In the second installment of my talk with Kendra Ferguson, we delve into finances and accenting best practices from the perspective of a general contractor and that of a CPA raised by contractors. Kendra's insight into construction specific accounting practices are vast. She explains job costing to determine whether you are estimating properly to achieve target margins bc most contractors expectations for gross profit are overstated when its actually calculated correctly by job costing. Then it's more about our bad habit, as contractors, of bank account balance accounting. She is explicit in her terms of explaining balance sheets and income statements. Mike got schooled a bit about cash flow and kept quiet as she explained how to understand positive cashflow. And, finally, we chatted about forecasting the financial future of your company to know where you need to go and when to raise your rates!
The Contracting Handbook podcast discusses the behind the scenes running of a small contracting company. Your host, Mike Knoche, has been running his small contracting company for 16 years. Here he shares what worked for him, mistakes he made along the way, and his “aha” moments. It’s everything from starting up, working with employees, subcontractors, and client. He’ll get into proposals, contracts, marketing and much more. It won’t just be Mike’s perspective as he will talk to contractors from all over the world of any variety of size and structure because through his travels in the off season he’s come to see that contractors everywhere have similar business needs, struggles, and ideas in common. Contact Mike at firstname.lastname@example.org for questions, comments, or to be interviewed.
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