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0151: Why Successful Contractors Use Professional Bookkeeping Services
What You Should Expect From Your Bookkeeping System
First Important Principle In Construction Accounting: Everything starts with Cash because Cash Is Fact; Profit Is An Opinion. All transactions in the bank account of your construction accounting system no matter if it is QuickBooks or Xero must be assigned to the proper accounts:
• Income
• Job Deposits
• Payroll
• Taxes
• Cost of Goods Sold (Direct and Indirect Costs including Labor, Material, Other, and Subcontractors.
• Other expenses including permits, plans, bills from suppliers and purchases on your personal credit cards.
• Overhead
Second Important Principle In Construction Accounting is tracking Income accurately, Knowing how, when and where to put Customer Estimates, Customer Invoices, Customer Job Deposits and any Retainage Withheld, Vendor Refunds, and Rebates. Good Construction Accounting Is All About the Details. Payroll entered into QuickBooks (Employee, Check and Tax Detail depends on the Payroll Service used). Bank Reconciliations, Credit Card Reconciliations including Home Depot and Lowes, Vendor Statements verified and matched against invoices.
The Answers You Need To Operate And Grow Your Construction Company Are In Reports. To get accurate reports, the paperwork details must be entered into your QuickBooks by following The Construction Accounting Method NOT The Regular Accounting Method. The old saying “Garbage In = Garbage Out” is 100 times truer when it comes to Construction Accounting. When your bookkeeper takes shortcuts in the data entry, for example entering bulk numbers from credit statements for expenses in bulk instead of entering each transaction your Financial and Job Costing Reports are utterly worthless.
Fast Easy Accounting website can have so much detail that people get lost on it. So here is the short version of What We Do:
We Setup QuickBooks For All Kinds Of Contractors Handyman, Home Builders And Specialty Contractors
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.
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By Randal DeHart, PMP, QPAWhat You Should Expect From Your Bookkeeping System
First Important Principle In Construction Accounting: Everything starts with Cash because Cash Is Fact; Profit Is An Opinion. All transactions in the bank account of your construction accounting system no matter if it is QuickBooks or Xero must be assigned to the proper accounts:
• Income
• Job Deposits
• Payroll
• Taxes
• Cost of Goods Sold (Direct and Indirect Costs including Labor, Material, Other, and Subcontractors.
• Other expenses including permits, plans, bills from suppliers and purchases on your personal credit cards.
• Overhead
Second Important Principle In Construction Accounting is tracking Income accurately, Knowing how, when and where to put Customer Estimates, Customer Invoices, Customer Job Deposits and any Retainage Withheld, Vendor Refunds, and Rebates. Good Construction Accounting Is All About the Details. Payroll entered into QuickBooks (Employee, Check and Tax Detail depends on the Payroll Service used). Bank Reconciliations, Credit Card Reconciliations including Home Depot and Lowes, Vendor Statements verified and matched against invoices.
The Answers You Need To Operate And Grow Your Construction Company Are In Reports. To get accurate reports, the paperwork details must be entered into your QuickBooks by following The Construction Accounting Method NOT The Regular Accounting Method. The old saying “Garbage In = Garbage Out” is 100 times truer when it comes to Construction Accounting. When your bookkeeper takes shortcuts in the data entry, for example entering bulk numbers from credit statements for expenses in bulk instead of entering each transaction your Financial and Job Costing Reports are utterly worthless.
Fast Easy Accounting website can have so much detail that people get lost on it. So here is the short version of What We Do:
We Setup QuickBooks For All Kinds Of Contractors Handyman, Home Builders And Specialty Contractors
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.