Lately many of our contractor clients have told us how much they appreciate working with us because we really do understand them and the construction industry in which they work and play.
Each of those words are like receiving a gift of very expensive, luxurious jewels sitting on royal blue pillows the words from contractors like you are worth far more to us.
You have no idea how much and how deeply we love and respect everyone who has answered the call to be a part of the greatest industry on earth, construction and the immense gratitude we have for all you do to build and maintain civilization.
#01 They had a bookkeeper embezzle money from their Construction Company
#02 Their wife tried to provide the contractor bookkeeping services
#03 Their girlfriend or boyfriend tried to provide the contractor bookkeeping services
#04 They hired a regular bookkeeper, not a construction accountant to work in their office
#05 They hired a freelance bookkeeper who knew nothing about construction accounting
#06 They tried providing their own contractor bookkeeping services
Sharie and I have owned and operated several construction companies beginning in the early 1970's through the middle of the year 2000 when we sold our last construction company.
Since my college major was accounting you would think it would be easy for us to maintain our contractors bookkeeping services, and it was as long as I was hands-on micro managing everything.
Until the 1980's bookkeeping was done using paper and pencil. With the introduction of the early Personal Computers a few forward thinking computer programmers started designing accounting programs for all kinds of industries including construction.
We purchased a DOS based construction accounting program for $60,000+ monthly maintenance fees and worked almost non-stop night and day for a month to set it up and get it operational.
In 1991, Intuit released the first version of QuickBooks for roughly $100, we bought a copy and I installed it. To my surprise, it worked fairly well. Although QuickBooks at that time lacked the power of the other construction accounting program we were using but it was a lot easier to operate.
Subsequently, as our contracting company grew and became more profitable we tried hiring bookkeepers to take over the data entry and free up my time for more profitable uses.
The first bookkeeper we hired turned out to be better at writing resumes and filling out job applications than doing regular bookkeeping, let alone construction bookkeeping. Every bookkeeper we hired during next several months shared the same traits:
Little or no bookkeeping skills
Unmotivated, lazy and took long lunches and numerous coffee breaks
Tried to manipulate me with drama, arguing, sidewinding and looking busy
Ask the same questions over and over until I would take the task and do it myself
If you have ever hired a bookkeeper, you know exactly what I am talking about. If not, bang your head on the wall until you pass out and repeat it several dozen times and you will know what it feels like.
The System Is The Solution - Shortly after experiencing the same issues with bookkeepers over and over it occurred to me what Dr. W. Edward Deming had taught for so many years about having a system for everything. And providing people with tools and a clear understanding of what is required of them became one of my many "Blinding Flashes Of The Obvious" - Credit for that phrase goes to a book Titled - In Search Of Excellence.
We Practice Many Of Dr. W. Deming's Teachings and other great thinkers in the field of Business Process Improvement as we possibly can at Fast Easy Accounting. An iterative process that never ends because just when we think we have mastered something we realize it can be improved just a little bit more and we setup a new project to track and implement it.
That is the key to operating and growing a successful construction company; make a few small improvements all of the time and in a short while when you look at your financial statements you will be amazed and delighted!
The 14 points seem at first sight to be a rag-bag of radical ideas, but the key to understanding them lies in Dr. Deming's thoughts about variation. He saw variation as the disease that threatened US manufacturing. The more variation - in the length of parts supposed to be uniform, in delivery times, in prices, in work practices - the more waste, he reasoned.
From this premise, he set out his 14 points for management, which is paraphrased here:
1. Create constancy of purpose towards improvement Replace short-term reaction with long-term planning.
2. Adopt the new philosophy The implication is that management should actually adopt his philosophy, rather than merely expect the workforce to do so.
3. Cease dependence on inspection If variation is reduced, there is no need to inspect manufactured items for defects, because there won't be any.
4. Move towards a single supplier for any one item Multiple suppliers mean variation between feed stocks.
5. Improve constantly and forever Constantly strive to reduce variation.
6. Institute training on the job If people are inadequately trained, they will not all work the same way, and this will introduce variation.
7. Institute leadership Deming makes a distinction between leadership and mere supervision. The latter is quota- and target-based.
8. Drive out fear Deming sees management by fear as counter- productive in the long term, because it prevents workers from acting in the organization’s best interests.
9. Break down barriers between departments Another idea central to TQM is the concept of the 'internal client', that each department serves not the management, but the other departments that use its outputs.
10. Eliminate slogans Another central TQM idea is that it's not people who make most mistakes - it's the process they are working within. Harassing the workforce without improving the processes they use is counter-productive.
11. Eliminate management by objectives Deming saw production targets as encouraging the delivery of poor-quality goods.
12. Remove barriers to pride of workmanship Many of the other problems outlined reduce worker satisfaction.
13. Institute education and self-improvement
14. The transformation is everyone's job
In 1991 while operating a successful construction service and repair company we started work on a Comprehensive Construction Bookkeeping System. Since then we have made thousands of improvements and we are continually updating, improving, innovating and enhancing it. Having worked with contractors and seen 100's of QuickBooks files, met with lots of bankers, bonding companies and commercial insurance brokers in addition to our own experiences owning and operating construction businesses.
Contractors Often Ask How We Save - Them $100's or even $1,000's dollar a year when they can do the bookkeeping themselves or hire a Cheap Bookkeeper? Read our article Cheap Bookkeepers to find some shocking information revealed!
Contractors Who Are Doing Their Own Bookkeeping In-House should expect to invest at least $15,000 in office equipment and related technology and software. Contractors who outsource their bookkeeping to use can get by with less than $2,000 because all they need is a computer, notebook or tablet, printer and a scanner. See also What Ten Minutes Waste Costs Your Construction Company and you will get a better idea why the best construction accounting service you can afford is actually cheaper than trying to do it in-house.
Fixed Price Contractor Bookkeeping Services Like Ours - Invest over $100,000+ in office equipment, technology and software plus another $150,000+ to renovate and prepare office space for staff and clients to use. Even with all of the costs incurred in having, a professional contractor’s bookkeeping service the amount of bookkeeping clients each one of our staff can handle is well over THREE TIMES the number clients most amateurs working alone or out of their home which is why in most cases we can provide more services and more bottom line results for contractors and do it all more for less money.
Having owned and operated - Several construction businesses over the past 30+ years we understand a thing or two about best practices when it comes to Construction Bookkeeping And Construction Accounting as it relates to owning and operating a profitable construction business.
One Of The Keys To Success - Is intelligent delegation, relying on processes, not abdication, letting people do whatever they please. This means we have processes and procedures for how tasks are done, in what order similar to an assembly line. The table and diagram below shows how tasks are delegated to the lowest skill level and everything is reviewed by a competent and well trained construction accountant!
|
Skill Level |
Job Title |
Payroll Cost |
|
|
Level - 7 |
Business Planning |
Extremely High |
|
|
Level - 6 |
Financial Analyst |
Very High |
|
|
Level - 5 |
Systems Engineer |
Higher |
|
|
Level - 4 |
Accounting |
High |
|
|
Level - 3 |
Bookkeeping |
Medium |
|
|
Level - 2 |
Data Entry |
Low |
|
|
Level - 1 |
Paper Handling |
Lowest |
Let me introduce you to some personality traits of our professional Construction Accounting Services staff members starting with a diagram outlining the different departments
There are a number of ways to get paperwork to us in hard copy and soft copy. Whichever way works best for you. You can:
Mail it to us 19909 64th Ave West, Suite 201- 2nd Floor, Lynnwood, WA 98036
Bring it by during office hours or special office hours for contractors
SnoKing Contractors Center Members have 24/7/365 access to meeting rooms and leave paperwork in the lockbox
Put us on your vendor list to have bills and statements emailed directly to us
Drag and Drop from your desktop or email. Click here to find out how
Send it by taxi cab
Fax it
Email it
FedEx it
UPS it
See Appendix I for more detail
Use one of our recommended scanners and send paperwork with the push of a button!
If you get this scanner, we have people who can set it up remotely and link it to your Paperless Document Vault. You simply load the documents; push one button and the documents are automatically scanned and uploaded to your company’s Paperless Document Vault Inbox. Our contractor bookkeepers retrieve the documents; input them into your QuickBooks file. Next, the documents are filed in a way that makes it fast and easy for you look any saved document, download it, print it or email it.
For more on how to get soft and hard copy paperwork to us Click Here
What paperwork do we want? The short answer is all of it and we will sort it out between what goes into QuickBooks for Contractors and what is not. You do not have to organize any of your paper before bringing it to us because we have a process for that.
Paper documents arrive in bags, boxes, envelopes, pouches, carts and other methods. Soft documents arrive in emails, paperless server Inbox, flash drives, hard drives and our secure client portal.
When we are finished with your paperwork, it returns to The Paper Sorting Department for reorganizing, packaging and storage until you retrieve it or we ship to you depending on your arrangement with your Customer Service Representative.
These friendly people sometimes work the reception desk because they have not yet been exposed to the trials and tribulations of contractor bookkeeping services. They are well paid and happy because they are doing the work they love in a clean well-lit comfortable environment.
The Paper Sorting Department has their own special operations manual with detailed instructions, which means they know exactly know what to do.
Role of the Paper Sorting Person
Having owned and operated several construction companies we are not soft, weak, timid bookkeepers that need pampering and are easily offended. In fact, quite the opposite, we require all staff members to have construction experience before seeking employment with us. They have to deal with all kinds of paper with coffee stains, dirt, mud and worse, wrinkled, crumpled and torn and have lots of patience.
Construction Data Entry is like flying an airplane…95% boredom and 5% sheer terror! We have a process for keeping the data entry staff at the 95% boredom level and out of the 5% sheer terror part.
These are nice people. They are well paid and happy because they are doing the work the love in a clean well-lit comfortable environment.
Construction Data Entry Staff members have two large crisp clear computer monitors, snacks and beverages in an office with state of the art climate controlled system and all of the hardware and software tools they need to do their job.
We do not allow them to work with the 5% sheer terror complex construction accounting transactions. They have their own special operations manual with detailed instructions so they always know what is expected of them.
Role of the Construction Data Entry Person
Their duties include checks, receipts, credit card transactions, debit card transactions; simple bills reconciling bank statements, credit and debit card statements and vendor statements.
Construction Bookkeeping is all about the other part of flying an airplane…the 5% sheer terror part! We have a process to help our construction bookkeepers work with high risk, high stress transactions.
These are not nice people. They are well paid and happy because they are doing the work the love in a clean well-lit comfortable environment.
Construction Bookkeepers have up to four large crisp clear computer monitors, snacks and beverages in an office with state of the art climate controlled system and all of the hardware and software tools they need to do their job.
We allow them to work primarily with the 5% sheer terror complex construction accounting transactions because they have deep knowledge and are highly skilled in construction bookkeeping. Their work is very stressful due to the complexity of the transactions they are assigned. They have their own special operations manual with detailed instructions so they always know what is expected of them.
Role of the Construction Bookkeeper
Their duties include non-recurring checks, bank transfers, wire transfers, sweep accounts, tracking retention due to you, tracking retention due to your subcontractors, setup and updating customer and vendor contact information, inputting time cards, simple General Journal entries, receipts, credit card transactions, debit card transactions, bills and employee advances and employee reimbursements.
Construction Payroll is one of the toughest jobs of all because there are deadlines that must be met no matter what happens. This is also part of flying an airplane…the 5% sheer terror part! We have a process to help our construction payroll staff work with and manage contractor’s payroll needs.
These people are un-bearable and we keep them away from the public whenever possible. They are well paid and happy because they are doing the work the love in a clean well-lit comfortable environment.
Construction Payroll Specialists have one or two large crisp clear computer monitors, snacks and beverages in an office with state of the art climate controlled system and all of the hardware and software tools they need to do their job.
They are highly skilled in construction payroll with nerves of steel and laser focus. They have their own special operations manual with detailed instructions so they always know what is expected of them.
Role of the Construction Payroll Specialist
Their duties include reviewing the time cards, preparing payroll, setup and updating employee records, employee advance repayments, W-2, W-3, 940 and 941 payroll reports, workers comp reports, unemployment reports, garnishment answers and payment tracking, child support and more. We do not prepare the checks or make any payments on behalf of Contractor Name. We do all the work behind scenes to make that step fast and easy for Contractor Name’s responsible person to complete.
Construction Accounting is where the buck stops! No excuses and nobody to pass anything on too.
These people are like Dr. Spock on the television series Star Trek, all business and no sense of humor. They do their best to make certain everything in the entire construction accounting system running smoothly, everything is where it needs to be and everything balances properly.
We keep them away from the public whenever possible because if you ask what time it is they will tell you how to build a watch. They are well paid and happy because they are doing the work the love in a clean well-lit comfortable environment.
Construction Accountants have multiple computers with multiple crisp clear computer monitors, snacks and beverages in an office with state of the art climate controlled system and all of the hardware and software tools they need to do their job.
They are highly skilled at dealing with construction accounting issues. They have their own special operations manual with detailed instructions so they always know what is expected of them.
Role of the Construction Accountants
Their duties include Fixed Asset management, depreciation schedules, complex Payment Applications similar to G-702 & G703, HUD-1 Statements, Inventory, complex Invoices with multiple Job Deposits and Payments, complex General Journal Entries, Year-End Journal Entries from the annual tax preparer, setup and modifying Chart of Accounts, Items, Report Structures, Insurance Audits and more.
Project Managers at Business Consulting And Accounting are responsible for making certain that we are constantly improving, innovating and finding ways to increase efficiency and effectiveness in our system that will make your experience of doing business with us easy, predictable and pleasant.
Project Managers seek out new software, hardware and best practices from our competitors. When they find something worthwhile, they add it to our Business Process Management (BPM) Strategy.
These people are nice most of the time; however, their head is always in the clouds talking about finding ways to make everyone’s job easier with innovations and processes. They do not sit still very long.
Project Managers have two large crisp clear computer monitors, snacks and beverages in an office with state of the art climate controlled system and all of the hardware and software tools they need to do their job.
They are highly skilled in process development, innovation and highly organized. They have their own special operations manual with detailed instructions so they always know what is expected of them.
Role of the Project Manager
Their duties include Business Plans, Process Development, Process Improvement, Systems Engineering, Six Sigma, Deming Methodology, MR>MC, Breakeven Analysis, Earned Value Reporting, Cloud Computing, Cloud Based QuickBooks For Contractors, Paperless Document Vaults, Cloud Based Financial Reporting and more.
Contractor’s Business Mentor is a great person to get to know and spend time with because their job is to help you achieve your definition of success. Helping you understand and use the financial reports one of the tools they use.
Contractor’s Business Mentor works in several locations, their primary office and in the conference room with seating for ten people, state of the art climate controlled system and all of the hardware and software tools they need to do their job.
In addition, they are mobile contractor’s business coaches who can visit your office or jobsite and perform a business assessment to determine if there are ways to get more production and increase profits. Everyone benefits from coaching, especially high performers.
They sometimes provide so much good information that contractors have reported that two hours with our Contractor’s Business Coach in person, over the phone or during a web cast is a real treat!
They have their own special operations manual with detailed instructions so they always know what is expected of them.
Their duties are similar to the Project Manager except their primary focus is helping Company Name develop with Business Planning, Process Development, Process Improvement, Systems Engineering, Six Sigma, Deming Methodology, MR>MC, Breakeven Analysis. Contact Sharie at 206-361-3950 or email sharie@fasteasyaccounting.com for more information about setting at appointment for a session.
Customer Service Manager is your primary contact at Business Consulting And Accounting similar to a concierge in a Five Star Hotel who caters to your every need, except there is no tipping allowed.
They work have their own private office as well as several conference rooms and guest offices. They have their own special operations manual with detailed instructions so they always know what is expected of them.
Role of the Contractor’s Business Mentor
Their duties include being your single point of contact, which means you usually talk, email and communicate with the same person. This helps you develop a relationship with someone who listens and understands you and your company’s needs.
They act as liaison between you and the rest of the staff at Business Consulting And Accounting. Feel free to ask for anything and they will do their best to accommodate you.
They are always friendly, helpful and supportive. This person has extensive training and experience in construction office management, taxes, payroll, insurance audits and more.
No matter what happens in your company if you need help or a referral for an attorney, annual tax preparer, chief cook and bottle washer this is you go to person.
The head of the department is Sharie and she can be reached at 206-361-3950 or email sharie@fasteasyaccounting.com.
You Are The Most Important Person In Your Company
As a construction company owner, you know which parts of your business only you can and should be doing and which parts to give to someone else.
Good accounting records combined with Business Process Management (BPM) can help provide answers for making informed decisions.
Every piece of paper has a story and your mind will replay that story repeatedly, which is why it is important to have someone else doing your contractor bookkeeping so you can focus on operating and growing your construction company sales and profits.
Role of the Company Name Owner
See the vision of what Company Name will become in the future
Communicate your Vision to your employees, staff, us and anyone directly affected
Develop Strategy For Company Name to help make your Vision a reality
Make decisions based on good solid reports
Need A Mentor? - Someone who has been where you want to go and can guide you. We would like to be that person for you. Fill out the form on the right or call Sharie 206-361-3950 or email sharie@fasteasyaccounting.com and schedule your no charge one-hour consultation
For Construction Company Owners who do not need the full power of QuickBooks for contractors and want 24/7 online access we offer Xero Accounting Online and we have custom setup for construction companies. Click Here For More.
This Is One More Example of how Fast Easy Accounting is helping construction company owners all 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 people like you 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.
About The Author:
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. Check out our Contractor Success Map Podcast on iTunes and Follow Randal on Google+Follow Randal on Google+