Creating an invoice for the entire project seems like it is the simplest way to track payments and have the current balance. The harsh reality is that if all of the work is NOT done, accounts receivable is reflecting a balance due that is NOT REAL. Without proper tracking and matching of income and expenses, most construction companies never know if they made a profit until the job is over.
However, due to your work’s nature, as construction contractors provide services on a per-job operation, issuing invoices make it all the more challenging and difficult than it has to be. The good news is that it doesn't have to stay that way. Consider the following invoicing errors contractors make and take actionable steps on how to avert them.
Read More
Topics:
Invoicing,
QuickBooks For Contractors,
Construction Bookkeeping,
Payment Applications
Common Issues With Accounts Payable
It is easy to put transactions in Accounts Payable (A/P) Aging Summary, and them forget about them. When writing a check from the checking QuickBooks does not automatically go look to see if you put something in Accounts Payable. Sometimes Accounts Payable will have transactions in Accounts Payable that do not belong there.
Read More
Topics:
QuickBooks For Contractors,
Construction Bookkeeping,
KPI,
accounts receivable for contractors
Challenges Of Keeping Accounts Receivable Simple And Up To Date
Creating an invoice for the entire project seems like it is the simple way to track payments and have the current balance. The harsh reality is that if all of the work is NOT done Accounts receivable is reflecting a balance due that is NOT REAL.
Read More
Topics:
QuickBooks For Contractors,
Construction Bookkeeping,
KPI,
accounts receivable for contractors
Construction Bookkeepers Without Training Is A Common Problem
Many Construction Bookkeepers start out as Admin Assistants and get promoted to doing the Contractor's Bookkeeping in their free time. They were not hired to be a bookkeeper but as an office person who does a little data entry.
This method not too bad if the employee stays a long time and grows with the company from owner working solo to gradually adding a few employees one at a time because as Randal says:
Growing By The Inch Is A Cinch; Growing By The Yard Is Hard!
Read More
Topics:
Construction Bookkeeping,
Contractors Bookkeeping Services
Bad Bookkeepers Have 38 Traits In Common
It is important to understand the difference between Professional Bookkeepers, Regular Bookkeepers and Bad Bookkeepers.
- Regular Bookkeepers learned most if not everything they know about bookkeeping by experience and by letting you pay for their education in the form of excess taxes, fines, penalties, un-invoiced work, overpaying bills and late fees. It is painful for them and you. They have good intentions and do not want to cause contractors any grief and they are sincere with their apologies. Of the thousands of Regular Bookkeepers I have met they all have good hearts and really do mean well.
- Bad Bookkeepers also learned most if not everything they know about bookkeeping by experience and by letting you pay for their education in the form of excess taxes, fines, penalties, un-invoiced work, overpaying bills and late fees. It is painful for you but not for them. They have bad intentions and will cause contractors as much grief as possible and are quick to blame everyone else when something goes wrong. Of the dozens of Bad Bookkeepers I have met they all have a bad opinion of contractors and business in general.
On to the 38 traits
Read More
Topics:
Bad Bookkeepers,
Professional Bookkeepers,
Bookkeeping,
Construction Bookkeeping,
Bookkeeper
It Is Tax Time Again - And if your tax preparer sends you a bunch of "Journal Entries" for your QuickBooks call Sharie 206-361-3950 or email her Sharie@FastEasyAccounting.com and we can help you with it.
Read More
Topics:
Construction Bookkeeping,
contractors bookkeeping and accounting,
Tax Accountants,
Journal Entries
Profit Drain #1 In-House Bookkeeper Until a construction company reaches at least $5 million in annual sales it cannot afford to hire a qualified construction bookkeeper or construction accountant.
Read More
Topics:
Construction Bookkeeping
