We all know that the strength of a building lies in its foundation. Just like a building’s structure, efficient bookkeeping is crucial to keep your construction business standing.
Construction bookkeeping allows you to keep track of your costs and income, helps improve your cash flow, and overall, gives you tools to measure the performance of your firm.
Effective Bookkeeping is what you need to build a strong accounting process for your construction business.
Leverage the expertise of our bookkeepers so you can properly monitor and record your expenses and have a better understanding of your financial situation.
How is Construction Bookkeeping different?
Construction bookkeeping is a form of bookkeeping that is unique to the industry.
Other businesses, for example, have simpler accounting processes because they sell products from a fixed location, which means that product and overhead costs relatively remain constant.
On the other hand, construction businesses have many variables that are distinct from other industries. Productions in different sites, projects that happen in extended periods and are scattered in different areas make construction bookkeeping more complex.
An organized bookkeeping system is essential to tie all costs of projects together and to complete a bid.
Its purpose is to allow contractors to monitor each project and how it affects the company overall. This is why it’s important to hire bookkeepers that are knowledgeable in construction bookkeeping.
Find construction bookkeeping specialists at Akuracy.
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Why is Construction Bookkeeping vital for my business?
As with any business, owners need to know the movement of their money. Bookkeeping helps you achieve this by having an updated record of all the transactions of your firm, which includes purchases, sales, payments received etc.
For construction contractors, efficient bookkeeping is all the more essential as it helps you keep track of various costs such as travelling to and from the site, delivery of materials and overall expenses to complete a project.
Other reasons why bookkeeping is vital to your construction firm are:
Keep Accounts in Order
Moving people and equipment to different site locations, for example, entails costs, so you need to make sure that every expense (both direct and indirect costs) is accounted for.
Remain Tax Compliant
As an entrepreneur, it is your duty to report your earnings to the government and pay the appropriate taxes. And as you know, failure to lodge taxes could lead to unpleasant legal consequences and expensive penalties
A reliable construction bookkeeping company will help update your books regularly, prepare and file tax documents for you so you won’t be having any issues with the IRS.
Get Correct Estimates for Bids
Coming up with the correct numbers during bidding is key to ensure that you will gain profit on a new project. However, with many variables to consider (e.g. job costs of labor, consultation, production of materials) underbidding could be a risk.
This is where construction bookkeeping is beneficial because it helps you get a clear picture of how much each job and project costs so you end up with the correct bid.
As construction businesses offer a larger range of services (consulting, engineering, design, etc.), it could be difficult to track each expense that comes out from each category. Proper bookkeeping can aid you to monitor these costs better.
When done correctly, construction bookkeeping will give you extensive data to evaluate your firm’s financial status on whether you’re making a profit or not. It allows you to keep track of your expenses, so you can manage your cash flow more effectively.
You can also use this financial data to determine which areas you can reduce the cost to increase your profit margin.
Can I take care of my own books?
While it could be possible for owners of smaller construction companies to handle their accounting and bookkeeping on their own, the complex nature of the industry could put you at risk of committing costly errors.
On the other hand, hiring a bookkeeper can help you understand your numbers better, manage your books, provide you with reports and help you with tax preparation and planning.
Keeping your books in order while managing projects in scattered locations is a tall task, which makes hiring a bookkeeper a sensible choice.
How much should I pay for Construction Bookkeeping?
We understand how crucial it is for construction firms to keep costs in check. That’s why hiring a bookkeeper specializing in your industry is essential to help you keep track of your expenses, help you create budgets and maximize your resources.
With a dedicated bookkeeper in your team you can: 1. Leverage their expertise on numbers that you may not possess; and 2. Focus on more crucial things that bring growth to your construction business.
At Akuracy, we offer three types of plans to construction contractors, depending on your needs.
Why choose Akuracy for Construction Bookkeeping?
Expertise, Cost-effective, Scalable
Construction Bookkeeping is a unique form of accounting, which means you need to have bookkeepers who specialize in your type of industry.
Our team of construction bookkeeping experts know how to keep your books updated so you can keep track of expenses that you need to monitor. We provide you with insightful reporting that enables you to make informed decisions for your construction business.
When you hire Akuracy, you will be assigned a bookkeeper to handle your account. In addition, you’ll be working with a team of number-crunchers whose sole purpose is to help you with your financial records.
Having experience in construction bookkeeping, our bookkeepers can determine tax exemptions that you are eligible for, which could reduce your tax liabilities.
Imagine having a number of experts on your side helping you manage your books. Your life would be so much easier!
Another great benefit of outsourcing construction bookkeeping to Akuracy is that it’s cost-effective. You only pay for the services that you need, when you need them.
Besides effective bookkeeping, we can also assist you in reconciling your accounts, provide you with monthly reports, payroll processing and more. We provide you with support where you require us.
Whether you’re a budding construction contractor or an established firm that needs bookkeeping support, you can rely on Akuracy’s expertise in Construction Bookkeeping.
Make us part of your team today so you can build a reliable foundation for your construction business and position it for growth.
No Credit Card Required
Simple Software & Clean Monthly Reports
Use the reporting tab in the menu on your dashboard to see your monthly, quarterly and yearly financial reports.
No Credit Card Required