How Do You Measure Success in Construction?By Michael Stone
Our goal is to help contractors build more profitable businesses, but how do you measure success? How do you know your pricing will result in a profit?
Overhead Differences: New Homes and RemodelingBy Michael Stone
A construction company building both new homes and remodeling needs to calculate a separate markup for each type of work.
Taxes and Profit and MarkupBy Michael Stone
Michael addresses a few different questions we’ve heard recently, primarily dealing with taxes and profit and calculating your markup.
Know Your Numbers: Current RatioBy Michael Stone
There is a measure you can use to determine how financially solid your company is at any given point in time. It’s called the current ratio, and it’s a good idea to check it regularly.
Estimating, Labor Burden, Cost of Goods SoldBy Devon Stone
When you own a small business you wear a lot of hats. Understanding the numbers might not be your favorite hat, but numbers are important because they show where you stand financially.
What Should You Do With Your Profit?By Michael Stone
The best way to avoid paying taxes is to not make a profit at all, but it’s a rough way to live.
Profit and Loss and MarkupBy Michael Stone
When your books are set up properly, it’s easy to calculate your markup, and it’s also easy to compare your actual results to your estimates.
Calculating for TaxesBy Michael Stone
Taxes are the price you pay for being profitable. It’s a good thing when your business is in the black and you need to pay taxes on it. It’s not good when you’re taken by surprise.
Construction Business Safeguards: Fraud and EmbezzlementBy Michael Stone
We hear many stories from business owners who have had to recover from the theft of funds by their own employees. Today we’re sharing a list of things you can do to protect yourself and your business.
Job Costs and OverheadBy Michael Stone
I’ve seen contractors try to apportion overhead on a daily, weekly, monthly or per job basis when compiling their estimates. I don’t recommend any of those approaches.
Your Labor Rate and Your MarkupBy Michael Stone
Using the wrong labor rate, or using someone else’s markup when you don’t know their assumptions, is one of the biggest mistakes we see and the difference can be thousands of dollars.
Pricing Too LowBy Michael Stone
It is a fact of life that when you sell construction-related services, you’ll have clients tell you that your price is too high. Bless their hearts. They have no idea what would be a fair price for the work they want done, they just know that your price is too high.
Bookkeeping, Markup, Taxes, AdvertisingBy Michael Stone
This week I want to catch up on a few things that have been bothering me.
Accounting – Keeping Track of Your JobsBy Michael Stone
It’s easy to know if you’ve made a profit when every transaction is complete in a day. It isn’t as easy in construction, where a job might take a week, a month, or even more than a year to complete.
Like breathing, being profitable isn’t an optionBy Michael Stone
If your construction business isn’t profitable, it won’t survive. You have an option of being competitive in construction. You don’t have the option of being profitable.
Paying YourselfBy Michael Stone
You’re in business to provide a service and make a profit doing it. Having the financial info you need to make decisions is critical for your business success.
Audits Happen. Be Prepared.By Michael Stone
A contractor friend just went through an IRS audit. After going through all his records and asking a ton of questions, they said, "In my opinion, you owe us $22,000."
Overhead Expenses in Accounting SoftwareBy Michael Stone
I was reminded again this week by a dear friend who is an expert in the use of QuickBooks of the necessary care that needs to be taken when you set up your accounting.
Definition of Terms – Construction AccountingBy Michael Stone
Time for a quick review of some terms: gross profit, net profit, owner’s salary, owner’s wages. Owner’s salary is overhead, owner’s wages are a job cost.