This Podcast Is Episode Number 0309, And It Will Be About Profit Draining Invoice Errors Contractors Make Without Realizing It I would like to start my blog post by asking you to reflect on your WHY. Pause for a while and think about the reason or reasons why you started your business. I highly doubt that your answer is rooted in accounting tasks or involved any type of bookkeeping project at the slightest. It is apparent that you’re passionate about what you do and you love working in the construction industry, be your own boss, and have the freedom you’ve dreamed of. I admit, small business owners - like myself, have learned to make the most of the resources we have. And as an entrepreneur, tend to take on the challenge of wearing multiple hats. Marketing your business, answering phone calls, responding to emails, scheduling appointments – to name a few. However, I am reminding you now that being a company owner and doing your accounting and bookkeeping requires a totally different skill set from being a construction expert in your field. When it comes to your financials, it would be wise to take a step back and let someone who specializes in bookkeeping do it for you. Not just any accountant or bookkeeper, but see to it that they are Construction Bookkeeping and Accounting Professionals. Questions to ask yourself: Do I have experience in bookkeeping and/or accounting? Outsource: Working with a knowledgeable and experienced bookkeeper that specializes in your industry will save you time in setting up your system and processes, so it’s easier to get started. DIY: You may have a bit of a learning curve. Start by familiarizing yourself with construction bookkeeping and accounting processes. Create a system and an everyday routine when it comes to managing your paperwork. What kind of software and applications should I use? Outsource: Your construction bookkeeper will be able to help you out and can determine which accounting software will work best for your business, provide you with extensive training and support, and share tips and tricks on how you can optimize it. Fast Easy Accounting supports several different software and applications. In particular, QuickBooks or Xero for construction depends on how you get paid, the type of work your company does, and if you need Job Costing. DIY: This is where it gets tricky. As I have mentioned, using a particular software depends on the kind of contracting business you have, what you need out of it, and how much time you are willing to devote to learn and use it. Keep in mind that using a more popular and in-demand software and applications have a significant advantage in case you are having some issues. Tech support should be readily available, and if not, a quick Google search can lead to video tutorials and community answers. Can I process payroll for my employee/employees? Outsource: During a regular pay schedule, when time cards arrive on time, everything runs smoothly. Payroll processing is a complex task and shouldn’t be put off because it can lead to burdensome complications especially when time cards are late or you have to deal with overtime management, entry errors, employee loans, and ineffective time records. Fast Easy Accounting offers Payroll Processing with options such as Paper Check, Direct Deposit, or Debit Card. DIY: To learn how to process payroll for your employees is one thing, but to deal with common payroll issues I specified is another thing you need to add on your to-do list even when you’re already busy juggling other tasks. How do I generate Financial Reports? Outsource: Contractor Financial Reports such as Profit and Loss, Balance Sheet, Cash, Receivables, Payables, Job Costing Reports, and Job Profitability Reports all depend on proper bookkeeping set up from Day 1. It’s easy to pull a report based on the entries and make use of it whether you want to...