Construction

Reports

June 1, 2011
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Custom Reports for Sage Master Builder

All reports are created in Master Builder Report Writer and will be printed from a numbered screen in Master Builder and/or the Custom Reports printing utility in Master Builder at your request.

Custom reports are available upon request. Sample reports appear in .PDF when you click on a link.  Please contact us for pricing.  E-mail service@missiondevelopment.com or call 805-771-8400.

New reports are being published every week. Variations of all reports can be ordered.

Estimating/Bidding

These 5 Proposals print directly from the Takeoff in screen 9-5:

Proposal by Phase with Notes

Proposal by Phase and Cost Code with Notes

Proposal by Cost Code with Notes

Proposal by Bid Item with Notes

Proposal by Bid Item and Cost Code with Notes

Job Reports

Gross Profit Long Form

There are dozens more reports available, please e-mail service@missiondevelopment.com or call 805-771-8400.

If a report cannot be written in Master Builder’s Report Writer, it defnitely can be written using Crystal Reports. For any reports you would like written using Crystal Reports, please contact Dolente Consulting, and mention that you were referred from this site.

Consulting

June 1, 2011
By

Overview

Implementation, Training, Custom Reports and Services

Implementation

Consulting Overview

Implementation, Training, Custom Reports and Services

Implementation, training and troubleshooting services for Sage Master Builder and QuickBooks are offered upon request. Please e-mail service@missiondevelopment.com or call 805-771-8400.

In addition, a full construction management method is available. This includes advanced construction accounting, profitable project management, advanced estimating in Master Builder, and custom reporting in Master Builder. Management and organizational consulting is also offered.

Since we are an advocate for Master Builder customers, you may e-mail us your suggestions of how to improve the program. We will package them in a way in which we think they will be noticed, and submit them for you. The timing is right to make suggestions. If people do not make suggestions, there is almost no chance that the items which you want in MB will appear.  Because we need to follow Sage’s format, and cannot re-type every suggestion submitted, please follow this format:

Menu Item:

(General Ledger, Accounting, Reports, Accounts Receivable, Accounts Payable, Payroll, Project Management, etc.)

Screen Number:

(1-3, 2-2, 3-2, 4-2, 5-2-2, 6-2, etc.)

Sub-Menu:

(Enter a sub-category related to the Menu Item. For example, Menu Item = Project Management; Sub-Menu = Change Orders.)

Brief Description:

(Two to three keywords about your suggestion.)

Detailed Description:

(As long or as short as you want.)

Benefit:

(Describe the business problem or reason that led you to recommend your suggestion.)

Take Your Business to the Next Level

February 10, 2011
By

Is your business stuck in one place or, worse, sliding backwards?  Like humans, businesses have stages of development.  Each stage presents particular challenges and opportunities.  How you navigate these critical transition points will determine your business success and your personal satisfaction.

A company I worked with was eager to grow.  Management envisioned an ever-expanding business at the top of its field.  The company boosted the marketing with an active radio and print campaign.  It also advertised for and hired more staff to handle the workload.

After a few years, the expansion became a nightmare.  Client work backed up.   Many of the recent hires didn’t have the talent that the founding partners enjoyed.  It wasn’t satisfying for the partners to correct other people’s errors and fret about poor quality.

What happened?  The company tried to grow by simply doing more of what it was doing, adding more clients and adding more staff.  It didn’t develop the systems for recruitment and managing the work that it needed to support the next stage of growth.

The prescription for the company to break through the bottleneck is one that many firms can follow.

Hire the best for your core.

Identify the key roles in your business.  Use a recruitment process that will attract and select the best people to fill them.

In order to manage the company at a level of 25 people, the company needed four very highly qualified people.  Each needed an expert level of knowledge and the ability to motivate and supervise other team members.

The company had followed standard recruitment procedures.  The problem is that these average recruitment efforts yielded only average candidates.

For the critical hires, the company had to do better.  It refined its quality standards and upgraded the opportunities and rewards for the top positions.  Then, the partners networked with the best people in the field to find prospects who weren’t looking for jobs and used skill and style assessments to choose superior players.  Higher quality colleagues also rekindled the partners’ enjoyment of the business. Read more »

Fixed Assets, Entering as Journal Entries

February 6, 2011
By

When entering fixed assets using the 1-3 screen, the correct accounts should be used for debits and credits.  Typically, the accounts might be something like this:

Account Debit Credit
18010 – Ford Truck (Purchase Price) 20,000.00
28010 – Ford Truck Loan (principal only) 18,000.00
10000 – Checking (down payment) 2,000.00
_________ _________
Totals


20,000.00
20,000.00

The important things are that:  1) Debits = Credits;  2) there is an asset account which declares the actual asset value of the vehicle (purchase price) and a long-term liability account which declares the principal loan amount.

When a monthly payment is made again the loan, it would typically look like this:   This can be accomplished in the 1-1 screen by displaying the two debits in the grid.  Or is you really want to run it through A/P and pay an invoice, display the two debits in the grid of the A/P invoice screen.

Account Debit Credit
28010 –  Ford Truck Loan Payment 200.00
68010 –  Loan Interest 34.77
10000 –  Checking (actual check amount) 234.77
________ ________
Totals 234.77 234.77

When the asset is depreciated, your CPA should give you a journal entry to accomplish that.

There other possible scenarios, such as when the interest and principal change every month.  To implement that, you would need a schedule from the lending institution showing the principal and interest monthly over the life of the loan.  This summary covers the basic idea.  Please let me know if you have a specific different circumstance you want to implement.

Please contact us if you would like to learn more about instituting a comprehensive training process.  Thank you.

Profitability – Strategies

January 29, 2011
By

Five Strategies to Improve Profits

Companies can enhance financial performance by implementing planning and minimizing risk with some often-overlooked practices
Contractors have always had to deal with risk, but in these uncertain times, their exposure is greater than ever. However, many companies simply react to their growing risks rather than anticipating them through sound analysis and management.

Here are five strategies that contractors can use to improve financial performance.

Develop a Risk Strategy

Effective risk management is about playing both defense and offense. The process begins by assessing risks, including:

> Competitive risks. Competition has intensified among contractors and with full-service, mega real estate firms competing against traditional contractors.

> Pricing pressures. Clients are pressuring contractors to cut prices using reverse bid auctions that drive down prices and squeeze profits.

> Rising materials and fuel costs. Materials shortages and increased costs for fuel and construction materials will continue.

> Litigation costs. They never go down.

> Fast-changing markets. Contractors are having to adapt to rapid changes in the public and private sector markets, including power, telecom, commercial and others.

> Geopolitical risks. War, terrorism and other global events have increased risks to contractors and their clients.

> Labor shortages. Contractors face looming shortages of qualified people.

> Sarbanes-Oxley. The tightening of accounting and auditing standards has put public contractors, like public companies in general, under a microscope, requiring them to disclose deficiencies in their internal controls.

> Insurance/surety. These areas continue to tighten, with costs rising, deductibles increasing and coverage shrinking or disappearing. Sureties are pressuring private contractors to improve internal control standards and systems.
Once risks are identified, they can be quantified, prioritized and strategies can be developed to mitigate their impact.

Develop a Growth Strategy

Companies must decide whether they want to grow and how much. They need to analyze current markets to determine if they are still attractive. If existing markets are declining, companies may need to diversify, expand geographically, acquire other firms or recruit new talent.
A growth strategy also requires the resources to get more projects done. These include sound internal processes, experienced managers and a strong “bench” of new managers who can free senior managers from day-to-day operations to pursue new business.
Alternatively, a company can choose a no-growth, negative growth or selective growth strategy to reduce risk. It can focus instead on reducing costs, increasing profits and capturing market share in existing markets or making selective acquisitions in related business areas.
While a moderate or no-growth strategy may work for large companies, smaller companies that follow the same strategy must consider the risk of losing business to bigger competitors that can work on larger, more complex projects or provide a broader range of services.

Develop a Profit Strategy

How can a company meet its profit goals? Reducing costs can boost profits, but once excessive costs are eliminated the payback from cost cutting diminishes. If a company is not generating enough profits, it may have to grow or diversify to reinvest in the company, create a reserve for future opportunities or pass profits through to shareholders and investors.
If a company chooses growth as a way to increase profits, it should employ the least risky growth strategies, like generating new business from existing customers rather than trying to win new ones. Keeping current customers happy also keeps competitors at a distance.

Develop a Competitive Strategy Read more »

Proposals

January 25, 2011
By

The Proposals screen (6-9) is one of the most difficult for Master Builder users to deal with.  On the one hand, we want to create a nice-looking Proposal or bid to present to the potential client.  On the other hand, the default setup of this screen and its output require a fair amount of work to produce that kind of result.

When I work with a new MB customer, one of the most popular topics is Proposals.  I’ve had many conversations something like this:

Customer:  “I have a really nice bid form [or contract form] I’ve set up in Word [or Excel], and I’d like to import that into Master Builder’s Proposal screen so that I’m only using Master Builder.”

Me:  “How is the bid displayed?  By cost code, division, sections of work, or one lump sum amount?”

Customer:  “It depends on the bid; it could be one or more of those displays.”

Me:  “Then we would have to create different reports and forms for each display.”

Customer:  “Doesn’t Master Builder’s Proposal just display what I type on the screen?”

Me:  “Not necessarily.  The generic Proposal in Master Builder looks like this.”  [In the Sample Company, I display a Proposal]

Customer:  “That’s not what I want.  I need it to be in a letter form, and I need to be able to present different types of breakdowns, maybe more than one per job.”

Me:  “That will require a fair amount of custom reporting and form design.  In addition, you’ll have to use the Proposal screen in a very specific way by inserting the text before the number breakdown in one place and the text after the number breakdown in a different place.  And the text can only be edited by e text editor like Notepad, not a word processor like Word.”

Customer:  “Forget it, I’ll stick with my bid form and spend a lot less time and money.”

The above conversation is usually not that short, and it can be more frustrating than that.

There are a couple of solutions I can recommend:

1) If you’re adept at using Excel and have a bid form set up in Excel, import the MB Budget into the MB Proposal screen.  Then export the Proposal using the Print to Excel feature.  Manipulate the numbers there, and paste them into the Excel form which you’ve already built;

2) If you’re using the Takeoff screen (9-5), by using custom reports and form designs, you can create many variations of bids.  For examples of this, see the Reports page on this site.

It’s important to remember that, in Master Builder, Proposal is often synonymous with Contract.  If you submit a proposal or bid to a prospect and it becomes an agreed deal, the Contract amount should be entered in the Contract field in 3-5 Jobs. Read more »

Teamwork as a Motivator

January 23, 2011
By

Employees Are Motivated By Being Part of a Team

Motivation is more likely when employees believe that the company is a good place to work and that they are a fundamental part of a team.

Something people notice when visiting your company whether in the office or on a job is whether or not the employees seem to function as a team. You can become much more successful if you encourage the various departments within the company to work together. If each member of the team believes that his contribution is important to the others he will be motivated to increase his performance. This concept satisfies a basic human need – the need to feel important and needed and to be part of something larger than just one’s self.

How can you help foster this teamwork?

One of the most common team breakdowns in the construction industry is between the accounting departments and the production department. Many offices use two completely separate systems and have very little (or very poor) communication between these groups.  The accounting department has to beg and plead for information, such as project budgets and approval of payable invoices. The project management department resents the nagging and distrusts the reports they do get because of errors.

You can help solve this problem by using an integrated software system.  The key lies in providing each group with what they want and need from the other group.  And you may need to nudge each group a little to communicate with the other group more.

Purchase orders, subcontracts and change orders can bridge the gap between departments and make teamwork so much easier. By learning how to effectively create budgets directly from the estimating software, you have eliminated the “begging” that the accounting department previously had to do for budgets. And, with properly prepared purchase orders and subcontracts, the accounting department no longer has to wait forever for invoices to be coded, only to have a big “rush” on entry when they finally get the invoices back. The invoices are effectively “pre-coded” when the purchase orders and subcontracts are issued.

From the project manager’s point of view, reports can be trusted more because the invoices are pre-coded so there is minimal chance for clerical error.

Everyone’s job is easier and more pleasant and now the departments who were formerly at odds with each other can work together as a team. It won’t take long for the increased productivity in both of these departments to begin to show on the bottom line.

Please contact us if you would like to learn more about instituting a comprehensive training process.  Thank you.

Payroll

January 21, 2011
By

Payroll is a big subject.  It’s the second-largest module in Master Builder, and subject to more laws than any other part of business.  Setting up, operating and maintaining the Payroll module in Master Builder is beyond the scope of this article.  The steps outlined below are only intended to be a general guide to setting up Payroll.  Since each company, each state, and often each region within a state involves different laws and practices, the best way to set up and operate the Payroll module of Master Builder is by working with a qualified Master Builder consultant.

Without a good foundation, the Payroll module in Master Builder becomes very difficult to deal with.  Many companies choose to outsource their payroll, hoping that it will take a burden off of their overhead time and costs.

Since Master Builder relies on Payroll for a large portion of its job costs, a company running the program is almost required to run Payroll in Master Builder in order to obtain its true job costs.  The savings in overhead by outsourcing Payroll become almost meaningless, and the supposed shifting of liability to the third party is a mirage.  In the eyes of government agencies and insurance companies, the company which is the employer is always liable for payroll inaccuracies.  So there is no reason not to run the Payroll module in Master Builder, and there is every reason to learn to run it well.

It’s a really good idea to test the Payroll setup prior to starting to use the module by entering a few records with specific scenarios and taking them all the way through the process.  Some refinement of the setup will often be necessary to achieve the correct results.  Any test records which may be entered can always be voided.

Screen 5-3-1 Payroll Calculations:

To set up this screen when no calculations have been entered, click on Options, Setup Payroll Calculations, Standard Calculations.  If you have the current version of MB, certain calculations will be set up according to Federal and state law and tax tables.

Screen 5-3-2 Workers Compensation:

Enter the classifications, rates and Experience Modification supplied by your Workers Comp carrier.  Ignore the Liability column for now – it’s too large a subject to tackle without a detailed explanation (consult with Technical Support or a Master Builder consultant).  If the state(s) in which your company does business require(s) Hourly or Maximum Wage amounts to be entered, consult with Technical Support or a Master Builder consultant.

Screen 5-3-3 Positions: Read more »

Marketing and Sales

January 19, 2011
By

The following are a number of questions, talking points and suggestions which you may find helpful in management discussions.  Use this outline as a framework for your own ideas.  Print it and write notes in the margin.

I. Designing a marketing program:  What is the Market?

1.  Describe what is being sold

•          What is the product?

•          What are the value added services?

•          What is the guarantee?

•          What differentiates you from your competition?

2.  Identify the target client

•          Who are they?

•          Where are they?

•          What kind of person are they?

•          What are they motivated by?

•          What are their fears?

•          Where can they be reached the easiest?

•          Radio

•          Direct mail

•          Networking

•          Client referral

•          Professional referral

•          Other

3.  Design experiments and test the results

•          Who is not the client?

4.  The office environment

•          Neatness counts

•          Creating a comfortable conference center

•          Using photos to sell satisfaction

•          Training for client satisfaction

5.  Building a reputation

•          Describe it

•          Speak it

•          Train employees

•          Advertise it

•          Make it true

6.  Creating customer satisfaction

•          Neatness counts

•          Employees matter

•          Contact the neighbors

•          Communication, communication

•          Dot the i’s and cross the t’s

•          Get the job done on time

•          Bill early, bill often

•          Handling complaints

•          Slow down

•          Ask for more

•          Thank them

•          Have a plan

•          Keep your promises

•          Guarantee your work

•          Give a gift of appreciation

II. The sales process: Read more »

Bank Reconciliation

January 17, 2011
By

Overview

The Bank Reconciliation screen in Master Builder is driven by the Statement Cutoff Date.  Enter the checking account you want to reconcile, and enter the cutoff date displayed on the bank statement.  If you don’t enter the exact ending date of the bank statement, the reconciliation will probably be wrong.  Master Builder does not display transactions entered after the date you enter.

To maintain accurate records, it is a good idea to reconcile accounts each month when you receive the bank statements.  It’s important to understand that the Bank Reconciliation is a worksheet.  It relates to the General Ledger, but it is not the General Ledger.

Reconciling a bank account in Master Builder is like reconciling your checkbook at home.  The bank statement and the display in screen 1-5 must match when you are done.  If not, you need to find out why it doesn’t match.

Maybe there are entries on the bank statement which aren’t in Master Builder.  If so, research them, and if they are correct, enter them in MB.  Or there could be entries in MB which aren’t on the bank statement.  If that’s the case, you need to research them, and if they don’t belong in MB, void them or credit them.

The MB Bank Reconciliation (Screen 1-5) is similar to a check register.  It displays transactions that have not cleared. As you compare the bank statement to the transactions in the Bank Reconciliation, clear the transactions listed on the bank statement by double-clicking in the Status cell next to the line item in the Bank Reconciliation screen.

Master Builder displays transactions in transaction number order. If a check number falls out of numbered sequence, Master Builder displays an asterisk (*) next to the transaction number.

The Statement Beginning Balance box displays the balance as of the previous reconciliation.  If the amount in the Statement Beginning Balance box does not match one amount displayed on your bank statement, clear all the transactions you can, then do a Trial Save (Trial Save is explained below).

When you display records for a checking account, the Statement Ending Balance box displays the balance as of the previous reconciliation. As you change the status of transactions, the amount in the Statement Ending Balance box changes.
After clearing the transactions, the ending balance in the Bank Reconciliation screen should match the ending balance of your bank statement.

Master Builder lets you save a reconciliation that is only partially completed (Trial Save).  Master Builder saves each transaction with the status that you have assigned to it. You can then return later to finish the reconciliation.  (When you display the trial reconciliation, Master Builder displays any records entered since saving the trial reconciliation.)

After completely reconciling the account with the statement and you do a Final Save (which you should not do until the Beginning and Ending Balances match the bank statement), Master Builder rolls the amount in the Statement Ending Balance box to the Statement Beginning Balance box for the next month’s bank statement.  Never perform a Final Save without printing the last Trial Save reconciliation displayed on the screen first.

Detailed Steps to Reconcile a Bank Account Read more »