How many times have you heard it, “New Year, New you?” At least a few hundred… today, right?!

As cliche as it may seem, the new year really is a great time for reflections, resolutions and goals. Not only is a great time to set personal goals and resolutions, but it is also a great time to evaluate your construction business, reflect on where you’ve been, and set goals for where you want to go. It’s time to evaluate and reset to start out fresh and grow in the upcoming year!

As a construction business owner, here are 5 questions to ask yourself when you are planning and resetting for the new year.

Was my financial file setup correctly?

Are you getting the information you need out of your financial reports? If you aren’t, it’s likely due to the way your financial foundation or base is set up. Your financial base consists of your chart of accounts, cost codes and list items. It affects how your financial data appears on your reporting. If it’s not set up properly, you will not get accurate data. The new year is a great time to revisit your financial base to get the information you require. As your business grows, the market changes, etc., it is a good idea to revisit your foundation to make sure it still works for where you are at in your construction business and where you are heading next.

Simply put, if your financial base is not set up correctly for your company, you’ll never get the right reporting out of your financials. It’s time to get it right so you can get the information needed to run and grow your business.

What financial data do I need to track?

You’ve set your yearly goals and now is the time to decide what data you want to track to monitor your progress against those goals. What are your revenue goals? What is your profit margin? When will you be financially ready to hire? How accurate are your budgets? What are your costs, specifically by line item? Are you tracking your Accounts Receivable Turnover Ratio to help manage your cash flow?

All of these goals and KPIs will require different data and reports to be generated for tracking purposes. If you can get your reports set up at the beginning of the year, you can easily pull those numbers each month, saving you time and frustration. The last thing you want to do is get through the year and say, “I wish I would have been tracking this sooner.”

Is there additional software that would streamline, or even automate my current processes?

What software are you using? Is it working? Are you using multiple software platforms and are they working together? It could be time to implement new software, switch software or decide if what you are using is working for you. It’s also a good time to determine if you are using your software to its full potential, as in if you should take advantage of all of the bells and whistles your software can provide… like the progress invoicing function of QuickBooks or the financial modules in your project management software.

Plus, many times software subscription plans give discounts if you buy for the year, instead of month by month. Take advantage of this where you can.

Should I hire my contracted laborer as an employee?

Hiring an employee is a big deal and there is a lot that goes into it. If your business is growing, it might be time to hire your contracted help as an actual employee. It is a good time to determine if hiring would be better for your business. Some benefits of hiring to consider are:

Money savings
Freeing up time
Having contracted labor on your schedule

Once you decide to hire employees, that does mean payroll and set up but it could be very much worth it in the long run. Plus, if you are tracking the right numbers (see #2 above), you will also easily be able to tell when you are financially ready to hire.

What am I doing that I can outsource?

As a construction company owner, your time is extremely valuable and you need to make sure you are using it effectively. Not only is it what to you WANT to be doing, but what SHOULD you be doing to operate and even grow your business. Can you outsource back office items such as: administrative work, financial management, marketing or even answering the company phone? The new year is a good time to review what you are doing, what you want to be doing and what you can outsource.

Financial Partners

Overall, the new year brings opportunities to adjust, pivot, implement new software and processes. It’s a good time to make improvements so your construction company is more efficient, more streamlined and ultimately more profitable. Having a partner like 24hr Bookkeeper can not only help you manage your finances, but can also help you see trends in your financial reports, opportunities for growth and set you up for long-term success. We are a resource for your every day business needs.

Need help transforming your financials this year? Take the first step and set up a free consultation with us today!