This Podcast Is Episode Number 0211 And It Will Be About Contractors Messy Bookkeeping Issues Solved Messy Bookkeeping Happens Just A Little At A Time When Contractors are doing their own bookkeeping, it becomes a problem that grows and grows There is not any limits to the number of transactions that can be entered into QuickBooks improperly. Messy files build transaction by transaction or more simply put invoice by invoice, receipt by receipt all can be entered into QuickBooks improperly. There is no popup that says “This Is WRONG” – Do It Over. Unlike loading the dishwasher or washing socks which have an end. You run out of dishes or can’t find clean socks. Filling up the dishwasher will magically produce clean dishes. After loading, adding soap, and pushing start the rest happens automatically.  Quality of clean dishes depends on soap, how you load the dishwasher and finally, pre-rinsing is optional depending on the dishwasher Same with the washing machine, fill up the machine, add soap, and turn on the machine. Better results happen with a little bit of sorting by clothing type or color. The washing machine will wash either way. Yhe clothes will come out clean. The unanswered question until the load is done is: Will the T-shirt still be white? Are the colored clothes the same exact color as when they went into the washing machine?   Many Contractors Practice The Keep It Simple Method For Bookkeeping   Put all of the receipts in the drawer. Out of sight and out of mind. The drawer is next to the computer with the QuickBooks for Contractors or other Bookkeeping Software on it.   Using the power of Wishful Thinking; the hope is that the transactions will “Magically Appear” into the Bookkeeping software without any additional assistance from them.   Unfortunately, with all of the technology available; it still requires the help of a “Real Person” with skills to know where to put the transaction into the system. Does Income Exceed Outgo? – Short Answer Yes, there is still money in the bank, and ALL of the bills are paid. Do Problems Come From Not Knowing What To Do?   The bank only knows what has been deposited, what has cleared and the balance left in the account. Without an accounting system that tracks all of the income and expenses, How Do You Know?  It is easy to put everything on Auto Pay and forget it. Unfortunately, your clients have higher expectations and may not be willing to pay you based on when your auto-pays will be coming out of the checking account. Throw enough money in the checkbook, and everything will be ok – Right?   In the short term, all is great. It is called “Robbing Peter To Pay Paul.” In other words, you are paying yesterday’s bills with tomorrow’s money. This works perfectly when the economy is booming, and work is plentiful. You can take that job deposit and go to the nearest Truck Dealership and buy a New Truck. Money is coming in fast like a spring thaw; no end in sight. No big deal with supplier bills or subcontractor being paid twice. There is enough money for everyone. Unfortunately, that was not the way it works forever. Outside forces can cause the world of Construction to go from a Boom to a Bust in minutes, and recovery usually takes longer than a few days.   For Example Weather related Floods, Hurricanes, Earthquakes, Avalanches, Mud Slides, No Snow, Too Much Snow. Bridges crash for a variety of reason. All of these things can cause Major Interstates to be closed. Other economic factors can cause businesses to lay off workers or close. High fuel prices and everyone stays home. I remember waiting in Long Lines to be able to “get gas.” Your day depended on the last digit of your license plate. About that same time, it seemed like Houston, Texas would be a “ghost town” forever. In 1971 there was a billboard in Seattle and had “Would the last person leaving SEATTLE - Turn out the lights” and...