Jul 8, 2016
All Accounting Is Not Created Equal. Have you ever compared your
QuickBooks Profit & Loss Report to your annual Income Tax
Return and scratched your head trying to figure out why the numbers
are so different? If you have, you are not alone because there are
two different types of Accounting, and they serve two different
Tax Accounting Vs. Management Accounting Tax Accounting Is external; its purpose is reporting income, preparing tax forms and making certain you pay your fair share of taxes and perhaps a little extra. For example Quarterly Tax Reporting, annual tax returns, state, county, city and local business and occupation taxes and sales tax reporting.
Tax Accountants Are good people, and they have their place in the accounting world. Regular accounting, bookkeeping and contractors bookkeeping and accounting are not something they should be doing. No different than Professional Bookkeepers and construction accountants should not be preparing annual tax returns.
Tax Accounting Is important and so is the tail on a dog! Just understand the tail does not wag the dog! It is important that you understand tax accounting has very little to do with helping you run your business and everything to with paying taxes and keeping the tax preparer's boss, the government happy!
Construction Management Accounting Is internal;
its purpose is to help you operate and grow your construction
business profitably. For example The Five Key Performance
Indicators, Cash Reports, Receivables, Payables, Profit and Loss,
Balance Sheet, Job Costing, Job Profitability Analysis.
Business Process Management For Contractors Includes:
· The 80/20 Rule For Construction
When to grow the business, what markets to serve, when to hire more people, loans, lines of credit, bonds, performance bonds, insurance cost savings, business planning and your overall construction company business strategy.
Contractors Bookkeeping And Accounting Is completely different
from standard accounting systems primarily because contractors take
their entire business inside trucks and vans to people's homes and
businesses to perform services, deliver and install products.
Standard accounting when people go to the businesses to shop and
buy products and services.
Construction Accounting Is a specialty similar to the difference between a family doctor and a brain surgeon Read More. Construction accounting cannot be learned; it has to be understood.
To become a construction accountant, you must spend years working on construction sites to understand the industry and then with a foundation in standard accounting you can understand it.
If You Allow Your Accounting To be dictated by the whims and wishes of the tax accountant you could be losing a lot of money! Because the entire Chart of Accounts will be structured in a way that makes it easier and quicker for them to prepare the tax report one day a year. Because saving you money on your tax bill is not what they are paid to do; they are paid to fill out tax returns.
We Have Fixed Hundreds of QuickBooks files that were "setup" by tax accountants.
Our Contractor clients say they are amazed and very happy because they can get the reports they need to operate and grow their construction businesses and we make it easy for the tax accountant to fill out the annual tax return and get more deductions, so you pay fewer taxes.
We can help you too, simply fill out the form on the right or call us 206-361-3950 or email email@example.com to get started!
We Do Not Prepare Annual Tax Returns For two reasons. Number one, we are focused on maintaining our status as the premier contractors bookkeeping and accounting specialists in the world. Number two we firmly believe in "Trust But Verify" by having a Board of Advisors watching over each other and your business.
Please Don't Think We Are Hard on tax accountants please
understand that we have great relationships with a lot of tax
accountants. In fact, we have tax accountants review our QuickBooks
and prepare our business and personal returns for over thirty
years, and we refer a lot of business to a variety of tax
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 firstname.lastname@example.org
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 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
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