Bookkeeping is much like going to the dentist - no one really wants to take time out to do it but neglection could lead to repercussions and business failure. It’s a back-end function even though it’s time-consuming and proves a distraction from running your business. As a result, hiring a bookkeeper can free up your time to spend on more productive tasks directly related to growing your business. If you are wondering whether to train an employee to become an in-house bookkeeper or outsource your construction bookkeeping, the article will make clear your question.
Construction Bookkeeping In-house vs Outsourced
Most construction companies lack the budget or interest in hiring a full-time bookkeeper. Since construction company owners have got enough on their plates managing their clients, jobs, vendors, and crews. They don’t want to carry associated payroll costs, insurance, or the responsibility of managing one more person.
Additionally, bookkeeping for construction contractors is not like bookkeeping for most other businesses. In addition to standard bookkeeping and accounting rules including accounts payable, accounts receivables, payroll management, construction owners deal with job costing, retainage, job biddings, progress billing, and more. That is why construction businesses need a bookkeeper with industry experience to monitor the complex bookkeeping system of the construction industry. Unless you invest thousands of dollars in their construction bookkeeping education for the in-house bookkeeper, it’s hard to have a high-skilled in-house bookkeeper who fully understands how to perform bookkeeping for your company.
Outsourced construction bookkeeping, on the other hand, with their experience and expertise in construction, can handle complex bookkeeping and accounting rules and tax regulations. They are familiar with journal entries and construction accounting software so that they can generate accurate financial reporting that helps you make better business decisions.
In most cases, outsourcing bookkeeping services for construction contractors are becoming an appealing and economical option. Read on to explore why you should hire a construction bookkeeping service.
Why construction contractors should outsource bookkeeping services?
It’s obvious that an outsourcing bookkeeping professional can provide a much-needed skillset while being budget-friendly because they are not full-time and don’t require the benefits that employees do. If you are wondering whether you should outsource construction bookkeeping services or not, here are several benefits you can take into account.
Skilled construction bookkeepers implement accounting software to accurately track financial transactions. They accurately record and categorize daily transactions going in and out of your business, track progress on each job, identify change orders or cost overruns, provide points of reference for future bids and provide data for forecasting.
A construction bookkeeping service with a bookkeeping team can help manage cash flow effectively. They stay on top of customer billings and ensure timely payments. They also help you apprised of your cash flow position with enough lead time to take action and avoid cash flow problems.
They ensure compliance with construction-specific rules and regulations. They know the ins and outs of prevailing wage laws, and sales and income tax regulations which, if done incorrectly, could result in significant legal and financial exposure.
A bookkeeping expert can provide you with timely, trustworthy financial statements. They give you full control of your business’s financial aspects with accurate financial statements and reports. And based on the figures, you can make an informed decision.
How does Construction Cost Accounting Benefit Construction Contractors?
Construction Cost Accounting offers confidential and professional bookkeeping services for construction contractors. With an expert team of bookkeepers and CPAs on your side, you’ll get the financial reporting you need to achieve and maintain consistent profitability. Here's how Construction Cost Accounting helps your business create a blueprint for success:
We keep your books up-to-date and generate accurate financial reports that you need to optimize your business operations.
We offer the total package outsourcing solution for construction contractors that are customized to fit your business’s demands, removing all the burden of doing books yourself or using your family members.
You can gain an unbiased perspective to fully understand the financial picture of your business and take advice from our professional bookkeepers and accountants.
Your data and business information are absolutely secure and confidential.
You can have full control of your business, and better understand your business’s cash flow and expenses. You have information for planning and creating effective budgets and accurate project biddings for a successful future.
Our outsourced construction bookkeeping services are available anywhere in and outside of California.
Contact the Construction Cost Accounting and meet our best bookkeepers for consultants.