172. Setting Profit Goals and Managing Cash Flow in Construction

172. Setting Profit Goals and Managing Cash Flow in Construction

Author: By FOUNDATION Software June 21, 2024 Duration: 37:59

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.

 

https://workmax.com/workmax-employee-time-tracking/

https://workmax.com/insight-productivity-management/


Running a team that isn't tied to a single office comes with a unique set of challenges and opportunities. The Mobile Workforce Podcast, brought to you by FOUNDATION Software, digs into those realities through candid conversations. Instead of abstract theory, you’ll hear directly from leaders and experts who have navigated the complexities of managing remote and dispersed teams. They’ve been in the trenches, figuring out how to maintain productivity, foster company culture, and drive profitability when everyone is geographically scattered. Each episode focuses on practical insights and lived experiences, offering a sense of camaraderie and concrete advice for business owners, managers, and operational leaders. The discussions naturally explore how to streamline processes, leverage technology effectively, and build resilient systems that support a mobile workforce. This isn't about fleeting trends; it's about sustainable strategies for operational excellence. Tune in for a genuine exchange of ideas that challenges conventional thinking and provides actionable takeaways for improving how your business functions day-to-day. Whether you're deep into managing remote teams or just beginning to build a more flexible operation, this podcast serves as a valuable resource for navigating the evolving landscape of modern work.
Author: Language: English Episodes: 100

The Mobile Workforce Podcast
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