See our job costing guide for more info on organizing project expenses. Maintaining a healthy business also means learning how to correctly recognize and report your revenue. There are four revenue recognition methods, but for the sake of this guide, we’re going to focus on the percentage of completion method (POC), which is what most contractors end up using.

The 11 Benefits of a Precision Accounting System

The construction industry is susceptible to business cycles, special income tax problems, information systems, financial reporting, bonding needs, and financing needs. All require special knowledge on the part of professionals who serve the industry. PCA has that knowledge and knows how to share it with our clients. Our team of experienced tax professionals will ensure that your tax returns are filed accurately and on time.

• Our team of experts is equipped with the latest tools and knowledge to provide accurate and reliable financial services.
• Of course, if you want to make your life easier, construction accounting software like CrewCost will do a lot of the heavy lifting for you.
• In addition, we also have an extensive network of professionals and contacts nationwide to address your concerns or growth beyond your immediate community.
• For example, they usually have longer billing cycles than other businesses, which means it may be difficult to forecast revenue accurately.
• Scalability is another feature of outsourced accounting services.

Specialized industry knowledge and expertise.

An effective change order management system is your first line of defense against this. Your change order system should track a potential change from the moment the issue is identified to the end (whether a change order was actually issued for the work or not). Keeping enough cash on hand is a serious challenge in our industry, especially on longer jobs.

Property Management Bookkeeping

• Devoted bookkeepers keep up with any changes to regulations that impact the construction sector.
• We work quickly and accurately to get your data into your file so you can have the most up-to-date reports for daily decision making, business planning, and growth.
• It consists of tax laws, labor rules, and standards unique to a given industry.
• At H & T Accounting and Bookkeeping LLC, we believe that quality accounting services should not come with a hefty price tag.
• Our dedicated team of professionals serves general contractors, subcontractors, developers and suppliers in the region.

The procedures consider the erratic nature of building projects. Our Paperwork System – Workflow process handles paperwork. When it arrives no matter how organized or disorganized it is we pre-process it before it enters our workflow where it is scanned and uploaded into paperless servers in the cloud. For a complete bookkeeping solution for your construction business, contact us today for a free quote. You’ll have the support you need to unlock the power of your construction management software system.

• You’ll also use the contract’s total cost and scope of work to develop the project’s schedule of values, which breaks down individual billable tasks and their value.
• You built your construction company with the tools and skills you learned on the jobsite.
• This terrain calls for specialized knowledge and constant care.
• You can now use this percentage to calculate the amount of revenue to recognize for a specific project milestone or pay period.
• They can do this by outsourcing bookkeeping to dedicated experts.

Cost and Time Effectiveness

You can avoid a fair bit of cash flow problems by negotiating more favorable retainage rates/terms with project owners. For example, instead of a fixed 10% holdback on each progress billing, you might negotiate terms that reduce that rate to 5% once the job How Construction Bookkeeping Services Can Streamline Your Projects reaches the halfway point. You Don’t Have To Organize Any Of It – In fact we wish you would not do it, because we have a system for that and everything else we do! Having owned and operated several construction companies in the past, we are not a pansy construction bookkeeping services company that needs to be pampered and are easily offended; quite the opposite. Construction bookkeeping can differ from traditional bookkeeping because construction companies have unique financial needs.