As a construction business owner, understanding margin calculations is key to determining the profitability of your projects and, ultimately, your business. Learning how to calculate and analyze these margins for effective financial management is crucial. This blog post will provide a comprehensive guide to understanding and optimizing margin calculations for your construction company. What are…
As the owner of a growing remodeling business, one of your chief concerns is likely how to improve your bottom line while continuing to expand your operations. In this blog post, we will discuss effective strategies for how to make money remodeling homes – specifically with how to increase your profit margins on every project.…
Succession planning is an essential aspect of running a closely held construction business that often gets overlooked. It involves determining how the ownership and management of your business will transition when you decide to retire or in the event of unforeseen circumstances. In this blog post, we’ll discuss the importance of succession planning and share…
Implementing the right construction management software is key to streamlining project management, improving communication, and enhancing efficiency in your construction business. With numerous software options available in the market, selecting the best one for your company can be a daunting task. In this blog post, we’ll compare the top construction management software solutions to help…
High-volume roofing contractors face numerous challenges in managing their business’s finances. Unlike other construction sectors, roofing companies often deal with a high volume of small-scale projects, creating unique bookkeeping challenges. In this blog post, we’ll discuss some of the most common contractor bookkeeping issues faced by high-volume roofing companies and provide insights on addressing them…
With the potential of an economic recession looming, it’s essential for construction business owners to prepare and adapt their operations to weather the storm. In this blog post, we’ll discuss strategies and best practices to help you navigate the challenges of a recession and come out stronger on the other side. Keep a Close Eye…
In the fast-paced world of construction, effective management of projects and finances is crucial to your company’s success. As a construction business owner, you’re likely already familiar with QuickBooks® Online, a powerful bookkeeping tool that simplifies your financial management. But have you considered the benefits of integrating a construction management system (CMS) with your QuickBooks®…
Precision bookkeeping is essential for construction companies to maintain accurate financial records, make informed business decisions, and ensure compliance with industry regulations. In this blog post, we will discuss the critical functionality required in a precision bookkeeping system – the seven necessary components needed to ensure your company’s financial success. #1 Job Costing Accurate job…
As a construction company owner, managing your finances is a critical aspect of running a successful business. Selecting the best construction accounting software can significantly streamline your financial processes, saving you time and effort. In this blog post, we will discuss why Intuit’s QuickBooks Online is the best bookkeeping platform for your business – by…
Owning and operating a construction business comes with its fair share of financial concerns. In this blog post, we’ll explore some common finance and bookkeeping worries that you, as a construction business owner, may lose sleep over – and, more importantly, how you can address them to regain your peace of mind. Cash Flow Management…
In the construction industry, labor costs often represent one of the most significant expenses for your business. Managing construction payroll and labor costs effectively is essential for maintaining profitability and staying competitive in the market. In this blog post, we will explore several strategies for better-managing payroll and labor costs for your construction business. Tip…
Revenue recognition is a vital component of financial reporting for spec homebuilders. How to properly recognize revenue ensures accurate financial statements, compliance with accounting standards, and a clear picture of your company’s financial health. In this blog post, we will discuss the key principles of revenue recognition for spec homebuilders and how to apply them…
Revenue recognition is a critical aspect of financial reporting for any business, including custom homebuilders. Knowing when to recognize revenue ensures that your financial statements accurately reflect your company’s performance and helps maintain compliance with accounting standards. In this blog post, we will discuss the key principles of revenue recognition for custom homebuilders and how…
In the construction industry, revenue recognition can be a complex subject, particularly for those specializing in remodeling projects. Accurately recognizing revenue is crucial for maintaining a healthy financial picture and ensuring compliance with accounting standards. This blog post will provide guidance on how remodelers should recognize revenue and the best practices to follow. Understand the…
Running a successful construction business requires a solid understanding of your company’s finances. However, managing construction company bookkeeping tasks can be time-consuming and complex, especially for those who lack a financial background. In this blog post, we will discuss the benefits of outsourcing your construction company’s bookkeeping and why it might be the best decision…
Maintaining the strength of your construction financials begins and ends with understanding the key metrics that underpin your construction company’s performance. Knowing what to monitor is crucial to making informed decisions, identifying areas for improvement, and ensuring long-term success. In this blog post, we’ll explore the essential metrics you should be tracking to maintain a…
If you’re running a construction company, you already know it’s unlike a business in any other industry. From the day-to-day operations to project management, you’ve got a lot to keep track of. One essential aspect that often gets overlooked, however, is bookkeeping. Though bookkeeping might seem like a straightforward task, it’s essential to understand that…
As the new year begins, it’s essential to get your construction company’s year-end accounting in tip-top shape to set the stage for a successful year ahead. Proper bookkeeping not only helps you monitor your company’s financial health but also ensures that you stay compliant with regulations and make informed decisions. Here is a year-end accounting…
When you reconcile your bookkeeping accounts, you compare your credit card statements and bank statements with the ledgers in your books to make sure everything is accurate and matches with your reported operating expenses. Just like balancing your checkbook, you should make sure that you reconcile these accounts frequently to ensure that they match up…
Accurate bookkeeping for your contracting business helps you make better business decisions. Your books are the financial records that indicate the health and state of your company. However, it’s not only the numbers that matter. You also need to make sure that you have clean financials if you want to be able to make data-driven…
Are your contractors employees or 1099 contractors? Contractors need to know that simply signing an independent contractor agreement with a worker or sending them a Form-1099 does not mean that the IRS will agree. The IRS may decide that the individual classified by your business as an independent contractor is actually a W-2 employee. IRS…
Individuals working in the construction industry enjoy lots of perks. However, one of the perks that is often overlooked or under-utilized is the tax deductions that construction workers and construction contractors have available to them. The typical nine-to-five employee has few deductions available, whereas construction workers can deduct everything from hard hats and gloves to…
Construction Bookkeeping Tips Looking for construction bookkeeping tips? Here’s one – don’t. Contractors are not bookkeepers. We’ve had many clients come to Apparatus asking for bookkeeping help. At minimum, these guys are spending at least four hours a week on their books. Even if you’re spending just an hour a week on your books, it’s…
How Delegators Save Time, Gain Focus, and See Success How is your business running? More importantly, which of the four business roles are you playing to keep it running? The 4 Business Roles Are you a Laborer, Contributor, Supervisor, or Delegator? I’m willing to bet 80% of our readers fall into one or more of the…
CRM for Contractors and Project Management Tools CRM for contractors, or Customer Relationship Management tools, are becoming more popular than ever in the construction and contracting industries. This trend is partially due to the wide accessibility of digital technology and smart phones. It’s also a result of the number of contractors getting serious about refining their…
How Referrals Can Boost Your Business A great referral program can end up delivering a huge portion of your overall sales. Even better, once set up, this lucrative marketing engine runs almost entirely on its own. This frees up your precious time for other activities and initiatives. Unfortunately, many small contracting companies get lost when…
The Basics of Contract Writing Successful contractors recognize when the time comes to operate using written contracts instead of simple handshakes. Contract writing is not for everyone, and even those who do it well don’t necessarily enjoy it! Nevertheless, contracts are a crucial part of your contracting business. Contracts legally protect your work performed. They…
Social Media for General Contractors Every small business should incorporate social media in to their marketing strategy. Social media for general contractors is no exception. Social media shines visibility on your construction business through digital platforms, for little to no cost. There are more than a few social media platforms out there, but we think…
The benefits of outsourcing bookkeeping and accounting offer numerous advantages for construction industry contractors over competitors who don’t outsource. In this blog, we’ll identify some of the benefits of outsourcing bookkeeping and accounting as well as offer some suggestions on what you can do with the time and money saved in the process. Benefits of…
Every contractor knows that you just can’t win every customer. Customers and clients always enter each situation with their own perspectives, experiences, and expectations. It’s nearly impossible to ensure that each client has the perfect experience that you strive to provide. Nonetheless, it’s also important to learn how to deal with difficult customers and to…
Brand Communication Strategy to Establish Credibility As a contractor and small business owner you’re probably familiar with the word “branding”. Branding is a marketing term that refers to the efforts a business makes to establish its voice, message, and mission in everything they do. A business’s identity is spoken and showcased through its brand which…
IRS employee vs independent contractor reclassification is sometimes necessary as your business evolves. In this blog we’ll demonstrate how to protect your business and stay in IRS compliance. How to Reclassify Your Workers to Stay in Compliance As a general contractor, you’re familiar with and successful at running jobs and completing projects. This is in…
Planting Marketing Seeds for Sustainable Growth The holidays are just around the corner, so now is the time to think about marketing ideas for the new year. And, yes, this season is already so jam-packed it’s hard to imagine trying to fit anything else into your schedule. So, we won’t ask you to. Instead, we’ve…
Create a Facebook Business Page with this illustrative step-by-step guide and boost your social media visibility for your construction contractor business. How to Create a Facebook Business Page Step-By-Step Guide There comes a time in every business’s life when old school marketing and word of mouth efforts just aren’t enough. The time to take your…
Bookkeeper Vs Accountant – Bookkeeping Vs Accounting Bookkeeper Vs Accountant as well as bookkeeping vs accounting have distinct differences. Discover the differences & why have both is necessary for success. Understanding the Roles within Your Financial Team You’ve seen the words CPA and bookkeeper used a lot, sometimes interchangeably. Maybe it’s been a source of…
Goal Setting in Construction – Working Intentionally for Long-Term Results Today let’s talk a little bit about goal setting in construction. It’s a highly-regarded and fairly well-understood concept, yet it is not practiced often enough. We’re big believers in goal-setting here at Apparatus. Creating a goal inspires a mental picture of growth, forward movement, and…
Classifying workers appropriately is important for your financials and the IRS Independent Contractor Test can help you determine if you are classifying workers correctly. IRS Independent Contractor Test: Is Your Worker an Independent Contractor or an Employee? Most general contractors and subcontractors will run into this situation at some point in their careers – is…
Pre-client meeting preparation is important. Following are questions to ask a contractor to assure they are suitable for the job. Contractors, if you want to impress your clients, be prepared to answer these questions. Impress Clients and Land Jobs As the representative of your own business, your goal is to consistently impress clients. You’ve probably…
Here are 8 tips on how to grow your business successfully. If you want the best contractor business possible, develop these habits in your daily operations. Create Your Best Contracting Business Contractor Habit 1: Get in the Habit of Goal Setting Do yourself a huge favor and get into the habit of running your contracting…
Understand Your Rights and Protect Your Jobs – A Guide for General Contractors Preliminary Lien Notice or Pre-Lien Notice As a contractor, you know there are several steps involved in starting a new job. From initial assessments, defining the scope of work, securing subcontractor estimates, hiring subcontractors, finding suppliers, signing contracts and more: there’s a…
Bookkeeping for Beginners – A Contractor’s Guide Breaking Down Bookkeeping Our Bookkeeping for Beginners blog is designed to give construction contractors a basic understanding of accounting as a first step towards understanding your company’s health and profitability. Bookkeeping – the word itself is a little intimidating. To be the keeper of books, what does it…
What Business Expenses Should You Write Off? The Basics Ah, business expenses. The allure, the luxury, the… confusion? Often when thinking of a standard business expense, the same image comes to everyone’s mind… charging a lunch on the company card. Hey, who doesn’t love free lunch? I know I do. But, business expenses are much…
Owners Draw (Owner’s Draw) An Expensive Shortcut for Contracting Businesses If you’re like most contractors, you’ve been guilty of it at one time or another: taking an owners draw from your business checking account. It’s tempting, it’s easy, it’s your money, right? Unfortunately, it’s also one of the worst habits you can develop as a…
