This Podcast Is Episode Number 0303, And It Will Be About Construction Bookkeeping And Accounting - Expectation Vs Reality Construction Bookkeeping is something you need to understand first, then learn. Over the years, hundreds of people have told us how easy QuickBooks is to use and how hard QuickBooks For Contractors is to use, and that is so true. Here is what I see repeated many times among construction companies: You usually hire an “office admin with experience in QuickBooks," ask your spouse or significant other to do it for you, or you try your best and do it yourself. Some would take the time to hire an in-house bookkeeper – not knowing what they need is a Construction Bookkeeper/Accountant. There is a world of difference between Construction Accounting and Regular Accounting. Construction Bookkeeping And Accounting - Expectation Vs Reality Posted by Randal DeHart on Fri, Feb 22, 2019 Find me on:  Facebook LinkedIn Twitter Google+   Share Construction Bookkeeping is something you need to understand first, then learn. Over the years, hundreds of people have told us how easy QuickBooks is to use and how hard QuickBooks For Contractors is to use, and that is so true. Here is what I see repeated many times among construction companies: You usually hire an “office admin with experience in QuickBooks," ask your spouse or significant other to do it for you, or you try your best and do it yourself. Some would take the time to hire an in-house bookkeeper – not knowing what they need is a Construction Bookkeeper/Accountant. There is a world of difference between Construction Accounting and Regular Accounting.                               Expectation: Bookkeeping only takes 10 minutes a day. Reality: Just sorting out the receipts, scanning, and filing is already 10 minutes. The piles of paperwork will always grow high and wide. Expectation: Simple data entry – it’s fun because putting in checks, bills, and invoices are easy! Reality: The fun ends when confusion begins. “Does this receipt belong to this job?”, “Should I put this under Cost Of            Goods Sold?”, “How do I reconcile this?” Expectation: I’ll just call the Payroll software for support. Reality: Yes, you can. Reach out to your software provider for any technical issues you’re having. The problem is there are times when an employee turns their time-card late and expects to get paid on time, someone asks for advance pay, or you’re having some subcontractor issues. Expectation: I can run my financials and Job Cost Reports in QuickBooks (or the software I'm currently using) Reality: Inaccurate reports will damage your business. The day to day input should be properly allocated. A $5000 worth      of transactions placed in the wrong category will result in unreliable data leading to costly bidding mistakes. Expectation: My bookkeeper can provide me with Key Performance Indicators Report (KPIs) every day since it will only take 5 minutes. Reality: What is KPI? Yes, to some of you, that could be the reality. KPIs is a summary of how the business is doing financially and taken seriously can lead to some serious cash flow coming into your business and staying there.If you            review these five reports at 5 P.M. for 5 minutes, you can gain tremendous insight into your business.  Expectation: I already have an administrative assistant who runs the office and has QuickBooks (or other accounting software) experience. Hiring a construction bookkeeper/accountant will cost more money. Reality: Contractors should have two primary accountants. One is the Tax Accountant, and the other is your Construction      Accountant. Construction Accountants...