Subcontractor
The fast-changing price ranges of materials make the construction business delicate. When you and the client enter into a contract with a set budget, it’s not easy to make adjustments in pricing. The time frame is also a big factor that affects the financial turnaround, so you could offset the expenses until the next paycheck comes in.
The complexities of this industry explain the need for an accounting expert, especially if you are a start-up. Don’t think that you can wing it when your plan is to go big. The ideal way to go is to have a construction accounting consultant in Fort Collins. You can learn from one of Steven J. Wick & Associates, P.C.’s clients who have gone through financial, personnel, and communication issues with his company.
Company Issues Our Client Faced Before Hiring a Fort Collins Construction Accounting Consultant
Almost all companies, big or small, experience financial issues. Our client is no stranger to this, and when he realized that his company was often losing more money than generating a profit, he contacted us for help. As a construction accounting consultant in Fort Collins, our job is to help him identify the problem areas and develop a system that would rescue his company from a possible collapse.
Cash flow 
Although his construction firm is on a continuing growth pattern, cash flow has been a problem. There’s the familiar scenario where the books show inconsistent inflow and outflow of money; the slow budget turnover also posed some setbacks.
There were times when the business lost access to capital, which allowed him to get the ball rolling. Often, they have to wait for the next check to buy the materials and continue the project.
Lack of system
Every business needs a solid system to keep the process flowing smoothly, whether it be about cash or workflow. It’s easy to set up one if there’s only one person taking the lead. It becomes a problem when other business partners may have different ideas. Sometimes, there were clashes.
Communication
“Good communication is the bridge between confusion and clarity” and this holds true for businesses. Teamwork and proper communication are critical in making things work. They create a profitable environment because protocols are being followed and mistakes are pointed out for improvements. Unfortunately, our client’s company encountered communication issues along the way.
Our Recommendations: Proper Construction Accounting Solutions That Worked
As a construction accounting consultant in Fort Collins, Steven helped our client address all the problem areas that threatened his company so that he could overcome them. With an expert in accounting for a construction company, the use of budget can be more controlled.
We offered the appropriate solutions and recommendations that fit our client’s situation.
Identifying financial problems
Accounting for a construction company is more complex than for other businesses. It is harder because of the fast-changing cost of construction materials and the conditions attached to the projects.
Usually, these conditions limit the budget that you can utilize for a certain period. Now, the budget allocated depends on the cost of the materials. Because the costs can quickly go up due to circumstances (e.g. COVID-19 pandemic, recession), you run the risk of using up all the budget and being left with no capital. When this happens, you have no choice but to cover the remaining expenditures out of your own pocket.
It has been part of our protocols to first look at the company’s entire system in order to identify the areas to work on. This is an important step as each business has its own set of problems that they need to deal with. The same thing was done for our client. Looking at all the financial documents, we identified the financial issues from the most urgent to the least.
Strategy Sessions
The strategy sessions are a continuing process. The first sessions are conducted to discuss the company’s current status and figure out how much money is being spent on specific areas of the business – labor costs, operating costs, etc. Simultaneously, we do proper accounting and formulate spending schemes to save money.
As a construction accounting consultant in Fort Collins, we put emphasis on the cash flow side of the business. While fixing the books, we provided guidance on how to obtain the supplies and the smart way to do it. Among our recommendations were paying the bills and paying the members right away as soon as the funds are available.
The timeline is also a critical element for every project. To minimize the risk of over or underspending, the client needs to come up with a proper estimate of how long a project will be completed and what possible issues might occur. Setting a realistic schedule will certainly help his team avoid wasting resources and time.
Technique for Increasing Cash flow
Previously, our client asked for a 30% down payment for every project. Realizing that this figure was not working, our recommendation was to increase the amount to 40%-50%. Shortly after applying this technique, the cash flow started improving. This move resulted in a 15% increase in revenue this year from a measly 2%-3%. The increase allowed the team to loosen up finance-wise. With more money coming in, they were able to cover all the expenses without running out of capital for the next batch of materials. This also saved the company from running on multiple loans, which is not a smart alternative.
Loans do help, but you could also end up with an amount of money that’s more than what you need, given the incurring cost of interest. When it comes to business, loans are the least of an owner’s allies.
Financial Issues? Get Immediate Construction Accounting Solutions!
Construction accounting is a significant part of running a business. It is important that your books are properly monitored and maintained to determine the company’s profit. If you are not an expert in numbers, it might cause confusion and create a problem eventually.
Hiring a construction accounting consultant in Fort Collins will help if you want your construction business to achieve success. You can make better financial judgments and formulate strategies to increase your company’s income.
Financial and other company issues will deter you from achieving your financial goals and growing your business. When you can no longer handle them on your own, we will help you get back on track. If you are a start-up company and want to do everything right, we will also be available to provide financial insights.
Steven J. Wick and Associates, P.C. has been helping small, medium, and large businesses in Fort Collins for several years now. We offer accounting services for construction companies and other business types. We also offer bookkeeping and tax services. We can help with all of your accounting needs.
Contact us for an appointment!
Subcontractor
The fast-changing price ranges of materials make the construction business delicate. When you and the client enter into a contract with a set budget, it’s not easy to make adjustments in pricing. The time frame is also a big factor that affects the financial turnaround, so you could offset the expenses until the next paycheck comes in.
The complexities of this industry explain the need for an accounting expert, especially if you are a start-up. Don’t think that you can wing it when your plan is to go big. The ideal way to go is to have a construction accounting consultant in Fort Collins. You can learn from one of Steven J. Wick & Associates, P.C.’s clients who have gone through financial, personnel, and communication issues with his company.
Company Issues Our Client Faced Before Hiring a Fort Collins Construction Accounting Consultant
Almost all companies, big or small, experience financial issues. Our client is no stranger to this, and when he realized that his company was often losing more money than generating a profit, he contacted us for help. As a construction accounting consultant in Fort Collins, our job is to help him identify the problem areas and develop a system that would rescue his company from a possible collapse.
Cash flow
Although his construction firm is on a continuing growth pattern, cash flow has been a problem. There’s the familiar scenario where the books show inconsistent inflow and outflow of money; the slow budget turnover also posed some setbacks.
There were times when the business lost access to capital, which allowed him to get the ball rolling. Often, they have to wait for the next check to buy the materials and continue the project.
Lack of system
Every business needs a solid system to keep the process flowing smoothly, whether it be about cash or workflow. It’s easy to set up one if there’s only one person taking the lead. It becomes a problem when other business partners may have different ideas. Sometimes, there were clashes.
Communication
“Good communication is the bridge between confusion and clarity” and this holds true for businesses. Teamwork and proper communication are critical in making things work. They create a profitable environment because protocols are being followed and mistakes are pointed out for improvements. Unfortunately, our client’s company encountered communication issues along the way.
Our Recommendations: Proper Construction Accounting Solutions That Worked
As a construction accounting consultant in Fort Collins, Steven helped our client address all the problem areas that threatened his company so that he could overcome them. With an expert in accounting for a construction company, the use of budget can be more controlled.
We offered the appropriate solutions and recommendations that fit our client’s situation.
Identifying financial problems
Accounting for a construction company is more complex than for other businesses. It is harder because of the fast-changing cost of construction materials and the conditions attached to the projects.
Usually, these conditions limit the budget that you can utilize for a certain period. Now, the budget allocated depends on the cost of the materials. Because the costs can quickly go up due to circumstances (e.g. COVID-19 pandemic, recession), you run the risk of using up all the budget and being left with no capital. When this happens, you have no choice but to cover the remaining expenditures out of your own pocket.
It has been part of our protocols to first look at the company’s entire system in order to identify the areas to work on. This is an important step as each business has its own set of problems that they need to deal with. The same thing was done for our client. Looking at all the financial documents, we identified the financial issues from the most urgent to the least.
Strategy Sessions
The strategy sessions are a continuing process. The first sessions are conducted to discuss the company’s current status and figure out how much money is being spent on specific areas of the business – labor costs, operating costs, etc. Simultaneously, we do proper accounting and formulate spending schemes to save money.
As a construction accounting consultant in Fort Collins, we put emphasis on the cash flow side of the business. While fixing the books, we provided guidance on how to obtain the supplies and the smart way to do it. Among our recommendations were paying the bills and paying the members right away as soon as the funds are available.
The timeline is also a critical element for every project. To minimize the risk of over or underspending, the client needs to come up with a proper estimate of how long a project will be completed and what possible issues might occur. Setting a realistic schedule will certainly help his team avoid wasting resources and time.
Technique for Increasing Cash flow
Previously, our client asked for a 30% down payment for every project. Realizing that this figure was not working, our recommendation was to increase the amount to 40%-50%. Shortly after applying this technique, the cash flow started improving. This move resulted in a 15% increase in revenue this year from a measly 2%-3%. The increase allowed the team to loosen up finance-wise. With more money coming in, they were able to cover all the expenses without running out of capital for the next batch of materials. This also saved the company from running on multiple loans, which is not a smart alternative.
Loans do help, but you could also end up with an amount of money that’s more than what you need, given the incurring cost of interest. When it comes to business, loans are the least of an owner’s allies.
Financial Issues? Get Immediate Construction Accounting Solutions!
Construction accounting is a significant part of running a business. It is important that your books are properly monitored and maintained to determine the company’s profit. If you are not an expert in numbers, it might cause confusion and create a problem eventually.
Hiring a construction accounting consultant in Fort Collins will help if you want your construction business to achieve success. You can make better financial judgments and formulate strategies to increase your company’s income.
Financial and other company issues will deter you from achieving your financial goals and growing your business. When you can no longer handle them on your own, we will help you get back on track. If you are a start-up company and want to do everything right, we will also be available to provide financial insights.
Steven J. Wick and Associates, P.C. has been helping small, medium, and large businesses in Fort Collins for several years now. We offer accounting services for construction companies and other business types. We also offer bookkeeping and tax services. We can help with all of your accounting needs.
Contact us for an appointment!
Subcontractor
The fast-changing price ranges of materials make the construction business delicate. When you and the client enter into a contract with a set budget, it’s not easy to make adjustments in pricing. The time frame is also a big factor that affects the financial turnaround, so you could offset the expenses until the next paycheck comes in.
The complexities of this industry explain the need for an accounting expert, especially if you are a start-up. Don’t think that you can wing it when your plan is to go big. The ideal way to go is to have a construction accounting consultant in Fort Collins. You can learn from one of Steven J. Wick & Associates, P.C.’s clients who have gone through financial, personnel, and communication issues with his company.
Company Issues Our Client Faced Before Hiring a Fort Collins Construction Accounting Consultant
Almost all companies, big or small, experience financial issues. Our client is no stranger to this, and when he realized that his company was often losing more money than generating a profit, he contacted us for help. As a construction accounting consultant in Fort Collins, our job is to help him identify the problem areas and develop a system that would rescue his company from a possible collapse.
Cash flow
Although his construction firm is on a continuing growth pattern, cash flow has been a problem. There’s the familiar scenario where the books show inconsistent inflow and outflow of money; the slow budget turnover also posed some setbacks.
There were times when the business lost access to capital, which allowed him to get the ball rolling. Often, they have to wait for the next check to buy the materials and continue the project.
Lack of system
Every business needs a solid system to keep the process flowing smoothly, whether it be about cash or workflow. It’s easy to set up one if there’s only one person taking the lead. It becomes a problem when other business partners may have different ideas. Sometimes, there were clashes.
Communication
“Good communication is the bridge between confusion and clarity” and this holds true for businesses. Teamwork and proper communication are critical in making things work. They create a profitable environment because protocols are being followed and mistakes are pointed out for improvements. Unfortunately, our client’s company encountered communication issues along the way.
Our Recommendations: Proper Construction Accounting Solutions That Worked
As a construction accounting consultant in Fort Collins, Steven helped our client address all the problem areas that threatened his company so that he could overcome them. With an expert in accounting for a construction company, the use of budget can be more controlled.
We offered the appropriate solutions and recommendations that fit our client’s situation.
Identifying financial problems
Accounting for a construction company is more complex than for other businesses. It is harder because of the fast-changing cost of construction materials and the conditions attached to the projects.
Usually, these conditions limit the budget that you can utilize for a certain period. Now, the budget allocated depends on the cost of the materials. Because the costs can quickly go up due to circumstances (e.g. COVID-19 pandemic, recession), you run the risk of using up all the budget and being left with no capital. When this happens, you have no choice but to cover the remaining expenditures out of your own pocket.
It has been part of our protocols to first look at the company’s entire system in order to identify the areas to work on. This is an important step as each business has its own set of problems that they need to deal with. The same thing was done for our client. Looking at all the financial documents, we identified the financial issues from the most urgent to the least.
Strategy Sessions
The strategy sessions are a continuing process. The first sessions are conducted to discuss the company’s current status and figure out how much money is being spent on specific areas of the business – labor costs, operating costs, etc. Simultaneously, we do proper accounting and formulate spending schemes to save money.
As a construction accounting consultant in Fort Collins, we put emphasis on the cash flow side of the business. While fixing the books, we provided guidance on how to obtain the supplies and the smart way to do it. Among our recommendations were paying the bills and paying the members right away as soon as the funds are available.
The timeline is also a critical element for every project. To minimize the risk of over or underspending, the client needs to come up with a proper estimate of how long a project will be completed and what possible issues might occur. Setting a realistic schedule will certainly help his team avoid wasting resources and time.
Technique for Increasing Cash flow
Previously, our client asked for a 30% down payment for every project. Realizing that this figure was not working, our recommendation was to increase the amount to 40%-50%. Shortly after applying this technique, the cash flow started improving. This move resulted in a 15% increase in revenue this year from a measly 2%-3%. The increase allowed the team to loosen up finance-wise. With more money coming in, they were able to cover all the expenses without running out of capital for the next batch of materials. This also saved the company from running on multiple loans, which is not a smart alternative.
Loans do help, but you could also end up with an amount of money that’s more than what you need, given the incurring cost of interest. When it comes to business, loans are the least of an owner’s allies.
Financial Issues? Get Immediate Construction Accounting Solutions!
Construction accounting is a significant part of running a business. It is important that your books are properly monitored and maintained to determine the company’s profit. If you are not an expert in numbers, it might cause confusion and create a problem eventually.
Hiring a construction accounting consultant in Fort Collins will help if you want your construction business to achieve success. You can make better financial judgments and formulate strategies to increase your company’s income.
Financial and other company issues will deter you from achieving your financial goals and growing your business. When you can no longer handle them on your own, we will help you get back on track. If you are a start-up company and want to do everything right, we will also be available to provide financial insights.
Steven J. Wick and Associates, P.C. has been helping small, medium, and large businesses in Fort Collins for several years now. We offer accounting services for construction companies and other business types. We also offer bookkeeping and tax services. We can help with all of your accounting needs.
Contact us for an appointment!
