So You Are Starting A Construction Company. Perhaps yours will be House Builder, Handyman Company, Specialty Contractor like a Plumber, Electrician, HVAC, Concrete Contractor or Landscape Company.

Whatever it is congratulations you have or will be taking a big step toward being the Master of Your Own Destiny!

I Trust This List of Five Accounting Tips For Contractor Startups Will Help You

Nearly half of all new companies fail in the first five years. Contractors we speak with who failed report lack of cash flow. They say they were "Blind-Sided" and unaware of running out of cash until it was too late.

There is a point when a contracting company starts to fail and nothing short of a massive cash infusion can stop it and a domino effect begins which is when a series of similar or related events occurring as a direct and inevitable result of one initial event.

Lack of cash holds up material deliveries, causes labor to be idle which costs money, payroll checks bounce and construction workers take your tools and equipment to the pawn shop to get paid which causes the contracting company to spirals down to its final end.

Tip #1 - Open Three Business Checking Accounts

One big mistake new contractors make is not keeping business and personal expenses separate. It makes the Contractor bookkeeping easier and the monthly, quarterly and annual tax preparation smoother and cheaper.

Primary Checking Account does not have credit or debit cards. All money is deposited into here transfers are made into the other two accounts as needed.

Payroll Checking Account has just enough money cover payroll with a small cushion of $100.

Petty Cash Checking Account with $500 +/- this account is for debit cards to make small purchases in the field.

Tip #02 - QuickBooks Desktop In The Cloud

QuickBooks desktop in the cloud allows you it with a tablet, laptop, notebook, desktop and some phones. It is the Windows version of QuickBooks; however, it can be accessed from most Apple devices

Tip #03 - Backup In The Cloud

There are several cloud based services to choose from. We use a paperless server version which allows us to scan a paper document and attach it to the individual transaction in QuickBooks for easy retrieval.

Tip #04 - Focus On Profitable Customers And Clients

The 80/20 rule says that most contractors spend 8 out of 10 hours doing things that drive little or no value to the bottom line. The biggest drain is trying to save money doing your contractor bookkeeping.

Tip #05 - Develop A Business Plan

Develop Your Business Plan - Using the Eleven Steps Program and pay close attention to marketing because that is the niche market of construction you can dominate.

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.