Top 11 Construction & Contractor Bookkeeping Services, Companies, Consulting Firms, & Agencies

Automation reduces the likelihood of errors in financial records, leading to more reliable financial reporting and better decision-making. Shoeboxed is a receipt scanner that over a million businesses use to turn receipts into digital data with automatic data extraction for expense reporting, tax prep, and more. So, when bidding on construction projects, each cost must be carefully examined by checking current market prices to win the bid. The construction industry is subject to economic, political, weather, and seasonal fluctuations. Shoeboxed is an expense & receipt tracking app that helps you get reimbursed quickly, maximize tax deductions, and reduce the hassle of doing accounting. You can use Botkeeper to connect your books to your bank account and simplify reporting.

Tip #5: Use milestone payments to improve cash flow for construction businesses

If you don’t have a bookkeeper, you’ll be responsible for reconciling your bank accounts. One of the keys for any business is to keep track of all indirect and direct costs. Indirect costs are any costs that are vital to your business, such as equipment repair, insurance, transportation, software, etc.

Bookkeeping tech we use

For those looking to streamline their operations further, explore our post on the best construction apps to enhance your efficiency. The average hourly rate for an accountant in the U.S. is about $35, making it quite affordable for the average owner. However, these rates may vary depending on the size of your company, the number of jobs and employees you manage, and your unique needs.

Tax Season Support

Reconciling your bank accounts protects you from costly errors, construction bookkeeping services mistakes and even fraud. Keeping track of what is happening in your account can prevent you from being overdrawn, and identify any discrepancies in spending. Bookkeeping for construction companies comes with its challenges and requires a unique approach. One of these is that revenues are earned either by various projects or contracts with a long timespan. These situations can make it difficult to decide when revenues should be recognized.

Monthly and Quarterly Bookkeeping

This will make it much easier to account for your business expenses during tax time. Job costing is a process that may seem complex at first, but it’s a tool that can significantly enhance your financial management. By estimating job costs such as overhead, labor, and material costs, you can determine how much to charge for each project.

Fluctuating Overhead Costs

• Professional construction bookkeeping services can offer expert guidance, ensuring that your finances are in order, taxes are managed efficiently, and business growth is well-supported.
• When choosing a bookkeeping method, it is important to consider your business needs, the time and resources you have available, and your experience with bookkeeping.
• Choosing the right bookkeeping service is important for the financial management and growth of your construction business.
• Understanding these hurdles and how to address them can significantly improve accuracy and efficiency.
• Lastly, as Hubstaff records workers’ arrival and departure times, there is no need for them to note down this information manually.
• These situations can make it difficult to decide when revenues should be recognized.

They can also use forecasting techniques to predict future costs and adjust their budgets accordingly. One of the most significant challenges in construction is dealing with fluctuating material and labor costs. Market conditions, supply chain disruptions, and seasonal variations can cause unexpected cost increases, making it difficult to stick to budgets. Keep your focus on growing your business while we handle all your accounting needs seamlessly. Shoeboxed allows adjusting entries users to digitize these receipts by taking photos with their mobile devices and using Shoeboxed’s app to upload receipt data into a designated account.

• It is important to accurately report your taxable income and any deductions and credits you are eligible for.
• Regular audits should be conducted by an internal or external auditor to ensure that the financial records are accurate and complete.
• One of the keys for any business is to keep track of all indirect and direct costs.
• Furthermore, we can design a new system that’s specialized to the unique needs and priorities of your business.
• It is important to consult with a tax professional or the IRS to understand your tax obligations and ensure that you accurately report all taxable income.
• Follow this resource step-by-step to establish an effective accounting process, avoid costly mistakes, and make more money.
• Turn your receipts into data and deductibles with our expense reports that include IRS-accepted receipt images.

Keeping all your company’s money in a single bank account makes it harder to understand how you’re doing financially because all the money in the bank account might not necessarily be yours. Just as you have project managers overseeing each job site, it might make sense to hire a professional accountant to help you reconcile a variety of transactions for various jobs and services. You’ll also want to categorize these expenses by service, and by individual job so you can easily track how much money came in as well as how much you spent on expenses. Using an expense tracker and saving your receipts can help you keep track of all of your expenses and project profits on each job.

Our Other Bookkeeping Services

Regular review of your books and monitoring of cash flow are important practices to stay on top of your bookkeeping efforts. These software options can help construction companies manage their finances, track job costs, and create invoices. Additionally, many of these software options can integrate with other software, such as payroll software or project management software, to further improve efficiency.

Recording Income and Expenses

• Linda Rost started Better Bookkeepers in 1999, and since then the team has worked for over two decades.
• Effective construction bookkeeping is crucial for the financial health and operational efficiency of construction companies.
• Regular review of your books and monitoring of cash flow are important practices to stay on top of your bookkeeping efforts.
• This can make it difficult to track revenue and costs on a single project, let alone many.
• This includes recording income, expenses, payments, and other financial transactions that occur within a business.
• Since many construction companies charge per project, pricing can vary in the same categories from one project to another due to market fluctuations.

This will make it easy for you to send invoices online, track expenses, monitor payment status, generate financial reports, and more. You can use construction invoice templates to bill Bookstime your clients and keep a paper record of all construction projects and revenue generated. The first step for all construction firms is to open a separate business bank account that will be used exclusively for your business.