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Back office support can make or break your construction company and that’s where we come in. We can do you the most good by bringing order to your chaotic contractors bookkeeping mess! Most of our clients come to us because they believed they needed someone to straighten up their contractors bookkeeping services system, help them get current or quarterly payroll tax filings, sales tax returns and a variety of other tax issues. That is only the tip of the iceberg! 

The real value in working with us is not just getting you out of trouble now but keeping you out of trouble in the future so that you can focus your time and energy where it will do you the most good…acquiring profitable and pleasant customers and clients and satisfying their needs. 

 

Warm Regards,

Randal DeHart | Premier Contractors Accountant

 

This is one more example of how Fast Easy Accounting is helping construction company owners just like you 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 sharie@fasteasyaccounting.com

 

Thinking About Outsourcing Your Contractors Bookkeeping Services?

Click On The Link Below:

www.FastEasyAccounting.com/hs

Need Help Now?

Call Sharie 206-361-3950

sharie@fasteasyaccounting.com

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May 12, 2017

This Podcast Is Episode Number 0216 And It Will Be About Unique High-Profit Contractors Count All Their Income

 The Ripple Effect Of Not Counting All Your Income Happens When You Go To The Bank For A Loan

You need to be able to show the bank that you have enough sales to pay back the loan. For most contractors, an excessive amount of profit is NOT an issue.

There are always more than enough expenses that happen naturally in your Construction Company. And there are always tools that need to be purchased, repaired or replaced.

As 2017 tax season is finishing, I have heard from owners and employees who say. This Income or That Income doesn’t count. The fact is it all Counts.

The underground economy may be there but don’t count on the information being a secret. Between Memberships, rewards cards and using a credit card purchases are being tracked everywhere by somebody. (Some contractors think buying a truck for cash is not traceable).

Play it straight, report all of your construction company income and if your QuickBooks setup is done right and the bookkeeping entries are clean more often than not you may get a big fat tax refund!

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Merchant Service providers are required to issue 1099’s

This means every time you use a debit or credit card the amount, date, place of purchase is recorded and the grand total for the year is reported to the IRS.

Web-based services (E-Bay) are required to issue 1099’s is earning are over a certain amount. Casino’s issue 1099’s is winnings are over a certain amount. Construction Company Owner’s issue 1099’s and finally there is a Nanny Tax on household help.

Tax Reporting Is Everywhere You Win When You “Play Within The Rules” This Means Don't Cheat Your Own Future, Count All Of Your Income 

Keep track of all your expenses. Have a good bookkeeping system to calculate the difference between Profit And Loss. Invest is good tools and equipment. Depreciate the high-value items like cars, trucks, vans, tools, equipment and expensive software.

We have found that a Professional Version of Construction Accounting software like QuickBooks and Professional cloud-based services have additional value to be worth more than the “Cheap Price” of something less. This does not mean that all expensive software and apps are the Perfect choices based on a High Price – if it is useful, then it may be the “Better Value.”

A tiny pickup truck based on price is cheap. But if you need an 8’ bed and are hauling lots of “Heavy Things” than it is cheap but not the best value as a ¾ Ton or 1-Ton Truck would be.

Contractors at all stages of their Construction Company have to be price and value conscience. It may be a shock to some, but cash flow issues happen to everyone at some stage in their Construction Company. All it takes is for a few customers with “large invoices” outstanding to delay payments for a long time, and you are experiencing a “Cash Crunch.”

Unsigned or forgotten Change Orders can also be a problem. Forget the customer who promises “If you give them a good price on this project – they have several more jobs waiting for you.” (so that you can lose even more money).Click Here to download our FREE Change Order Form on PDF.

The challenge for all contractors is How Much to charge for their product and services to make a profit.

Picking a Price Point that is fair to both parties. The goal is to always Provide Good Quality Work. Frustration comes when the person they are working for wants to “Nik Them A Little,” then “A Little More” and still expect that The Contractor to be a willing rush to their project, eager to put in another day and do even more “Extras For Free” - Answer is Usually Not!

Give Good Value

Many new contractors provide “Handyman Services” a low cost to get the additional experience and to show they have clients. Helping The Grandmother down the street and all her friends. This is different from working for a Builder / Developer and discovering they built the house for practically “free.”

If you are required to Collect Sales Tax – be sure to have it spelled out in the contract as Plus Sales Tax after the subtotal. Almost everywhere in Washington State sales tax is 10%. Just missing a little thing like charging the Sales Tax (repeatedly) could be the difference between a profitable year or having a loss.

Think about the benefits of Flat Rate, Bid Jobs and Time and Material Billing. I know of contractors who refuse to Mark Up Material and do not charge labor to go get the material. If The Contractor’s Labor Rate is high enough this might not be a problem. Many times, when the customer does not want to pay a markup – they also are also looking for ways to complain about the price of material and try to deduct some hours from the invoice. After all – how cool is FREE?

A couple of years ago, I had a Homeowner come to my office

The Homeowner was very up front that she was trying to figure out a way to not pay the contractor the final invoice. The Homeowner was certain that there must be a way to find a massive discount and avoid paying the final bill.

Because we do Construction Accounting, the Homeowner wanted my help to review all the invoices to find anything that would allow deductions. She was very unhappy the work passed inspections, and the Permits were all written off.

Contractors need to write clear estimates, contracts, be sure to send Notice To Owners to protect their Lien Rights.

We like Zlien The Mechanics Lien & Construction Payment Platform for contractors because:

  • They know when document are due for projects
  • They research documents and sends notices on time
  • They receive, manage, and sends your lien waivers
  • They produce legally compliant forms every time

 Click Here To Learn About Zlien The Mechanics Lien & Construction Payment Platform for contractors

Keep your invoices simple, collect the money. Take Credit Cards from the mainstream processor. Discount for cash if it makes sense. Get Paid - Move On. Count All The Money as Income.

A customer’s tip is $20.00 – Even that is Other income on an invoice. It’s the habit. And Good Habit’s will be better for you in the long run. Our parents and grandparents had many “Old Fashioned Saying.”
When you think about it – Their sayings usually made sense without being offensive or overbearing while saying them.

My Father’s favorite saying was “Tend To Your Knitting” meaning “Keep Focused – Don’t Get Distracted.”
My Brother’s is “Don’t Stop” he lives in the country, and they tend to move “Big Things” down a narrow road. For a Contractor in the city, it would mean “If it’s working – keep doing it” (Think Marketing)

It annoyed our children when Randal and I would speak in shorthand referencing a movie or a book.
Now that they are older – they “Get The Humor” and “The Lesson.” For most of us, our parents and grandparents got smarter the older we got. They let us spread our wings and tried new things. Being a Contractor is like that. Having an idea, a dream and willing to “Go For It” (with the support of others)

There is no book with the perfect answers to all the “What If” and “What About Questions” What makes a good client for one contractor is not necessarily a good client for another. The same is for employees. Not all people are a “Good Fit.” for your construction contracting company.

Every Contractor will need and want a new(er) truck at some point. Bankers like to see Good, Clean Financial Statements. You may know all of your numbers in your head. It is hard to tell a Banker you make a lot of money and can support the loan if all your statement shows are $10,000 in sales for the year.

Written on a piece of notebook paper it is not as believable as coming from QuickBooks, and your sales are much higher, and your net income is $10,000.00. The banker can look at “Why” and see if the numbers can be moved around to make sense. The Banker may need to Explain Your Numbers To A Loan Committee who does not know you. Many Bankers really do want to “Say Yes” and give you the loan.

We Can Help “A Little” or “A Lot” Depending on your needs.
We work with QuickBooks Desktop Version for Setup, QuickBooks Cleanup, and Provide Ongoing Contractor Bookkeeping Services, and Contractor Consulting Services.

Looking forward to chatting about your specific needs.

PS:

After we setup QuickBooks for your specific construction company you have a range of options:

  • Do-It-Yourself Bookkeeping
  • Utilize our Outsourced Accounting Services.
  • Keep your QuickBooks file on the Server and do your own bookkeeping (our QuickBooks setup is not required)
  • Buy QuickBooks Chart of Accounts and/or QuickBooks Setup Templates for the “Do-It-Yourself” Contractor at the FastEasyAccountingStore.com

Wishing you the Best

Enjoy your day.

Sharie


About The Author:

Sharie_DeHart_President_Fast_Easy_Accounting_Serving_Contractors_All_Across_The_USA_Including_Alaska_And_Hawaii-1.png

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 sharie@fasteasyaccounting.com


 

Contractor Bookkeeping Services All Across The USA Including Alaska And Hawaii

I trust this podcast helps you understand that outsourcing your contractor's bookkeeping services to us is about more than just “doing the bookkeeping”; it is about taking a holistic approach to your entire construction company and helping support you as a contractor and as a person.

We Remove Contractor's Unique Paperwork Frustrations

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.

You Deserve To Be Wealthy Because You Bring Value To Other People's Lives!

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 sharie@fasteasyaccounting.com

Contractor Bookkeeping Done For You!

Construction Accounting Specialists At Fast Easy Accounting 206-361-3950 

Thinking About Outsourcing Your Contractors Bookkeeping Services?

Click On The Link Below:

www.FastEasyAccounting.com/hs

This guide will help you learn what to look for in outsourced construction accounting.

Need Help Now?

Call Sharie 206-361-3950

sharie@fasteasyaccounting.com

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.

Warm Regards,

Randal DeHart | The Contractors Accountant

Our Workflow Removes Your Paperwork Frustrations

For Contractors Who Prefer

To Do Your Bookkeeping

Fast Easy Accounting Do-It-Yourself
Construction Accounting Store Is Open

QuickBooks Setup Templates, Chart of Accounts and Item Lists for Construction Contractors

Most Contractors Setup QuickBooks Desktop Version In One Of Three Ways:

#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

And QuickBooks Does Not Work The Way They Want It Too!

The Answer:

#1 Click Here To Buy An Entire QuickBooks Setup For Your Specific Contracting Company

#2 Click Here To Buy Just The Chart Of Accounts For Your Specific Contracting Company

QuickBooks Set Up For Contractors And QuickBooks Chart Of Accounts For Contractors

Short List Construction Contractors We Serve 

Brand New Construction Company    Handyman Company

Cabinet Installer    HVAC Contractor

Carpentry Contractor    Insulation Contractor    

Carpet And Tile Contractor    Interior Designer      

Commercial Tenant Improvement Contractor   Land Development Company

Concrete Contractor    Landscape Contractor    

Construction Company   Masonry Contractor

Construction Manager   Mold Remediation Company      

Contracting Company    Moss Removal Company      

Contractor   Painting Contractor      

Custom Deck Builder    Plumbing Contractor      

Custom Home Builder    Pressure Washing Company      

Demolition Contractor    Remodel Construction Company      

Drywall Contractor    Renovation Contractor      

Electrical Contractor    Restoration Contractor      

Emerging Contractor    Roofing Contractor      

Excavation Contractor    Spec Home Builder      

Finish Millwork Contractor    Specialty Contractor      

Flipper House Contractor    Subcontractor

Flooring Contractor    Trade Contractor      

Framing Contractor    Underground Contractor      

General Contractor    Utility Contractor      

Glass Installation Contractor    Construction Employees    

Gutter Installation Company    Construction Support Specialist

 

Additional QuickBooks Templates, Resources, And Services

QuickBooks Set Up Templates   Solopreneur

QuickBooks Chart Of Accounts     Free Stuff

QuickBooks Item Lists Templates     Consulting

 

We Serve Over 100 Types Of Contractors So If Your Type Of Company Is Not Listed

Please Do Not Be Concerned Because If You Are A Contractor

There Is A Good Chance We Can Help You!

Call Now: 206-361-3950

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