Hiring a financial advisor can help you whip your cash flow management into shape
Successful business owners recognize that they can’t do everything alone. This year, don’t let taxes and reporting take up all the time you need to devote to building your business and managing operations.
Consider meeting with a financial advisor who works specifically with contractors and home builders, and you’ll find peace of mind. You’ll be able to focus on other things, and may even be able to take that vacation you’ve been putting off.
Here are some big benefits you’ll get from working with a financial advisor.
Time and energy savings
As mentioned already, working with a financial advisor will actually open up a lot of time for you. Leave the number crunching and some of the administrative work to these experienced professionals.
Many construction company owners used to be builders themselves. So, while you may know how to build, you may not be a master of the administrative and financial side of things.
Hiring a professional will allow you to focus on growing your business and interacting with clients. And, you’ll have the energy to do it with the behind-the-scenes legwork off your plate.
Help with cash flow management
Cash flow is sometimes hard to grasp and measure. You see a lot of funds in your bank account, so you think you’re doing fine. However, you’ve maybe forgotten about upcoming vendor payments or other expenses.
Research shows that 20 percent of construction companies go out of business within the first year. Often this is because they can’t get a hold on cash flow management. They have no idea how much is coming in versus what’s going out.
Profit and loss tracking and management are crucial for your business to succeed long term. A financial advisor can help you figure out what your actual cash flow looks like, and set you up with feasible ways to track it in the future.
Saving money by not hiring a finance expert is never worth losing your business and all that hard work you’ve put into it. Investing in help will be worth it in the end.
An experienced financial professional can also help you whip your paperwork system into place; ideally by getting rid of the paperwork all together and make everything digital.
There are many tools that you’re probably not using. For example, QuickBooks is a tool that tracks your income and expenses and can help you when tax time rolls around. Or, BuildTools, which was created by builders for builders. This is an online platform for overall construction project management, including budgeting, job relegation, and scheduling.
Because you may not even be aware of these tools, an advisor can step in and teach you how to use them. You could potentially shift everything online, from employee payments and scheduling to invoicing and contract signing.
Going paperless allows you to:
- spend less on printing supplies
- have important information accessible to any employee from anywhere
- monitor worker location
- automate and therefore streamline cumbersome processes
- view business data in an easy-to-navigate dashboard
Working with a professional can help you set up and learn how to use these helpful tools and systems.
Find a competitive advantage
When you work with a construction-industry advisor, you’ll also have access to important market and competitor knowledge. These advisors are up-to-date on best practices and can help you keep up with new technologies.
Financial advisors can also make recommendations about which vendors or partners to use, and which can save you the most money. Because these professionals help similar businesses manage cash flow all the time, they know their stuff and will want to help you succeed.
Builders have to deal with ever-changing codes and regulations. Instead of trying to understand everything from Google searches and potentially making detrimental mistakes, work with an advisor who already knows this stuff.
Complying with laws is crucial for your business, especially during tax time. A financial advisor will ensure that you file everything correctly. And when you have to deal with a tax audit, these professionals know how to prepare for and manage the entire process.
No Boundaries Advisors serves home builders, heavy construction companies, contractors, and developers. We provide a range of advisory services, including CFO, accounting, general compliance, and bi-annual tax planning. Contact our team today to learn more about how we can help you gain peace of mind.