In this week’s episode, construction accountant Randal Dehart shares some of the most common mistakes contractors make in their own accounting and why you should never “lend” clients your own money for a project. Dehart has a ton of sound advice to share, including his five key performance indicators for contractors (or any business) and thoughts on when it’s time to grow your company, hire assistants, and upgrade your tools. Hint: for the last one, the answer is immediately!
LINKS:
Looking for expert advice to grow your contractor business? Sign up for TCF’s Accelerate program and you’ll be connected to a weekly video group call every Friday with Tom and other like-minded business owners. Each week offers a different discussion topic for you to learn from.
Learn more about construction accounting on Randal’s website, fasteasyaccounting.com and purchase QuickBooks products from Randall at fasteasyaccountingstore.com.
And in a special offer for TCF listeners, Randal is offering free setup of his 5 key performance indicators on your edition of QuickBooks desktop! This is normally a paid service, but if you email Randal at Digital@FastEasyAccounting.com or call at 206-361-3951 and mention the podcast, you’ll receive this service for free!
NUGGETS:
“If you do know how to run a construction company, it can be very very lucrative and you can make a lot of money, a lot of friends and be happy.” – Randal
“Cash is a fact, profit is an opinion.” – Randal
“The biggest mistake contractors make in cash flow is they take money out and they fund the job.” – Randal
“Cash flow is critical. Do not loan money on anybody’s project.” – Randal
“Buy the best tools you can afford and as soon as possible upgrade your tools.” – Randal
“Sometimes we think that the homeowner is against us, the government the employees and everybody else. If we look square in the mirror, we will see our best friend and our worst enemy. Look squarely in the mirror and make friends with that person because that person is what’s gonna carry you through.” – Randal
