How is your bookkeeping system working for you?
THERE ARE FIVE SIMPLE STEPS TO CREATING AN AMAZING BOOKKEEPING SYSTEM IN YOUR CONSTRUCTION BUSINESS THAT WILL HELP YOUR COMPANY GROW WITH MINIMAL FINANCIAL HICCUPS.
As a 7-figure construction business owner, it’s becoming increasingly important to have systems in place that will almost guarantee financial stability for your company.
However, so many business owners don’t have these necessary systems in place!
How do I know?
Well I have worked with construction owners and the systems are so important!
And because of that, I can definitely help you overcome this!
Look, bookkeeping is an essential part of running a successful business. Without it, it’s difficult to accurately track income, expenses, and other financial information.
The good news is that setting up a simple Bookkeeping system doesn’t have to be complicated or time-consuming.
Here are five easy steps for business owners to set up a basic bookkeeping system:
- Choose the right software.
There are several Bookkeeping/ Accounting programs available to help business owners keep track of their finances. I recommend QBO because it is cloud based – so easy to access, has the ability to job cost your projects and it will integrate with apps that you use i your business. - Set up your accounts.
Create separate accounts for income and expenses. Your company needs to track where your money is coming in from and where it’s going out. - Track your transactions.
As you make and receive payments, be sure to record them in your bookkeeping/accounting software. Accurate records of your finances usually means saving money in the long run. - Reconcile your accounts.
At least once a month, go over your accounts to make sure all of your transactions are accounted for and accurate. - Stay organized.
Finally, make sure to organize all of your financial records in one place. This will make it easier to refer to them when you need to.
All accounting systems should include the ability to create basic financial reports — income statements, balance sheets, cash-flow statements, and statements of owners’ equity.
But good accounting systems will be able to create a report showing the volume of sales of specific products to specific customers over any time period, or another showing changes in purchase costs for specific inventory items over time, by vendor. The better the reporting capabilities, the more insight you have into opportunities to manage finances more efficiently.
Overall, the ability for your bookkeeping to scale and grow alongside your business is most important. You want to find a system that does not limit the number of users, accounts, or software licenses.
As you can see there are a lot of things to take into account when creating an accurate bookkeeping/accounting system that will work for your company, BUT there are also a lot of strategies a seasoned bookkeeper/accountant can implement to make the process much smoother for you.
If you don’t have a system that allows for accurate bookkeeping, robust reporting, integrated and audit features, and will scale WITH your company as you grow…
You’ll want to talk with a professional to see what you can do to get your [bookkeeping/accounting] system up to date.
If you use what I’ve shared you’ll be on the right track to implementing these FIVE simple steps to create an amazing bookkeeping system in YOUR construction business so you can grow your company with minimal hiccups.
If you need support in this area feel free to comment below with “next steps” so I can reach out to you to talk about how my team and I might be able to support you!
