For any construction business, managing finances efficiently can be the difference between thriving and merely surviving. Proper construction bookkeeping is more than just keeping track of money; it's about understanding the intricacies of the construction industry, making smart financial decisions, and optimizing your business operations for growth.
So, how do you ensure that your construction bookkeeping is on point? And how can you raise your profitability to 10% and beyond? To master the art of securing contracts at increased profit margins, grab our complimentary eBook.
Do's of Construction Bookkeeping
1. Invest in Industry-Specific Software: Ensure that your software caters to the unique needs of accounting for construction, including job costing, project management, and equipment tracking.
2. Regularly Review Your Financial Statements: Always keep a pulse on your business's financial health. This includes profit & loss statements, balance sheets, and cash flow forecasts. It’s important that you empower your construction business with insights that matter; take our 2-minute finance audit and discover exactly where your company's finances stand.
3. Hire a Specialist: Consider getting a bookkeeper or accountant who specializes in the construction industry. They'll have in-depth knowledge of construction-specific challenges and opportunities.
4. Stay Updated on Industry Regulations: Always remain compliant. Knowing the rules and regulations will help you avoid costly penalties.
5. Price Jobs Correctly: Pricing jobs too low can lead to financial strain, while overpricing can lead to lost opportunities. Always ensure you're considering all variables when pricing.
Don'ts of Construction Bookkeeping
1. Ignore Small Expenses: Little costs can add up over time. Always document every expense, no matter how insignificant it may seem.
2. Mix Personal and Business Finances: Always keep them separate. Combining them can complicate your construction bookkeeping process and might lead to financial errors.
3. Neglect Regular Reconciliations: Ensure that your books match your bank statements. This process can help identify any discrepancies or errors early on.
4. Set and Forget: Financial management is an ongoing process. Continuously review, adjust, and optimize your strategies.
If the above sounds daunting or you're unsure where to start, don't fret. CLB Finance's team of construction industry finance experts is here to guide you every step of the way.
Are You Leaving Money on the Table by Pricing Jobs Incorrectly?
Pricing is one of the most challenging aspects of construction bookkeeping for construction companies. With CLB Finance by your side, you can be assured that you're getting the most accurate, competitive pricing strategies tailored for your business needs.
Tackle Your Accounting Challenges Head-On
Whether it's tax planning, cash flow management, or ensuring compliance with industry regulations, our team has you covered. We understand the nuances of construction bookkeeping, ensuring that your business remains compliant and optimized for success.
Successfully Increase Productivity & Profitability
With proper construction bookkeeping practices in place, your team can focus on what they do best—building. Let us handle the numbers and watch your profitability soar to 10% and beyond.
In the dynamic world of construction, staying on top of your finances is paramount. Avoid the pitfalls of construction bookkeeping and let CLB Finance's team of experts steer your business towards unmatched success.
The Certified Luxury Builders Network leads luxury builders to greatness. Since 2016 CLB Network and builders across the nation with annual sales ranging from $5M - $50M have worked together to deliver a 5-Star experience and become market-leaders. Working with one great company at a time, CLB gives builders the tools, training, and support to achieve success in Quality, Profit, and Pipeline freeing leadership to work on—not in—their business.
We're here to help builders. Experience and expertise is just a click away. Contact us today to see how your business measures up to our builders' benchmark, learn what "GREAT" looks like, and see how CLB can take your business to the next level.
