contractor business

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.

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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

If you're considering buying a construction company, we've got more tips for you this week on the podcast. This episode focuses on insurance. Stephen and Wade discuss what you and your insurance agent need to know to analyze the risks before making the purchase.

 Topics we cover in this episode include:

• What your insurance agent needs from the seller
• Insurance with stock sales vs. asset sales
• What happens with insurance rates when one company buys another
• The importance of the seller's safety program
• Liability coverage for company vehicles
• Life insurance considerations for the company owner
• How much insurance is enough?

LINKS

Visit the episode page at https://CarpenterCPAs.com/newbuyer 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

This week on the podcast, we're continuing our series on buying and selling a construction company, with a focus on the difference between a stock sale and an asset sale. Tune in to find out about each type of sale and its implications for taxes, liabilities, and more.

 Topics we cover in this episode include:

• What's the difference between a stock sale and an asset sale?
• How the type of sale affects the liabilities you assume 
• Stock sales from a seller's and buyer's perspective
• Asset sale from a seller's and buyer's perspective
• The Asset Aquisition Statement
• The seven classes of assets and their tax treatment
• Buying a company that received an ERC

LINKS

Visit the episode page at https://CarpenterCPAs.com/stockvsasset 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

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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

If you're thinking about selling your company in the next three to five years, you need to start preparing now to get the most value for your business. Today on the podcast, Eric Wilkinson joins us to talk about what you need to consider from a buyer's perspective as you get your company in the best shape to be sold.

 Topics we cover in this episode include:

• When owners wait too long to prepare their business to sell
• Owner involvement
• Number of employees in teh business that a new owner may have to replace
• The importance of good books and due diligence when selling your business
• Considering the reputation of the company
• Risk and the Employee Retention Credit
• The value multiple
• Consider getting a valuation done

LINKS

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

Contact Eric:
Eric Wilkinson | https://www.sandhillglass.com/

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

Are you pricing your jobs correctly? If you don't have a good understanding of your job costs and overhead percentage, the answer is probably no. This week on the podcast, we're discussing how to get a handle on these numbers and make better financial decisions for your construction company,

 Topics we cover in this episode include:

• What you should and shouldn't post as overhead
• Ideas for contractors trying to wrap their head around their numbers
• Carving out Materials & Subs
• Overhead grows when you top line grows

LINKS

Visit the episode page at https://CarpenterCPAs.com/jobcosting 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

Evaluating the worth of your company can be complicated, so the earlier you start thinking about it, the better. We're doing a two-part series on this exact topic on the podcast. This week, we start the discussion from the angle of the seller.

 Topics we cover in this episode include:

• Reputation and client relationships
• Your skilled workforce
• Market trends and demand
• Estimating future earnings
• Due diligence requirements

LINKS

Visit the episode page at https://carpenterCPAs.com/sell 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

We're back with Morrelle McCrary for another episode packed full of game-changing AI tips and hacks. Try implementing these strategies to increase your productivity, automate tasks, and create systems and processes to get your team on the same page.

 Topics we cover in this episode include:

• Webular for AI website generation
• Voice transcription software
• Using AI to organize thoughts and craft email responses
• Using AI to create product descriptions
• AI for marketing
• Type Desk and email automation tools
• AI and project planning for contractors

LINKS

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

Contact Morrelle:
Morrelle McCrary | https://ramtechpcs.com

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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

This week, we're talking about the best way to turn over revenue and make profit more quickly. We address the question of taking one big job with profit in it or turning over several smaller jobs, and choosing the right jobs that you can turn around efficiently. 

 Topics we cover in this episode include:

• Choosing between one large job or multiple smaller jobs
• How to analyze potential jobs
• Considering gross margin vs. top line
• Throughput accounting and overhead

LINKS

Visit the episode page at https://CarpenterCPAs.com/profit 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

If you've listened to the Contractor Success Forum before, you know how crucial cash flow is to the health and longevity of your construction company. This week, we're sharing some real life examples of cash flow nightmares, how they happened, and what you can do to avoid similar mistakes.

 Topics we cover in this episode include:

• Cash flow and billing for retainage
• How good (and bad) relationships can affect your cash flow
• How to approach private projects when funding hasn't been secured to protect your cash flow
• Billing issues can take even large companies down
• Liquidated damages and unreasonable time to complete a job
• Identify and address flawed processes and ongoing systemic issues
• Errors with bank feed accounting can cause cash flow problems

LINKS

Visit the episode page at https://CarpenterCPAs.com/casestudies 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

They started with a landscape company and grew to an excavation contractor digging over 500 basements a year.  Learn from Steve Henslin, Mike Henslin and Pete Henslin.

Ground Tech Minnesota - https://www.groundtechmn.com/
Feedbackwrench - https://www.feedbackwrench.com/landscaping-marketing

Ready for colossal growth in your construction business? Sustainable, large-scale growth is possible with the Pumpkin Plan. This episode explains how the Pumpkin Plan works and the main elements you should work to define and strengthen for business success.

 Topics we cover in this episode include:

• Planting the seed of your business strategy
• How to define your unique offering
• The importance of identifying your top clients
• How systemization levels up your business
• How these elements work together to create colossal growth

LINKS

Visit the episode page at https://contractorsuccessforum.com/pumpkin 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/contractor-success-forum

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Rob Williams, Profit Strategist | IronGateESS.com
Wade Carpenter, CPA, CGMA | CarpenterCPAs.com
Stephen Brown, Bonding Expert | McWins.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

How do you decide which projects to pursue? This topic may seem basic for experienced contractors, but if you bid on projects without taking time to consider a defined list of variables and how they could affect your success, you need to listen to this week's episode.

 Topics we cover in this episode include:

• How finding your sweet spot allows you to choose the best projects for you
• Understanding whether a project fits your capacity and capabilities
• The importance of considerations like location, competition, subcontractor availability, and potential risks
• How variable costs and unknown delays can kill a project 
• Why you shouldn't bid every job you come across

LINKS

Visit the episode page at https://contractorsuccessforum.com/projects 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/contractor-success-forum

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Rob Williams, Profit Strategist | IronGateESS.com
Wade Carpenter, CPA, CGMA | CarpenterCPAs.com
Stephen Brown, Bonding Expert | McWins.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

What's your construction company's weakest link? Identifying and addressing the constraints that are holding your business back, one by one, is they key to long-term success. This week we're talking about the theory of constraints: how to apply it to your business and how it can be used to address the supply chain issues many of us are still facing today.

 Topics we cover in this episode include:

• Theory of constraints basics
• The story of Herbie and performance gaps
• Parkinson's Law
• Why you should focus on your weakest link first
• How to minimize buffer time on your jobs

LINKS

Visit the episode page at https://contractorsuccessforum.com/government 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/contractor-success-forum

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Rob Williams, Profit Strategist | IronGateESS.com
Wade Carpenter, CPA, CGMA | CarpenterCPAs.com
Stephen Brown, Bonding Expert | McWins.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

Estate planning isn't a popular topic, but it is a necessary one. This week on the Contractor Success Forum, find out what pieces you need to have in place to minimize the financial and mental burdens on your loved ones and business partners.
 
Topics we cover in this episode include:

• First: get a will
• Estate planning done right
• Should you set up a trust?
• Your final planning checklist
• Final planning for estate taxes
• Estate planning is important - especially in the construction industry

LINKS

Visit the episode page at https://contractorsuccessforum.com/finalplanning 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/contractor-success-forum

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Rob Williams, Profit Strategist | IronGateESS.com
Wade Carpenter, CPA, CGMA | CarpenterCPAs.com
Stephen Brown, Bonding Expert | McWins.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

Did you know there are accountants who specialize in the construction industry? When it comes to managing money, the construction industry is unique in many ways. That's why we always recommend working with financial professionals who have specialized knowledge and experience working with contractors. This week, find out what you should look for and expect from a good construction-oriented accountant.
 
Topics we cover in this episode include:

• Construction accounting as an artform
• Why taxation is different for the construction industry
• How your accountant should help with your planning and cash flow
• Why your accountant should work with your bond agent
• What a good construction-oriented accountant will prioritize first

LINKS

Visit the episode page at https://contractorsuccessforum.com/accountant 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/contractor-success-forum

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Rob Williams, Profit Strategist | IronGateESS.com
Wade Carpenter, CPA, CGMA | CarpenterCPAs.com
Stephen Brown, Bonding Expert | McWins.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

Do you ever wonder what it is that makes certain construction companies so successful? The Contractor Success Forum hosts have worked with plenty of successful contractors over the years (and a few not-so-successful ones). Today, they're sharing the traits they consistently see shared by the top companies in the industry.
 
Traits we cover in this episode include:

• Steady profit and cash flow
• A strong financial leader
• A trusted financial board of directors
• Curiosity about growth and continuous improvement
• Utilization of the latest technology
• Hiring and retaining good employees
• Having a defined plan for the future

LINKS

Visit the episode page at https://contractorsuccessforum.com/bigpicture 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/contractor-success-forum

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Rob Williams, Profit Strategist | IronGateESS.com
Wade Carpenter, CPA, CGMA | CarpenterCPAs.com
Stephen Brown, Bonding Expert | McWins.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

Have you considered making a move from residential to commercial contracting? On this week's episode, we're sharing a few things you should consider before beginning to seek out commercial construction projects.

Want to learn how to reverse engineer your cash flow? Sign up for the free seminar on 5/17 at 10am EST: https://www.eventbrite.com/e/reverse-engineering-your-cash-flow-tickets-332475953527

 Topics we cover in this episode include:

• What changes with job costing when you move to commercial contracting
• Customer mindset and getting paid as a commercial contractor
• Commercial contracting and cash flow
• Why you should consider setting up a separate company for commercial construction

LINKS

Visit the episode page at https://contractorsuccessforum.com/commercial 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/contractor-success-forum

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Rob Williams, Profit Strategist | IronGateESS.com
Wade Carpenter, CPA, CGMA | CarpenterCPAs.com
Stephen Brown, Bonding Expert | McWins.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

Rob recently attended the World of Asphalt conference in Nashville, TN. It got us thinking about what road contractors, and contractors in general, can do to continue building profit and protect themselves from increased costs, labor shortages, and other issues we’re facing in today’s climate. Tune in for top tips from your hosts and other industry experts.

 Topics we cover in this episode include:

• Why maintaining your equipment should be a priority
• The importance of job costing, especially in today's environment
• How to use your contracts and bids to protect yourself from increasing costs
• How to attract the right employees

LINKS

Visit the episode page at https://contractorsuccessforum.com/asphalt 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/contractor-success-forum

Read Rob's article with advice from industry experts: https://irongateess.com/5-ways-for-road-contractors-to-be-more-profitable-during-covid/

FIND US ONLINE
Rob Williams, Profit Strategist | IronGateESS.com
Wade Carpenter, CPA, CGMA | CarpenterCPAs.com
Stephen Brown, Bonding Expert | McWins.com

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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

How is your construction company's ROI? Are you getting out more than you're putting in? If you're looking for ways to improve your return on investment, don't miss this week's episode. We're sharing our six best tips for increasing your company's ROI.

 Strategies we cover in this episode include:

• Track your average gross margin on jobs
• Identify and fix profit leaks
• Get agreements upfront and include all work
• Manage your mix of jobs
• Put efficient marketing processes in place
• Shorten your cycle times

LINKS

Visit the episode page at https://contractorsuccessforum.com/ROI 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/contractor-success-forum

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Rob Williams, Profit Strategist | IronGateESS.com
Wade Carpenter, CPA, CGMA | CarpenterCPAs.com
Stephen Brown, Bonding Expert | McWins.com

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