in 300 hours, you could be running 20% behind schedule and not even know it. If you use projected job cost calculations, you will know the status of your jobs before the end, when it would be too late to do anything about it.
1. Not Using Projected Job Cost Estimates
You’ve probably realized at this point that there’s a common thread in these deadly mistakes – job cost estimates. The importance of job cost estimates cannot be overstated. If you’re calculating your profit and loss without an accurate job cost estimate, your profit projection is just plain wrong. If you’re going to know anything about what your profits will be by the end of a job, you need to use projected job cost estimates.
To learn more about projected job costs and what other deadly mistakes you should avoid, check out 9 Deadly Job Cost Mistakes by Bob Mattlin, CPA, founder and owner of ComputerEase. You can request a free copy of the ebook on the ComputerEase website!