Evolving a Construction Business

Situation

A general contractor with a focus in commercial construction launched their business in November 2015. As with any new business, there were several requirements they needed for launch. From the very beginning, IC Assist partnered with this general contractor to provide collaboration, guidance, and implementation of sound financial strategy.

Strategic Plan

Initially, we helped the client register the business with all appropriate agencies, set up payroll, and set up their accounting system so that it would properly integrate with their project management system.

In the beginning, the owner preferred to do his own accounting. We trained the owner so that he could manage his accounts, post transactions, and run payroll efficiently. We also filed quarterly payroll reports, created their quarterly financial statements to send to the bonding company, and provided oversight of the financial information so it was properly recorded for tax purposes.

Beyond financial oversight, we served as a consultant during important business discussions. Should they hire? Should they buy equipment? What type of work should they be bidding? How much GP should they put on their estimates? What does cash flow look like? These were considerations we helped the client’s team work through, all based on strategic growth.

By mid-2017, the business grew to the point that we became responsible for all financial reporting. Acting as a fractional CFO to the company, we provided training to their administrative assistant, prepared and oversaw financials, and performed advisory level services.

In February 2020, the business had grown to the point of needing a full-time accountant on their team. We worked closely with the client to interview and ultimately hire an individual that was the right fit for their team. We trained this individually on the regular accounting tasks and are currently mentoring him into a Controllership role. We contribute to his annual review process and provide feedback on his growth to the business owner.

Results

From inception to present day, we have been the client’s partner in Financial Evolution. They have experienced double revenue growth year after year since being in business and we continue to act as their CFO and business advisor.

Today, the business has 15 employees (and recruiting more), has used profits to purchase their own building for offices and warehouse space, has a fleet of vehicles, and is scheduled to have revenues in the double-digit millions this year (2021).

We would not have grown at the rapid pace that we have without the solid foundation that IC Assist has laid for our company. Brenda’s knowledge of running a company has been crucial for us to be compliant in all facets of agency reporting and financial analysis.

Through a thorough and regimented schedule with IC Assist, we have avoided agency penalties, have a clear picture of our company’s financial performance and collaborate on the best direction to move forward in the short and long term. I can honestly say that we would not be as successful as we are without IC Assist.

Richard Snyder | CEO