It’s hard to protect your margins on the job without being able to see how it’s performing in real-time. WIP reports make it easier to get an overview of each project’s budget, percent complete, actual costs to date, and more, so you can see if it’s overbilled or underbilled. Maintaining a healthy business also means learning how to correctly recognize and report your revenue. There are four revenue recognition methods, but for the sake of this guide, we’re going to focus on the percentage of completion method (POC), which is what most contractors end up using.

Phoenix Arizona

Your change order system should track a potential change from the moment the issue is identified to the end (whether a change order was actually issued for the work or not). With this information in your accounting system, tracking things like retainage and change orders, issuing purchase orders or subcontracts, and keeping client billings on schedule becomes much easier. You’ll also use the contract’s total cost and scope of work to develop the project’s schedule of values, which breaks down individual billable tasks and their value. We try our best to keep you with the bookkeeping team you’re assigned when you come on board. If there’s any change in your bookkeeping team, we’ll let you know as soon as possible and make sure the transition is a smooth one. There are some times that we’ll request documents from you (like account statements or receipts), just to ensure the information we have is correct.

OUR expert construction ACCOUNTING Services

Bench Accounting provides unmatched online bookkeeping services in Phoenix, Arizona, conducive to the various types of businesses this city snugly nestles. Phoenix, being a hub for startups, retail businesses, and the tech industry, necessitates adept management of accounts and financial entries. As Bench, we catalyze small business owners to drive their focus on upliftment and expansion, while our proficient team handles their bookkeeping labyrinth. At Bench, we harbor a team of professional bookkeepers thoroughly familiar with the city and state’s peculiarities in terms of laws and taxes.

Construction Accounting Software

• Bench simplifies your small business accounting by combining intuitive software that automates the busywork with real, professional human support.
• At Foster Financial, we take the time to understand your business’s unique challenges.
• When you choose Oversight Bookkeepers for your construction bookkeeping needs, you can trust that your financial data is in capable hands.
• We are disappointed to hear about the closure of Van Camp’s Appliances.
• Your job costing system can make or break your company’s cash flow, profitability and effective use of staff time.
• The Scottsdale CPA team is equipped with all the latest accounting and finance gizmos to help them stay up to date with the latest trends in the finance industries.

Check out this list of the top bookkeepers for construction companies. One method some contractors use for all contracts is the cash method. However, not every company can use it.Basically, a contractor using the cash method of accounting reports cash receipts as income when received, according to the IRS, and deducts expenses when paid. A small business taxpayer is a taxpayer that (a) has average annual gross receipts of $25 million or less for the 3 prior tax years and (b) is not a tax shelter. Managing it correctly, on the other hand, that is where you need to be very careful.

Software Remediation

As a leading construction CPA firm, we provide a wide range of services to protect your business and enhance productivity. See our job costing guide for more info on organizing project expenses. To actually be effective, your cost coding system needs to be used consistently by everyone in your company. This ensures accurate and consistent data entry that will ultimately help you bid better on future projects.

Cash Flow Management: The Lifeblood of Your Business

Our team takes the time to deeply understand your business, answer your questions, help you link your accounts, and show you how Bench works. Our team is ready to learn about your business and guide you to the right solution. Don’t wait any longer to secure your assets and increase profitability. Schedule a consultation with our accounting professionals now and unlock the strategies that will elevate your bottom line. Providing accurate monthly, quarterly, and annual financial reports enabling you to make informed business decisions.

• When you partner with Oversight Bookkeepers for your construction bookkeeping services in you can expect a personalized, hands-on approach from a dedicated team of professionals.
• We prepare and file business taxes with a focus on identifying ways to keep more of what you earn.
• Partners and managers are actively engaged with clients in delivering appropriate service.
• We specialize in helping small to mid-sized commercial contractors, residential contractors, and construction subcontracting companies of all sorts.
• We can confirm Van Camp’s Appliances has received grant funding through the Small Business Financial Assistance Program.
• In addition, there are 8 Fortune 500 companies and 16 Fortune 1000 companies that call Phoenix home.

Discover how we can help you have better finances with a personalized demo from a Bench expert, ready to answer all your questions. Our platform allows you to automate data inputs from most major providers to avoid common mistakes. We partner with merchants like Gusto, Stripe, Shopify, and Square—so your finances are always accurate.

Next, make sure all retainage is accurately represented on your balance sheet. The better you’re able to integrate all the elements that affect your profitability, the better you’ll become at project management, estimating future jobs, and controlling costs on and off the job site. If you want to grow sustainably, this is a construction accounting principle you have to master. Forming solid construction accounting processes is absolutely critical if you want to grow your contracting business. The problem is, construction accounting is entirely different from accounting in other industries. From long term contracts and historically slow pay cycles to balancing costs in dynamic and unpredictable site conditions, there are a ton of factors that make financial management much more difficult.

Shortly after you sign up, we’ll give you a call to learn more about your business and bookkeeping needs. On this call, we’ll connect your accounts to Bench, and gather any extra documentation we need to complete your books. Bench simplifies your small business accounting by combining intuitive software that automates the busywork with real, professional human support. Are you looking to streamline your finances and ensure the long-term growth of your business? We’ll handle all construction bookkeeping the bookkeeping so you know it’s done right and you avoid IRS audits, overpaid taxes and disrupted cash flow in the future. We know how to build the perfect chart of accounts, and how to help your contracting business scale, while reducing taxes and the effort required to operate.