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Setting Profit Goals and Managing Cash Flow in Construction
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Are you looking to optimize your financial strategies and drive profitability? Then tune in to explore better construction accounting practices!
In the latest podcast episode of the Mobile Workforce Podcast, host Mike Merrill welcomes CPAs Barry Weber, Partner at Eide Bailly, a CPA and consulting firm, and Brian Cronnelly, CCIFP Outsourced Accounting Manager also at Eide Bailly.
Their conversation focuses on strategies that contractors can use to enhance their business operations through financial reporting, tax crediting and leveraging industry benchmarks to improve decision-making and profitability. Weber and Cronnelly stress the importance of timely and accurate billing reports and overview the impact of recent changes in energy tax credits.
Key Takeaways:
- Timely financial reporting is necessary for regular and accurate financial statements, aiding decision-making.
- Recent changes in energy tax credits significantly impact the construction industry.
- Benchmarking against industry standards helps set realistic goals by comparing financial metrics with industry averages.
- Effective cash flow management strategies help avoid high-interest expenses and ensure business liquidity.
- Implementing tech solutions like geofencing can improve operational efficiency and reduce costs.
Quote:
“A big one we look at is working capital. If you don’t have the funds to keep your projects going, you’ll need to find other financing sources,” said Cronnelly. “One important KPI is backlogged working capital—how much you have in current work compared to your working capital. If you can’t fund your projects, it’s time to talk to a banker.”
Exit and Self-Promo:
When looking for the right construction software for your operations it’s important to assess your needs. WorkMax allows you to connect information from the field and office to provide you with real-time insights into workforce efficiency and productivity. Equipped with great features like geofencing, WorkMax is sure to reduce your labor costs while improving operational efficiency.