630: Small Business Administration - Essential Strategies for Contractors

This Podcast Is Episode 630, And It's About Small Business Administration - Essential Strategies for Contractors

Running a small business is exciting, but let’s be honest, managing the admin side of things can feel overwhelming. Between keeping financial records, looking after daily operations, and ensuring compliance with tax laws, it’s easy to feel buried under endless to-do lists. But here’s the good news: with the right strategies, small business administration doesn’t have to be a headache.

Here are some practical steps to streamline your business admin, save time, and boost productivity, leaving you with more energy to do what you love – whether it's working at the jobsite or growing your business!

Why structure is the foundation of success

Think of admin tasks as the backbone of your business. If these tasks aren’t handled regularly and properly, things can quickly spiral out of control. Staying on top of your admin enables you to see how your business is truly performing, reduce legal risks, and ensure everything runs smoothly. 

  Here’s where accounting software can make your life easier:   Automated Bookkeeping: Track income and expenses without lifting a finger. Payroll Made Simple: Handle staff payments quickly and accurately. Real-Time Insights: Monitor cash flow and performance at a glance.

Popular tools like Xero or QuickBooks are ideal for small construction businesses seeking to streamline administrative tasks. And the best part? They store everything digitally, ensuring you’re audit-ready at any time.

Go digital with your records.

Paper receipts and ledgers are so last decade. Not only do they accumulate unnecessarily, but they’re also at risk of being lost or damaged. Transitioning to digital records is a crucial step toward administrative efficiency.

Here’s how to make it happen:

Scan and Upload Receipts: Use mobile apps to digitize paper invoices. Cloud Storage: Securely store records online for easy access and backups. Spreadsheets or Software: Use spreadsheets for basic tracking or invest in platforms that allow you to tag and code transactions instantly. 

Digital records reduce clutter and make year-end tasks, such as taxes, much easier.

Organize the administration with task breakdowns.

Breaking admin tasks into daily, weekly, monthly, and annual routines will make them feel more manageable. Treat them like habits – they may be small tasks, but they add up to make a significant impact.

Daily Tasks

Devote just 15–20 minutes a day to knock out small but essential tasks like:

Checking emails and responding to client queries. Logging sales and expenses into your accounting software. Scanning new receipts or invoices.

Weekly Tasks

Dedicate time weekly to review your business’s operational health:

Pay suppliers and review outstanding invoices. Reconcile accounts to ensure everything has been logged correctly. Schedule social media or post updates to engage your audience.

Monthly Tasks

At the end of each month, set aside time for:

Payroll processing (if you have employees). Reviewing inventory levels and replenishing stock. Analyzing your profit margins or hitting sales targets.

Annual Tasks

The big picture matters, too! Annually, focus on:

Preparing your taxes (or outsourcing them). Reviewing your business plan and setting goals. Evaluating ongoing contracts, insurance, or subscriptions.

Breaking tasks into bite-sized chunks will help you stay on track and avoid falling behind.

Tip: Set calendar reminders to stay on track!

Pro Tip: Ask us about our "Five For Five at Five"

When to consider outsourcing?

If the admin is still consuming too much of your time, outsourcing can be a game-changer. Hiring a virtual assistant, part-time administrator, bookkeeper, or accountant can free up your schedule for high-impact tasks.

Here are some options to consider:

Virtual Assistants can handle tasks such as appointment scheduling, data entry, and email management. Accountants and bookkeepers can ensure accuracy and compliance with tax laws, saving you from costly errors. Freelancers or part-time administrative staff can step in as needed without the cost of hiring full-time employees.

Outsourcing doesn’t just reduce your workload – it also gives you peace of mind that specialists are handling complex tasks.

Important Consideration:   Specialized accountants understand the nuances of the construction industry, including project costing and compliance with tax regulations, enabling them to provide tailored financial solutions. This expertise is crucial for navigating the complexities associated with managing construction finances and ensuring that your financial records are accurate and compliant with applicable laws.   Moreover, outsourcing minimizes the risk of errors that can arise from doing-it-yourself (DIY) accounting. Experienced specialists leverage advanced accounting software to track expenses, monitor cash flow, and prepare detailed financial reports. This precision not only aids in effective decision-making but also helps identify areas for cost savings and revenue growth. By having accurate and timely financial information, you can make informed decisions that positively impact your bottom line.   In Summary   Build a Sustainable Routine

The key to effective administration in your construction business lies in consistency.

Use Digital Tools: Leverage technology to stay organized and automate repetitive tasks, from invoicing to document management.

Establish Routines: Make your administrative tasks part of your daily or weekly habits to prevent them from piling up.

Seek Expertise: Don’t hesitate to get help when necessary. Whether through software or professionals, utilizing available resources can free you to focus on your core business.

By implementing these practices, you can establish a foundation for efficient operations and enhanced profitability in your construction business. If you’re looking for assistance in streamlining your administrative processes, don’t hesitate to reach out! Whether you have questions about your finances or need guidance on better practices, I am here to help. It’s time to work smarter, not harder.

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 managing 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 sharie@fasteasyaccounting.com