540: Key Financial Concepts For Construction Company Owners

<h1 style="text-align: center;"><span style= "color: #0000ff;"><strong>This Podcast Is Episode Number 540, And It's About Key Financial Concepts For Construction Company Owners</strong></span></h1> <div>Not everyone knows construction accounting, and it is easy to assume all accounting is the same. Even if you have outsourced your financial functions, as a small construction business owner, having a solid understanding of critical financial concepts is crucial to work with your advisor and 'speak their language". This article outlines several essential concepts that every small business owner should know.</div> <div> </div> <div>Construction is a tricky business, and people's failure is expected. Most of our clients have either failed or come very close. It doesn't matter how many times you are knocked down; it only matters that you learn your lessons, get up, and go again. We noted these lessons years ago, owning and operating our construction company. By building a system and gaining insight from us, you can pick up from our mistakes, which you don't have to go through and can start avoiding before it comes crashing down. </div> <div> </div> <div> <p><span data-preserver-spaces="true">Get that one thing working, then move on to the next one. What is the most annoying thing you can quickly fix? We talk about accounting because that is our primary focus.</span></p> <p style="font-weight: bold;">Start with the basics:</p> <ul> <li><span data-preserver-spaces="true">Open a business checking account.</span></li> <li><span data-preserver-spaces="true">Use a dedicated credit card for the business (if using a personal card).</span></li> <li><span data-preserver-spaces="true">Create invoices, present them to your customers, collect the money, and get it in the bank (Do you have an easy way for your clients to pay you?).</span></li> <li><span data-preserver-spaces="true">Collect the money ASAP because, without cash flow, you are out of business.</span></li> </ul> <p style="font-weight: bold;"><span style="color: #0600ff;