0331: Build A Construction Accounting System That Works For Your Company

This Podcast Is Episode Number 0331, And It Will Be About Build A Construction Accounting System That Works Best For Your Company   Construction is a tough business, and people failure is common. Most of our clients have either failed or come very close. It doesn't matter how many times you are knocked down; it only matters that you learn your lessons, get up, and go again. Some lessons we already took note of years ago, having owned and operated our construction company. By building a system and gaining insight from us, you can pick up from our mistakes which you don't have to go through and can start avoiding before it comes crashing down.    We are deeply passionate and committed in the construction industry that we want to support you, our clients and readers, to achieve your definition of success. Whether you're a contractor, owner, spouse, a business professional, bookkeeper, or accountant; we understand your frustrations because we've been where you are now, and we're here to help.   Introducing Construction Accounting Academy   Fast Easy Accounting's online learning platform is the answer you've been looking for. Through the self-paced courses taught by The Contractors' Accountant, Randal DeHart, you can focus your time and effort in gaining knowledge and understanding of construction accounting concepts particular to your needs.   We have proudly produced 12 classes in our initial launch with more to come in the following weeks. Each course was designed for QuickBooks users from all levels - Beginner to Experienced. Our goal is to provide the student with suitable and useful information to build a construction accounting system specific to their type of construction business and company role.   Click each course name to learn more/enroll:   Ultimate Job Costing Solution For Contractors   Develop a cost library of work packages. Gain a competitive advantage by investing your time, energy, and resources to build and maintain one properly. Access to your job history can help you accurately calculate future jobs.   Land Developer Using QuickBooks Desktop   Analyze Work-In-Progress reports. Unforeseen cash flow issues can lead to construction delays, business, and personal bankruptcy. Make use of WIP schedule to keep track of your projects and percentage of completion.   Five Key Performance Indicators For Contractors   The five reports you review at 5 PM for 5 minutes will help you assess your business performance. Start making informed decisions and optimize the future of your company through the KPI approach and best practices.   Spec Home Builder Using QuickBooks Desktop   Set up cost codes and get rid of your poor Spec Home Builder Accounting system once and for all. Establish a breakdown using Labor, Material, Other Costs, and Subcontractors (LMOS).   Land Developer And Spec Home Builder Using QuickBooks Desktop   Without proper tracking and matching of income and expenses, you'll never know if you made a profit until the job is over. With long business cycles, and huge construction expenditures, most land developers and spec home builders feel there is never enough money to cover the costs.   The chaos of day-to-day operations, economy change, compliance issues, new regulations, natural disasters, and several other factors that are beyond control are potential risks to one's business.   Start building a process-dependent system and set up your QuickBooks Desktop account to work for your Land Developer and Spec Home Builder Company.   Contractor Bookkeeping In Ten Minutes A Day   Accurate bookkeeping matters. Your construction company's financial health relies on correctly recorded transactions and data. A proper bookkeeping system can help you stay on top of your debts, figure out where your profits and losses are coming from, prepare you for tax season, and brace your company for potential growth.   Job Deposits In QuickBooks   Master the process of setting up, requesting, receiving, reporting, and applying Job Deposits in QuickBooks and take the stress out of generating a report to see who has deposits and balances. This class will teach you how fast and easy it is to set up Job Deposits in QuickBooks. Once your client signs the contract, you'll be empowered and confident to request for upfront payment.   What Is Job Costing For Construction Contractors   QuickBooks needs to know a lot of things to produce the reports you need. Realizing what you don't know and want to know more about your business is the first step. A properly set up QuickBooks file is the key to generating useful and timely financial reports. Start by learning the basics and discover how easy it is to make more money with Job Costing.   Set Up And Track Retention In QuickBooks For Contractors   Motivate your subcontractors to complete the project on time and within budget and give your clients peace of mind by preparing a retention plan for them. Quickly and easily manage your outstanding receivables by taking advantage of the Collections Center features in QuickBooks Desktop, make changes as needed, and send an email for balance dues.   Owners Time On Jobs In QuickBooks For Construction Contractors   Labor is hard to estimate. Contractors like you are not always aware of what you are giving away - and that includes Labor. A correctly set up QuickBooks file is the key to generating useful and timely financial reports. Start by learning the basics and discover how easy it is to make more money with Job Costing by tracking the owner's time on jobs.   SWOT Analysis Of Your Construction Company   The pressures of owning and operating a construction company can be, at times, almost unbearable. Unlike any other business, there's no "one size fits all" solution in your toolbox that can fix your dilemma. Improve your productivity and bring in more cash flow to your firm by finding wealth in what you do best. Work smarter, not harder! Discover how SWOT Analysis can give you the life and freedom you've dreamed of when you started your construction company.   LMOS Cost Codes For Construction Contractors   Determine the cost of construction down to the granular level, run analysis, and know which Cost Code tasks can be done in-house (Labor) and which ones can be subcontracted (Subcontractors). The same concepts applied to (Other) costs like permits and getting materials to the job sites (Material). Start incorporating LMOS to your accounting system and get a better understanding of your business. Take this class and set up your QuickBooks Desktop to work for your construction company.   As with every type of business, having the right tools can help you work efficiently and effectively. The key to your business profitability lies in the understanding of the critical concepts of construction accounting. Now that the tools are available online and accessible 24/7, it's now up to you to leverage the power of knowledge and put it into action. Please feel free to download all the Free Forms and Resources that you find useful for your business.   About The Author: Sharie DeHart, QPA is the co-founder of Business Consulting And Accounting in Lynnwood, Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations and offers insights on how to manage the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. Call 206-361-3950 or [email protected]