Top 5 habits of successful construction businesses

Posted on 1st April 2021 by David Rudd

Giving advise to a construction company

We work with some incredibly successful clients in the construction industry, and over the years have given some valuable small business growth advice that allowed them to grow. Given this, we wanted to share our 5 top tips for running a successful construction business:

 

1) Subcontractor/employee status check and protection

In order to run a successful construction business, we all know that getting the right labour is critical. Once you have found your labour, ensuring you engage with them via the correct status can be the difference between making a profit and having lengthy (and possibly costly) conversations with HMRC to prove their status. Get the status of your team (external and internal) checked as soon as you can.

 

2) Sending sales invoices via Xero

You know the drill, do the work then get the invoice out.  What happens when you forget to invoice a job?  What if the customer doesn’t pay? Getting into a habit of sending all your sales invoices via Xero will mean you can manage your cash inflows much quicker. In our experience sales invoices via Xero means:

  • Less bad debt
  • Reduced time spent on admin
  • Higher profit margins as you have more time to crack on with the next job

Get the Xero app on your phone and tablet. Create your invoice and get it gone! Here at Steven Burton, we are experts in migrating your accounts to Xero.

 

3) Capture the costs before you lose them

We appreciate this one is dull, but leaving your invoices on the dashboard of your Van means potentially missing out on tax and VAT relief. Have you factored in paying HMRC more than the standard rates of VAT and Tax into your quotes?  Probably not. Dext Prepare (formerly Receipt Bank) is a great piece of software which captures your costs via email, photo or scanning receipts. Not only will this habit save you tax, capturing your costs daily will save you a tonne of time over the year. Speak to us about integrating Dext.

 

4) Get the right level of insurance

“A pandemic will never affect us” said a very high percentage of people in the UK! Would you take the same approach with insurance cover?  Probably not. Our advice for businesses of any size, not just small, is to get your insurance sorted before starting that big job you’ve just won. It’s worthwhile using a broker who has experience in your trade, they will ensure you have the right amount of cover.

 

5) Profit margins on each job

Wouldn’t it be interesting to know how much profit you make on each job?  This used to be a pipedream for many small and medium sized construction businesses. Now, this is not only a possibility, but something which is open to every business using the right technology. Using our range of cloud accounting integrations you’re able to check the profitability of each job. Once you know your most profitable jobs, it gives you incredible power to then look at how to repeat that process and win the next job. It’s how small business growth leads to more business.

 

Need help?

Remember, the Steven Burton & Co team have many decades of experience between us helping business owners just like you.  If you need a sounding board, some advice or a steer in the right direction, then get in touch.

David Rudd

David is an Accountant with over 15 years’ experience in helping a large number of different business owners in numerous sectors from consulting agencies to every area of construction you can think of.

At home dealing with numerous different types of accounting software from Xero to QBO and everything in between.  David is always on the lookout for new technology to help business owners to create more time for themselves and their teams.

With a healthy ambition of never resting on the results of yesterday, David is at his best when working with ambitious business owners who want to improve their businesses for eventual sale.

In his spare time, David is often found cheering on his two boys at football, building Lego (which he pretends is for his boys) or watching the latest TV series on Netflix.

Learn More

Built on cloud accountancy:


Get in touch

Our friendly customer service team are on hand to help with any queries you may have.

    We'd like to occasionally send you communications via email to keep you up to date with the latest company information. Please confirm if you would like us to contact you by checking yes or no below. You can unsubscribe at any time.



    This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

    LENA James
    LENA James
    2024-03-19
    We moved accountants to specifically follow David a number of years ago and have completely changed the running of our business for the better, through planning ahead we have managed to change our circumstances with an over drawn loan account and corporation and tax bills outstanding to a strategically run method of being able to clear the over drawn loan account and balance our other tax liabilities with advice and support from David We continue to be supported and take advice from his expert knowledge and guidance going forward and would highly recommend the Steven Burton team for your Accountancy needs.
    陈新谱
    陈新谱
    2023-12-12
    Great service. Helpful and friendly people.
    Vince Strafford
    Vince Strafford
    2023-10-19
    We moved our accountancy needs to Steven Burton and Co - specifically with David. It’s been night and day compared to our previous provider - we now have a partner who is helping us to develop our business and in a way that means we have long term security. Local, accessible and responsive - everything we need in a company that provides business critical services.
    MARK WALSH
    MARK WALSH
    2023-06-26
    The team here are fantastic - every detail thought of and explained clearly. I have no hesitation in recommending Steve and the team to any business, be it fledgling or established. You get what you pay for and more.
    Jo C
    Jo C
    2023-06-20
    The team at Steven Burton & Co have been lovely to work with, helping us with our partnership accounts over the last couple of years. They are always on hand to answer any queries we have and are happy to explain in as much detail as we require. Everyone we have spoken to has been polite, welcoming and extremely knowledgeable and we look forward to continuing to work together as our business grows.
    Sam Nagle
    Sam Nagle
    2023-05-12
    A truly fantastic accountants. Unlike any other accountants we have had in the past. They are 100 percent on the ball, helpful with fantastic advice. Not just sound accountancy advice but advising the business as a whole in various areas. Strategic quarterly reviews to really delve into the business to make sure profit margins are where they should be, and if they aren’t, they’ll look into improvements that can be made. Nothing is too much and the phone lines are always open for advice. Unlike most accountants their focus isn’t just on completing your annual accounts and not seeing you again for another year. I cannot praise the team enough for all the hard work they put in! They really have shifted our focus onto the aspects of the business that we were perhaps neglecting!
    Steve Lincoln
    Steve Lincoln
    2023-05-11
    The team at Steve Burton & Co provide a first class personal service to their customers. They support business owners through every step of the life cycle of their business, adding true value with their relationship.
    Toby Ishmael
    Toby Ishmael
    2023-05-05
    I work closely with the team at Steven Burton & Co. to assist their clients with a range of services and I can't speak highly enough of the professionalism and care that they demonstrate for their clients.
    Darren Vass
    Darren Vass
    2023-03-21
    I've worked with Steven Burton & Co for almost 4 years and I cannot fault their service. Dominique in particular is always available for advice and guidance whenever needed.
    Makala Balls
    Makala Balls
    2022-12-11
    The team at Steven Burton are friendly, professional and really get to know their clients so their advice is tailored to suit their individual needs. Cuts through all the jargon and offer clear and timely advice. Would highly recommend.