594: Crafting Your "To-Don't" List As A Construction Business Owner

Contractor Success Map with Randal DeHart | Contractor Bookkeeping And Accounting Services

This Podcast Is Episode 594, And It's About Crafting Your "To-Don't" List As A Construction Business Owner Your to-do list is often long and constantly growing longer when you're an entrepreneur. There are a lot of things you need to do, and it can feel like they're all urgent. In such cases, it's easy to push essential tasks to the side and focus on less vital activities, but that often means you miss deadlines, make mistakes, or always feel like you're trying to catch up. Here are some ways to determine the most productive order to complete your tasks. 1. Know all of your tasks It isn't enough to have a running list of tasks in your head; you need to write them out so you can see them at a glance. Take the time to list all your tasks, and break down large tasks into smaller steps. Write a list of the activities you must do for the week—or even the next two weeks—on Monday morning. Include information such as how urgent they are, how long they'll take to complete, and their deadlines. Now you know what you'll need to complete and when. 2. Determine what tasks are vital There are many methods for determining which tasks are the most vital. We'll go into the Eisenhower Decision Matrix and the ABCDE Method. In the Eisenhower Decision Matrix, you classify each task into one of four quadrants. These quadrants are based on whether the task is important, urgent, or neither. Tasks that are important and urgent should be done first, followed by those that are either important but not urgent or urgent but not important, and finally, those that are neither important nor urgent. If possible, delegate tasks that aren't both important and urgent to someone else. Another method is the ABCDE method, in which you assign each task on your list a letter from A through E based on its level of importance. Tasks with a level of A or B are the most important, while D and E are unnecessary. Anything from C down can likely be rescheduled or delegated to someone else. 3. Schedule your tasks Now that you know which tasks are the most important, schedule your to-do list in that order. Write yourself a daily list that puts the most critical functions at the start of your day. Don't overschedule yourself, though. After all, there's a good chance that a new, essential, and urgent activity will arise during your week, and you'll need the space in your calendar to address it. Give yourself deadlines in the day to get the work done based on a reasonable assessment of how long the activity should take you. You can also chunk your work, setting aside specific, uninterrupted periods to do focused work and then scheduling breaks around that. Ensure you turn off distractions and let your colleagues know you aren't available during those times. As a construction business owner, consider outsourcing various operations to improve efficiency and focus on core business functions. Some tasks that can be written down under your "To-Don't List" and outsourced include: 1. Accounting and Bookkeeping: Hiring a professional accounting firm can help manage your finances, provide accurate financial statements, and ensure compliance with tax regulations. 2. Project Management: Outsourcing services can help streamline construction projects, ensuring they are completed on time and within budget. 3. Marketing and Advertising: Working with a marketing agency can help promote your construction business, generate leads, and enhance your online presence. 4. IT Support: Tech services can ensure your technology infrastructure is well-maintained and secure, allowing you to focus on your construction projects. 5. Legal Services: Hiring a legal firm specializing in construction law can help protect your business and navigate complex legal matters. 6. Human Resources: They can assist with recruitment, payroll, benefits administration, and compliance with employment laws. As a short reminder that you can ponder on: To-Don't List for Construction Business Owners

• Don't ignore safety protocols and regulations
• Don't neglect regular equipment maintenance
• Don't overlook obtaining the necessary permits and licenses
• Don't avoid clear and detailed contracts for projects
• Don't skip regular communication with clients and employees
• Don't disregard the importance of staying updated on industry trends and technology
• Don't underestimate the importance of accurate and timely financial record-keeping
• Don't hesitate to seek professional advice when needed

Outsourcing bookkeeping and accounting can offer significant benefits to construction contractors. Here's why it's essential to consider adding these tasks to the to-don't list: 1. Expertise and Compliance: Navigating the complexities of construction accounting requires specialized knowledge. From job costing to progress billing, having professionals who understand the industry's intricacies is invaluable. Outsourcing ensures access to experts who comply with industry-specific regulations and standards. 2. Time and Focus: Managing bookkeeping and accounting in-house demands time and attention that could be better directed toward core business activities. By outsourcing these tasks, contractors can refocus on project management, client relationships, and business growth, ultimately increasing productivity and efficiency. 3. Cost-Effectiveness: While some might perceive outsourcing as an added cost, it can be a cost-saving measure in the long run. By avoiding hiring and training in-house accounting staff and investing in accounting software and infrastructure, contractors can achieve significant cost savings by outsourcing. 4. Scalability and Flexibility: As construction businesses fluctuate with project demands and seasonal variations, the scalability and flexibility offered by outsourcing are invaluable. Whether managing peak periods or adjusting to business contractions, outsourced accounting services can adapt to the contractor's needs. 5. Reduced Errors and Risk Mitigation: Bookkeeping and accounting errors can have costly implications for construction contractors. Outsourcing to professionals reduces the risk of mistakes, ensures accurate financial records, and mitigates potential risks associated with economic mismanagement. In conclusion As construction contractors like you craft your to-do lists, you should also consider the tasks that belong on the to-don't list. Outsourcing bookkeeping and accounting offers a strategic advantage, providing access to specialized expertise, freeing up time and focus, and delivering cost-effectiveness, scalability, and risk mitigation. By recognizing the value of outsourcing in these critical areas, you can position your business for tremendous success and growth. Remember, these "to-don'ts" are as important as the "to-dos" for a successful construction company.

About The Author:

Sharie DeHart, QPA is the co-founder of Business Consulting And Accounting in Lynnwood, Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations and offers insights on how to manage the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. Call 1-800-361-1770 or [e-mail]