May 29, 2015
Don't Let Tax Preparers Destroy Your Construction Company
Tax Accountants - Can kill more cash flow and profit in your construction business in less than an hour by preparing your annual tax return using a messed up QuickBooks file than you can make up for with hard work in several months, if not years. This is because saving you money on your tax bill is not what they are paid to do; they are paid to fill out tax returns.
This Is Not A Bad Thing - Rather it is a simple fact of business that people and companies do what they are paid to do. Tax Accountants also do not frame second story additions, cantilevered over an embankment in the dead of winter with a strong Northwesterly wind blowing in their face for the same reason; that is not what they are paid to do.
The Answer Is - Have your Construction Accountant clean up QuickBooks before giving it to your tax accountant or tax preparer. Read More...
All Professional Accountants - Are aware of the relationship between QuickBooks and the Internal Revenue Service, IRS. In most cases your tax preparer and your construction accountant work together as a team to help you only pay the correct amount of taxes. Read More about QuickBooks and the IRS..
Tax Accountants - Are good people and have their place; however, not involved with regular accounting, bookkeeping or contractors bookkeeping and accounting.
Construction Accountants - Should not be preparing annual tax returns because nobody can serve two masters. Either be a tax accountant and serve the interests of the tax collection agencies or be a construction accountant and serve the interests of contractors.
How Many Times Have You - Hired someone with the expectation they knew how construction works and then you found out they did not have a clue about it or your particular type of construction? It happens all the time and the first thing that crosses your mind cannot be posted on this blog. The next thing you do is take action and fix it!
How Many Times Have Accounting Firms - Hired what appeared to be a Professional Bookkeeper only to discover they had all the traits of a Bad Bookkeeper? It happens all too often and action is taken to fix the problem!
You Have Mastered Construction - So you knew what to look for and very quickly you knew if someone has the skillsets you need or not.
We Have Mastered Construction Accounting - So we know what to look for and very quickly we know if someone has the skillsets we need and we proceed accordingly.
You Know What Happens - When you send your best Rough Carpenter that you pay piece work for framing spec tract houses from the ground up in all kinds of weather and working conditions to install some custom made cherry wood cabinets with gold plated pulls and knobs in the home of your best client who happens to live in the wealthiest neighborhood in your town and it is not a pretty sight, is it?
Rough Carpenters - Know what they know which is why he will arrive at your best client's home wearing muddy work boots, wearing bib overhauls, smoking a cigarette, un-shaven, with an attitude, and walk across the white plush carpet while carrying a heavy duty fifty foot power cords, a five gallon bucket full of rough carpentry tools including a worm-drive circular saw and a sazall with an 18 tooth blade. He is exactly the person you need to get spec tract houses framed, on time, on budget! Enough said? For more on this see Construction Psychology.
Tax Accountants - Operate like Rough Carpenters because they work fast and furious and they are paid piece work. The main difference is they earn the bulk of their income for the year in three and one-half months. This means they do not waste any time going through your receipts to make certain you get all the deductions you are entitled too.
The Dirty Little Secret - Is most tax accountants have software that gets the numbers from QuickBooks or whatever system you are using and it puts it directly into the tax form.
Which Means - If your QuickBooks Is Setup Properly and all the transactions are input correctly you could save you some serious money on your tax bill because the tax preparation software will find most if not all of the deductions you are entitled too.
You Must Understand That Saving You Money - On your tax bill is not what they paid to do; they get paid to fill out as many tax returns as possible is shortest amount of time during the harvest season between January 1 and April 15th.
If Your QuickBooks - Is a mess they might recommend a Cheap Bookkeeping Service working out of their home who will put everything into QuickBooks in a way that makes it easy and quick for them to prepare the tax return with little or no regard for saving you money on your tax bill.
If They Really Care - About you they will recommend a construction accounting firm like us. We get referrals from professional tax accountants and we refer annual tax preparation work back to them.
The Following Is From One Of Our Clients:
House Builder Mukilteo, WA
"Having paid another accountant machos bucks only to find a wacko bottom line that even I knew wasn't accurate----I was elated after working with Business Consulting and Accounting.
Randal is knowledgeable and friendly and I find his expertise invaluable. He has been readily available and happy to share stories in order to enrich my learning.
My books are now in tip-top shape, and I have ultimate confidence in my bottom line. Too bad I didn't know about their services earlier; I could have saved myself a lot of grief." Read More...
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 keeping contractors bookkeeping and accounting separate from tax preparation and having a Board of Advisors watching over each other and your business. Read More..
Just So You - Don't think we are being too 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 accountants.
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?
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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