As a small business owner, you know that managing your finances is crucial to the success of your business. But with so many accounting principles and practices, it can be challenging to know where to start. That's where we come in! This guide will break down the essential accounting principles that every small construction business owner should know. We'll discuss how these principles can help you keep track of financial transactions, create accurate financial statements, and make informed decisions for your business. So, let's dive in, shall we?

Why Are Accounting Principles Important for Construction Businesses?

Accounting principles are the foundation for any successful business. They provide a uniform framework for recording and reporting financial transactions, ensuring consistency and accuracy in your financial records. By adhering to these principles, you'll be able to:

• Make better financial decisions based on accurate and reliable data
• Monitor your business's performance and identify areas for improvement
• Meet legal and regulatory requirements for financial reporting
• Build trust with investors, lenders, and other stakeholders

 

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Topics: Construction Bookkeeping, Construction Accounting, outsourced construction accounting and bookkeeping, Cost of Goods Sold Vs. Expense, Job Costing, COGS

Successful Contractors Find Keys To Growth And Profit In Their Accounting

Halloween is the official Kickoff of the Holiday Season. Kids dress up as anything from Princesses to Pirates and every TV character in between. Time of smiles, giggles and lots of “pixie dust” and “magic wands.” Time for “Santa and his reindeer” to visit the malls with a fresh supply of Cookies and Candy.  

Wait, let's not forget Thanksgiving with Turkey, Dressing, Yams, Mashed Potatoes, Gravy, Fruit Salad, Pumpkin Pie, Ice Cream and lots of Egg Nog. All of this leads to us in January wishing we ate less and exercised more in hopes to keep the pounds on and matched by the pounds off for a net gain of Zero.    

Software and the desire to do everything with our phone is the “Grownup’s Version” of the Candy Store all year long.

• With a couple of clicks on my phone, I want to Buy Something
• Pay For Something
• Get Paid Immediately From My Customer
• Have all of the money go in or out of my bank account
• Now how do I then make all the transactions magically go to an accounting system
• Give me nice detailed reports
• Help me make simple and complex decisions

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Topics: Contractor Bookkeeping Services, Job Costing

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Most articles about Job Costing are for large contractors with dozens of employees, doing millions of dollars in sales every year. This article is not about them it is about you!

I care deeply about all Contractors. However, since I have a limited time on this earth and it my mission to help small contractors like you become wealthy because you bring value to other people's lives!

Owners of small construction companies like you are the men and women who keep everything moving in the right direction. When the economy changes, you quickly adapt because you are a survivor, not a large giant behemoth dinosaur unable to respond quickly and dies in its tracks.

Job Costing In Its Simplest Terms

Job Costing links the money you spent on a job against the money you received to do a particular job.

In Construction Accounting, there are two types of Cost of Goods Sold (COGS) Direct Construction Costs and Indirect Construction Costs. Both are equally important to generating useful Job Costing Reports.

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Topics: Job Costing

Three Reports Construction Companies Need: Cash, Cash And Cash!

#1 Cash On Hand - This report shows you how much cash do you have in all your checking accounts, savings accounts, payroll accounts, hip national bank (your wallet) and petty cash box in your office. Money talks and bulls breakfast walks!

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Topics: QuickBooks Vs. Xero Accounting Online, Job Costing

Contractors Do You Want To Know How Much Profit You Made On Your Last Job So You Can Earn More On The Next One

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Topics: Job Cost Accounting, Job Costing In QuickBooks, Job Costing Work In Progress Based, Job Costing

Contractors, Do You Want To Know How Much Profit You Made On Your Last Job So You Can Earn More On The Next One

 

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Topics: Job Cost Accounting, Job Costing In QuickBooks, Job Costing Schedule of Values Based, Job Costing

Contractors Do You Want To Know How Much Profit You Made On Your Last Job So You Can Earn More On The Next One

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Topics: Job Cost Accounting, Job Costing In QuickBooks, Job Costing Item Based, Job Costing

Contractors Do You Want To Know How Much Profit You Made On Your Last Job So You Can Earn More On The Next One

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Topics: Job Cost Accounting, Job Costing In QuickBooks, Job Costing Account Based, Job Costing

Contractors Do You Want To Know How Much Profit You Made On Your Last Job So You Can Earn More On The Next One

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Topics: Job Cost Accounting, Job Costing In QuickBooks, Job Costing

QuickBooks Job Costs Reports

These Reports - Can only be found in the Premier Contractors and Accountants editions of QuickBooks. Some of them are also available in the Professional Services edition.  

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Topics: Job Costing Reports, Job Costing, Job Costs