Getting Paid
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The Complete Guide to Bookkeeping for Contractors
Running a construction business takes more than doing quality work. Contractors also need a dependable system for managing finances, tracking expenses, sending invoices, and staying organized throughout the year. When I first started paying closer attention to bookkeeping for contractors, I realized it didn’t have to be complicated. What makes the biggest difference is having a…
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How Contractors Can Improve Cash Flow
Cash flow is often confused with profit. First of all, profit is the amount of money left over after all expenses are paid off. cash flow is actual or liquid cash you have currently in your possession or bank account. There Are Different Types Of Cash Flow: Self-employed contractors can improve cash flow by taking…
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How I Prepare My Construction Business For Tax Season
Quarterly taxes for self-employed You are required to file self-employment tax as well as social security and medicare tax, if your earnings are more than $400. Since I started my CPA had me file quarterly estimated tax payments. I have never been audited by the IRS and I always kept my records up to date…
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Common Estimating Mistakes Contractors Make
Cost estimating has to be accurate. It’s essential for the completion and success of any small business or larger construction buildingng project. The biggest challenge is staying on budget, meeting deadlines, and all resources are readily available. Clearly documenting the scope of the work and the inherentt details can be a challenge. However, even the…
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Why Separating Personal And Business Expense Matters
Its Absolutely Essential Don’t put yourself into a financial bind, and make things difficult for the future. Mixing your household expenses with your business expenses causes huge headaches. You can create legal issues, problems with creditors, and make planning difficult. Organizing Business Expenses: To establish an accurate view of tracking business expenses you must organize…
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How I Follow Up On Unpaid Invoices
Introduction Every contractor will eventually deal with unpaid invoices. Following up can be uncomfortable, but getting paid for a completed job is an important part of running a successful business. Over the years I have learned that a simple and professional process works best.
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Preparing My Construction Business For Tax Season Time
Preparing your taxes involves understanding specific deductions. All of which affect your taxable income. There are some key elements or strategies, that include , materials, managing cash flow, equipment rentals, and labor costs. You can benefit greatly using various deductions. Ive had additional deductions in my business, including, advertising, home/office deductions, and professional services, like…
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How I Track Job Costs On Construction Projects
Introduction Job costs refers to the tracking of expenses for a job, then comparing those expenses to your profit. Accurately tracking all costs to a job gives you the detailed breakdown of everything, including expenses in actual time, and the ability to estimate future profits. if you’re using a general ledger/spreadsheet and recording all the…
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How I Organize And Manage Construction Receipts
Introduction One of the easiest way contractors to lose money is by failing to keep track of receipts and expenses. Materials, fuel, equipment rentals, and other costs add up very quickly. Over the years I have found that having a simple system works better than trying to remember everything at tax time. This makes it…
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Common Contractor Bookkeeping Mistakes
You can stop chasing receipts all over the place. On the dashboard of the truck, in the glovebox, around the house, and in shoe boxes. Can you remember where you put the receipts yesterday or last week? If not, you can see how easy it is to get disorganized. It can be dangerously chaotic. You…
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Monthly Bookkeeping Checklist for Contractors
Running construction projects keeps contractors busy enough without having to worry about bookkeeping at the end of the month. Having a simple monthly routine can help you stay organized, understand your cash flow, and avoid surprises at tax time. At the end of each month, review every payment received from customers. Make sure all invoices…
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How Contractors Should Set Up QuickBooks
Getting Started QuickBooks Is A wide ranging software for accounting and financial management. Both small to medium sized businesses can use it. if you’re looking to simplify invoicing, expense and income tracking, bookkeeping, and payroll this is worth checking out. Contractors Can Gain Control; By Handling There Are A Few Reasons To Set Up QuickBooks.…
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QuickBooks for Contractors: What You Actually Need to Know
Many contractors hear about QuickBooks but aren’t sure if it’s worth using or if it will just make things more complicated. I’ve found that when it’s used the right way, it can actually simplify your business and help you stay organized without overthinking it.