Jul 5, 2019
This Podcast Is Episode Number 0322, And
It Will Be About How To Build A Construction Company That Can
Grow Without You
An alarming number of construction company owners are being
ripped-off and driven into bankruptcy. That sounds harsh, but it's
true. Whenever we see a contractor heading towards a problem, an
issue, or a big disaster, we immediately raise the alarm. We are
cautious about doing it so when we say there is a potential
problem, our clients know we are serious.
Contractors by nature are tenacious, resilient and have a
tremendous amount of "Grit And Determination To Succeed" which
means they are not easily disturbed or prone to react hastily or
rashly at the first sign of trouble. This is just one of the many
qualities I sincerely admire about these wonderful men and
Most of our contractor clients will listen carefully and
thoughtfully when we offer advice and words of wisdom because they
know, like and trust us and are aware that everyone on here at Fast
Easy Accounting has many years of "Real World Construction
Experience," not merely academic egg-heads. I say that with all due
respect to egg heads since I am an egg-head with several degrees
and certifications in Accounting, Construction Accounting and
We have callouses on our hands having owned and operated
construction companies, and some of us have served an
apprenticeship in one of the construction trades. In other words,
when it comes to owning, operating, and making a substantial amount
of money with construction and contractor service companies, we
know what we are talking about.
Bookkeeper embezzlement can destroy your construction company
and your personal finances. Unfortunately, until a contractor has
gotten to know us, they tend to think of us as just another
contractors bookkeeping service. Which means some contractors think
we are crazy to suggest that any trusted employee, especially an
in-house bookkeeper, would steal money from their company, and so
they ignore us until it was too late.
Construction Bookkeeper Embezzlers come in every race, creed,
color, gender, age. There is no definitive profile, no absolute way
to know which contractor bookkeeper is an embezzler until they have
been caught and convicted and even then if you do not perform
extensive background checks you may never know it until it is too
Just because you catch a bookkeeper embezzling funds don't
think for one minute they will always be punished and made to pay
you back. You must understand, for the most part, in the eyes of
the public, employees are unfortunate innocent victims of brutal
greedy business owners.
Fortunately for you, I've compiled these telltale
signs of a lousy bookkeeper, so it's easy to spot and avoid
- Refuse to invest time and money in continuing education because
they know everything. They never learn anything new unless the
company pays for the training and it is on the clock.
- Is passive aggressive and will study you and your staff to
learn how to manipulate everyone, gaining power over you, your
team, and new employees and outside suppliers.
- Hate change and will fight tooth and nail to stop it, or they
will destroy your company.
- Know you're responsible for taxes, fines, penalties, and
interest; so this is where they get even since they know how to
increase your quarterly tax return costs, click here to learn more.
- Understand that bookkeeping is 90% repetitive transactions and
10% complex transactions. But they don't know what to do with
complex transactions, so they put them wherever they feel
- Have side jobs working for other companies or an entire
bookkeeping business on the side.
- Quit when the tax return is being prepared because QuickBooks
is a mess and they're caught, and when they do quit or get fired,
expect to hear: "Chaos, panic and disorder...my work here is
- Keep you busy with lots of mindless crap to divert attention
from why the books are a mess and let you think you are in control
of the bookkeeping and the bookkeeper until it is too late.
- Let the work expand to fill whatever time you are willing to
pay them to get it done and train you to leave them alone by
getting upset or angry whenever you want anything.
- Become indispensable to take time off whenever they please and
hold you hostage. Also, negotiate for additional perks, benefits,
changes, and elimination of personal accountability.
Things to look out for when hiring/outsourcing a
- Qualified construction accountant and construction bookkeeper
with a passion for learning and expanding their skill set.
- Local based - if you're outsourcing and in the U.S., there are
many off-shore and foreign services that may be cheaper but in most
cases will cost your business more money in the long run.
- A professional office - not somebody's home where there are
little or no controls on who has access to your contracting company
records; including your competitors. You would be surprised if you
knew how many contractor's spouses and significant others take on
other contractors bookkeeping and the information about bids,
estimates profit and loss find its way into your competitor's
What happens when the person in control of QuickBooks is
unhappy with you? The same thing that happens when the person who
cooks your food is unhappy with you. Hiring the wrong bookkeeper
will leave you with unfiled and unpaid taxes, gasping, upset, with
tear stained checks, standing in the middle of the highway of
business success staring at the remains of your business, crashed,
upside down, with no hope in sight.
I have seen bad bookkeepers ruin too many businesses,
especially construction businesses. In most cases, it was
Bookkeeper Incompetence or Bookkeeper Embezzlement, and in other
cases, it appears to me there may have been some deliberate
identity theft; however, I cannot be certain. All I know for sure
is that I have witnessed business failures that have led to
divorce, families destroyed, finances wiped out, and people living
on the streets. Make sure you hire the right one for your