0103: Contractors Success Map Cost Library For Contractors

This Podcast Is Episode Number 0103 And It Will Be About Contractor Cost Library
A Cost Library Is Another Secret Successful Contractors Use To Generate Enormous Positive Cash Flow And Profit

Money doesn't grow on trees; it grows inside your properly setup QuickBooks file that is maintained by people who understand construction accounting. All you have to do is follow the Contractors Success M.A.P. and in due time you can become wealthy. This article is going to cover one of the secrets we share with consulting clients known as The Cost Library.

A cost library is used to develop construction estimates and there are three basic types of cost libraries contractors use:

• Heuristics - And experience is the most common method since they are essentially shortcuts that reduce the mental energy or cognitive load of making a decision. Contractors also call them Rule of Thumb, SWAG - (Silly Wild All-Encompassing Guess), Past Experience, Intuitive Judgment or common sense.
• Excel Spreadsheets - Most common among contractors who have made a lost a lot of money using heuristics. These are normally put together over several years of painful losses followed by more and more painful losses. Contractors will spend a bit of time trying to figure out Job Costing and Job Profitability by generating QuickBooks reports. If their QuickBooks setup was done by someone who truly understands construction accounting vs. regular accounting then they have a decent system and are likely earning over $100K a year.

• Cost Library - Is built on the Excel spreadsheets mentioned above with one HUGE DIFFERENCE. It takes a holistic approach to the contractor's company by adding the Contractors Success M.A.P. of Marketing + Accounting + Production.

See Contracting In A New Light

Two Sample Remodel Contractors - Each operating in the same geographical area with similar size crews doing roughly the same type of work for homeowners with similar demographic and psychographic profiles.

Contractor #1 Has A Business Plan - And focuses on activities that have the highest likely hood of generating a quick result. The 80 20 rule for construction company owners. They work closely with their business coach to continually update, develop and implement their custom strategy. They needed a business coach who gets his hands dirty, not just a idea people with education and no experience owning an operating contracting companies but an implementation people who have been where you are understands what you need and can teach you how to do it right including The Five Key Performance Indicators.

There Is Duality In QuickBooks Reports

What You See And What You Don't See

When most contractors look at a Profit & Loss report they see two things:

1. Income is close to the same for each contractor
2. Net profit is over twice as high for contractor #1 as it is for contractor #2

What You May Have Missed - Are the dozens of things contractor #1 has done to lower the Direct Construction Costs and outsource the bookkeeping services which have resulted in more efficient operations.

Not sure where to go from here?

Let us help you craft your own unique program just for your contracting company and help you gain clarity on how to set your business up to create a 6 Figure income call Sharie 206-361-3950 or email her sharie@fasteasyaccounting.com and ask about our contractor consulting services

I trust this podcast helps you understand that outsourcing your contractors bookkeeping services to us is about more than just “doing the bookkeeping”; it is about taking holistic approach to your entire construction company and helping support you as a contractor and as a person.

We Remove Contractor's Unique Paperwork Frustrations

We understand the good, bad and the ugly about owning and operating construction companies because we have had several of them and we sincerely care about you and your construction company!

That is all I have for now and if you have listened this far please do me the honor of commenting and rating podcast www.FastEasyAccounting.com/podcast Tell me what you liked, did not like, tell it as you see it because your feedback is crucial and I thank you in advance.

You Deserve To Be Wealthy, Because You Bring Value To Other People's Lives!

I trust this will be of value to you and your feedback is always welcome at www.FastEasyAccounting.com/podcast

This is one more example of how Fast Easy Accounting is helping construction company owners across the USA including Alaska and Hawaii put more money in the bank to operate and grow your construction company. Construction accounting is not rocket science; it is a lot harder than that and a lot more valuable to construction contractors like you so stop missing out and call Sharie 206-361-3950 or email sharie@fasteasyaccounting.com

Thinking About Outsourcing Your Contractors Bookkeeping Services?

Click On The Link Below:

www.FastEasyAccounting.com/hs

Need Help Now?

Call Sharie 206-361-3950

sharie@fasteasyaccounting.com

In closing, I want to caution you that we may or may not be a good fit for your contracting company. This guide will help you learn what to look for in outsourced construction accounting.

Thank you very much and I hope you understand we really do care about you and all contractors regardless of whether or not you ever hire our services.
Bye for now until our next episode here on the Contractors Success MAP Podcast.

Warm Regards,

Randal DeHart | Contractors Accountant

We Remove Contractor's Unique Paperwork Frustrations