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This Article Will Focus On a cataclysmic event coming your way and I feel the need to bring it to your attention in time for you to stop it and perhaps save your marriage. Plumbing Contractors, wives and bookkeeping don’t mix well.
The number of Plumbing Contractors and other Contractor’s spouses who are divorcing their husbands is on the rise. Money or the lack of it is one of the leading causes for relationships to break down. Wives are leaving and filing for divorce and a lot more of them than ever before are seriously considering it.
Girlfriends without strong ties to their contractor boyfriends do not have as many legal or moral obligations to stay when thing get rough so they tend to pack up and leave quicker and with less fanfare.
I grew up in a construction family and I experienced life in a home living every day on a financial roller coaster. After graduating high school and marrying my high school sweetheart, I enrolled in college and then onto university where I majored in accounting determined never again to have anything to do with construction.
During my studies of accounting, a B.F.O. (Blinding Flash of the Obvious) occurred when one of the professors made a profoundly life changing statement, which was something to the effect that Construction Company owners earn as much or more than doctors, lawyers and accountants. I could not believe it, spent some time researching the subject, and discovered he was 100% right and 100% wrong.
He was under the illusions that since all dogs are animals that all animals were dogs. When someone spends enough time studying successful, companies including successful construction companies they tend to believe that all construction company owners make a lot of money.
The Missing Element Is Strategy Vs. Tactics
Construction accountants and most white-collar construction professionals learn to operate and grow successful construction companies by having reliable accurate financial and job costing reports by hiring a qualified outsourced contractors bookkeeping service or developing in-house qualified construction accounting staff.
They use the information to develop and implement Marketing-Accounting-Production Strategies and then they wait for someone else to do the tactical work. Once the tactical work is finished, they compare the results of the financial and job costing reports against projections to measure the results. It is similar to the steps for hitting a target with multiple attempts: ready, aim, fire, observe results, and adjust aim and fire again.
Most Plumbing Contractors and other Contractors learn how to run their company by doing the tactical work of fulfilling someone else’s strategy. Since most of them are never exposed to the financial side of the business they assume it is of little or no value. It is similar to the steps for hitting a target using the concept that even a blind pig will find food occasionally. Fire, fire and fire again hoping that efficient operations will overcome bad or no strategy.
This is based upon the flawed thinking that Plumbing Contractors only make money when they are installing pipe, fittings and valves.
Here is what I see repeated many times repeatedly like watching a horror movie. Contractors open a business and enslave their spouses to be unpaid involuntary workers similar to indentured servants who should be grateful for a place to live, eat and sleep in exchange for maintaining a household and being an untrained, overworked, underpaid contractor’s bookkeeper. In most cases they become extremely frustrated and in some cases desperate enough to quit or seek divorce.
In most cases it appears the Plumbing Contractor is not at fault because you are being hammered by your customers who are doing everything they can to drive the price of everything and everyone into the ground in a twisted attempt to get something for nothing or in some cases with a rebate.
The Dirty Dozen Issues Your Wife Is Dealing With
#01 You know there is a difference between amateur Plumbing Contractors and Professional Plumbing Contractors and yet you do not understand there is a tremendous difference between construction accounting and regular accounting.
#02 You start your Plumbing Contractor Company and tell your wife to “do the books” saying “It should only take 10 minutes a
day”. She trusts you and agrees with you because neither of you thought about the fact it takes 10,000 hours to master a trade like plumbing and regular accounting, let alone another few years to master the art of construction accounting.
#03 Almost immediately she begins to realize she is in trouble and way over her head because she doesn’t understand construction accounting let alone how it can be done in 10 minutes a day.
#04 She experiences cognitive dissonance and her resentment toward you starts to build inside as she is faced with the prospect of feeling like she is a failure because she let you down or perhaps she feels like she lied to you about being able to handle the contractor bookkeeping services. Now she is concerned you may begin to doubt her honesty and her worth as a person.
#05 She does know it takes 10,000 hours of training and practice to become a construction bookkeeper let alone another long grueling set of years of training and practice that it takes to become a construction accountant.
#06 Worse yet if she has any experience in regular accounting then she is lead to believe that construction accounting is no different and that is recipe for disaster.
#07 She is deathly afraid of causing financial harm to you and her financial future if she makes mistakes when she fills out the dozens of state, federal and local tax forms that need to be filed every year. What if there is an audit? What if she paid too much tax, too little tax, filed a return late? The taxes may or may not bankrupt you but the fines and penalties can and it will all be blamed on her.
#08 She has to constantly ask you and your construction workers for paperwork and you say “stop nagging me and the other employees” which causes hurt feelings for everyone involved.
#09 All day she is being interrupted while trying to get the bookkeeping done. Friends and neighbors call or drop by to visit. Customers call about when you will be at their house to finish their job, suppliers calling for money, kids need lunch, rides to activities and on it goes.
#10 Frantic invoicing issues erupt as you remember you need to send an Invoice to a customer in order to get paid and you forgot so you add that to her overloaded workday.
#11 You ask for Financial and Job Cost Reports and get upset when she says they are not ready. What she is really saying is “I don’t know to generate accurate reports” which causes more tension and hurt feelings for both of you.
#12 When you do get Financial and Job Cost Reports your first response is to argue with them and blame your wife for not getting them right. You say “There is no way we are that far in debt” or “What do you mean that last job didn’t make any money?” “I needed that new truck and now you are telling me we are out of money”. Continual hurt feelings make her numb then she slides into depression which turns into despair and finally the love is gone.
I could go on for many more pages and never cover all of the reasons making your wife do your construction accounting was the reason they gave up asked for a divorce.
The answer is simple. We have helped save many marriages by working with contractor’s wives and showing them how to do the things they are good at like managing the money, paying the bills, customer service and other management tasks and letting us take care of the contractors bookkeeping services.
Most of the time the contractor ends up making more money because everyone does what they are good at doing and they have 24/7 access to all of the reports they could ever want with our web based contractors bookkeeping services financial reporting tool.
This Is One More Example of how Fast Easy Accounting is helping construction company owners just like you put more money in the bank to operate and grow your construction company. Construction accounting is not rocket science; it is a lot harder than that and a lot more valuable to people like you and me so stop missing out! Call Sharie 206-361-3950 or firstname.lastname@example.org and schedule your no charge one-hour consultation
Profitable Contractors and Construction Company owners have known about the value of outsourced bookkeeping services and contractor coaching services like ours for a long time and now you know about it too!
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About The Author:
Randal DeHart, PMP, QPA is the co-founder of Business Consulting And Accounting in Lynnwood Washington, www.FastEasyAccounting.Com He is the leading expert in outsourced construction bookkeeping and accounting services for small construction companies across the USA. He is experienced as a Plumbing Contractor, General Contractor, Project Management Professional, Construction Accountant, Intuit ProAdvisor, QuickBooks For Contractors Expert and Xero Contractor Accounting Specialist, Bill.Com Guru and Tsheets ProAdvisor. Check out our Contractor Success Map Podcast on iTunes and Follow Randal on Google+
I leave you with this heartfelt blessing – “You have the power to choose your destiny and the ability to ask for help, use it”
Randal L. DeHart, PMP, QPA