Contractor Success Map with Randal DeHart | Contractor Bookkeeping And Accounting Services

Randal DeHart | Construction Accountant |PMP | QPA
Contractor Success Map with Randal DeHart | Contractor Bookkeeping And Accounting Services

Back office support can make or break your contracting company. Let us move your contractor bookkeeping service off the roller coaster of pain onto the merry go round of peace of mind with our U.S.A. based outsourced contractors bookkeeping services and contractor success M.A.P.

  1. The Financial Roadmap To Success: Goal-Setting For Contractors

    6 DAYS AGO

    The Financial Roadmap To Success: Goal-Setting For Contractors

    This Podcast Is Episode 602, And It's About The Financial Roadmap To Success: Goal-Setting For Contractors Setting financial goals for your construction business may be one of your most important responsibilities as a leader and business owner. Your financial goals serve as far more than wishful projections; they form the backbone of your road map for success, both internal and external. Financial goals are something that every single business should possess regardless of its market, model, or size. Let's explore how to set and track financial goals that empower your business to thrive. Why Financial Goals Matter for Your Construction Business Financial goals are more than just numbers on a spreadsheet. They are the roadmap that helps you plan and make strategic decisions. Without clear goals, it's like driving without a destination in mind. Think about it—how do you know if you've arrived if you never set out where you wanted to go? First, financial goals offer clarity. They transform your vision into actionable targets. When you know precisely what you want to achieve, laying out the necessary steps becomes more accessible. It's akin to plotting the course on a GPS; you need a specific endpoint to calculate the best route. Second, financial goals motivate you and your team. A shared goal brings people together, fostering collaboration and boosting morale. Your business benefits from the focus and drive of working towards a common objective. Lastly, financial goals prepare you for the unexpected. By regularly tracking your finances, you can identify trends and anticipate potential pitfalls before they become crises. The Benefits of Financial Goal-Setting Setting financial goals is a powerful tool for business owners, offering many benefits. Not only do they provide direction, but they also enable you to measure success and maintain focus. Clarity and focus Financial goals bring clarity and focus to your business operations. With well-defined objectives, you can concentrate on activities aligning with your overarching strategy. This clarity makes decision-making more straightforward and more efficient, reducing the clutter of distractions. Motivation and accountability Goals serve as a source of motivation and accountability. Having clear targets keeps you and your team motivated to achieve them. It also creates a sense of responsibility, as everyone understands their role in reaching the collective goals.  Risk Management Financial goals help identify and manage risks. By setting tangible targets, you are better prepared to anticipate potential challenges. This foresight allows you to develop contingency plans and make informed decisions, reducing the impact of unforeseen events. It's the business equivalent of having a backup generator ready to kick in during a power outage. Getting Started with Financial Goals Setting financial goals may seem daunting, but it's easier than you think. Start by assessing your current financial situation. Understanding where your business stands financially is the first step to setting realistic and achievable goals. Assess your current financial situation. Before setting goals, examine your financial records thoroughly. Look at your income, expenses, cash flow, and debts. This comprehensive overview will give you a clear picture of your financial health and highlight areas for improvement. Define clear and specific objectives. Once you grasp your current situation, it's time to define your financial goals. Ensure they are specific, measurable, achievable, relevant, and time-bound (SMART). Instead of setting a vague goal like "increase profits," aim for something concrete, such as "grow net profit by 20% over the next 12 months." Align goals with your business strategy. Your financial goals should align with your overall business strategy. Consider your construction company's mission, values, and long-term vision. Ensure that your financial objectives support a

    14 min
  2. The Delegation Mindset: Empowering Your Construction Team

    NOV 8

    The Delegation Mindset: Empowering Your Construction Team

    This Podcast Is Episode 601, And It's About The Delegation Mindset: Empowering Your Construction Team   Delegation is a skill often discussed but rarely mastered, especially by small construction business owners wearing multiple hats. The balancing act of managing daily operations while pushing for growth can be overwhelming.    Imagine if you could free up hours in your day to focus on strategic decisions rather than getting bogged down in every minute detail. This is where the art and science of delegation come into play.    Understanding and implementing effective delegation strategies can enhance productivity, foster team growth, and drive your business forward.   What is delegation? In essence, delegation assigns responsibility and authority to others to complete tasks. It involves more than just delegating tasks; it's about empowering your team with the right resources and support to achieve goals efficiently. But why is it seen as both an art and a science? The art comes from understanding your team's strengths and how to motivate them, while the science involves the systematic approach to distributing tasks effectively. Why does Delegation matter? Delegation is crucial for construction business owners seeking efficiency and growth. Time saved is money earned. Here are some compelling reasons why it should be a part of your management toolkit: Increased productivity: You can concentrate on high-impact activities requiring expertise and oversight by delegating tasks. Skill development: When you entrust tasks to your team, you allow them to learn, grow, and become more skilled. Enhances trust and collaboration: Delegating tasks builds mutual trust between you and your team, boosting morale and cooperation. Promotes innovation: With more autonomy, team members are encouraged to think creatively and propose innovative solutions. Types of Delegation Understanding the different types of delegation can help you apply the right one to a given situation: Task delegation: Assign specific tasks that require completion within a set timeframe. Responsibility delegation: Hand over entire processes or projects, giving your team ownership and accountability. Authority delegation: Allow team members to make decisions that affect their tasks, boosting engagement and empowerment. Pitfalls of Delegation Like any other management skill, delegation comes with its set of challenges. Knowing what these common pitfalls are can help you avoid them: Micromanagement: Overseeing every aspect of delegated tasks can undermine your team's confidence and independence. Lack of clarity: Vague instructions can lead to confusion and errors in task completion. Fear of losing control: Worrying about the outcome might prevent you from effectively delegating essential tasks. Time constraints: Feeling rushed can lead to improper delegation, affecting quality and team morale. How to delegate effectively Effective delegation isn't a one-size-fits-all solution. Here are steps to help you delegate successfully: 1. Identify tasks to delegate Start by listing all the tasks you currently handle. Identify which tasks can be transferred to others based on their complexity and your team's capabilities. Routine and time-consuming tasks are prime candidates for delegation. 2. Choose the right person Match tasks with the right person by evaluating their skills, experience, and current workload. Consider their interests as well to ensure they are motivated and engaged. 3. Set clear expectations Communicate your expectations. Outline the task's purpose, desired outcome, and deadlines. Ensure that your team members understand the level of quality and any constraints they might face. 4. Provide resources and support Equip your team with the necessary tools and training to complete their tasks. Offer your support and be available for guidance to ensure they feel confident in their roles. 5. Monitor progress without micromanaging Check-i

    15 min
  3. Proven Practices To Combat Procrastination In Construction

    NOV 1

    Proven Practices To Combat Procrastination In Construction

    This Podcast Is Episode 600, And It's About Proven Practices To Combat Procrastination In Construction Procrastination can be a formidable foe for small business owners. With endless responsibilities, it's easy to fall into the trap of putting off important tasks for later.    The fast-paced construction world can lead to missed deadlines, increased costs, and frustrated clients. Delayed decisions and unfinished tasks not only affect timelines but can also impact budgets and client satisfaction.    Here are some effective techniques tailored for construction professionals to help combat procrastination and boost productivity. 1. Eat the frog first Have you ever heard of the saying "Eat the frog first"? It's a productivity hack inspired by Mark Twain's advice to tackle your most challenging task—the "frog"—first thing in the morning. Once that daunting task is out, everything else seems like a breeze. Studies have shown that people perform better and more efficiently in the morning, making it the perfect time to focus on demanding tasks. Start by identifying your daily "frog" and making it your priority each morning. Feeling accomplished early in the day sets a positive tone. It can motivate you to tackle less demanding tasks without delay. Not all tasks carry the same weight. Like the Eisenhower Matrix, this technique distinguishes between urgent and essential tasks. Focus on high-impact tasks that contribute significantly to project completion. Creating to-do lists that rank tasks can offer a clear path forward and help maintain focus. "Eat a live frog first thing in the morning, and nothing worse will happen to you the rest of the day." 2. Break tasks into smaller steps Large tasks can be daunting and lead to procrastination. However, breaking them down into smaller, more manageable steps can provide relief. For instance, instead of a daunting 'launch a new marketing campaign,' start with 'research target audience' or 'draft email copy.' This approach makes tasks seem less overwhelming and gives you a sense of progress as you complete each step. Breaking larger projects into smaller tasks with specific deadlines not only makes the workload seem less challenging to tackle but also allows for measurable progress. Use project management tools to track deadlines and milestones, keeping the team informed and motivated. Combine this with time blocking, a powerful technique that involves dedicating specific blocks of time to particular tasks. This structured approach reduces distractions and helps maintain flow. Consider blocking out uninterrupted time for critical tasks such as planning, meetings, or site visits to keep the momentum going. Remember, every small step takes you closer to your ultimate goal. 3. Set specific deadlines Setting a specific deadline—even for tasks without an inherent timeframe—can significantly reduce the tendency to procrastinate. This practice, based on Parkinson's Law, states that work expands to fill the time available for completion. Establishing a firm deadline creates a sense of urgency that propels you into action, putting you in control of your time. Be realistic, but also push yourself to stick to these deadlines. Establish a routine of reviewing progress daily or weekly. This practice can keep goals in sight and allows for adjustments as needed. Reflect on accomplishments and identify areas needing more attention. Use tools like calendars or project management apps to keep track of due dates and ensure accountability. 4. Create a distraction-free workspace A cluttered desk or constant notifications can be significant roadblocks to productivity. Designate a workspace that reduces distractions and fosters focus. This might mean tidying up your desk, using noise-canceling headphones (during desk work), or setting specific times to check emails and social media. A study in the Harvard Business Review revealed that employees working in clean environments were more pr

    12 min
  4. Mastering Leadership In Construction: From Passive To Assertive

    OCT 25

    Mastering Leadership In Construction: From Passive To Assertive

    This Podcast Is Episode 599, And It's About Mastering Leadership In Construction: From Passive To Assertive Effective leadership is crucial for project success in the dynamically challenging construction environment. A Project Manager (PM) oversees operations, guides teams through day-to-day tasks, ensures effective communication, and maintains stakeholder alignment. As many of you, our readers and clients, are both wearing two hats - PM and Owner; it's essential to understand the advantages and disadvantages of taking on both roles.   As a Project Manager and a Business Owner, you deeply understand the entire process, from planning to execution. This holistic view allows for better decision-making. You have the authority to implement your vision and strategies, ensuring that quality and efficiency align with your goals.   You can build long-term relationships with clients, subcontractors, and suppliers, enhancing trust and collaboration. As the owner, you can choose the projects you want to take and the direction of your business, allowing for personal and professional growth.   However, balancing the responsibilities of both roles can lead to very long hours and difficulty maintaining a work-life balance. As both a PM and business owner, the weight of decisions falls on your shoulders, which can be stressful. Ownership also involves financial investment and risks, mainly if projects do not go as planned—this could include juggling resources, including labor, materials, and budgets, which can be challenging and may lead to conflicts. You may often face unexpected challenges that require immediate attention, leading to a high-pressure environment.    As a business owner, you might find it hard to delegate tasks, feeling the need to oversee everything, which can lead to burnout. The key to balancing these roles is knowing your strengths and limitations.   First, it is important to recognize that various leadership styles can empower PMs and Owners to adapt their approach for optimal results. Here are several essential styles of leadership to consider in Construction Project Management.   1. Autocratic Leadership   Autocratic leaders make decisions independently, with little input from team members. This can benefit construction projects when quick decisions are required, such as during critical program changes or when addressing safety issues. However, while it can expedite decision-making, this style may suppress team creativity and engagement.   2. Transformational Leadership   Transformational leaders inspire and motivate their teams by promoting a shared vision. In construction, where project goals often evolve, this style can be particularly effective in driving change. By empowering team members and fostering innovation, transformational leaders can cultivate a proactive environment that aligns with the project's objectives.   3. Servant Leadership   This style focuses on team members' growth and well-being. Servant leaders prioritize collaboration and support to meet their team's needs. In construction, this approach enhances morale and encourages open communication, vital for troubleshooting issues and delivering projects on time.   4. Democratic Leadership   Democratic leaders solicit input and collaborate with their teams on decision-making. This leadership style can enhance team cohesion and ensure all voices are heard. Engaging team members in planning and problem-solving in construction projects can lead to more innovative solutions and a stronger sense of ownership among the workforce.   5. Transactional Leadership   Transactional leaders focus on clear structures and defined tasks, rewarding compliance and performance. This can be vital for maintaining schedules, budgets, and compliance with safety regulations in a construction setting. While this style ensures accountability, it may not foster creativity or long-term commitment among team members.   6. Lais

    15 min
  5. Essential Strategies For Sales Success In The Construction Business

    OCT 18

    Essential Strategies For Sales Success In The Construction Business

    This Podcast Is Episode 598, And It's About Essential Strategies For Sales Success In The Construction Business In the competitive construction world, having a strong sales strategy is essential for sustaining and growing your business. A well-defined approach can increase your project pipeline and create lasting client relationships.    It will give you a framework for generating leads, closing deals, and ultimately increasing revenue through nurturing existing accounts, thought leadership, and practical pricing discussions.   Here are some effective sales strategies to help construction business owners like you achieve solid sales success.   1. Understand Your Market   Before you embark on any sales strategy, it's crucial to understand your target market comprehensively. Research local demographics, infrastructure needs, and industry trends. This knowledge will serve as the foundation for tailoring your offerings and marketing efforts to meet specific demands, increasing your chances of success.   2. Build a Strong Brand Presence   In construction, reputation is everything. Establishing a recognizable brand that reflects your values and quality of work can significantly enhance your credibility. Invest in professional branding, including your logo, website, promotional materials, and social media presence. Your online image should portray reliability and professionalism.   3. Leverage Networking Opportunities   Networking is vital in the construction industry. It's not just about meeting potential clients, suppliers, and contractors but also about building a community and fostering collaborative opportunities. This sense of connection and engagement can lead to referrals and partnerships, so follow up with contacts after initial meetings.   4. Create Value Through Education   Write and share blog posts or offer free workshops or webinars that provide valuable information about your expertise. This not only positions you as an industry authority but also shows that you respect your potential clients by providing them with practical knowledge.   Participate in industry events and forums to showcase your knowledge.  Collaborate with other thought leaders to broaden your reach and credibility.   Pro Tip: Repurpose your valuable content into different formats, such as infographics or podcasts, to reach a wider audience and cater to various preferences for consuming information.   5. Use Technology Wisely   Utilize customer relationship management (CRM) software to track leads, manage client interactions, and analyze sales performance. Project management tools can help streamline operations and improve communication with clients. The more organized and efficient you are, the more your chances of closing sales improve.   Remain adaptable:    Stay informed about market trends and changes that could impact your business.  Regularly review and assess the effectiveness of your sales strategies and be willing to pivot as needed.  Encourage team input on potential improvements and innovations in your sales approach.   6. Personalized Follow-Ups   After meeting a potential client or completing a project, a personalized follow-up is not just a nice gesture; it's a strategic move. Send thank-you notes, check their satisfaction, or offer additional services that complement the previous project. These personal touches can turn potential leads into loyal clients, strengthening your business relationships.   Nurture existing accounts:    Schedule regular check-ins with current customers to maintain relationships.  Use social media to engage with customers through personal messages and content.  Identify opportunities for upselling and cross-selling based on customers' past purchases.   Pro Tip: Again, you can leverage CRM software to automate check-in reminders and track engagement history, ensuring no account is overlooked.   7. Develop a Referral Program   Wor

    13 min
  6. Key Questions To Help Evaluate And Operate Your Construction Business

    OCT 11

    Key Questions To Help Evaluate And Operate Your Construction Business

    This Podcast Is Episode 597, And It's About Key Questions To Help Evaluate And Operate Your Construction Business External factors, such as economic changes or technological advances, can significantly impact whether a business will thrive or fail. The rise of sharing and gig economy apps is an excellent example. These apps gave consumers more affordable options for daily tasks and errands and provided individuals with a new way to earn money on their schedules.   Running a business is a fascinating journey. But it's essential to thoroughly evaluate your company before moving further to ensure you're creating a sustainable and successful venture.   Costs may be high, requiring careful planning. You may need to educate your customers and convince them to adapt to your business before they're ready to use it or hire you. And let's remember the competition that already exists in the market.   Competitor research is critical to evaluating your company when it's just starting out. Knowing your competitors, their operations, and their strengths and weaknesses will help you create a successful strategy. To start with, through phone conversations or in-person chat, I usually tell our clients to consider these top five questions: 1. What are my short-term and long-term business goals? 2. How well do I understand my target market and customer needs? 3. What sets my construction company apart from competitors? 4. Am I effectively managing my financial resources and cash flow? 5. Do I have a clear marketing and branding strategy in place? If you know the answers, the questions will not bother you. - Randalism In school, when you sat for an exam or a test, and you knew the material forwards and backward, it was fast and easy. The exams and tests for the classes you struggled with were the opposite. Having a Business Process Management Plan answers the questions about how to run your business because it is something you developed. Not something someone else did and handed to you. As you build and grow your construction business, you must constantly evaluate and reflect on your progress. By investing a little effort now, you can save money, time, and heartache. Asking yourself the right questions can help you navigate challenges, make informed decisions, and set strategic goals for the future. Here are some key questions to consider as you learn more about your construction business: 1. Financial Performance: How is the overall financial health of the business? Are there any significant fluctuations in revenue or expenses? What is the profitability of different projects or contracts? It's important to know what resources, including financial capital, you need to start and maintain your company. It's also important to know what barriers exist. These barriers include high startup costs, tough competitors, or regulatory hurdles that may need to be overcome. 2. Operational Efficiency: Are projects being completed on time and within budget? What is the status of current projects in terms of milestones and deadlines? Are there any recurring operational challenges or bottlenecks? Consider what systems and tools you can implement to streamline operations and improve efficiency. 3. Customer Satisfaction: How satisfied are your clients with the quality of work and customer service? Are there any common feedback or complaints from clients? What steps are being taken to address customer concerns and improve satisfaction? Evaluate how you can foster strong relationships with clients, suppliers, and subcontractors by understanding the current market and trends and being an active listener. 4. Employee Engagement and Development:  How engaged are my employees in their work?   What opportunities are available for professional development and growth?   Are there any notable retention or recruitment challenges? Not everyone is an expert at everything. You have to ask yourself whether you have the right skills to l

    12 min
  7. Overcoming Solo Contractor Challenges: How MAP Can Simplify Operations

    OCT 4

    Overcoming Solo Contractor Challenges: How MAP Can Simplify Operations

    This Podcast Is Episode 596, And It's About Overcoming Solo Contractor Challenges: How MAP Can Simplify Operations Does this sound like you? Maybe you started your company with a few friends and relatives as your earliest clients, and you thought your overhead expenses would be low since you worked out of your home. You made a decent living for yourself, hired a few sub-contractors per project, paid your suppliers, and earned a profit—at least that is what your tax preparer said.    Things begin to change, and the reality of the construction industry begins to dawn on you. Those early customers who were your friends because you could get faucets, fixtures, and materials at wholesale prices now tell you they were happy with your work. They want your construction company to do all their future work (and refer you to their closest neighborhood friends) as long as your price is lower than the other bids they are getting.   Yes, this kind of business builds your integrity, but at the same time, you are dirt-poor. Why? Because as a construction company owner, you now have overhead no matter what business entity you operate. It's not just office overhead; you have field overhead, too.    Office overhead includes expenses like shop rent, office rent, standard area management fees, bookkeeping, insurance audits, quarterly tax returns, office payroll, utilities, a computer, an administrative assistant, insurance, contributions, associations dues, etc. Field overhead includes tools and equipment, cell phone liability insurance, contributions, and more. This is not even an extensive list, but you have to manage all these things simultaneously to keep your company going and your prices competitive. Starting a construction business can be both challenging and rewarding. If you're considering venturing into this industry, whether you've just started or are just emerging, it's essential to have a strategic plan in place to manage your business effectively. Here are some key steps to help you manage your construction business successfully from the outset. 1. Develop a Solid Business Plan: Before diving into the world of construction, it's crucial to have a comprehensive business plan that outlines your goals, target market, financial projections, and marketing strategies. A well-thought-out business plan will serve as a roadmap for your company's growth and help you secure funding if needed. 2. Obtain the Necessary Licenses and Permits: Compliance with local, state, and federal regulations is vital. Make sure to obtain all the required licenses and permits to operate legally. This may include contractor licenses, building permits, and adherence to zoning regulations. 3. Build a Strong Financial Foundation: Managing the finances of your construction business is critical to its success. Set up a separate business bank account, track all expenses and income, and consider hiring a professional accountant to manage your books. Additionally, secure adequate insurance coverage to protect your business from potential risks. 4. Invest in Quality Equipment and Tools: Invest in reliable construction equipment and tools to deliver high-quality work. Whether it's heavy machinery, power tools, or safety gear, having the right equipment is essential for efficiency and safety on the job site. 5. Establish a Network of Reliable Suppliers and Subcontractors: Building solid relationships with suppliers and subcontractors is key to ensuring a smooth construction process. Look for reputable suppliers who can provide quality materials at competitive prices and subcontractors who have a track record of delivering exceptional work. 6. Focus on Safety and Compliance: Prioritize safety on your job sites by implementing proper safety protocols and providing ongoing employee training. Additionally, stay current with industry regulations and standards to ensure compliance with all safety and building codes. 7. Implement Efficient Project Manag

    14 min
  8. The Fraud Factor: How Outsourced Bookkeeping Can Safeguard Your Company

    SEP 27

    The Fraud Factor: How Outsourced Bookkeeping Can Safeguard Your Company

    This Podcast Is Episode 595, And It's About The Fraud Factor: How Outsourced Bookkeeping Can Safeguard Your Company Fraud can be a significant threat to businesses of all sizes in any industry. Construction companies are not spared and are even more vulnerable to various fraudulent activities, from bid rigging and inflated costs to payroll fraud and misuse of funds.    Many small business owners have become increasingly concerned about fraud after the pandemic. According to SAP Concur (An expense management solutions company), a staggering 85% of businesses surveyed expect the risk of fraud to continue. Making matters worse, many fraudulent acts originate from within businesses themselves.    What can you do as a construction business owner with three or more employees? You can start with essential internal controls that you can implement to safeguard your business:   1. Segregation of duties A critical first step in preventing fraud is ensuring that no one individual has control over all aspects of any significant transaction. For example, the person who approves expenses should not be the same one who processes payments. Distributing tasks among multiple employees significantly reduces the chances of fraudulent activity going unchecked. This internal control is important for small businesses, where roles may overlap, making it crucial to ensure that checks and balances are in place. 2. Regular financial reconciliation Routine reconciliation of financial statements, such as bank statements, helps identify discrepancies or unusual transactions early. Create a monthly or quarterly schedule to compare transactions in your accounting software against bank records. If you have an accountant, engage them in this process to ensure the highest level of scrutiny. Keeping a close eye on these financial statements not only helps to identify potential fraud but also aids in maintaining accurate financial records. 3. Comprehensive access controls Restricting employee access to financial systems and sensitive data is vital for reducing fraud risk. Employees should only have access to the information and functionalities necessary for their roles. For example, HR staff should not have access to accounts payable functions. Implement multi-factor authentication (MFA) and regular password updates to bolster security further. This internal control limits potential opportunistic fraud and shows employees that the organization takes security seriously. 4. Employee training and awareness Educating employees about fraud risks and the importance of internal controls is essential. Regular training sessions should cover how to identify and report suspicious activities. Encourage a culture of transparency and communication so employees feel comfortable voicing concerns. Consider using real-world examples pertinent to your industry to make training more relatable. This approach empowers employees to act as your first line of defense and reinforces the importance of safeguarding the organization's assets. 5. Whistleblower policy Establishing a robust whistleblower policy encourages employees to report unethical behavior or fraudulent activities without fear of retaliation. Ensure that this policy is well-publicized and accessible to all staff. Consider offering anonymous reporting channels, such as hotlines or secure email addresses. A firm whistleblower policy enables early detection of fraud and fosters a culture of accountability and ethical behavior within the organization. 6. Comprehensive internal audits Regular internal audits by internal staff or external auditors serve as an additional layer of scrutiny. These audits can help identify weaknesses in your internal control systems and recommend improvements. Make sure to continuously act on the recommendations in audit reports to enhance your fraud prevention strategies. Regular audits help identify vulnerabilities and demonstrate to stakeholders that the organization is

    13 min
4.5
out of 5
18 Ratings

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Back office support can make or break your contracting company. Let us move your contractor bookkeeping service off the roller coaster of pain onto the merry go round of peace of mind with our U.S.A. based outsourced contractors bookkeeping services and contractor success M.A.P.

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