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Back office support can make or break your construction company and that’s where we come in. We can do you the most good by bringing order to your chaotic contractors bookkeeping mess! Most of our clients come to us because they believed they needed someone to straighten up their contractors bookkeeping services system, help them get current or quarterly payroll tax filings, sales tax returns and a variety of other tax issues. That is only the tip of the iceberg! 

The real value in working with us is not just getting you out of trouble now but keeping you out of trouble in the future so that you can focus your time and energy where it will do you the most good…acquiring profitable and pleasant customers and clients and satisfying their needs. 

 

Warm Regards,

Randal DeHart | Premier Contractors Accountant

 

This is one more example of how Fast Easy Accounting is helping construction company owners just like you 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:

www.FastEasyAccounting.com/hs

Need Help Now?

Call Sharie 206-361-3950

sharie@fasteasyaccounting.com

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Jun 9, 2017

This Podcast Is Episode Number 0220 And It Will Be About Contractors Are Skilled In Construction But Not Usually In Construction Accounting

Almost every Contractor understands how to do basic repairs and remodels on a house.  

As the project grows it gets a little more complicated.
Is it a kitchen remodel, a bath remodel, upgrading the laundry area? Building a Deck?

Adding a second story addition? Adding a garage?
Your Construction Accounting System started small and easy. Perhaps you tracked everything with bank statements and Excel sheets and it worked fine for a while.

Later as your Construction Company grew and you began to wonder where you are making and losing money (Job Costing) and you realized you need to better understand Construction Job Cash Flow you purchased QuickBooks thinking it was "Quick" and that is when the trouble started...

Each type of project takes planning and skill.

Doing a teardown and then building a new house? Oh, maybe the zoning does not allow for a new house so technically it is a major remodel keeping a certain amount of square footage of the original house.  
A brand-new contractor without a background in larger projects typically is not going to immediately jump into a large remodel.  Someone who has done lots of remodels may not be comfortable building a new house from the ground up.

Decisions in any project are what level of quality of the work, how much detail, the size and the material needed to complete the job Decides How Much It Costs.  Is a Cottage or a Mansion?
        
The area of the country makes a difference. For Example, a $500,000 house in one part of the country could be a two story, 4 bedrooms, 2.5 baths and a wraparound porch. In another part of the country, it may be a 3-bedroom rambler and a carport.
    
The cost of material may not be a lot cheaper in one area over another. The price of sheetrock and lumber increased in Seattle after Hurricane Sandy and Hurricane Katrina. Local labor may be different.  

The skillset needs to complete the Handyman Repair, Installation of Plumbing, Heating, Electrical, Roofs, building the Additions on a House, creating a whole house remodel or building a new house are not the same as being able to track all of the expenses and do all of the bookkeeping properly.

Construction Accounting and Regular Accounting require entirely different skill sets.

With an Excel Spreadsheet, quite a lot can be done to know your costs and track the bills that need to be paid. Many contractors have done this for years. Turning in the spreadsheet and a pile of paperwork to the Tax Accountant to file the annual taxes.  

If the Tax Accountant has worked with you for years; they understand your method and figure out a workaround.  Some will setup QuickBooks Desktop or some other software to create monthly, quarterly numbers leading them to the annual Profit & Loss and Balance Sheet needed to file your annual taxes  

Your Banker is not quite so willing to do “try to figure out” your financials. They have a limited amount of time to make a presentation to a Loan Committee.  Financial Statements from QuickBooks make it easy for your Banker and the Loan Committee to compare financial statements between applicants.

Some contractors have the benefit of being in a small town, where their banker has known them for years. The decision process is more informal.  As Bank Regulators have gotten involved with the decision process – what was a simple “Yes” decision may suddenly be “No”. A lot of Home Builders got caught up in that loop and lost property because could neither sell or refinance.

Are you counting on “The Kindness of Others” (to quote slightly from a classic movie) for solutions to your lack of good bookkeeping? Sometimes it is harder to avoid doing something than it would be to find a qualified “Construction Bookkeeper” to do the Bookkeeping for your Construction Company.  

Here is my parental side showing. Many times our kids would spend more time avoiding their homework, cleaning up their rooms, doing chores and explaining “Why It Wasn’t Done” or “Why They Shouldn’t Have To Do It” In many cases more time was spent explaining than it would have taken to do it.  

As Construction Accountants, we understand there are “Too Many Tasks” and not enough time in the day. This is “Why we develop processes, procedures, use Software and app’s” to make it as easy as possible for our clients.

As Contractors, it is not that you can’t do it but is it the “Highest And Best Use of Your Time” Wow – I’m positive you can enter in fuel slips into QuickBooks.

Might be a better use of your time talking to a prospect, looking at a job, creating an estimate, writing up the invoice, or collecting The Money, going to the Bank to deposit the Money, paying your insurance, cleaning your truck and even sleeping.

The Basics in our world is the Five Key Performance Indicators plus Job Costing. Sometimes a contractor is so busy trying to get super detailed that they miss the basics. I make recommendations on what I call Sharie’s Cash Management 101 – Get the Money. Think about the Five Key Performance Indicators like the dials on your truck dashboard.

Key Performance Indicatiors For Construction Contractors
Washington State it is a sales tax driven state, is your state the same way?
One issue Contractors discover is that Sales Tax is due at the time of purchase unless they have a Reseller Permit (issued by the State of Washington) Sales tax reports are due monthly, quarterly or annually. Some items purchased is considered “Consumables” – Suppliers have the exact list.  

If a purchase is made on April 1st with sales tax paid to the source (supplier) and if the Tax Return is paid Quarterly – it is due on July 31st, therefore, sales tax was paid months earlier than necessary.
·    This impacts cash flow.
·    Failing to Get Job Deposits.
·    Failing to outline payment schedule with the client on larger projects.
·    (Paid Weekly, Bi-Weekly or by Milestone of the job).
·    Failing to send the “Notice To The Owner” and relying on the “Notice To The Owner by their Material Supplier” This is helpful but only to the amount of the material bill.  
·    Failing to get Signed Change Orders.
·    Customers versus Clients remember the deducts and have memory loss on the increases.
Construction Bookkeeping is more than Balancing the Check Book (which is important)
Receiving actual bills from your subcontractors. Have you set a schedule on “How and When” you are paying subcontractors? Is it tied to the same schedule you are billing your client?  

Money In and Money Out.
Just because you have money in the bank from the last project does not mean you should delay or ignore billing on your current projects.  Remember you have outstanding liabilities coming.  
Here is what is coming:  Material Suppliers on 30-day accounts, Credit Card payment for purchases paid for, Payroll Liabilities, Sales Tax Liabilities, Worker’s Compensation, Liability Insurance, Vehicle Insurance. 

Money In For Construction Contractors

 

 

Money Out For Construction Contractors

Bigger costs like Vehicle Repairs, Down Payment on a newer vehicle.  
That marketing budget for business cards, flyers, online advertising, upgrading or updating your website.  Adding GPS tracking, software, and your Construction Accountant.  

It all takes money from someplace.  
Even if it is from a line of credit; the bank wants to see financials not some scribbled notes on the back of a brown paper bag.  

Frequently Asked Questions From Contractors:

Am I too small for you to help? I am just getting started.  

My answer is No - You Are Not Too Small.  We have a plan for the Brand New and Existing Small Contractors.
   
Shouldn’t I learn how to do all of my own bookkeeping before turning it over to you?

My Answer Is No – It is not possible to be an expert in everything we do.  
Learning what receipts to keep is more important than learning “How To Put Them Into QuickBooks

When I hire you – Will do everything for me?

My Answer Is No – You will continue to control the money.  
We are here to help, but all final decisions on How Much To Bid the job.
What, When and How Much to Invoice your client is your decision.
Who to pay and when to pay them is also your decision.  

We have a Document Management System that links to your banks and credit card companies.
We receive feeds (copies of the transactions) after they have cleared the bank, plus the monthly statements.  

We will still need to receive Customer Invoices.  Currently, provide to our clients a Stand Alone invoice built on Excel.

Coming Soon: We are evaluating a web-based software that works with QuickBooks Desktop for Dispatching and Invoicing for everyone’s convenience. Will keep you posted on our progress.  
Not all software works as well as advertised which is why we test, test, test before using it or recommending it.

The only money we touch is our own Fees.  
Auto receives for Monthly Outsourced Accounting and Bookkeeping Services on the 1st day of each month.
Auto receives for Weekly Outsourced Accounting and Bookkeeping Services on Monday of each week.  

Other Customer Service Options Available
Cloud Hosting is available for clients who want to do their own Accounting And Bookkeeping but be on our server for web-based access; occasional review and support.

FastEasyAccountingStore.com is available for all contractors who want to purchase QuickBooks Setup and / or QuickBooks Chart of Accounts to enhance their existing QuickBooks accounting systems.  

Consulting is available to Outsourced Accounting Clients, Hosted Clients and FastEasyAccountingStore.com and all contractors around the world.  

Looking forward to being of assistance as you choose the options that best fit your needs.

Enjoy your day.  
 
Sharie

About The Author:

Sharie DeHart, Fast Easy Accounting Client Support Specialisthttps://www.fasteasyaccounting.com/free-one-hour-consultation-bookkeeping

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. http://www.fasteasyaccounting.com/sharie-dehart/ 206-361-3950 or sharie@fasteasyaccounting.com

Contractor Bookkeeping Services All Across The USA Including Alaska And Hawaii

I trust this podcast helps you understand that outsourcing your contractor's bookkeeping services to us is about more than just “doing the bookkeeping”; it is about taking a 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 to 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

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

Contractor Bookkeeping Done For You!

Construction Accounting Specialists At Fast Easy Accounting 206-361-3950

Thinking About Outsourcing Your Contractors Bookkeeping Services?

Click On The Link Below:

www.FastEasyAccounting.com/hs

This guide will help you learn what to look for in outsourced construction accounting.

Need Help Now?

Call Sharie 206-361-3950

sharie@fasteasyaccounting.com

Thank you very much, and I hope you understand we 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 | The Contractors Accountant

Our Workflow Removes Your Paperwork Frustrations

For Contractors Who Prefer

To Do Your Bookkeeping

Fast Easy Accounting Do-It-Yourself
Construction Accounting Store Is Open

QuickBooks Setup Templates, Chart of Accounts and Item Lists for Construction Contractors

Most Contractors Setup QuickBooks Desktop Version In One Of Three Ways:

#1 EZ Step Interview inside QuickBooks Setup
#2 Asked Their Tax Accountant To Setup QuickBooks
#3 They Attended A How To Setup QuickBooks Class Or Seminar

And QuickBooks Does Not Work The Way They Want It Too!

The Answer:

#1 Click Here To Buy An Entire QuickBooks Setup For Your Specific Contracting Company

#2 Click Here To Buy Just The Chart Of Accounts For Your Specific Contracting Company

QuickBooks Set Up For Contractors And QuickBooks Chart Of Accounts For Contractors

 

Short List Construction Contractors We Serve 

Brand New Construction Company    Handyman Company

Cabinet Installer    HVAC Contractor

Carpentry Contractor    Insulation Contractor    

Carpet And Tile Contractor    Interior Designer      

Commercial Tenant Improvement Contractor   Land Development Company

Concrete Contractor    Landscape Contractor    

Construction Company   Masonry Contractor

Construction Manager   Mold Remediation Company      

Contracting Company    Moss Removal Company      

Contractor   Painting Contractor      

Custom Deck Builder    Plumbing Contractor      

Custom Home Builder    Pressure Washing Company      

Demolition Contractor    Remodel Construction Company      

Drywall Contractor    Renovation Contractor      

Electrical Contractor    Restoration Contractor      

Emerging Contractor    Roofing Contractor      

Excavation Contractor    Spec Home Builder      

Finish Millwork Contractor    Specialty Contractor      

Flipper House Contractor    Subcontractor

Flooring Contractor    Trade Contractor      

Framing Contractor    Underground Contractor      

General Contractor    Utility Contractor      

Glass Installation Contractor    Construction Employees    

Gutter Installation Company    Construction Support Specialist

 

Additional QuickBooks Templates, Resources, And Services

QuickBooks Set Up Templates   Solopreneur

QuickBooks Chart Of Accounts     Free Stuff

QuickBooks Item Lists Templates     Consulting

 

We Serve Over 100 Types Of Contractors So If Your Type Of Company Is Not Listed

Please Do Not Be Concerned Because If You Are A Contractor

There Is A Good Chance We Can Help You!

Call Now: 206-361-3950

QuickBooks Chart Of Accounts Set Up General.png

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