You own a Construction Contracting or Subcontracting business, and by definition that means you are a risk taker. Yet, once you own your business, and you’re ready to grow you learn which risks to take and which to avoid. Taking care of your own bookkeeping is a risk you need not take.
Taking care of your bookkeeping yourself means you take the risk of missing something which costs you money. Three ways you may miss something vital concerning your bookkeeping are:
- Incorrect record keeping
- Lack of knowledge concerning various aspects of financial statements
- Misunderstanding of the restrictions, rules, and laws concerning construction bookkeeping
Incorrect record keeping
Everything from not understanding the process to simply making incorrect entries can be a source of lost time, money, and (let’s face it) your sanity.
Lack of knowledge concerning various aspects of financial statements
While generating financial reports may seem like an odious enemy to you, when you understand the reports are not only there to keep you within the bounds of the law or for the satisfaction of your financial institution, but also to help you see and understand your business’ financial position better they become more like a welcome friend.
For example, a profit and loss statement isn’t only for your bank’s review, but also an excellent tool for you to use when gauging what areas of your business are performing well and which aren’t.
Financial statements are an easy way to track money owed to your company. For example, you can look at your accounts receivable aging and see who owes you money for products and services you’ve already provided. When client A consistently pays late, or not at all, you notice quickly through the use of your financial statements and can address the problem in a timely manner.
Misunderstanding of the restrictions, rules, and laws concerning construction bookkeeping
Because our focus is Construction Contractor and Subcontractor bookkeeping we also make it our business to stay up to date concerning what is already a law or rule and what is coming down the track. Keeping you abreast of what is required is part of what we do, thereby saving you time and headache.
For instance, we recently encountered a business owner who didn’t know the MRRA rules were in effect and how he could take advantage of them to help his business.
Because TPT and MRRA both can create murky waters concerning your bookkeeping needs and requisites you risk penalties and interest in late, or unpaid taxes which can add up rather quickly.
Even more importantly, when you offload your bookkeeping duties to us you’re less likely to risk missing the opportunities which await you and your business in the form of job supervision or finding more jobs on which to bid.