Jan 16, 2015
QuickBooks Makes Some Closing Entries Automatically
Several years ago the accounting departments of smaller construction companies with less than $10M in annual sales had to slog through dozens of mind numbing General Journal Entries in order to "Close The Books". With QuickBooks that process is mostly automatic.
There are still a few things the accounting department needs to do. The easiest method is to open QuickBooks and go to the help menu and click on the "Year End Guide".
A QuickBooks Year-End Guide will pop-up and just be aware that it may vary depending on the version of QuickBooks you are using.
When you click on a task with your mouse the help screen for that task pops up and guides you through the process which normally takes several hours depending on the amount of bookkeeping data in your QuickBooks file and how complex your construction accounting system is setup.
Get Ready For The Tax Preparer Step-By-Step
1. Gather Receipts Into One Container
2. Review Personal Bank Statements - Business
3. Review Business Bank Statements – Personal
4. Reconcile Bank And Credit Card Accounts
5. Verify Petty Cash Entries
6. Invoice Unbilled Work
7. Money In (Accounts Receivable)
8. Inventory Count By December 31st
9. Fixed Assets Balance And Depreciation
10. Money Out (Accounts Payable)
11. Retirement Contributions - 401 (k), IRA, Etc.
12. Notes Payable, Loans, Mortgages, Credit Lines
13. Mileage Log / Each Vehicle / Business Use
14. W-9’s From Vendors & Contractors Over $600
15. Payroll Tax Deposits Match Quarterly Returns
16. Verify Profit And Loss - Does It Make Sense?
17. Back Up All Your QuickBooks Data Onsite And Offsite
When Your Computer Crashes Your QuickBooks Data Is Gone
We strongly recommend you have a basic disaster recovery plan in place.
Step #1 back up QuickBooks onsite
Step #2 back up QuickBooks in the cloud
If your QuickBooks is resting on our QuickBooks Desktop In The Cloud Intuit Approved QuickBooks Hosting service that has multiple backup procedures in place you do not need to back up again.
We have prepared a PDF checklist you can download by clicking on the buttons below. There is nothing to fill out, simply click here and download it to your heart's content.
We offer QuickBooks year-end closing services if you prefer not to do it yourself or rely on someone who only does it once a year and the prices are very reasonable.
Going Forward Is QuickBooks Right For Your Construction Company?
If you find that QuickBooks is not doing what you want it to do and not giving you the reports you want you may want to consider trying Xero Accounting Online.
If you are starting a construction company, you could qualify to have us set up your company in Xero Accounting Online and give you 30 days of Xero Accounting Online FREE so you can find out if Xero Accounting Online is right for you!
We offer both Xero and QuickBooks bookkeeping services for construction contractors and have found the dividing line is how you are paid.
QuickBooks Works Best If
1. Take Job Deposits
2. Have Change Orders
3. Issue Multiple Invoices
4. Need Job Costing Reports
5. Need Payment Applications
6. Periodic Invoices For Bank draws
7. Need Complex Construction Accounting Reports
Xero Accounting Online Works Best If You
1. Have Simple Jobs With One Invoice
2. Need Basic Key Performance Indicator Financial Reports
I trust this podcast helps you understand that outsourcing your contractors bookkeeping services to us is about more than just “doing the bookkeeping”; it is about taking holistic approach to your entire construction company and helping support you as a contractor and as a person.
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 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
This is 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:
Need Help Now?
Call Sharie 206-361-3950
In closing, I want to caution you that we may or may not be a good fit for your contracting company. This guide will help you learn what to look for in outsourced construction accounting.
Thank you very much and I hope you understand we really 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 | Contractors Accountant