Sep 6, 2019
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:
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.
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.
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.
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).
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.
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.
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.
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.
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.
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.
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.
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.
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 sharie@fasteasyaccounting.com