The construction world is not just about bricks, beams, and blueprints; it’s about the behind-the-scenes management that makes a project successful. Maintaining a thorough and organized bookkeeping system is one of the most vital elements in managing a construction business. If you aim for transparency, efficiency, and accuracy, employing the NAHB (National Association of Home…
In the construction industry, the financial results of completed projects offer a wealth of information. These data points can act as the compass guiding your business towards increased profitability and strategic focus. This blog post will explore how construction business owners can use finished project financial results to enhance their business operations and profitability. Identifying…
In the construction industry, managing taxes is not just about complying with laws but also a powerful strategy to improve your bottom line. Engaging a tax professional with construction industry expertise can help you navigate the labyrinth of tax regulations, identify opportunities for savings, and ensure you’re well-prepared for tax time. This blog post guides…
In the constantly evolving world of construction, a clear and effective strategy can be the blueprint for your business’s success. This is where a construction business strategist comes into play. Business strategists offer valuable insights into the industry, identify growth opportunities, and help navigate challenges. But how do you choose the right professional for your…
The construction world is undeniably rich in complexity, with various facets requiring your expertise. While you might have mastered the art of project management, materials sourcing, or team leadership, another domain is equally crucial for your business’s success: finance. If you’ve often found yourself feeling adrift when faced with balance sheets, financial forecasts, or construction…
We’ve all heard the phrase, “I’m not a numbers person.” Perhaps you’ve even said it yourself. But in the bustling realm of construction, where precision, budgeting, and financial clarity are paramount, embracing numbers becomes more than just a necessity; it’s a keystone of success. Becoming a “numbers person” in the construction industry means more than…
In the dynamic realm of construction, success is often determined by the quality of the projects completed and by the strength and coherence of the team behind them. While many understand the importance of teamwork in building structures, it’s equally essential to recognize the collective role in maintaining the business’s financial health. After all, accurate…
The construction world is not just about bricks, beams, and blueprints; it’s about the behind-the-scenes management that makes a project successful. Maintaining a thorough and organized bookkeeping system is one of the most vital elements in managing a construction business. If you aim for transparency, efficiency, and accuracy, employing the NAHB (National Association of Home…
In the construction industry, the financial results of completed projects offer a wealth of information. These data points can act as the compass guiding your business toward increased profitability and strategic focus. This blog post will explore how construction business owners can use finished project financial results to enhance their business operations and profitability. Identifying…
In the construction industry, managing taxes is not just about complying with laws, but it’s also a powerful strategy to improve your bottom line. Engaging a tax professional with construction industry expertise can help you navigate the labyrinth of tax regulations, identify opportunities for savings, and ensure you’re well-prepared for tax time. This blog post…
In the constantly evolving world of construction, a clear and effective strategy can be the blueprint for your business’s success. This is where a construction strategy professional comes into play. They offer valuable insights into the industry, identify growth opportunities, and help navigate challenges. But how do you choose the right strategist for your construction…
Tax time can be a stress-inducing period for construction business owners. However, with the right preparation and construction industry bookkeeping practices, you can make this process significantly easier. This blog post will guide you on how to keep your books CPA-ready and well-organized throughout the year, helping you avoid last-minute tax season chaos. Regular Record-Keeping:…
As an owner of a construction business, your relationships with subcontractors can be a key driving force behind your company’s growth. By developing unique partnership arrangements, you can foster stronger ties, streamline your operations, and expand your business. This blog post will guide you through leveraging unique partnership arrangements with subcontractors to propel your construction…
The construction industry is often viewed as a competitive landscape where each company vies for clients and contracts. But what if we told you that your competitors could be your key allies in growing your business? This might seem counterintuitive, but today, we’re diving into strategies on how to turn competitors into collaborators and harness…
As a home remodeling company owner, exploring unique financial arrangements with your customers can open new avenues for growth. By offering flexible, customer-centric payment solutions, you can increase your competitiveness and foster long-term customer relationships. This blog post will guide you on how to leverage unique financial arrangements to grow your home remodeling business. Financing…
In the ever-evolving world of construction, where every project brings unique challenges, managing the financial complexities can often feel like navigating through a labyrinth. From the intricacies of labor costs and material prices to the nuances of project financing and cash flow management, the financial landscape of a construction business can be as detailed and…
In the dynamic world of construction, every project comes with its unique set of financial challenges. These range from labor and material costs to equipment rentals, permits, and more. Keeping track of all these costs can sometimes feel like assembling a complex puzzle. This is where accurate financial reporting comes in. Let’s explore how it…
As the owner of a homebuilding company, you understand that staying connected with industry trends, insights, and peers is integral to your business’s success. Joining industry-specific trade associations can offer these benefits and much more. This blog post highlights the must-join trade organizations for every homebuilder. National Association of Home Builders (NAHB) One of the…
As the owner of a remodeling company, you’re constantly seeking ways to improve your business, keep up with industry trends, and expand your professional network. Joining trade organizations can help you achieve all these goals. This blog post will highlight the essential builders’ trade associations that every remodeler should consider joining. National Association of Home…
As a construction business owner, you understand the importance of cost control in delivering projects on time and within budget. But did you know that your cost control expertise can also be a powerful marketing tool? This blog post will guide you on how to turn your cost control acumen into a unique selling proposition,…
One of the most significant challenges construction business owners face is the control of material costs. As construction materials account for a significant portion of project budgets, any cost savings in this area can dramatically affect your bottom line. This blog post will provide effective strategies for controlling material costs in your construction business. Streamline…
Building a successful construction business requires more than just bricks and mortar. It often necessitates financial partners and private capital to facilitate growth. In this blog post, we’ll discuss how you, as a construction company owner, can leverage these resources to expand your construction business. Find the Right Financial Partners Financial partners can bring not…
As an owner of a construction company, securing favorable construction loans is a crucial aspect of your business’s financial health. One often overlooked tool in your arsenal is your Profit and Loss (P&L) statement. This blog post will guide you on how to leverage your P&L statement to secure better construction loans. Understand Your P&L…
In the busy world of construction, every project you undertake involves a myriad of financial intricacies. From labor costs and material expenditures to overhead and profit margins, the financial landscape of your business is as complex as the structures you build. Having a clear, accurate understanding of your numbers is crucial to ensure your projects…
Running a successful construction business requires a deep understanding of more than just buildings and infrastructure. Financial management plays a critical role in the stability and growth of your business. This is where Chief Financial Officer (CFO) services come into play. By taking advantage of CFO services, construction businesses like yours can elevate their financial…
Incentive compensation plans can be a powerful tool for motivating key employees and driving business growth. These plans tie financial rewards to performance, encouraging employees to align their efforts with your company’s objectives. This blog post will guide you, a construction business owner, through the process of creating an effective incentive compensation plan for your…
Growing your construction business often involves exploring new geographical territories. Expanding your operations into an adjacent city can offer a wealth of opportunities, from tapping into a new customer base to diversifying your portfolio. This blog post will provide insights on successfully extending your construction business to an adjacent city. Understand the New Market Before…
Profitability is the end game for any business, including those in the building industry. However, optimizing your construction profit margin isn’t just a top-down directive—it involves the entire team. In this blog post, we’ll provide actionable steps on how you, as a construction business owner, can engage your entire team in the journey toward higher…
Having a partner on board can be a game-changer when it comes to growing your construction business. With shared responsibilities, diversified skills, and increased financial resources, the potential for business expansion significantly increases. This blog post will provide insights on how to successfully grow a construction business with a partner. Selecting the Right Partner The…
As a business owner in the remodeling industry, you might consider moving upmarket to reach more affluent clientele or transition into larger commercial projects. The move can open doors to higher profitability, but it also involves careful planning, resource allocation, and financial management. This blog post provides a step-by-step guide on how to move upmarket…
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…
