Apr 7, 2017
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?
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.
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 look at it now. Downtown is dense, full of skyscrapers, building projects everywhere and lots of traffic.
Construction Contractors Face Challenges of Feast and Famine Depending On Your Local Area
The last few years in many areas of the country has been extremely tough on Construction Contractors. Some areas became the New Boom Towns while other areas declined or stayed the same (no growth and limited decline)
The economy is picking up in many areas of the country the need for contractor bookkeeping increases.
Contractors are going back to work. Able to charge reasonable
prices (versus cutting bids just to keep working) For a long time;
it was very depressing for Contractors to look at numbers when they
know there is limited money for personal.
All income going back into the business in the form of tools, trucks, equipment and material for the job:
The Common trait for all these contractors is
that “Contractor Did What Was Needed To Provide For Their
Contractors did their own bookkeeping. Spouses helped with Bookkeeping, Paying Bills, and Answering Phone.
Many spouses are “self-taught” because it didn’t matter if the training was available; there was No Money.
Now both Contractors and their Spouses want to know:
We have a Customized Setup for the QuickBooks Desktop
Version and process that make it simple for you
to come on-board. We know what works.
Our System Is A We Process - As the Client, you still do the parts that only you can (and should do) Meet Your Customers, Create Bids, Create Invoices, Collect The Money, Pay The Bills.
Our Part - Putting all those Transactions in QuickBooks in a way that produces useful reports for You and Your Tax Accountant. Your Tax Accountant looks at your numbers (1) day per year.
You Part - Is you have to live The Good, The Bad, and The Ugly and all their consequences the other 364 days of the year. As a Contractor, you have to make decisions every day.
We Are Here To Help - We Know What You Need and Why You Need It.
Starting Where You Are Now
Starting With Yesterday
Looking At Tomorrow
With better QuickBooks Reports, you can make better decisions.
Have More Time to do the things you want to do with your Life,
Family, and Friends.
Looking Forward To Getting Started
Enjoy Your Day.
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. http://www.fasteasyaccounting.com/sharie-dehart/ 206-361-3950 or firstname.lastname@example.org
We understand the good, bad and the ugly about owning and operating construction companies because we have had several of them and we sincerely care about you and your construction company!
That is all I have for now, and if you have listened to this far please do me the honor of commenting and rating podcast www.FastEasyAccounting.com/podcast Tell me what you liked, did not like, tell it as you see it because your feedback is crucial and I thank you in advance.
I trust this will be of value to you and your feedback is always welcome at www.FastEasyAccounting.com/podcast
One more example of how Fast Easy Accounting is helping construction company owners across the USA including Alaska and Hawaii put more money in the bank to operate and grow your construction company. Construction accounting is not rocket science; it is a lot harder than that, and a lot more valuable to construction contractors like you so stop missing out and call Sharie 206-361-3950 or email email@example.com
Thinking About Outsourcing Your Contractors Bookkeeping Services?
Click On The Link Below:
This guide will help you learn what to look for in outsourced construction accounting.
Need Help Now?
Call Sharie 206-361-3950
Thank you very much, and I hope you understand we do care about you and all contractors regardless of whether or not you ever hire our services.
Bye for now until our next episode here on the Contractors Success MAP Podcast.
Randal DeHart | The Contractors Accountant
#1 EZ Step Interview inside QuickBooks Setup
#2 Asked Their Tax Accountant To Setup QuickBooks
#3 They Attended A How To Setup QuickBooks Class Or Seminar
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