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In today's tough
construction industry environment, keeping a close eye on the
bottom line can mean the difference between steady growth and
mere survival.
But in doing so,
accounting involves more than just crunching numbers. The "ABCs
of accounting," in fact, means focusing on three key tasks:
1) Analyze and
understand the construction process
"A construction
company must analyze each of its operational phases to identify
the barriers to improving productivity," according to Michael B.
Ceschini, a principal in Ceschini & Company, CPAs, PLLC a
certified public accounting and profitability consulting firm
with a construction industry niche. "It should measure key
factors and set goals for improvement." Your company can do that
by:
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Planning well to
mitigate the impact of any work changes and to eliminate the
mistakes that result from disorganization
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Not being afraid
to employ new technologies that increase productivity
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Measuring key
factors that enhance performance and setting goals for
improvement
2) Continually review the company's cost structure
Ceschini believes "Being productive and efficient is the way
to succeed in the cost-driven construction industry". Do that
by:
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Taking advantage of short-term financing with low interest
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Purchasing your equipment, not leasing it
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Focusing on
improving your customer service
3) Make everyone in the company a part of the team
Do that by:
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Hiring only individuals who are compatible with the company
culture. "Remember, you are building a team, and every
employee should be able to work within it," explained Ceschini.
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Practicing time management. Studies show that workers on a
construction site are unproductive for 50 percent of the time,
while waiting eats up more than half of an employee's
productive time and about a third of total project time.
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Communicating to
employees that increasing company productivity is everyone's
job. For example, a company should welcome suggestions and
implement a reward system for suggestions to increase
productivity.
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The views
reflected herein are those of the authors and do not necessarily
represent the position of the SUFFOLK COUNTY ELECTRICAL
CONTRACTORS ASSOCIATION, INC. or its Board of Directors.
General
Membership Meetings are held on the third Thursday of each
month. Welcome all. For cancellation of any meetings, listen to
WALK-97.5, WBAB-102.3, WBLI-106.1 |
