Contractor Success Forum

The foundation of any robust construction accounting system lies in a well structured chart of accounts. But building one can be tricky. Let's walk through it.

Topics we cover in this episode include:

• Walking through the Chart of Accounts
• How to treat retainage properly in your Chart of Accounts
• Cost of revenue categories

LINKS

Visit the episode page at https://carpentercpas.com/chartofaccounts for more details and a transcript of the show.

Find all episodes and related links at ContractorSuccessForum.com.

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Wade Carpenter, CPA, CGMA | CarpenterCPAs.com
Stephen Brown, Bonding Expert | SuretyAnswers.com

It's winter right now, and if you're in construction, this may be a slower time of year for you. It's a great time to create a strategic plan for your company for the coming year. How do you do it? We'll walk you through it.

Topics we cover in this episode include:

• Why now is a good time to think about your strategic plan
• Ground rules for your strategic plan
• What should be included in your strategic plan?
• The importance of a good budget
• Analyze your risk
• How to use KPIs for strategic planning
• Note the trends in your market 
• Get input from your key business advisors

LINKS

Visit the episode page at https://carpentercpas.com/strategicplan for more details and a transcript of the show.

Find all episodes and related links at ContractorSuccessForum.com.

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Wade Carpenter, CPA, CGMA | CarpenterCPAs.com
Stephen Brown, Bonding Expert | SuretyAnswers.com

Full-kitting is a term most often associated with manufacturing. What does it mean and how can we use that concept in construction to maximize our profits? Let's talk about it.

Topics we cover in this episode include:

• Full Kitting from a Subcontractor Standpoint
• Communicate potential problems beforehand
• Start with project planning and pinpointing common delays
• How to implement full kitting 

LINKS

Visit the episode page at https://carpentercpas.com/fullkit for more details and a transcript of the show.

Find all episodes and related links at ContractorSuccessForum.com.

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Wade Carpenter, CPA, CGMA | CarpenterCPAs.com
Stephen Brown, Bonding Expert | SuretyAnswers.com

Many contractors aren't making what they should on their jobs. Even if you've got your bidding down, you may still be bleeding profits. What are the things to look for and what can we do about it? Find out on this week's episode.

Topics we cover in this episode include:

• Don't get burned by change orders
• Make sure you're billing everything you have the right to bill
• Double check the math on your bids
• Get on top of your job costing and make it as real time as possible 
• Streamline and actively manage your supply chain
• Put systems and workflows in place so critical steps are not missed
• Adopt lean construction principles

LINKS

Visit the episode page at https://carpentercpas.com/bleed for more details and a transcript of the show.

Find all episodes and related links at ContractorSuccessForum.com.

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Wade Carpenter, CPA, CGMA | CarpenterCPAs.com
Stephen Brown, Bonding Expert | SuretyAnswers.com

Equipment is a major part of some contractors' job costs. Should you lease it, or should you buy it? Which is better for you? The answer is, it depends. We're helping you decipher the question and sharing some additional equipment considerations on this week's episode.

Topics we cover in this episode include:

• Operating Lease vs. Capital Lease
• Consider the costs associated with maintaining the equipment you own
• Insurance costs and considerations for equipment
• Equipment and vandalism
• How to decide whether to purchase or lease a piece of equipment
• Benefits and drawbacks of having a separate company to own your equipment

LINKS

Visit the episode page at https://carpentercpas.com/equipment for more details and a transcript of the show.

Find all episodes and related links at ContractorSuccessForum.com.

Join the conversation on our LinkedIn page: https://www.linkedin.com/company/CarpenterCPAs

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Wade Carpenter, CPA, CGMA | CarpenterCPAs.com
Stephen Brown, Bonding Expert | SuretyAnswers.com

What happens to your company when you die? Making sure you have a continuity plan in place can ensure you have a smooth transition and ease the burden on your family. Life insurance can be a big part of that plan. Here's what you need to know when looking for a policy.

Topics we cover in this episode include:

• Why you should start thinking about life insurance when you're young
• Tax considerations for key person life insurance
• How a buy-sell agreement can help pass the company on
• How to keep your company operating as it was after something unexpected happens
• The different types of life insurance

LINKS

Visit the episode page at https://carpentercpas.com/succession for more details and a transcript of the show.

Find all episodes and related links at ContractorSuccessForum.com.

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Wade Carpenter, CPA, CGMA | CarpenterCPAs.com
Stephen Brown, Bonding Expert | SuretyAnswers.com

We haven't met a contractor who likes to pay taxes, but many take avoiding taxes to the extreme. What are the true implications of making it your goal to pay no taxes every year? Let's talk about it.

Topics we cover in this episode include:

• Four ways contractors can be taxed
• An example of an extreme outcome of tax avoidance
• The purchases and tax choices that get many contractors in trouble
• How Profit First can help you save enough for taxes and remain profitable

LINKS

Visit the episode page at https://carpentercpas.com/taxdeferral for more details and a transcript of the show.

Find all episodes and related links at ContractorSuccessForum.com.

Join the conversation on our LinkedIn page: https://www.linkedin.com/company/CarpenterCPAs

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Wade Carpenter, CPA, CGMA | CarpenterCPAs.com
Stephen Brown, Bonding Expert | SuretyAnswers.com

There have been rumors about QuickBooks Desktop being retired for many years, yet QuickBooks Online still isn't the same capability level as Intuit's older software for contractors. Some recent announcements from them give us more of a direction, and these announcements weren't given to the general public. We're sharing what you need to know this week.

Topics we cover in this episode include:

• Recent announcements from Intuit on QuickBooks Online 
• QuickBooks Desktop became a subscription model in 2022
• QuickBooks stopped selling the payroll subscription to the general public
• Other accounting software options
• Key things to look for in bookkeeping software

LINKS

Visit the episode page at https://carpentercpas.com/quickbooksdesktop for more details and a transcript of the show.

Find all episodes and related links at ContractorSuccessForum.com.

Join the conversation on our LinkedIn page: https://www.linkedin.com/company/CarpenterCPAs

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Wade Carpenter, CPA, CGMA | CarpenterCPAs.com
Stephen Brown, Bonding Expert | SuretyAnswers.com

Can increasing expenses also increase your net income? Can profitable jobs bankrupt a company? Today, we are exploring more unconventional wisdom in construction that you may not have ever considered.

Topics we cover in this episode include:

• How adding expenses helps your bottom line
• How a profitable job could bankrupt your company
• Why an LLC is not always the right choice for setting up a construction company

LINKS

Visit the episode page at https://carpentercpas.com/unconventional for more details and a transcript of the show.

Find all episodes and related links at ContractorSuccessForum.com.

Join the conversation on our LinkedIn page: https://www.linkedin.com/company/CarpenterCPAs

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Wade Carpenter, CPA, CGMA | CarpenterCPAs.com
Stephen Brown, Bonding Expert | SuretyAnswers.com

Find all episodes and related links at ContractorSuccessForum.com.

Join the conversation on our LinkedIn page: https://www.linkedin.com/company/CarpenterCPAs

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Wade Carpenter, CPA, CGMA | CarpenterCPAs.com
Stephen Brown, Bonding Expert | SuretyAnswers.com

When do you need a construction attorney, and how can you find a good one? Should you be amending contracts, and how can you protect your lien rights? Construction attorney Alex Barthet joins us this week to answer these questions and more. He pinpoints the main things you need to focus on and what resources are available to help guide you. Listen in and make sure you implement his two action items in January to protect yourself in 2024!

Topics we cover in this episode include:

• The best time to hire a lawyer is when you don't need one
• How to find a good construction lawyer
• What to look out for when signing a new contract
• You need to protect your lien and bond rights
• Make sure you're aware of the lien laws in your project's jurisdiction
• Liability and the Hold Harmless Agreement  
• The Right to Stop Work
• How to make changes to a contract
• Options for assistance with your contracts

LINKS

Visit the episode page at https://carpentercpas.com/constructionlaw for more details and a transcript of the show.

Find all episodes and related links at ContractorSuccessForum.com.

Join the conversation on our LinkedIn page: https://www.linkedin.com/company/CarpenterCPAs

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Wade Carpenter, CPA, CGMA | CarpenterCPAs.com
Stephen Brown, Bonding Expert | SuretyAnswers.com

In a traditional business, there is conventional wisdom that generally holds true no matter what. Construction is an industry with several of its own differences that defy a traditional solution. Today we are exploring some of those things and why you shouldn't always listen to the common answer, because it might not all be true.

Topics we cover in this episode include:

• Myth: If I get to X dollars in reenue, life will be easier
• Myth: Accounting is the same for construction as it is for other industries
• Misconceptions around subcontractors being bonded back
• Myth: I always have to be the lowest bidder
• Myth: all projects are similar
• Myth: Profitability is solely about cutting costs

LINKS

Visit the episode page at https://carpentercpas.com/misconceptions for more details and a transcript of the show.

Find all episodes and related links at ContractorSuccessForum.com.

Join the conversation on our LinkedIn page: https://www.linkedin.com/company/CarpenterCPAs

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Wade Carpenter, CPA, CGMA | CarpenterCPAs.com
Stephen Brown, Bonding Expert | SuretyAnswers.com

Most contractors want better cost information about their jobs. They need it timely, they need it accurate, and they need it relevant to managing their jobs properly. Unfortunately, many contractors struggle in this area. How do you get it set up right so that you get what you need? We're sharing our tips on this week's episode.

Topics we cover in this episode include:

• The main categories to consider in a job cost accounting system
• The benefits of job costing for your business
• Common headaches with setting up job costing and how to address them
• How job cost accounting helps you get bonds
• Common misconceptions about job costing

LINKS

Visit the episode page at https://carpentercpas.com/jobcostaccounting for more details and a transcript of the show.

Find all episodes and related links at ContractorSuccessForum.com.

Join the conversation on our LinkedIn page: https://www.linkedin.com/company/CarpenterCPAs

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Wade Carpenter, CPA, CGMA | CarpenterCPAs.com
Stephen Brown, Bonding Expert | SuretyAnswers.com

You got that dream job, but it needs be bonded. Can you get it bonded? Are you over your bonding capacity? Is there anything you can do to increase your bonding credit? Find out this week.

Topics we cover in this episode include:

• Draft and interim financial statements
• Cash, character, and capacity
• How to get bonding credit as a new contractor
• Bonds and personal collateral
• Start your relationship with a bonding company before you need a bond

LINKS

Visit the episode page at https://carpentercpas.com/capacity for more details and a transcript of the show.

Find all episodes and related links at ContractorSuccessForum.com.

Find all episodes and related links at ContractorSuccessForum.com.

Join the conversation on our LinkedIn page: https://www.linkedin.com/company/CarpenterCPAs

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Wade Carpenter, CPA, CGMA | CarpenterCPAs.com
Stephen Brown, Bonding Expert | SuretyAnswers.com

It can be challenging to get banks and bonding companies to want to work with contractors. What can you do about it? Can you stack the deck in your favor? Can you dress up your financial picture? Find out on this week's episode.

Topics we cover in this episode include:

• Why a good year-end  financial statement is important to bonding companies and banks
• Pay back Officer Loans  at the end of the year
• Inject capital at the end of the year
• Improve your working capital ratio
• Extend the terms of your line of credit
• Timing expenses and collections
• Be aware of bank covenants on your line of credit

LINKS

Visit the episode page at https://carpentercpas.com/banks for more details and a transcript of the show.

Find all episodes and related links at ContractorSuccessForum.com.

Join the conversation on our LinkedIn page: https://www.linkedin.com/company/CarpenterCPAs

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Wade Carpenter, CPA, CGMA | CarpenterCPAs.com
Stephen Brown, Bonding Expert | SuretyAnswers.com

Find all episodes and related links at ContractorSuccessForum.com.

Join the conversation on our LinkedIn page: https://www.linkedin.com/company/CarpenterCPAs

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Wade Carpenter, CPA, CGMA | CarpenterCPAs.com
Stephen Brown, Bonding Expert | SuretyAnswers.com

On a recent episode, we talked about working with a construction CFO. This week, we dive deeper into how to find the right person. We help you define what the CFO's job role is and get the maximum benefit out of the person who fills it.

Topics we cover in this episode include:

• How to know if you've hired a bad CFO
• Tracking cash flow problems 
• Optimizing existing low gross margins 
• Reducing high expenses
• Upgrading and automating your financial statements
• Identifying and executing cost reductions
• Managing financial audits
• Implementing Best Practices
• Enhancing existing financial relationships
• Providing future-focused planning
• Reviewing the numbers on the bids

LINKS

Visit the episode page at https://carpentercpas.com/CFOJob for more details and a transcript of the show.

Find all episodes and related links at ContractorSuccessForum.com.

Join the conversation on our LinkedIn page: https://www.linkedin.com/company/CarpenterCPAs

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Wade Carpenter, CPA, CGMA | CarpenterCPAs.com
Stephen Brown, Bonding Expert | SuretyAnswers.com

Find all episodes and related links at ContractorSuccessForum.com.

Join the conversation on our LinkedIn page: https://www.linkedin.com/company/CarpenterCPAs

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Wade Carpenter, CPA, CGMA | CarpenterCPAs.com
Stephen Brown, Bonding Expert | SuretyAnswers.com

You may have heard the term real revenue, but how do you define it? In construction, it's a powerful concept worth knowing, but what can you do with it and how can you use it to run your construction company? Let's talk about it.

Topics we cover in this episode include:

• What is real revenue and where does the term come from?
• Real revenue avoids confusion around job cost vs. overhead
• How real revenue lets you know if you're using the right overhead rate
• Real revenue and cash flow management

LINKS

Visit the episode page at https://carpentercpas.com/realrevenue for more details and a transcript of the show.

Find all episodes and related links at ContractorSuccessForum.com.

Join the conversation on our LinkedIn page: https://www.linkedin.com/company/CarpenterCPAs

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Wade Carpenter, CPA, CGMA | CarpenterCPAs.com
Stephen Brown, Bonding Expert | SuretyAnswers.com

Why is it that insurance for equipment and vehicles is so expensive? Is there anything you can do to lower those costs? How about things like vehicle ratings, how does that play in your premium? Stephen is answering those questions and more on this week's episode.

Topics we cover in this episode include:

• Should your vehicle be on your personal policy?
• Costs for a commercial policy vs. a personal policy
• What goes into rating a vheicle and how can you get lower premiums?
• Having good drivers can lower your insurance rates
• How insurance companies use telematics
• Equipment insurance
• Is it cheaper to insure rented or owned equipment?
• Vehicles, equipment and loss control

LINKS

Visit the episode page at https://carpentercpas.com/vehicleinsurance for more details and a transcript of the show.

Find all episodes and related links at ContractorSuccessForum.com.

Join the conversation on our LinkedIn page: https://www.linkedin.com/company/CarpenterCPAs

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Wade Carpenter, CPA, CGMA | CarpenterCPAs.com
Stephen Brown, Bonding Expert | SuretyAnswers.com

Could your process for paying other people sabotage your cash flow? Can streamlining your payables process lead to better job costing and faster billing? What does paying people have to do with collecting your own money? You might be surprised what a difference it can make when you fix those problems. Let's talk about it.

 Topics we cover in this episode include:

• How does paying people affect your cash flow?
• Why the accounts payable process is more complex for construction
• What is the true cost to get one accounts payable invoice out the door?
• Differences between a traditional company aond construction  accounts payable
• The importance of a good accounts payable system
• One billing mistake that could be wrecking your cash flow
• 10 quick tips to consider if you're fixing your accounts

LINKS

Visit the episode page at https://CarpenterCPAs.com/accountspayable for more details and a transcript of the show.

Find all episodes and related links at ContractorSuccessForum.com.

Join the conversation on our LinkedIn page: https://www.linkedin.com/company/CarpenterCPAs

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Wade Carpenter, CPA, CGMA | CarpenterCPAs.com
Stephen Brown, Bonding Expert | SuretyAnswers.com

When it comes to banking, the construction industry comes with some nuances. And if you're using Profit First, you'll have even more specific needs. This week, we're talking with Deanna Zubrickas of Relay Financial, the official banking partner of Profit First. She shares how contractors implementing Profit First can more easily set up bank accounts, manage subcontractors, track expenses, and more.

 Topics we cover in this episode include:

• How to avoid spending hours at the bank to set up Profit First accounts
• How to make it easier to pay subcontractors 
• Relay helps you identify and track transactions
• Relay's Zero Liability Protection
• Relay's fee structure  
• Workflows in Relay
• Relay makes statement downloads easy
• Getting started with Relay and Profit First

DISCLAIMERS

Contractor Success Forum is an informational podcast and does not promote specific products or services. This episode is intended to be educational and does not represent an endorsement of the Relay platform. We recommend listeners do their own due diligence before signing up with Relay, or any other provider.

Relay is a financial technology company, not an FDIC-insured bank. Banking services and FDIC insurance are provided through Thread Bank and Evolve Bank & Trust; Members FDIC. The Relay Visa® Debit Card is issued by Thread Bank pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa® debit cards are accepted. *The interest rates and annual percentage yield on your account are accurate as of 05/16/23 and are variable and subject to change based on the target range of the Federal Funds rate. APY will vary between 1-3% depending on the balances held. Earn 1% APY on savings balances of less than $50,000, 1.5% APY on savings between $50,000 and $250,000, 2% APY on savings balances between $250,000 and $1,000,000 and 3% APY on savings balances of more than $1,000,000. There are no minimum balances or minimum deposits required to earn interest on your account.  

LINKS

Visit the episode page at https://CarpenterCPAs.com/relay for more details and a transcript of the show.

Find all episodes and related links at ContractorSuccessForum.com.

Join the conversation on our LinkedIn page: https://www.linkedin.com/company/CarpenterCPAs

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Wade Carpenter, CPA, CGMA | CarpenterCPAs.com
Stephen Brown, Bonding Expert | SuretyAnswers.com

Has your company outgrown your basic bookkeeping? If your financial operations are becoming more complex and you feel like you're losing control, or if you're getting into federal contracting, it may be time to consider hiring a CFO. This week we're discussing when to do it, why you should work one who has construction industry experience, and whether to outsource or hire someone in-house.

 Topics we cover in this episode include:

• At what point do you need to hire a CFO?
• How a good CFO can help your company grow
• The importance of working with a construction-oriented CFO
• How a CFO helps with compliance and reporting
• A CFO knows your whole tax picture
• Questions to ask yourself if you think you may need to hire a CFO

LINKS

Visit the episode page at https://CarpenterCPAs.com/CFO for more details and a transcript of the show.

Find all episodes and related links at ContractorSuccessForum.com.

Join the conversation on our LinkedIn page: https://www.linkedin.com/company/CarpenterCPAs

FIND US ONLINE
Wade Carpenter, CPA, CGMA | CarpenterCPAs.com
Stephen Brown, Bonding Expert | SuretyAnswers.com