Jun 5, 2015
This Podcast Is Episode Number 0113 And It Will
Be About Do Contractors Need Every QuickBooks
Feature?
One of the most common complaints we hear from contractors is they feel like they are missing out if they are not using all that QuickBooks has to offer.
Most contractors are hard driving Type "A" personalities who are concerned they are paying full price for QuickBooks and only using a fraction of what it can do and it drives them crazy.
QuickBooks has over 100 built in reports and those reports can be filtered to display over 1,000,000 combinations. In addition to the staggering number of custom and special reports that can be developed in QuickBooks.
The sheer volume of reports in QuickBooks makes it impossible to use all of them. The truth is no contractor uses 100% of the power of QuickBooks.
For Example - The simple Profit & Loss Report Can Be Shown Four Different Ways With Little Effort
Profit & Loss Report Can Be Shown As Accrual Basis or Cash Basis:
- Accrual Basis is generally for internal use by the contractor to make decisions about operations and forecasts.
- Cash Basis is generally for external use for calculating and paying taxes. Wise contractors only pay tax on the money they collected.
Editor's Note: We see many QuickBooks for contractor files where the contractor is paying tax on money they have not collected and when we ask why, the most common answer is the tax accountant wants to make sure the contractor pays their fair share of taxes. We agree with half of that statement; contractors need to pay their fair share of taxes but not until they absolutely have too for two reasons:
#1 Paying bills early hurts cash flow
#2 If someone never pays it can be tricky getting refunds from tax
agencies.
If Your Profit & Loss Reports Shows Percentages of Income That Is Extremely Useful.
The Percentage Of Income Is very Useful For:
#1 Comparing changes year over year
#2 Comparing your contracting company with your competitors
#3 Looking for trends to find ways to improve cash flow and
profitability
The most successful high profit contractors we deal with every day in our outsourced contractors bookkeeping services who are earning over 20% net profit and paying themselves $100,000+ in annual salary have these things in common:
- They use less than 5% of the power of QuickBooks.
- They use less than 1% of the available reports in QuickBooks.
- They focus on the critical few reports that give them 95% of what they need to take action rather than trying to glean 100% of the information from all of the available reports.
There are Five Key Performance Indicator Reports that when looked at every day can double, triple or more your construction company annual profits and cash reserves.
This may sound too good to be true and yet it is not. Because it requires discipline, effort, and it is not fun and easy. You can read about them here Five Key Performance Indicators.
One final thought, garbage in = garbage out. The main reason most contractors do not and will not ever succeed in business is they do not have accurate financial and job costing reports.
I sincerely encourage you to seek the services of a construction accounting service that you trust to setup QuickBooks correctly for your particular contracting company and if it makes sense let them handle all of your day-to-day contractor bookkeeping services. It will be one of the best things to happen to you since the invention of the wheel.
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 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 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
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 sharie@fasteasyaccounting.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.
Warm Regards,
Randal DeHart | Contractors Accountant