Your Construction Company Business Strategy - Accounting

QuickBooks Premier Contractors Edition - Is a tool like any other tool in the hands of a Master Construction Accountant it can do marvelous things that will amaze even the toughest contractor, their banker and performance bonding agent. However, in the hands of the average bookkeeper it can cause severe and long lasting damage. In the hands of an accountant or C.P.A. it can destroy a construction company. Construction accounting is not something that can be learned; it must be experienced, first hand, as a construction worker on the jobsite before it can be understood. Then and only then is someone prepared to learn it. A Master Construction Accountant can develop a construction bookkeeping and accounting firm with a comprehensive bookkeeping system like an assembly line and hire top drawer bookkeepers to run it.

The Most Important - Use for QuickBooks Premier Contractors Edition is helping contractors understand the financial health of their construction company. QuickBooks Premier Contractors Edition provides a running scorecard of Key Performance Reports and when used with Business Process Management Tools like what 10 minutes of waste costs their company.

Five Types Of Construction Firms Use QuickBooks Premier Contractor Edition Effectively:

New Construction Speculative - Land developers, home builders and light commercial builders. These are the contractors who build something in hopes a buyer will emerge during or shortly after the building is built

1. Typically they use QuickBooks for contractors to track all the costs and generate Bank Draws and Work-In-Progress (WIP) reports against budgeted estimates to monitor progress which we have in our QuickBooks Setup.

2. The Chart of Accounts is usually focused WIP Assets with a few Cost of Goods Sold Accounts (COGS) to allocate the sale of the building

3. The successful contractors use the Five Key Performance Indicators (KPI) to monitor the financial health of the business

4. There are between 200 and 6,000 Items setup to track all the costs of the construction process from the ground up through the roof and final cleanup

5. This is the most difficult QuickBooks Premier Contractor Edition to setup because there is a mix of Direct, Indirect, WIP and COGS accounts

6. The day to day input is also the most difficult and to be done properly requires accounting staff with specialized training in construction accounting

7. Our experience has been this group generates a very unstable income and is extremely sensitive to the ups and downs of the new construction market which is why having a strategy with an external focus on the global housing market is so critical for them. 

8. It is unfortunate that we do see the vast majority of them unable to reach their full potential because there is no overall strategy including a Business Plan for Contractors

9. I believe a lot of speculative builders go bankrupt because they do not have accurate reports to base decisions on and that is as direct result of trying to save money with Cheap Bookkeeping

New Construction Custom - Builders of residential and light commercial buildings who build something specific for a client

1. Typically they use QuickBooks for contractors to track all the costs and generate Complex Payment Applications, Item Estimates vs. Actuals, Job Profitability Summary and Job Profitability Detail Reports to monitor progress

2. The Chart of Accounts is usually focused Goods Sold Accounts (COGS) to allocate project costs

3. The successful contractors use the Five Key Performance Indicators (KPI) to monitor the financial health of the business

4. There are usually 500 to 2,500 Items setup to track all the costs of the construction process from the ground up through the roof and final cleanup

5. This is the second most difficult QuickBooks Premier Contractor Edition to setup because there is a mix of Direct, Indirect, COGS and only a few WIP accounts

6. The day to day input is also the second most difficult and to be done properly requires accounting staff with specialized training in construction accounting

7. Our experience has been this group generates a relatively unstable income and is somewhat sensitive to the ups and downs of the new construction custom built market

8. It is unfortunate that we do see the vast majority of them unable to reach their full potential because there is no overall business strategy including a Business Plan for Contractors

9. I believe a lot of custom builders go bankrupt because they do not have accurate reports to base decisions on and that is as direct result of trying to save money with Cheap Bookkeeping

Remodel Contractors - Residential And Light Commercial Tenant Improvement Contractors

1. Typically they use QuickBooks for contractors to track all the costs and generate Complex Payment Applications Item Estimates vs. Actuals, Job Profitability Summary and Job Profitability Detail Reports to monitor progress

2. The Chart of Accounts is usually focused Goods Sold Accounts (COGS) to allocate project costs

3. The successful contractors use the Five Key Performance Indicators (KPI) to monitor the financial health of the business

4. There are usually 1,000 to 5,000 Items setup to track all the costs of the construction process from beginning to end

5. This is the third most difficult QuickBooks Premier Contractor Edition to setup because there is a mix of Direct, Indirect, COGS and only a few WIP accounts

6. The day to day input is also the second most difficult and to be done properly requires accounting staff with specialized training in construction accounting

7. Our experience has been this group generates a stable income and is not a sensitive to the ups and downs of the new construction market

8. It is unfortunate that we do see the vast majority of them unable to reach their full potential because there is no overall strategy including a Business Plan for Contractors

9. And of course Cheap Bookkeeping is the one area where short term savings is overwhelmed by making bad decisions based upon inaccurate QuickBooks for contractors reports

Trade contractors - Plumbers, Electricians, HVAC, Flooring, Sheetrock, Painters, Landscapers and others.

1. Typically they use QuickBooks for contractors to track all the costs and generate Simple Invoices which can then be input into QuickBooks Premier Contractor Edition

2. The Chart of Accounts is usually focused Goods Sold Accounts (COGS) to allocate project costs

3. The successful contractors use the Five Key Performance Indicators (KPI) to monitor the financial health of the business

4. There are usually 500 to 2,500 Items setup to track all the costs of the construction process from beginning to end

5. This is the fourth most difficult QuickBooks Premier Contractor Edition to setup because there is a mix of Direct, Indirect, COGS accounts

6. The day to day input is also the third most difficult and to be done properly requires accounting staff with specialized training in construction accounting

7. Our experience has been this group generates a stable income and can be sensitive to the ups and downs of the new construction market

8. It is unfortunate that we do see the vast majority of them unable to reach their full potential because there is no overall strategy including a Business Plan for Contractors

9. And of course Cheap Bookkeeping is the one area where short term savings is overwhelmed by making bad decisions based upon inaccurate QuickBooks for contractors reports

Service and Repair Contractors - companies like drain cleaners, emergency service electricians etc.

1. Typically they use QuickBooks for contractors to track all the costs and generate Simple Invoices which can then be input into QuickBooks Premier Contractor Edition

2. The Chart of Accounts is usually focused Goods Sold Accounts (COGS) to allocate project costs

3. The successful contractors use the Five Key Performance Indicators (KPI) to monitor the financial health of the business

4. There are usually 500 to 2,500 Items setup to track all the costs of the construction process from beginning to end

5. This is the fourth most difficult QuickBooks Premier Contractor Edition to setup because there is a mix of Direct, Indirect, COGS accounts

6. The day to day input is also the third most difficult and to be done properly requires accounting staff with specialized training in construction accounting

7. Our experience has been this group generates a very stable income because they are not as sensitive to the ups and downs of the new construction market

8. It is unfortunate that we do see the vast majority of them unable to reach their full potential because there is no overall strategy including a Business Plan for Contractors

9. And of course Cheap Bookkeeping is the one area where short term savings is overwhelmed by making bad decisions based upon inaccurate QuickBooks reports

Having Used - A number of accounting programs over the years we believe QuickBooks for contractors is the best, hands down, no contest!  For the construction trades the tiny amount of money difference between QuickBooks Pro and QuickBooks for contractors Premier Contractor Edition is worth the investment for the additional a Contractor Reports alone. Upgrading every year is a “no brainer” because of all the new features and if a contractor’s construction accounting staff only saves only 10 minutes a day the savings will more than pay for the program.

Our mission is to “Help Contractors Achieve Their Definition Of Success”. Which means we work with them and support them no matter what version of QuickBooks they use. We have observed contractors who use QuickBooks Premier Contractor Edition simply make more money. One of the questions we ask our clients is “Do you want to be Right or Rich?”

Right Is Focusing - On cutting costs wherever possible even if it means skimping on labor, material, sub-contractors, tools and equipment which in the end affects their customer’s projects in a negative way and good customer communications. Eventually those construction companies disappear into the night like wisps of smoke.

Rich Is Focusing - On offering good quality products and services by investing wisely in on labor, material, sub-contractors, tools and equipment, customer communications and outsourcing the bookkeeping. These companies seem to grow and prosper.

We Contract - With An Intuit Authorized Commercial Host company that allows us to access QuickBooks Desktop Version Online. The good news is they are great at providing 24/7 access to client QuickBooks files and nightly backup. The other news is that we need staff that is skilled in construction bookkeeping and accounting and other staff that is very experienced with Microsoft Windows Explorer File Structure because we have to upload, setup, monitor and maintain the QuickBooks data, paperless documents and internal file folders for each client. The great news is that from our client’s point of view everything just works fast and easy so they love it!

It Is Like - Having a red carpet lease for your car. The manufacturer (Intuit) makes and sells the product and the contractor buys it (QuickBooks) parks it in our garage (Hosting Service) where our mechanics keep it tuned up and running smoothly (Microsoft Windows Explorer Specialists) and the chauffeurs (construction bookkeepers and accountants) drive the transactions and paperwork into it so the contractor can enjoy the ride (passenger) and generate useful KPI Reports anytime day or night and we help them understand and use the KPI Reports

 Click Here For Phase Three Of Your Business Process Management Strategy

Profitable Construction - Companies have known about the value of outsourced bookkeeping services for a long time and now you know about it too!

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.

We Scan Your Receipts And Invoices link them to QuickBooks transactions where it is appropriate and give you back a CPA-ready packet for your tax return and we provide ongoing Cloud Based Contractors Bookkeeping Services by accountants who understand construction.

Thinking About Outsourcing Your Contractors Bookkeeping Services To Save Time And Money?

Click On The Button Below To Download A Free Guide

Business Process Management (BPM) For Contractors

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Need Help Now?

Call Sharie 206-361-3950

sharie@fasteasyaccounting.com

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 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/?__hstc=233546881.395d42e37ad0ba5f7196e2d0ee209e22.1456519474988.1456519474988.1456519474988.1&__hssc=233546881.1.1456519474988&__hsfp=1485738123 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+