Construction is a busy world. Handling money in it can feel like being lost in a maze. You need to track changing costs and many different projects. Also, the way prices are set can be tricky. On top of that, regulations and rules are always changing. This makes managing money really hard.
But some construction businesses have found a way out. They give their bookkeeping tasks to other companies. This smart move helps them handle their money better and with more accuracy.
This guide will show you why and how to outsource bookkeeping for your construction business. It will explain the benefits and process of outsourced bookkeeping. It will also discuss how cost-effective this can be. Now let's start building the foundation for your financial success together.
Why Should You Consider Outsourced Bookkeeping?
Let's start with why before we get into how.
Bookkeeping is not merely a bureaucratic formality. It's a key pillar of your business strategy. Construction companies face unique problems, such as a wide range of projects, complicated pricing systems, and costs that change over time. This is where construction bookkeeping services make a difference.
>> Learn more: Should You Outsource Construction Bookkeeping Services?
If your business is showing these signs, it may be time to consider outsourcing accounting:
Financial tasks are consuming too much time and resources
Inaccurate financial records are leading to cost overruns
Inaccurate or incomplete record-keeping is causing missed tax benefits.
Financial forecasting is tough due to unorganized data.
What Benefits Does Outsourced Bookkeeping Offer?
So, what is the big deal about outsourced bookkeepers? They bring accuracy, timeliness, and a deep understanding of the industry, which can be hard for a small business to keep up with an in-house team. But that's not all. Here are the key benefits you stand to gain:
Hiring full-time staff can be expensive. With bookkeeping outsourcing services, you only pay for what you need.
Outsourced bookkeeping services come with a team of experts who stay up-to-date on the latest laws and regulations.
Focus on Core Business:
With the tedious work of bookkeeping taken care of, you can focus on what you do best - building great structures.
An outsourced bookkeeping service provider can help mitigate risks by maintaining accurate financial records.
These benefits make outsourced accounting a worthy investment. This is indeed true for businesses that want to achieve financial efficiency without overloading their internal resources.
CCA's outsourced bookkeeping services offer all these advantages and more. Understanding how construction bookkeeping stands out and why construction bookkeeping matters can provide further insights into the unique value CCA provides.
How to Outsource Bookkeeping for Your Construction Business
Making the decision to outsource is one thing. Knowing how to do it effectively is another. Here is a quick guide to follow:
Assess Your Needs: Identify your pain points and the services you need. This might include monthly bookkeeping, accounts receivable services, or financial reporting.
Choose Your Provider: Consider factors such as expertise in construction, price, and the services provided. CCA's construction bookkeeping services check all the boxes.
Start Small: If you're uncertain, start with a smaller project. This gives you an idea of the provider's proficiency.
Communicate Clearly: Clear, consistent communication is key. Make sure your provider understands your business goals, financial processes, and reporting needs. You can schedule a 15-minute appointment with CCA to discuss your needs.
>> Learn more: Guide to Hire A Construction Bookkeeper You Love
Is Outsourcing More Cost-Efficient than In-House Staff?
Outsourcing bookkeeping can be more cost-effective than maintaining an in-house staff. It's critical to realize that an in-house employee's total cost includes more than just their salary. To demonstrate this point, consider the following table:
A full-time bookkeeper might cost between $40,000 and $60,000 per year.
The prices might range from $20,000 to $50,000 each year, depending on the extent of services provided.
Include office space, equipment, utilities, and more.
None. The outsourced service provider covers these costs.
Health insurance, retirement contributions, paid leave, and others add up.
None. The service provider takes care of these.
Training and Development
Regular training to keep up with changing laws and industry practices is necessary, adding to the cost.
None. The service provider ensures their team is up-to-date with current laws and best practices.
Hiring and training a new employee each time a bookkeeper leaves is costly.
None. The service provider ensures continuity of service.
Clearly, outsourcing bookkeeping services can save you a lot of money. It's a great solution, especially for small and medium-sized companies. When you outsource to a construction bookkeeping specialist like CCA, you also gain their industry knowledge, which adds even more value.
How Can You Start Your Outsourcing Journey?
Once you have made the decision to outsource and selected a service provider, it's time to transition to this new way of handling your finances. Here's a step-by-step guide:
1. Define Expectations:
Ensure your provider understands your business's needs, processes, reporting schedules, and preferred modes of communication.
2. Plan the Transition
Develop a detailed plan outlining the tasks to be transitioned, the timelines, and the responsibilities of each party.
3. Ensure Data Security:
Ask the provider about their data security measures. This is crucial to protecting your sensitive financial information.
4. Maintain Regular Communication:
Schedule regular check-ins to discuss any issues, provide feedback, and ensure everything is running smoothly.
Introducing CCA - Your Partner in Financial Success
After learning why and how to outsource accounting, meet Construction Cost Accounting (CCA), a company that can transform your finances.
CCA provides construction industry-specific bookkeeping services. CCA tracks accounts payable and receivable, calculates job costs, and optimizes your WIP schedules. Set up a 15-minute meeting to learn how CCA can help you manage your finances.
Outsourcing bookkeeping for your business can save you money, give you access to specialists, and give you peace of mind. It allows you to focus on your strengths while knowing your money is safe.
CCA's outsourced bookkeeping has helped several construction companies improve financial management and flourish. Ready to see how outsourcing accounting may change your business?
Contact us now to get your business to make more money.