top of page
  • Writer's pictureYvonne Root

Numbers – the Most Useful Tool in Your Toolbox


the accounting numbers tool for construction contractors


What’s the most useful tool in your toolbox? No, it’s not a measuring tape, although measuring tapes are useful. What’s more useful is what that tape represents. It’s your accounting numbers! Master this tool, and you can go places many other construction contractors only dream of.

 

Counting ON the Numbers

Here’s the deal: not only can you count the numbers, but you can count ON the numbers. It’s basic; you learned it when you were six or seven. You discovered that when you have two apples and you add two more apples, you have four apples. You don’t have any reason to go to bed at night worried that the basic principle will change. You will never wake up in the morning and discover that when you add two apples to the original two apples, there will be only three apples. Ain’t gonna happen!

 

Furthermore, you and your team count on numbers when you add, subtract, divide, multiply, and work with fractions during pre-planning, building, making changes, and then completing the project. You can measure the area, volume, length, and width. You must know how many square yards of carpet are needed or how much lumber (paint, fittings, faucets, wire, windows, shingles) should be ordered. You already have a working knowledge of how numbers allow you to complete your job.  

 

Making Friends with Accounting Numbers

Don’t worry — it’s not about trying to turn construction contractors into “boring” bean counters. The idea is that when contractors become acquainted with their accounting numbers, they become dynamic and knowledgeable construction business owners who can wield the accounting numbers tool with aptitude and precision.

 

Using the accounting numbers tool allows construction business owners to see their financial transactions and interpret them to manage their company’s resources more efficiently and effectively.

 

It gets heady when contractors discover what the accounting numbers are telling them and how to use that information to identify profitable growth and improvement opportunities.

 

The Accounting Numbers Tool and Decision-Making

Knowledgeable construction business owners use their accounting numbers tool (including balance sheets, income statements, and cash flow statements) to see a snapshot of their company’s assets, liabilities, revenues, and expenses. This tool also includes a historical record of the company’s financial activity over time. Putting that information together allows for a more informed and mindful approach to making better decisions.

 

The Accounting Numbers Tool and Regulatory Requirements

Wielding your accounting numbers tool well means you’ll be able to comply with laws and regulations related to financial reporting, financial disclosure, and taxes. You will have the information needed to meet legal and regulatory requirements.

 

The Accounting Numbers Tool Stops the Guessing

The accounting numbers tool allows construction contractors to stop shooting in the dark. They gain an understanding of key metrics like COGS, net income, and cash flow. Furthermore, they gain control over their finances and know what’s happening in their business.

 

The bottom line is they know exactly where their construction business stands financially.

 

 

The Accounting Numbers Tool from Our Standpoint

The team at The Profit Constructors offers practical guidance concerning accounting needs. We could leave it at that.

 

But we don’t!

 

We offer practical guidance AND make it a first concern to give construction contractors the necessary information to improve their use of the accounting numbers tool. Our goal is to aid our clients in becoming dynamic and knowledgeable construction business owners who can wield the accounting numbers tool with aptitude and precision.

 

 

Ambitious Construction Contractors look to The Profit Constructors to provide advocacy in dealing with:

 

  • Clients and customers

  • Employees and subcontractors

  • Vendors and service providers

  • Governmental entities

 

Working with The Profit Constructors gives Construction Contractors the means to organize their operations in ways that help them:

 

  • Remain informed

  • Avoid hassles

  • Reduce risks

  • Be future-ready

 

Ready for action? Or want to know more? Get in touch today to schedule a complimentary discovery call. 866-629-7735

Comments


bottom of page