The construction industry can be particularly challenging for bookkeeping services. Construction companies have many moving parts, from subcontractors and vendors to material purchases, equipment, machinery, and hiring occasional help.
One of the most critical aspects of any construction business is cash flow. Most projects have specific scope and completion dates, with payments based on reaching specific milestones in the project. This can make it difficult to manage cash flow and ensure all relevant data is entered into the bookkeeping system in the right account and on the correct dates.
Experienced Bookkeeping for Construction Companies
Hiring a bookkeeping service that lacks expertise and experience in providing bookkeeping for construction companies creates a challenge. Unfortunately, not understanding the many steps of the day-to-day financial record keeping and recording of expenses, revenue, and depreciation can result in missed tax savings and risk putting the company out of compliance with industry regulations.
When hiring services providing bookkeeping for construction companies, take the time to ask the following critical questions:
- What construction companies have you done bookkeeping services for in the past?
- What are your recommended practices for recording and classifying expenditures?
- Are you familiar with progressive billing?
- How familiar are you with tax laws that apply to the construction industry?
- What reporting service do you offer, and can this be customized to fit my needs and requirements?
Be sure to talk to a few different companies offering bookkeeping services. Compare prices, services, and expertise before making a final decision.
To find out more about our bookkeeping for construction companies, talk to the team at The Bookkeeper.
