Chart Of Accounts Story
A chart of accounts is like a bunch of file folders with similar transactions. Each folder (Account) has a name that tells the reader what to expect to be inside.
The file folders (Accounts) are in a type of file cabinet known as a General Ledger.
Think of a bicycle wheel:
- The General ledger is the hub or center.
- Each spoke reports summary data to the hub of the bicycle wheel. Those reports are the foundation for Financial, Job Costing, and Job Profitability Reports.
Chart of Accounts put together right you will enjoy a smooth ride like sitting on a merry-go-round. Everything working together helping you to operate and grow your Construction Company.
Too Many Contractors learn the value of Construction Accounting
at bankruptcy court and at the auction!
Chart of Accounts for a typical Construction Company
Why And How The Chart Of Accounts Design
The least important accounts are at the bottom
The most important accounts are at the top
When a contractor's company has cash flow issues, here is the order of things that get cut:
> Travel
>Meals and, Entertainment
> Owner Paycheck.
> Insurance, License, Bond
> Advertising (Should be one of the last things cut)
> Field Workers
> Loans Go Unpaid
> Payroll Liabilities Are Not Paid
> Credit Card Payments Not Paid
> Bank Accounts Closed
GAME OVER!
I apologize if this is a bit rough, but having worked in and around Construction Contractors since the mid 1960's I have learned contractors have a very high threshold for pain and sometimes I have to tell it like it is and tell it straight.
The Chart of Accounts shown above is a super short condensed one.
If you are a do-it-yourself kind of contractor and would like a Chart of Accounts for your particular Construction Company please click here and browse our store.
If you are a do-it-for-me kind of contractor please click here and browse our done for your Outsourced Accounting Options.
With your permission we would like to introduce ourselves. We have special expertise in construction accounting and construction bookkeeping including job costing.
We are QuickBooks experts in construction bookkeeping and are skilled in contractors who need QuickBooks set up, QuickBooks clean up, QuickBooks catch up, quarterly tax returns, job costing, applications for payment, construction company coaching, consulting, and turnaround. If it involves construction and construction accounting we can help.
Are you new or have you been in construction
since dirt was two days old like us?
Starting where you are: We help “A Little” or “A Lot” depending on the individual needs. We take a shoe box, file box, and all the receipts hidden under the seat, & turn them into usable data. Click here and see how easy it is to get paperwork to us.
Some of our construction company clients say their customers are demanding detailed application for payment invoicing and all the receipts before they will pay for the work.
Some of their customers want full accounting for all the money they paid including deposits, advances, work that has been done, (Work In Progress or W.I.P), material stored on the job site, percentage complete and more before they pay/give the contractor any more money. We have a solution for that problem click here.
Have you found at times you give away The Profit of the job just to get your money?
Now more than ever it is absolutely critical to have your QuickBooks setup properly by a QuickBooks expert and have your construction bookkeeping done right, on time without delays or excuses from a bad bookkeeper.
We are QuickBooks experts in construction accounting services with experience in owning and operating construction companies. Construction accounting and construction bookkeeping is not just another line on the list of services, it is the service we offer which means you get the best construction accounting and construction bookkeeping services on planet earth that is big in value and little in cost.
Do you have issues or problems with sales tax returns, payroll, payroll quarterly tax returns, workers compensation reports, unemployment reports? We can help; call now 206-361-3950 and speak with a QuickBooks expert in construction.
Customized QuickBooks reports hold many answers to the WHO Questions –
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Who Owes Money To Whom?
-
Who is your Best Customer? (The 80-20 Rule)
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Is your #1 Favorite Customer adding / taking profits or cash flow?
Having good construction bookkeeping is more than entering the receipts into QuickBooks it is having QuickBooks setup right to begin with and knowing where, why and how and that knowledge only comes with proper training in construction accounting.
Is it time for a QuickBooks cleanup? We do a lot of QuickBooks cleanup for construction company owners and we do it fast and easy. The most common reason for needing a QuickBooks cleanup is needed the new construction bookkeeping person tried to do contractors bookkeeping by following the way the previous construction bookkeeping services did the data entry.
Perhaps they found an entry in the check register for $500.00 tool purchase that was put in as a fixed asset and now every tool is put in as a fixed asset which could cause you to pay more income tax than you should.
What does that mean? We handle the paperwork and you handle your money. We help with the details so that you can focus on the management tasks that only you can do.
What should you do?
-
Estimates
-
Create invoices so you can get paid
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Collect your money
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Deposit your money in the bank
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Pay the bills and possibly earn 36% R.O.I.
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Pay your taxes on time and avoid penalties and interest
Along the way – we help with item lists, detailed customer invoicing (Pay Apps) and Job Costing.
When we are done your QuickBooks setup will make it easy for your tax preparer to handle the annual tax returns.
Busy Construction Company Owners Can Access Your Existing QuickBooks Setup File In "The Cloud”
You can review and print your QuickBooks Reports anytime and anywhere you have internet access www.fasteasyaccounting.com/quickbooks-desktop-online
If You Are A Contractor You Deserve To
Be Wealthy Because You Bring Value
To Other People's Lives!
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 people like you and me so stop missing out! Call Sharie 206-361-3950 or sharie@fasteasyaccounting.com and schedule your no charge one-hour consultation.
Profitable Contractors and Construction Company owners have known about the value of outsourced bookkeeping services and contractor coaching services like ours for a long time and now you know about it too!
We Scan Your Receipts And Invoices link the appropriate transactions to QuickBooks or Xero Accounting Online depending on the construction accounting service you are using and provide ongoing Cloud Based Contractors Bookkeeping Services by accountants who understand construction.
Thinking About Outsourcing Your
Contractors Bookkeeping Services?
Click On The Button Below To
Download A Free Guide
Need Help Now?
Call Sharie 206-361-3950
sharie@fasteasyaccounting.com
Xero Outsourced Construction Accounting Services
QuickBooks Outsourced Construction Bookkeeping Services
We Are Construction Accounting Experts Specializing In Construction Bookkeeping Services For Contractors All Across The USA Including Alaska And Hawaii
About The Author:
Randal DeHart, PMP, QPA is the co-founder of Business Consulting And Accounting in Lynnwood Washington. He is the leading expert in outsourced construction bookkeeping and accounting services for small construction companies across the USA. He is experienced as a Contractor, Project Management Professional, Construction Accountant, Intuit ProAdvisor, QuickBooks For Contractors Expert and Xero Accounting Specialist and Bill.Com Certified Guru. This combination of experience and skill sets provides a unique perspective which allows him to see the world through the eyes of a contractor, Project Manager, Accountant and construction accountant. This quadruple understanding is what sets him apart from other Intuit ProAdvisors and Xero accountants to the benefit of all of the construction contractors he serves across the USA. Visit http://www.fasteasyaccounting.com/randal-dehart/ to learn more.
Our Co-Founder Randal DeHart - Is a Certified PMP (Project Management Professional) with several years of construction project management experience. His expertise is construction accounting systems engineering and process development. His exhaustive study of several leading experts including the work of Dr. W. Edward Deming, Michael Gerber, Walter A. Shewhart, James Lewis and dozens of others was the foundation upon which our Construction Bookkeeping System is based and continues to evolve and improve. Follow Randal on Google+
