As construction owners, you’re well aware of the many challenges at hand, such as lack of skilled workers, high insurance costs, supply chain shortages and cash flow issues.
These issues have only gotten worse in the last few years, probably sending your stress through the roof. This doesn’t just hold you back from growing your business, but also finding the means to survive.
At SBS Accounting & Advisors, we’ve worked in construction accounting for more than a decade and have a passion for finding the key solutions you need to navigate these challenges and help your business thrive. In this process, we tap into powerful software and apps that improve your workflow and give us the data and other visuals we need to transform your business. From there, we come up with actionable plans and strategic solutions to take you to the next level.
Here are some of the software, solutions and apps you need to skyrocket your construction business. And know that our SBS team is here to implement them and make sure you get the most out of them for long-term growth.
Advisory Services
If you’ve been keeping up with our blogs over the last year or so (thank you!), you know how important advisory services are to us at SBS.
Advisory services are intended to help you meet your goals. We first understand your goals, and then put together a strategic plan to achieve those goals. In the process, we meet with you on a regular basis to look at how the plan is performing and what needs improvement.
That’s the background of advisory services, but let’s get more into the specifics of the program. Our SBS team is specifically looking for the key data and information we need to help your company reach its potential and experience long-term growth.
To do this, we focus on your key performance indicators (KPIs). These indicate the key drivers that decide your business’ success.
Here is a breakdown of some of the KPIs we look at and how we can help:
- Gross profit percentage: This gives us a visual picture into how much you are making for the work you do. We can track by client, job, team, location and more to get a comprehensive look into how your business is performing and identify your strengths and weaknesses.
- Cash flow management: Often overlooked and potentially crippling to your business are cash flow issues. At SBS, we plan ahead by determining when you can expect a cash shortage and making sure you avoid it. As time goes on, we ensure you’re in control of your spending by learning to think proactively rather than reactively – helping you build reserves. And if you’re in a position where you aren’t experiencing these cash shortages, we’ll put a strategic plan in place to drive future growth.
- Utilization rate: Is your billable time that your workers spend on a project or site meeting the hourly workweek, or are they spending too much time for what you’re billing? Utilization rate breaks this down and helps us made adjustments accordingly.
- ROI on total labor costs: What does your actual company profit look like, in regard to the total cost of your staff? This determines how valuable your team is.
- Tracking labor by class code: This helps reduce Worker’s Compensation.
Construction Management Apps
With construction management apps, we can help automate your processes so that you get more done in less time. But with so many apps to choose from, where do we start?
At SBS, we are very keen on implementing the construction management apps that integrate with QuickBooks. These produce many benefits, including a seamless workflow, a comprehensive picture of your business, better team communication and more.
Some of these include QuickBooks app integrations, such as Field Service Management and QuickBooks Time, as well as popular third-party apps like Buildertrend (for home remodelers) and Knowify (for contractors). Bottom line: Our SBS team will find the apps that work best with your construction company, and will be there for you every step of the way to get these implemented and properly utilized.
Cash Flow
As mentioned above, cash flow management is absolutely necessary for a construction company to succeed.
At SBS, we will make sure you have the cash on hand to not just survive and grow, but also be able to put out an emergency. One common misconception is thinking what’s in the bank is available to spend. The reality is that you must know your actual cash balance, which factors in your upcoming payable and receivables. Our team will help with this and many other areas, such as budgeting, projections and the aforementioned KPIs.
Put simply, neglecting cash flow or not having the plan in place to generate cash flow, can send your business down the drain. But don’t worry because we are here to help.
Succession Planning
As a business owner, succession planning is a step into the future. But it’s often misunderstood.
When we hear succession planning, we often think about who will fill the shoes of the CEO of top leader of a business. However, you can literally have succession plans for any key role in your construction company.
For example, if someone on your team quits tomorrow, what kind of effect would that have on your operations? And can this spot be filled right away?
Waiting until something like this happens is reactive planning. At SBS, we are big believer in proactive planning, so that you can meet challenges head on and have a plan in place to continue operating at a high level and maintaining growth in your company.
For more information on succession planning and how our SBS team can help, click here.
Ready to Bulldoze the Competition? Have any Questions? Let us Know!
As a construction owner, you have a lot on your plate and a lot of competition. Hopefully, some of these solutions resonate with you and you’re ready to start pursuing them today.
If so, or if you have any questions, we’re always here to talk or get started. Contact us today to learn more. We’d love to help pave the path toward long-term growth and success.