Understanding Backlog Reports: A St. Louis Contractor’s Perspective

Hey there, fellow builders and dreamers! Braden Hallman here, your friendly neighborhood bookkeeper with a passion for construction and numbers. Today, I’m gonna spill the beans on something that might sound as dry as week-old concrete but is actually the secret sauce to keeping your construction business thriving: backlog reports.

The Day I Stumbled Upon Backlog Magic

Picture this: It’s a sweltering St. Louis summer day, and I’m knee-deep in spreadsheets, trying to make sense of a client’s financial mess. Suddenly, like a bolt of lightning (or maybe it was just the caffeine kicking in), I realized the power of a well-maintained backlog report.

Now, I know what you’re thinking. “Braden, buddy, you need to get out more if spreadsheets excite you.” Fair point, but hear me out!

What the Heck is a Backlog Report, Anyway?

In simple terms, a backlog report is like a crystal ball for your construction business. It shows you the value of work you’ve got lined up but haven’t started yet. Think of it as your financial security blanket – it tells you how much work (and moolah) you’ve got coming down the pipeline.

Why Should You Care?

Let me paint you a picture. Remember Bob? (No, not that Bob. The other Bob. You know, the one with the handlebar mustache?) Well, Bob thought he was riding high on a wave of success. Projects were rolling in, and life was good. But Bob, bless his heart, didn’t keep track of his backlog.

One day, the projects dried up faster than spilled coffee on a hot sidewalk. Poor Bob was left scratching his head, wondering where his next paycheck was coming from. Don’t be like Bob.

The Nitty-Gritty: How to Create a Backlog Report

Alright, let’s roll up our sleeves and get down to business. Creating a backlog report isn’t rocket science, but it does require some elbow grease and attention to detail. Here’s the basic recipe:

1. List all your upcoming projects
2. Note the total contract value for each
3. Subtract any work you’ve already completed and billed for
4. Voila! The remaining amount is your backlog

Sounds simple, right? Well, it can get a bit trickier when you’re juggling multiple projects, dealing with change orders, and trying to forecast future work. But trust me, once you get the hang of it, it’s smoother than a freshly poured slab.

The Backlog Balancing Act

Here’s where things get interesting. A healthy backlog is like Goldilocks’ porridge – not too hot, not too cold, but just right. Too little backlog, and you’re Bob, twiddling your thumbs and hoping for work. Too much, and you might bite off more than you can chew, leading to missed deadlines and unhappy clients.

Finding that sweet spot takes practice and a keen understanding of your business’s capacity. It’s like trying to parallel park a bulldozer – tricky at first, but with practice, you’ll be sliding into that perfect spot like a pro.

Putting Your Backlog to Work

Now that you’ve got this goldmine of information, what do you do with it? Here are a few ideas:

• Plan your resources: Know when to hire (or when to hold off)
• Make informed bids: Don’t lowball just because you’re desperate for work
• Forecast cash flow: Because surprise bills are about as welcome as a skunk at a garden party
• Impress lenders: Nothing says “I’ve got my act together” like a solid backlog report

The Bottom Line

Look, I get it. Crunching numbers isn’t everyone’s idea of a good time. (Though if it is, call me – we’ll grab a coffee and geek out over spreadsheets together.) But trust me when I say that understanding and utilizing your backlog report can be the difference between smooth sailing and choppy waters in the construction biz.

So, next time you’re looking at your project pipeline, remember old Braden and give that backlog report the love it deserves. Your future self (and your bank account) will thank you.

Until next time, keep building those dreams – and don’t forget to balance your books!

Catch you on the flip side,

Braden

P.S. If all this backlog talk has left your head spinning faster than a power drill, don’t sweat it. That’s what folks like me are here for. Drop me a line, and we’ll sort through those numbers together. No judgment, just solutions – and maybe a bad accounting joke or two.