Sep 29, 2017
Financials statements are based on the information you provided. I know this is not a statement that any contractor wants to hear about their bookkeeping. It is easier to blame the bookkeeper for missing information. The primary keeper of all the documents is you, your spouse, your employees, your suppliers, your bank, your credit card company. The Key work is done by you, or whoever assists you have the power to give information to outsiders about your Construction Company.
Depending on the report it may be monthly (sales tax, business excise tax, other state business tax reports) Quarterly reports include all payroll related forms to State and Federal (Internal Revenue). Personal story. If you have any data that you can include relating to your list, include that in your introduction, too./>
Depending on your state a Contractor may have to be licensed which can require a Bond and General Liability Insurance. Because the General Liability Insurance is made up of a group of numbers to make up the coverage and premium, there is usually an annual General Liability Insurance Audit and are date specific based on when the coverage was taken out. Your Construction Company Structure determines how simple or how complicated the annual insurance audit it. We can help you with this. Call Sharie 206-361-3950 or email her sharie@fasteasyaccounting.com
Periodically Your State
Unemployment Agency will want details on individual
employee’s hours. Form to be filled out is date and period specific
and will want the total per week (regular time and overtime) then
broken down by day and a weekly total of wages earned, and date
wages were paid. In other words; the State Agency is asking for
more in more detail to be sure they get the same grand total as
other reports and did you pay the proper amount in the time frame
required.
Some states and cities have
different minimum wage requirements this adds to the tracking
required.
In Washington State, we have a state minimum wage, and then several
individual cities have an increased minimum wage. In addition to
new rules about Family Leave, Sick Leave, and Personal Time Off.
Many of these rules are based on the number of employees you have.
Internal Revenue Service
Requires You File Annual 1040 Tax Return. Most
contractors file their taxes on a calendar year. S-Corps and LLC’s
treated as S-Corps annual tax return is due on March 15th with a
six-month extension allowed to September 15th.
Numbers From Your Contracting
Company Return Move To Your Personal 1040 Tax
Return. Personal tax returns with or without
Schedule C (additional pages for Sole Prop’s and LLC’s treated as a
Sole Prop) are due on April 15th with a six-month extension allowed
to October 15th. Reminder the tax return is due in a couple of
weeks.
There are many reasons why taxes are not ready for the tax
accountant to do the annual taxes. Contractors may feel that they
can do it themselves using tax software. My recommendation is to
use a Tax Accountant. Laws change all of the time.
Assume that every time Congress meets they have done something.
Since the average person is too busy and has no way of knowing what
amendments are added to any given bill may impact the tax code
having a tax accountant is a cost and time effective solution.
Tax Accountants Are
“Generalists.” What do I mean by “Generalist”?
To stay in business, tax accountants have more clients than just
contractors. Tax Accountants have to keep on top of all the tax
changes that impact all of their clients. Reality is, the tax
accountant is more concerned about your bottom line and how it
impacts the rest of your life and taxes, not your job costing
reports.
Does your spouse work, what and where are all the W-2, interest
income, dividend income, health insurance, children, your house,
mortgage, property taxes and what other misc. Expenses that might
be deductible? Many tax accountants send a packet for their clients
to fill out and bring with documents.
When a Construction Contractor drops off a box of receipts and bank
statements to the tax accountant the Construction Contractor
asks:
The tax accountant is going to roll their eyes and seems less
than helpful or incompetent. They are not! Knowing about the
individual details of Construction Accounting and Job Costing is
not a normal skillset of the tax accountant. Depending on the size
of the pile to manage whether a tax accountant will use Excel and a
Workaround to file the Construction Contractor’s taxes or send you
to a bookkeeper to do it.
Our focus is on helping you survive and thrive. When we ask you for
documents, it is part of our Contractors Bookkeeping Services System. We have a
process where we will do a gentle follow-up. Sometimes the greatest
most effective follow-up is done by the State Agencies who want
specific reports which when they are not filed promptly will incur
late fees and penalties or cancellations.
They will call, send certified letters, issue Warrants on Bank
Accounts and file Tax Liens all to receive money owed to a
government agency. Not someone you want to have your number on
speed dial. It is one thing if the over site is lack of money, and
another if it is bad paperwork.
Job Costing Is
Only Possible when you, the Contractor have put
the job name on the receipts, checks and other paperwork directly
related to each job. It is unreasonable to expect any bookkeeper to
guess which job the costs should be assigned to or interrupt your
already busy day with several phone calls to ask for information
about a receipt, bill or other paperwork.
One Process In Our Bookkeeping System Is "OHIO" Only
Handle It Once
Proactively writing on the receipt, giving the customer name and address in the Purchase Order field at the supplier will make the bookkeeping process easier on everyone and more importantly it will be the foundation to providing you with Job Costing Reports to help you identify the 20% of jobs and customers that generate 80% of your Cash Flow and Profit.
20% Of The Construction Companies - Share the Top 80% of the profits which the owners and shareholders use to support lavish lifestyles because they know what to do, when to do it and how to do it!
80% Of The Construction Companies - Share the Bottom 20% of the profits which the owners and shareholders use to support just above or just below average lifestyles because they don't know what to do when to do it or how to do it!
Not every Construction Contractor wants to put in the effort for
Job Costing, and that is OK. It is Good, Better and Best in all
things including Construction Accounting. With processes, every
contractor will get value out of their bookkeeping no matter what
level of service they require to fit their needs.
The most basic accounting provides a Profit & Loss Statement and
Balance Sheet on demand for their Tax Accountant to file the taxes.
Add personal documents, and the Tax Accountant knows what to
do.
Basic Construction Bookkeeping is more than hooking up your bank
feeds to an Accounting Software and let the software decide what to
do with the transactions. All good bookkeeping even for the
smallest Construction Contractor is more than balancing your
checkbook.
Good Construction Accounting provides answers for Construction
Contractors from the Brand New Contractor, Handyman, Trade
Contractor, General Contractor. Construction Accountants know what
to do when they receive the documents. Of course, you need to talk
your prospective Construction Accountant and make sure they know
Construction Accounting; then decide if it is a good fit for your
needs.
One example in Construction Accounting
there is a difference between Spec and Custom Home. General
Contractors sometimes get confused on which they are building as
both are the construction of a new home. Construction Accountants
are never confused as the accounting is different.
In Washington State, it is a huge difference because of the rules
about sales tax. When a contractor must charge sales tax on their
invoice or if they accept a resale certificate. All retail sales to
homeowners and Spec Builders are subject to sales tax.
Four Leaks That Bankrupt Construction Contractors
Change is easier when
doing one little thing, then another, then another.
Trying to change everything all at once is overwhelming. Many times
change easier for a smaller company because they are
small.
Number one question from smaller contractors is “I am just me, or
it is just me, and I only have one or two employees” Am I too small
to help and use the services of a Contraction Bookkeeper?
My Answer: A Company of One –
is not too small!
From Brand New Contractor, Weekend Warrior, Handyman, Trade
Contractor to General Contractor with or without employees we are
here to help.
About The
Author:
https://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
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 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.
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:
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 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.
Enjoy your day.
Sharie
About The
Author:
https://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
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