9 Mistakes You’re Making and How Software Can Help You Get Out of Them

Even the most experienced pros in the construction and remodeling industry can fall into profit-killing mistakes without even realizing it. From underestimating project costs to not forecasting your finances, these common mistakes can sneak up on you—like a sudden rainstorm and a leaky roof.

But there’s good news! With the right software by your side, you can avoid these financial pitfalls and keep your business solid. Here are 10 profit-draining mistakes and how Bolster can help you get out of them.

1. Underestimating Project Costs

Underestimating a project’s costs is a surefire way to kill your profits. Inaccurate estimates and surprise expenses not only eat into your profits but can also damage relationships with clients who feel misled or unhappy.

The Problem

Contractors often use rough estimates or outdated pricing models and don’t account for variables like changing material costs, labor rates, or site-specific issues. This oversight leads to budget overruns, and you’re forced to absorb the extra cost or renegotiate with clients, neither of which is ideal.

How Bolster Helps

Accurate Estimations: Bolster’s financial tools allow you to create accurate estimates by providing up-to-date cost data and customizable templates. With features like detailed cost breakdowns and real-time budget updates, you can make sure all expenses are accounted for and managed.

Enhanced Transparency: By using these tools, you can provide transparent and accurate estimates to your clients and avoid financial surprises down the line.

2. Poor Cash Flow Management

Cash flow is the lifeblood of any business. Delays in getting paid or inefficient invoicing can create cash flow problems and make it hard to cover immediate costs like payroll, materials, or subcontractor fees. This can slow down project progress.

The Problem

Manual invoicing is time-consuming and error-prone. And relying on traditional payment methods like checks can add to the delay and cash flow problems.

How Bolster Helps

Streamlined Invoicing: Bolster’s online payment tools simplify your invoicing and payment process. Features like automated billing let you set up recurring invoices or bill clients at project milestones.

Secure Online Payments: Offer clients multiple payment options, including credit cards and ACH transfers so they can pay faster.

Real-Time Tracking: Track outstanding invoices and send automated reminders to clients so you don’t have to.

By streamlining the payment process, you can get paid on time, maintain cash flow and reduce administrative headaches.

3. Poor record-keeping

Not keeping proper financial records can lead to missed expenses, untracked payments and overall confusion on project finances. This disorganization can make tax prep and financial reporting a nightmare and potential compliance issues.

The Problem

Juggling multiple spreadsheets, receipts and invoices across multiple projects is overwhelming. Important financial data can fall through the cracks and you’ll end up with inaccurate financials and bad decisions.

How Bolster Helps

Centralized Financial Management: Our all-in-one financial tracking tools give you one place to manage everything financial for your business.

• Expense Tracking: Record and categorize expenses, attach receipts and track spending against budgets.
• Invoice Management: Create, send and track invoices within the platform so you never miss a payment.
• Financial Reporting: Get reports on income, expenses and profitability so you can make better decisions.

By keeping all your financial records organized and in one place, you can have more control, fewer errors and more profit.

4. Ignoring Change Orders

Changes to project scope, materials or timeline are common in the construction industry. But failing to document and approve changes can lead to unaccounted expenses, disputes with clients, and reduced profits.

The Problem

Verbal agreements or informal approvals can lead to misunderstandings. Without documentation, you might find yourself paying for extra work or materials without getting paid.

How Bolster Helps

Change Management: Our change order software makes it easy.

• Easy Documentation: Create change orders with descriptions, cost and timeline impact.
• Client Approvals: Send change orders to clients for digital approval so everyone is on the same page.
• Automatic Budget Updates: Approved change orders will update project budgets and schedules within the platform.

This way all changes are recorded, costs are updated in real time and clients are informed so you can protect your margins and stay transparent.

5. Not Tracking Labor Costs

Labor costs are one of the biggest expenses in any construction project. Without tracking labor costs, they can quickly get out of control and eat into your profit margins and potentially blow the budget.

The Problem

Manual time tracking is slow and error-prone. Employees may forget to log hours accurately or you may lose track of overtime and additional labor costs associated with project changes.

How Bolster Helps

Real-Time Labor Tracking: Bolster’s project management features include real-time labor hour tracking.

• Digital Time Clock: Employees log hours using a mobile app or web portal, capture start and end times, breaks and overtime.
• Geo-Location Verification: Ensure employees are on site when clocking in or out to reduce time theft.
• Budgeting Integration: Labor hours are updated in your project budgets so you have real-time labor cost visibility.

By tracking labor, you can prevent cost overruns, make informed staffing decisions and keep your margins healthy.

6. Missing Supplier Rebates

Many suppliers offer rebates and discounts that can save you thousands. Not taking advantage of these means leaving money on the table.

The Problem

Tracking multiple rebate programs, understanding the requirements, and remembering the submission deadlines can be a hassle, especially when dealing with multiple suppliers and projects.

How Bolster Helps

Rebate Management: Our purchasing platform makes rebate tracking and claiming easy.

• Rebate Tracking: Track all available rebates from suppliers with details on eligibility and deadlines.
• Automated Reminders: Get notified when it’s time to submit rebate applications so you never miss out.
• Centralized Documentation: Store all rebate related documents and communications in one place.

By claiming supplier rebates and discounts, you can reduce project costs, increase profitability and gain pricing advantage.

7. Bad Financing

Access to capital is key to covering upfront costs, buying materials and managing payroll. Using bad or expensive financing options can hurt your cash flow and erode your margins.

The Problem

Traditional financing can be slow, inflexible or comes with high interest rates and fees. This limits your ability to take on new work or respond to unexpected expenses.

How Bolster Helps

Flexible Financing Options: Our lending services connect you with financing solutions for your business.

• Fast Approval: Quick application process so you get the funds you need fast.
• Competitive Rates: Get loans with good terms to manage your costs.
• Flexible Products: Choose from lines of credit, equipment loans or project based funding.

By getting more capital, you can maintain cash flow, invest in growth opportunities and avoid costly delays.

8. Clients Slow to Pay

Client payments can disrupt your cash flow and make it hard to meet your financial obligations to suppliers and subcontractors. This can damage relationships and prevent you from delivering projects on time.

The Problem

Manual invoicing and traditional payment methods slow down the payment process. Without clear payment terms and follow up procedures clients will delay payments.

How Bolster Helps

Fast Payment Collection: Our online payments and automated invoicing tools accelerate the collection process.

• Professional Invoicing: Create detailed branded invoices with payment terms and due dates.
• Online Payment Options: Give clients easy ways to pay online and reduce processing time.
• Automated Reminders: Set up automatic reminders for upcoming or overdue payments to prompt clients to act fast.

By paying faster you get cash flow, reduce the administrative burden of collections and have more control over your cash and project timelines.

9. No Financial Forecasting

Without financial forecasting you can be caught off guard by unexpected costs and budget blowouts. Lack of foresight leads to bad decisions and prevents you from planning for growth.

The Problem

Financial forecasting requires analyzing historical data, market trends and projecting future performance. Without the right tools this is complex and time consuming.

How Bolster Helps

Advanced Business Insights: Bolster’s platform has financial analytics and forecasting tools.

• Historical Data Analysis: Review past project performance to see patterns and areas to improve.
• Trend Monitoring: Stay up to date with market conditions, material costs and industry trends that affects your business.
• Forecasting Models: Create projections for revenue, expenses and cash flow based on different scenarios.

By incorporating financial forecasting into your planning you can make data driven decisions, manage budgets proactively and allocate resources to increase profitability.

Turn Your Business into a Profit Machine

Don’t let these mistakes hold you back from achieving your business goals. With Bolster’s all-in-one software solutions you can streamline your business, increase profitability and deliver better projects to your clients.

Try Bolster today?

Book a free demo with our team to see how our software can turn your 6 figure business into an 8 figure company. Our experts will give you a personalized tour and show you how Bolster can solve your specific problems and get you on the path to growth.

About Bolster

At Bolster we help construction and remodeling professionals with the tools they need to simplify their operations, manage their finances and grow their business. Our all in one platform is designed to solve the industry’s biggest problems and make a real difference in your daily operations and long term success.

For more information or to schedule your free demo, contact us today.