Running a construction company takes both a front and a back office. Hiring a service that specializes in bookkeeping for a construction company provides an experienced, knowledgeable professional with the ability to track, record, and support your daily company financial transactions.
Services that offer bookkeeping for a construction company will do more than just data entry. In addition, they may offer the following invaluable services that are unique to the construction industry.
Project Cost Tracking
Construction projects often involve multiple costs and expenses, including labor, materials, equipment rentals, and subcontractor payments. It is crucial to choose a bookkeeping service that can effectively track and allocate costs to specific projects. This level of detail will help to understand the profitability of individual projects and provide data for future projects.
Job Costing and Profitability Analysis
An experienced bookkeeping service can provide job costing reports outlining the expenses and revenue based on individual projects. These reports can help you analyze the profitability of your projects and identify areas where costs can be optimized. Understanding which projects are generating the most profit will enable management to adjust throughout the project to stay on budget.
Real-Time Financial Reporting
Construction businesses require up-to-date financial reports to make real-time decisions based on opportunities and cash flow. Ask potential bookkeeping services about their turnaround time for delivering financial statements, such as balance sheets, income, and cash flow statements.
When considering bookkeeping services for a construction company, keep in mind any unique requirements you have as a company. It is also important to look for a bookkeeping service that provides a dedicated bookkeeper for your construction business.