One of the most common complaints we hear from contractors is they feel like they are missing out if they are not using all that QuickBooks has to offer.

Most contractors are hard-driving Type "A" personalities who concerned they are paying full price for QuickBooks and only using a fraction of what it can do, and it drives them crazy.

QuickBooks has over 100 built-in reports, and those reports can be filtered to display over 1,000,000 combinations. In addition to the staggering number of custom and special reports in QuickBooks.

The sheer volume of reports in QuickBooks makes it impossible to use all of them. The truth is no contractor uses 100% of the power of QuickBooks.

For Example - The simple Profit & Loss Report Can Be Shown Two Different Ways With Little Effort

#1 Accrual Basis is generally for internal use by the contractor to make decisions about operations and forecasts.

#2 Cash Basis is generally for external use for calculating and paying taxes.

Percentage Of Income Is very Useful For:

#1 Comparing changes year over year

#2 Comparing your contracting company with your competitors

#3 Looking for trends to find ways to improve cash flow and profitability

The most successful high-profit contractors we deal with every day in our outsourced contractors bookkeeping services who are earning over 20% net profit and paying themselves $100,000+ in annual salary have these things in common:

#1 They use less than 5% of the power of QuickBooks.

#2 They use less than 1% of the available reports in QuickBooks.

#3 They focus on the critical few reports that give them 95% of what they need to take action rather than trying to glean 100% of the information from all of the available reports.

There are Five Key Performance Indicator Reports that when looked at every day can double, triple or more your construction company annual profits and cash reserves:

#1 Cash On Hand

#2 Receivables

#3 Payables

#4 Profit & Loss

#5 Balance Sheet

One final thought, garbage in = garbage out. The main reason most contractors do not and will not ever succeed in business is they do not have accurate financial and job costing reports.

I sincerely encourage you to seek the services of a construction accounting service that you trust to setup QuickBooks correctly for your particular contracting company and if it makes sense let them handle all of your day-to-day contractor bookkeeping services. It will be one of the best things to happen to you since the invention of the wheel.

Listen to this Podcast for more…

If you are Thinking About Outsourcing Your Contractors Bookkeeping Services you are invited to download a guide to finding the right contractor bookkeeping service to fit your particular situation at www.FastEasyAccounting.com/hs

Call Sharie now 206-361-3950 or [email protected] and schedule your no charge one-hour consultation.