Construction Junction: Where Construction Meets Accounting

Hey, welcome back to the Construction Junction. I am your host, Tnya Schulte, founder of The Profit Constructors, where, as always, we are helping you run with the big dogs. Well, here's something really cool. We had a listener named John from Texas reach out and send us a question. I had asked for you guys to reach out with your greatest needs. And so, John, thank you so much for listening, and thanks for sending over such a great question. I got to be honest, when Jennifer told me that you had sent it, I got all excited. Because this is exactly the kind of thing that I love to talk about and love to share. So I appreciate also that you shared your current method for handling your overhead, or as you had called it, which is a great term also, GSNA, right? So it's all of our administrative costs. And so John had shared that they have typically tended to handle calculating their overhead or their GSNA a certain way. And they've recently made a switch to a great friend of ours from the podcast Foundation, which is a great software. And a lot of you out in this world will probably have heard of it. And he was just kind of wondering, like, are they doing it right? And what is the way that other people do it right? And so he had mentioned, you know, obviously, there are a lot of different ways that you can get into doing this stuff when you're doing job costing, because job costing is what we call cost accounting. And so to be really clear, when we start talking about these different types of terms in the accounting world, one of my great thought leaders in the space, one of the folks that has taught me a lot, his name is Ron Baker. I would highly recommend that you reach out and listen to some of his podcasts as well. But he calls himself a recovering cost accountant because when we get into the world of cost accounting. Technically, what we're doing is we're making our best guesstimate of what's going to happen to kind of understand costs across a section of jobs, across a section of time, right? And so none of it is actually going to be down to the penny reconcilable to what actually did happen or what our actual direct costs are. Pretty common in the construction world to want to find a way to account for and be able to estimate for your overhead costs and to be able to really give your estimators and project managers a good tool to understand how their jobs are performing. And doing it as a percentage of labor costs, which is the approach that John had mentioned in his email to me, is actually pretty common in the construction world. In fact, it's our preferred method at the Profit Constructors. It's pretty common for companies that have a predictable mix of work and can reliably forecast your annual labor costs. So when you have work that's pretty steady and your jobs aren't changing, when your jobs have a consistent labor to materials ratio, this approach works really well. And it's straightforward to apply in estimating. So John, if you guys continue to do that, I don't think you'd see any problem with that. Where you're going to see some variation is when companies have a wider range of job types. If you don't have that same mix that we talked about, that labor to materials ratio, and things are kind of consistently changing over your job types, then it's going to be a little bit harder to kind of rely on that labor burden to actually carry you along through all of that. So some are going to base that on total direct costs, so they can recover their overhead evenly across labor-heavy and material-heavy jobs. Others tend to take a blended approach, so they'll use a higher rate for your labor-heavy work and a lower rate for your material-heavy work. And then some actually even use a fixed dollar per labor hour instead of a percentage. We prefer to kind of go that route a lot of times when there's sort of this weird mix, and so we'll help companies establish that. And then there are companies who prefer to recover overhead costs outside the job cost system altogether. And in this case, you'd be monitoring recovery at the company level while keeping your job cost reporting focused on direct costs and gross margin before overhead. And in that case, you're going to have to do a really good job of keeping your estimating and project management team in the loop as to what your current overhead percentages are and how you guys are calculating that on a very regular basis so that they know kind of what to estimate for, what to plan for, and how to track against how their jobs are doing, right? John, since you're on foundation now, I know that they offer three main ways to handle GS&A. So you can do it through the payroll module, through the job costing module, or through the general ledger module. Each one works just a little bit differently. I'm not really an expert in how each one of them works. The right choice is going to depend on your kind of your business model or reporting needs, but I would definitely recommend reaching out to your foundation rep so they can kind of walk you through those options and guide you towards the best choice. But ultimately, the method that you choose, I would say matters less than making sure that your estimating process and your job cost reporting speak the same language, right? So you're going to want to be sure that you're cross-training across all of your teams and everyone's on the same page. So if you recover overhead one way in your bids, your job cost reports should reflect that same method. And that's how you're gonna get gross profit numbers that you can trust and spot any overhead recovery issues before they snowball. So thank you so much, John, for that great question. This is one of my favorite things to do. Like I said, to answer questions like this from our great listeners. And if you have any others, feel free to send them our way. Thanks so much. Have a great rest of your day.

Tonya Schulte from The Profit Constructors kicks off an exciting new series on budgeting and estimating for construction jobs. She's reaching out to YOU—contractors, estimators, and business owners—to find out what your biggest struggles are when it comes to job budgeting.

In this episode Tonya Schulte, founder of The Profit Constructors, shares her personal journey from working in construction office accounting to building a firm that advocates exclusively for subcontractors and construction trades. Discover why she's passionate about helping smaller construction businesses put strong financial systems in place, gain control over their operations, and run with the big dogs. Whether you're feeling squeezed between GCs and suppliers or you're ready to stop flying blind and start making confident business decisions — this one's for you.

In this video, Tonya Schulte of The Profit Constructors breaks down the key differences between traditional accounting firms and firms like hers that specialize in management accounting for construction trades. Using relatable trade industry examples, Tonya explains why it's crucial to find the right accounting partner—one who doesn't just file reports but helps you build a business that thrives. If you're tired of feeling like your accountant is just checking boxes, this is for you.

Join Tonya Schulte from The Profit Constructors as she explores effective strategies for handling 1099 forms and collecting W-9s at the end of the year. Discover the importance of prompt communication with vendors and the consequences of backup withholding if necessary documentation isn't provided. Learn why documenting your attempts to collect W-9s is vital in case of an audit, and how implementing a robust policy can safeguard your company moving forward. These essential tips will help ensure a smoother and more compliant year-end process. Don't miss out on key strategies to avoid administrative nightmares!

Tonya helps you set the standard for your business. No W9? No Check. Protect yourself with best practice and standards.  

Join Tonya Schulte from The Profit Constructors as she dives into the common year-end questions about 1099 forms. Discover when you need to collect a W-9 from subcontractors and independent contractors, and learn the exceptions for corporations. Tonya provides practical advice on handling gray areas and ensuring compliance. Tune in to stay informed and prepared for the year-end financial processes.

Welcome to The Profit Constructors! Join Tonya Schulte as she delves into the vital process of collecting and managing W-9s in the construction industry. In this episode, Tonya shares expert tips to help you stay compliant with 1099 reporting requirements, ensuring a seamless workflow through effective organization. Discover the importance of making W-9 collection a standard part of your vendor onboarding process and learn how to safeguard sensitive information using digital tools like Knowify and QuickBooks Online. Tonya highlights the significance of verifying form completeness and the benefits of annual updates to keep your records current. By implementing these essential practices, you can significantly reduce the stress and complications often associated with year-end financial reporting. Tune in and master the W-9 process to enhance your construction business operations.

Welcome to another insightful episode of The Construction Junction podcast, presented by The Profit Constructors. Join our host, Tonya Schulte, as she chats with Brian Cacian from Foundation Software. Dive deep into the history and evolution of Foundation Software, a pivotal tool designed to streamline accounting for construction companies. Brian shares the journey from the company's inception in the mid-80s to its growth into a comprehensive suite of tools that includes payroll services, project management, and more. Learn about the unique features that set Foundation Software apart, such as its robust payroll capabilities, job costing, and the integration of various specialized tools like estimating and HR management. Discover the importance of understanding the company's culture, customer service, and the practical applications of emerging technologies like AI in construction accounting. Whether you're a small contractor or a growing construction firm, this episode offers valuable insights into choosing the right software to meet your specific needs. Stay tuned until the end for Brian's expert advice on ensuring a smooth transition to a new accounting system and how to leverage detailed reporting to drive business success.

In this exciting episode of the Construction Junction podcast, we explore the intersection of accounting and construction. We dissect common issues faced by construction company owners and accountants, and discuss the role of software developers. Do they truly comprehend your needs, or is it a one-size-fits-all approach? Tune in as we delve into the significance of industry-experienced software developers and discuss the concept of 'eating your own dog food', a term representing thorough understanding of customer needs. We also discuss the transition into the cloud-based era and the benefits it brings. Our special guest, Eric Fortenberry, founder and CEO of JobTread reveals his journey and how the software could revolutionize the industry. The podcast provides valuable insights about transitioning from traditional project management to a modernized approach in construction business. Find out how you can bridge the gap between accounting and construction and leverage technology to your advantage with this episode. Advancements in Construction: JobTread's Journey to Enhance Profitability and Efficiency In this episode, we take a deep dive into the creation and evolution of JobTread, a software built based on firsthand industry needs. The software has helped organize business operations and increase gross profit by 43% for users. Discover its user-friendly interface, automated processes, and API-first approach benefitting users with seamless integrations and real-time data synchronization. We tackle the challenges of technological advancement, emphasizing the need for readiness to adopt newer technologies and not get left behind. Hear about the importance of budget-based estimation and how accurate budgeting and costing can prevent risky situations in construction. Each construction company has unique needs. It's crucial to have software that can specifically cater to your business. Learn about how JobTread's versatility allows it to serve different types of businesses in the construction industry, showcasing its adaptability and the power of custom-tailored solutions. Elevating the Construction Business: JobTread's Impact on Customer Experience and Collaboration Offering an exceptional customer experience can elevate your business in the construction industry. We delve into how JobTread has been able to streamline this process, from catering to clients' specific needs to facilitating seamless operations regardless of the scale of the construction job. Learn more about how JobTread's simulations help turn tough negotiations into agreeable outcomes. This episode also highlights JobTread's partnerships with accountants and how this program is opening up new opportunities for businesses. We also discuss JobTread's vast experience in the construction industry and how their comprehensive resources can assist you in setting up your own business. Tap into JobTread's collection of training programs, live sessions, and certification modules to give your business the boost it needs. Find out how you can revolutionize your construction business with JobTread at www.jobtread.com.

In this insightful episode of the Construction Junction podcast, presenter Tonya Schulte focuses on how construction subcontractors can navigate through the complex business landscape. The show lights a torch through the historical evolution of contract risk management in construction and underscores the importance of contract negotiations and management for better cash flow and profitability.  Guest Cian Brennan shares lessons about using contract management software like Quantum to manage changes and delays, negotiate better contracts and reduce costs. They unravel the misunderstood notion of 'pay when paid' and 'pay if paid clauses' which often lead to disputes and elucidate why efficient contract management is an invaluable tool in the constant battle against risks in the industry. The conversation goes deeper into the subject, touching on the essential transitions required when a business grows from a small to a medium scale and overlooks the essential departments needed to succeed at a higher level. Their chat explores the necessity of timely action when faced with change orders, a crucial step towards building a reputation of professionalism and efficiency in managing delays and disputes. This enlightening episode puts viewers on the right track towards achieving an increased 5% to 15% margin on each project with better cash flow. Join the intense discourse and learn about the best practices for managing, negotiating, and reviewing construction contracts. Contact the show at hello@theprofitconstructors.com.

Join host, Tonya Schulte, for another exceptional episode of the Construction Junction podcast, presented by The Profit Constructors. This episode takes a deep dive into the exciting and often overlooked world of pre-construction. Our special guest, John Sibley, CEO and founder of TrueBuilt, sheds light on how modern technological tools are transforming pre-construction and setting the foundation for successful construction projects. John illustrates the power of TrueBuilt's unique platform, a blend of cutting-edge AI, computer vision, and heavy-duty automation, designed to simplify and streamline pre-construction tasks. With pioneering features like automatic document renaming, TrueBuilt enhances accuracy and cuts down on time-consuming manual labor, changing the industry's outlook on bid management. While TrueBuilt boasts impressive automation capabilities, the platform provides room for manual adjustments, striking a balance that allows construction contractors to achieve utmost efficiency without compromising the quality of work. This episode uncovers the TrueBuilt journey, right from its launch, and its consistent evolution into an indispensable tool within the construction sphere. Addressing the challenges of transitioning to new technology, John discusses common hesitations that clients face and how TrueBuilt can prove its worth by highlighting its, accuracy and efficiency. He also divulges some of TrueBuilt's future integration plans, setting the balI rolling for further innovation in the construction industry. Discover a new perspective on pre-construction, explore TrueBuilt's platform, and all it offers in this insightful episode. Listen in and be part of the conversation, unravelling new paths to profitability and productivity in the construction industry.

Dive into the rich dynamics of the construction industry through this enlightening episode of Construction Junction with your host, Tonya Schulte. Discover pivotal insights into workforce growth, development, and its alignment with accounting in the construction sector. This episode tackles the industry's daunting challenges such as the declining labor pool and the aging workforce. Learn about effective strategies like offering rewarding compensation, fostering a productive company culture, and tapping into the power of collaboration. Be part of thought-provoking discussions with industry experts shedding light on compelling data trends and solutions to the current industry issues with Aaron Faulk of Moss Adams.  Whether you're a seasoned veteran, a budding newbie, or an insightful advisor, enhance your perspective of the construction industry and explore potential growth arenas. Gain actionable takeaways that can be directly applied to your respective business. Further explore the integral role of a robust company culture in attracting and retaining efficient employees in the construction industry. Understand the importance of a conducive, collaborative work environment, its impact on overall productivity, and how having a strong culture translates into a competitive edge in the industry. Hear from the founder of Scott Coatings on his company's evolvement over 20 years, the rise in regulation measures, and the incorporation of modern digital practices into construction. Learn about the pressing need for workforce development strategies against the backdrop of an aging workforce and the over-emphasis on college education. Wrap up with an inspiring discussion on current and future workforce development strategies, the power of collective insights, and the importance of a culture of continuous learning and development for long-term success. This episode is a must for industry leaders, visionaries, and anyone interested to unravel the multifaceted world of construction industry development strategies.

The Construction Junction host Tonya Schulte, with The Profit Constructors, welcomes guest Luke Boyenger from Cruzumi CFO & Advisory. The two sit down to discuss Fractional CFO services and taking control of your Finances and your Future. Don't miss it.  

Our host Tonya Schulte welcomes owner Brian Harding with Service Industry Success. Brian is not a coach but a proven growth and employee problem solver. Tonya and Brian discuss current issues facing service industry businesses. They are joined by Will Wallensen of PJ Roofing LLC, and the colleagues tackle real-time questions. Have a listen and then go check out Brian's Podcast too. 

  Tonya sheds light on this increasingly important topic of Cyber Security and the new FTC regulations. Please help her welcome Andrew Lassise from Tech 4 Accountants and Michelle Mitchell from Mitchell Consulting.  

The Construction Junction. Our host Tonya Schulte welcomes Sven Nelson with C2C Resources. Sven is The Guy that gets you Paid. They chat with Martin Smith from Ash Grove South. Join the conversation to find out more about streamlining your receivables. 

Host Tonya Schulte of The Profit Constructors welcomes guest Jeremy Macliver a certified EOS Implementer and Coach. Jeremy shares how he is  helping entrepreneurs like his client Steve Hanrahan with Reseco Advisors, achieve their dreams and leave a legacy that other entrepreneurs would be envious of.

Being a construction accounting pro is more difficult than being a rocket scientist, and we can prove it -- listen to our latest Construction Junction podcast with custom home builder and podcaster Mark D. Williams -- you'll see what we mean!

The 25th episode of The Construction Junction: where accounting meets construction. Your host Tonya Schulte welcomes Paul Deloughery of Sudden Wealth Protection Law, and George Athan, CEO of MindStorm Strategic Consulting. They discuss the importance of estate planning and wealth management.

In this episode of The Construction Junction: where accounting meets construction, Tonya welcomes Rick Harris from Workboot Consulting and Adam Godeke owner of GT Construction LLC.  "The hardest person to lead is yourself" and Rick takes on that challenge by helping business owners stay on track and regain their lives whiles building a successful business. 

In this episode of The Construction Junction: where accounting meets construction, Tonya welcomes Francisco Enriquez and Matt Calvano with Adaptive. They discuss how Adaptive can automate your job costing and control your cash flow. Adaptive customer Scott Turner from Riverside Homes joins the conversation to further dive into the benefits of using Adaptive. 

In this episode of The Construction Junction: where accounting meets construction, Tonya welcomes Ash Beetson with nettTracker. They discuss the valuable benefits of automated journal entries and statements. Guest David Varnum from CF&O joins us, providing great user feedback and more benefits that nettTracker has provided to his company. 

In this episode of  The Construction Junction: where accounting meets construction, Tonya welcomes Ryan Reber with BusyBusy.  They discuss the valuable benefits of time tracking. Guest Angie from Wiseman Builds provides us with great user feedback and more benefits that BusyBusy has provided to their company.     

In this episode of  The Construction Junction: where accounting meets construction, Tonya welcomes Nick Foucault from Points North.  They discuss certified payroll and the benefits offered. Guest Kelly Littles of Bay Alarm provides us with great user feedback and more Q&A.  

Our host Tonya Schulte welcomes guest Dan DeLong from Dan Width and QBO Power Hour The two discuss the importance of building community not only in the industry of construction accounting, but in all areas of business. We hope you can connect and the episode resonates with you. A rising tide lifts all boats.   

Our host Tonya Schulte is headed to the Scaling New Heights Conference this month. In preparation for her return with all new apps/services/software, we are sharing her post interview with colleague Richard Roppa-Roberts of Roundtable Labs, from last year's conference.  We look forward to bringing you all the latest next month. 

On this episode of The Construction Junction our host Tonya Schulte welcomes expert Omri Mor from Routable. Modern bill payments, payouts and invoicing. Omri and Tonya sit down with colleague Jim McCarty from Fresh Look Financial and discuss the benefits and possibilities when using Routable. 

On this episode of The Construction Junction our host Tonya Schulte welcomes expert Nat Carroll with Insure Compliance. The importance of keeping your team safe not only boosts morale and creates great culture but is a great return on investment. Nat and Tonya sit down with owner Steve Carroll with GRAZAK Mechanical and discuss the benefits and outcome Safety compliance. 

The Construction Junction host welcomes Knowify expert Terrin Kalian. The two discuss the benefits and options that using Knowify can add to your Construction business. They welcome product user Gregg MacDougall from Gregg Home Services and talk about what real outcome has been achieved after using Knowify.  To learn more about What our team does and the tech stack we support, please email us at Hello@theprofitconstructors.com  

The Construction Junction host dives in to discuss Cash Flow Strategies.  Tonya welcomes guests Martha Yasso, of Yasso Books and Joe Kerlin from Deer Valley Plumbing. Discover how you can better your business and be ready to Run with the Big Dogs. 

The Profit Constructors presents Coffee in Construction hats with Colleagues. Meet the guests for our upcoming podcast The Construction Junction. This week we talk to Martha Yasso from Yasso Books and Joe Kerlin from Deer Valley Plumbing. Get to know the people behind these great companies and meet us back here tomorrow as we discuss Cash Flow Strategies. 

Our host Tonya Schulte welcomes in the New Year by introducing you to some of the team members at The Profit Constructors. We are committed to helping our clients run with the big dogs and bringing valuable content to our listeners. Thank you for joining us and stay tuned as we have a year of great products and procedures to share with you, your team and your clients.

This very special episode features highlights from industry leaders attending Scaling New Heights conference 2021. Our host Tonya Schulte gives our listeners a real "Word on the Street" vibe from the conference.  Welcome our guests: Marc Viscent with Knowify Justin Hatch from Reach Reporting Brandon Morris with Barrons Inc Andrew Wall from CPA4it Manny Torres with Rock My Image as well as founder and members from Roundtable Labs Get a glimpse into their lives, their companies and their conference experiences. Lastly, Tonya herself is asked about her #SNH21 experience in a very special interview with her mentor Richard Roppa-Roberts from Roundtable Labs.

This very special episode features highlights from industry leaders while attending Scaling New Heights conference 2021. Our host Tonya Schulte from The Profit Constructors interviews and gives our viewers a real "Word on the Street" vibe from the conference. Representatives from: Relay Financial Veem Patriot Software Go To My ERP CorPay RoundTable Labs and Anchor give us a sneak peek into their lives, their companies and their conference experiences. Enjoy.

Our host Tonya Schulte welcomes Kelly Gonsalves, Founder of Totally SEO and Eric Perry, Founder Eco Roofing Solutions. A great conversation about the how and why Search Engine Optimization is necessary for your company and clients. Get your business on track, up to date and Google friendly. Our Guests: https://www.totally-seo.com/ https://www.ecoroofaz.com/  

The Profit Constructors presents our first episode of Coffee in Construction hats with Colleagues. Meet the guests for our upcoming podcast The Construction Junction. This week we talk to Kelly Gonsalves from Totally SEO and Eric Perry from Eco Roofing AZ. Get to know these amazing people behind the great companies. https://www.totally-seo.com/ https://www.ecoroofaz.com/

Our host Tonya Schulte welcomes Andrew Lassise, Founder of Rush Tech and Monique Swansen, Founder and CEO of Automated Accounting Services and Accounting for Green. A great conversation about the benefits of hiring an IT firm to help keep your company on the cutting edge of Internet safety, not only for your own company, but also for all your clients. Our Guests : https://rushtech.online/ https://automatedaccountingsvc.com/  

Our host Tonya Schulte welcomes Josh Umar, Executive director and Dick Roberts, President of the Arizona Chapter of American Subcontractors Association. A great conversation about the benefits of belonging to a trade association. You will notice some differences in this episode as we have included some footage from the break room floor so you can really get to know the host and her guests.

The Profit Constructors presents the junction between accounting and construction. Our host Tonya Schulte welcomes Jennifer Smith from Scribe and Aubrey Dell from Deer Valley Plumbing. Tonya introduces us to the benefits of using Scribe and discusses its newest features and client benefits with expert Jennifer and user Aubrey. Please visit https://scribehow.com/signin and start Scribing today. For more information about The Profit Constructors please email Hello@theprofitconstructors.com  

The Profit Constructors presents the junction between accounting and construction. Our host Tonya Schulte welcomes Yoseph West from Relay Financial and Matthew Fulton from Parkway Business Solutions. Tonya introduces us to the benefits of using Relay Banking and discusses its newest features and client benefits with expert Yoseph and user Matthew. Please visit https://relayfi.com/ for more information on the most modern banking.

Roundtable Lab presents Construction Junction podcast, the junction between accounting and construction. Our host Tonya Schulte welcomes Richard Roppa-Roberts of Roundtable Lab and several friends from the Roundtable groups, including Matthew Fulton of Parkway Business Solutions, Jim McCarty of Craftsmen CPA, and Louise Pooley of Pooley Accounting Services. Tonya and Richard dive in and share all the benefits of Roundtable Labs. The group shares their experiences and their growth opportunities since being a part of Roundtable Lab. Also mentioned in this episode are their favorite apps and products from Knowify, Clockshark, Relay Financial and Financial Cents. Join us as we bring yet another way to help your company Run with the Big Dogs.

The Profit Constructors presents the junction between accounting and construction. Our host Tonya Schulte welcomes Luke Zancanaro of ClockShark and Keiko  McPherson of Pro Co Painting. 

The Profit Constructors presents the junction between accounting and construction. Our host Tonya Schulte welcomes Justin Niedzialek of DDWKlaw.com and Michael Kaminski of Superior Contracting & Maintenance. 

The Profit Constructors presents the junction between accounting and construction. Tonya Schulte welcomes guests Julie Babcock-Hyde of Spark Accounting, and Kevin Morgan with Axiom AZ Construction. Together they discuss when is the best time to hire a CPA.

Our host Tonya Schulte explores the junction between accounting and construction. This months episode features Knowify product. Tonya welcomes expert Terrin Kalian from Knowify and user Ryan Balentine from Contour Audio. Join us in discovering how to help your company run with the big dogs.